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Penang Bans Short-Term Rentals Such As Airbnb & Homestays In All Residential Properties

Meanwhile, commercial property owners must obtain approval from their respective joint management bodies (JMBs) or management corporations (MCs).

Cover image via Pixabay/New Straits Times & New Straits Times

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Penang has banned all forms of short-term rental accommodation, such as Airbnb and Booking.com homestays, in residential properties, effective immediately

According to Free Malaysia Today, the Penang Island City Council (MBPP) passed its guidelines regulating short-term stays on the island yesterday, 25 May.

This comes months after the Penang government first announced in April 2022 that it was looking to impose a ban on short-term rentals of both landed and high-rise properties to help revitalise the state's hotel industry.

While the rental of all private residential properties has been banned, the rental of commercial properties will now also be strictly regulated

MBPP mayor Rajendran Anthony said those planning to offer short-term rental in commercial properties must obtain approval from their respective joint management bodies (JMBs) or management corporations (MCs).

The six types of commercial properties include serviced apartments, small office home offices (SoHo), small office flexible offices (SoFo), small office virtual offices (SoVo), office suites, and duplex offices.

Besides that, the property owners must obtain a 75% 'yes' vote from other residents of the building.

Those looking to rent out their commercial properties on a short-term basis will also have to pay an annual fee ranging from RM250 to RM500 a year per unit

Owners must also pay a RM250 registration fee for new units being put up for short-term rent. Rajendran said the amount will be collected by their respective JMBs and MCs.

The host must also obtain special permits from the MBPP and Registrar of Companies to show their respective JMBs.

Each rental is also only allowed to be rented out for a maximum of three days a week, or 180 days a year.

The ban does not cover mainland Penang, but Seberang Perai City Council is also soon expected to regulate short-term rentals

Last year, The Vibes reported Penang housing committee chairman Jagdeep Singh Deo saying that it is unfair for residents to tolerate noisy, dirty, or rowdy travellers who rent homestays at their apartment buildings or neighbourhoods.

Meanwhile, Airbnb has expressed concerns about the move to impose the restrictions, as it would hurt many other livelihoods.

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