Malaysia

Penang first in country to regulate short-term accommodation like Airbnb

New by-law states services can only be offered if 75% of residents agree to allow it in building

Updated 5 years ago · Published on 16 Mar 2021 2:01PM

Penang first in country to regulate short-term accommodation like Airbnb
Those in Penang found allowing temporary rental of their properties commercially without approval will be liable to a daily compound of RM200 for the length of the stay. – Pixabay pic, March 16, 2021

by Ian McIntyre

GEORGE TOWN – In a landmark move, Penang has become the first state in the country to regulate developments in the homestay industry with new building by-laws.

State Housing Committee chairman Jagdeep Singh Deo said that the by-laws will come into effect immediately, after local authorities had raised awareness about the issue for the past two months.

With the new by-law, Penang aims to check growing concerns about short-term accommodation (STA), homestays and home-sharing apps.

“With such provisions, I hope that the days of illegal accommodation will be put to rest,” Jagdeep said here today.

The by-law ensures that services and platforms, such as Airbnb, can only operate in a building if 75% of its tenants agree to it at an annual general meeting of the unit owners.

Those found allowing temporary rental commercially without approval will be liable to a daily compound of RM200 during the length of the stay, followed by court action and possible seizure of the property if they continue to defy the by-laws.

Joint management corporations (JMCs), and housing residential associations or committees will have the power to enforce the new by-laws.

In voting for the by-laws by state’s building commissioners, of 271 respondents, 261 disapproved of the STAs.

The 10 others who approved of the STAs were mostly from the Batu Ferringhi tourism belt areas.

State Housing Committee chairman Jagdeep Singh Deo says he hope the days of illegal accommodation will be put to rest with the new by-laws. – Facebook pic, March 16, 2021
State Housing Committee chairman Jagdeep Singh Deo says he hope the days of illegal accommodation will be put to rest with the new by-laws. – Facebook pic, March 16, 2021

The new by-laws, which are applicable to both the island and mainland, follows 266 JMC complaints lodged against STAs.

The Malaysian Association of Hotels (MAH) is the main pressure group behind the move to regulate all forms of commercial accommodations.

Vice-president Khoo Boo Lim said the move is a step in the right direction.

Meanwhile, Jagdeep said city councils and building commissioners’ offices will work closely with residential representatives to streamline the new set of by-laws to ensure STAs are regulated.

“Now, there are more than enough places to stay. People need not come to stay in residential high-rise buildings,” said Jagdeep.

Former Tanjong MP Ng Wei Aik, who is now a property management consultant, said that many JMCs have received complaints of strangers staying in their project schemes, despite the ban on interstate travel under the movement control order.

“Where did these people come from? Now, with these by-laws, the JMCs can control who comes and goes. 

“There will be a standard operating procedure for all visitors and no STAs, if the majority of the owners dislike it.” – The Vibes, March 16, 2021

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