Malaysia's short-stay rental framework to retain strata rules, seek platform licence checks

Malaysia's proposed short-term rental accommodation (STRA) framework would retain strata management rules while limiting legal operations to registered premises that meet local authority licensing conditions. Digital platforms are encouraged to introduce automated licence checks before listing prope

PETALING JAYA (Oct 26): Malaysia’s proposed short-term rental accommodation (STRA) framework would retain strata management rules while limiting legal operations to registered premises that meet local authority licensing conditions.

The government is also encouraging digital platforms to introduce automated licence checks before listing properties, Deputy Housing and Local Government Minister Datuk Aiman Athirah Sabu told the Dewan Rakyat on Monday (Oct 26). She said platforms must take responsibility for removing listings of unlicensed premises and those breaching local authority conditions or existing laws, Bernama reported.

The Housing and Local Government Ministry, through PLANMalaysia, is preparing the guidelines with the Tourism, Arts and Culture Ministry (Motac), state governments and local authorities. The document is undergoing final review with Motac before being submitted for Cabinet consideration. It would then go before the National Council for Local Government for agreement ahead of adoption by state governments and local authorities.

For strata properties, Aiman Athirah said operators would remain bound by the provisions and by-laws of their respective joint management bodies (JMBs) or management corporations (MCs) under the Strata Management Act 2013. In the 2020 Verve Suites Mont’ Kiara case, the Federal Court upheld an MC’s house rule prohibiting short-term rentals despite the land’s express commercial-use condition, according to law firm Skrine’s commentary on the judgment.

Aiman Athirah was responding to Syerleena Abdul Rashid (PH–Bukit Bendera), who raised residents’ complaints about security, noise, misuse of common facilities and unfamiliar visitors entering residential buildings, The Star reported. The guidelines would cover registration, safety, cleanliness, operational management and operators’ responsibilities towards surrounding communities.

On enforcement, Aiman Athirah said local authorities and enforcement agencies could act against non-compliant operators under existing laws, including the Town and Country Planning Act 1976, the Street, Drainage and Building Act 1974 and relevant by-laws. Addressing a proposed 180-night rental cap, she said any limit must balance owners’ income opportunities and tourism demand with public safety, order and residents’ wellbeing. A regulatory impact assessment conducted during preparation of the initial framework examined compliance costs, rental income, effects on the hotel and tourism industries, accommodation options and community welfare, according to The Star. No nationwide cap was announced.

The federal initiative comes as Penang revises its own private short-term accommodation rules following feedback from operators and other stakeholders. Amendments announced on Oct 23 would raise the maximum number of rooms per premises to 10 from five, subject to local authority conditions, and reduce fees for smaller operators. The changes are scheduled to take effect on Jan 1, 2027, Bernama reported. The annual licence fee for a unit with up to three rooms would fall to RM500 from RM1,000, with an additional RM200 annually for each of up to two extra rooms under that fee arrangement, state publication Buletin Mutiara reported.

Separately, the annual private accommodation fee, known as Fi TIP, would change from a flat RM1,800 per unit to tiered charges: RM400 for one room, RM600 for two, RM800 for three and RM1,000 for four. Premises with five to 10 rooms would pay RM1,800. State Local Government and Town and Country Planning Committee chairman H’ng Mooi Lye said the amendments would also clarify the distinction between private accommodation and hotels to prevent hotel operators from reclassifying their businesses to circumvent hotel licensing requirements. The state executive council approved the amendments on Oct 19, and they were undergoing gazettement when announced. Operators would still have to comply with applicable licensing conditions, he said.