Airbnb is Illegal in Sabah

17 Oct 2017

 
With laws relating to Airbnb varying from place to place, property owners looking to list their homes at Airbnb have been urged to review the respective laws within their area to ensure that their operation is legal.

Notably, Airbnb operations is banned at various cities, such as Singapore, London, Amsterdam, Paris, Berlin and Barcelona. It is also prohibited in Sabah, said Christopher Chin, a lawyer from the Sabah Law Society (SLS).

“When you lease your property on Airbnb, Airbnb will assume that you have done your homework and that you have established that Airbnb’s operations are legal in Kota Kinabalu,” he said.

Chin noted the guest’s occupation of the owner’s property is by way of licence and not tenancy, providing the owner or host the right to access or enter the rented premises.

“Airbnb is a commercial activity because it has the following characteristics, namely, short-term use, absence of exclusive possession, housekeeping services and the fact that it is subject to the Innkeepers’ Ordinance,” he said.

“For a building to qualify for Airbnb it must be designed for commercial use under the Development Plan (DP).” The owner must also comply with the fire safety requirements by the Fire Department (Bomba), he added.

In August, Kota Kinabalu City Hall (DBKK) revealed plans to set guidelines for Airbnb operators within the state.

“We had conducted two meetings so far. During the second meeting, we had invited all the professional bodies, hotel associations, Stops and Shareda,” said Sally Edward Ghani, head of Building Plan Section at City Hall Planning Department.

“At the moment, Airbnb is illegal in Sabah. We cannot establish who is the operator for Airbnb. We do not have the list.”

 

Image sourced from Airdna.

 

This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email editorialteam@propertyguru.com.my

 

For the latest property news, trends, resources and expert opinions, visit our Property News section. Home buyers, sellers or property renters looking for Malaysian Properties, may like to visit the New Launches or Project Reviews page.

Paul Wong
Nov 10, 2017
To Mr Adam Lee, here is the thing about this. If you don't classify Airbnb's product which is the short term rental as a business, what do you classify it as, It is by default a business, which is equivalent to a hotel. You can use all the jargon under the sun but when the result is a an apple, we call it an apple. It is illegal mind you as confirmed by the KK City Council on October 16th.
VMV Senibong
Nov 08, 2017
Honestly Property Guru, you should help verify facts before publishing articles. It will help your credibility. From what I understand, unless Christopher Chin can cite the Statute or Act that makes Airbnb illegal, his words frankly are just propaganda. From my understanding, in Malaysia, there is no statute or act that explicitly forbids short term rental.
Adam Lee
Oct 22, 2017
What makes AirBnB.com different from Mudah.com / any other similar online rental platform? Whereas AirBnB services / website is a commercial business of which their objective of providing such online rental platform services to public users is to make profit. This is because any users either a property owner or a tenant seeking accommodation has to agree to pay certain fee for the usage of such platform or any of AirBnB services. This is somewhat similar to Mudah.com platform which allow local users to advertise their listing and to manage their rental property and financial cash flow. Can one claim the property owner advertising and managing their listing via Mudah.com is engaging an illegal activity? Whether AirBnB or Mudah.com, the owner has no means of doing a “Business” as such online platforms are merely for advertisement and managing their cashflow.
Adam Lee
Oct 22, 2017
AirBnB Host is NOT ILLEGAL and it is NOT a Business One must understand the definition of “Business”. Business is an activity with the intention of making profit. However, one must understand the differences between AirBnB services and AirBnB host. AirBnB is illegal only if this is specifically banned under the local law which clearly it is not the case today. An AirBnB host is a person either owns or tenant of a listing who uses AirBnB services as a platform to manage their hosting schedules and monetary in return by hosting their space to anyone they were made known prior. Henceforth, an AirBnB host is not subject to commercial activity as their guest has the opportunity not to pay the host anything in return as long as both parties agreed to such conditions. What makes AirBnB.com different from Mudah.com / any other similar online rental platform?Can one claim the property owner advertising and managing their listing via Mudah.com is engaging an illegal activity?
POST COMMENT

You may also like these articles

I Don’t Like Airbnb Coming into My Apartment

 I don’t really fancy Airbnb, plain and simple. What influenced my stance on Airbnb is through my personal observation on the incoming and outgoing of foreign guests around my apartment recentl

Continue Reading7 Sept 2017

Sabah Open to Airbnb- With Conditions

  The City Hall (DBKK) mulls changing its rules for residential properties to help legalise Airbnb operations.“We are in the process. As it is now, it is not going according to our by-laws. We will

Continue Reading26 Sept 2017

Airbnb Not Exempted from Tourism Tax

  Foreigners booking their accommodation via Airbnb will have to pay the RM10 tourism tax – much like foreigners staying at hotels – effectively soothing complaints from the hotel industry.This c

Continue Reading12 Oct 2017