Business

Apply to turn residential units into homestays, Muda Penang tells owners

Owners must fulfil necessary preconditions under MoTAC, notes party

Updated 4 years ago · Published on 17 May 2022 10:00AM

Apply to turn residential units into homestays, Muda Penang tells owners
The Malaysian Association of Hotels vice-president Khoo Boo Lim welcomes the initiative by Penang to regulate short-term rentals, but said there must be a level playing field between homestay providers and hotels that are fully licensed. – Pixabay pic, May 17, 2022

by Ian McIntyre

GEORGE TOWN – Residential condominium owners should not be allowed to rent out their units for short-term rentals, but instead apply for a special permission to turn it into a homestay, said a Penang Muda leader.

In a statement to The Vibes, the youth party’s parliamentary head for Tanjong, K.N. Lee said these owners must also fulfil the necessary preconditions under the Tourism, Arts, and Culture Ministry.

She added that under Regulation 8(9) of the Third Schedule of Strata Management (Maintenance and Management) Regulations 2015, residential buildings cannot be used outside of the plans approved by the authorities.

The regulation states “a proprietor shall not use or permit to use his parcel contrary to the terms of use of the parcel shown in the plan approved by the relevant authority”.

Considering the various developments regarding homestays, Lee urged the state government to initiate a discussion with global homestay services provider Airbnb, citing that perhaps service apartment owners be allowed to lease their units out.

“Tanjong Muda hopes whatever is decided can spare condominium owners the agony of living among unwelcome visitors.”

Meanwhile, the Malaysian Association of Hotels vice-president Khoo Boo Lim welcomed the initiative by Penang to regulate short-term rentals, but said there must be a level playing field between homestay providers and hotels that are fully licensed.

It was previously reported that there are about 66,000 Airbnb providers in the country as of 2019, but the number is believed to have fallen due to the impact of the pandemic.

Khoo told The Vibes that hoteliers accept the presence of homestay providers, but they must be regulated just like the hotels, from the fire safety code to food and beverages, as well as accommodation hygiene levels.

“In an open market setting, it is difficult to prevent people from leasing out their places. They may find a way, but the question is are they regulated? Are they insured? I told the state that we must find a way to ensure a uniform set of safety and security codes for tourists (tenants).”

Khoo questioned who will be held responsible for tenant safety should a fire break out in a high-rise living building, as well as other security concerns. 

Penang Housing, Local Government, Town and Country Planning Committee chairman Jagdeep Singh Deo said he would propose the state sanction a ban on unlicensed short-term rentals.

The ban may come as early as tomorrow when the state executive council meeting chaired by Chief Minister Chow Kon Yeow is held, Jagdeep told a press conference here yesterday. – The Vibes, May 17, 2022

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