How can one stop you from running Airbnb or short term rentals?

Malaysia has encountered a rise in Airbnb accommodation as the popular vacation rental platform allows owners to rent out their properties to guests and at the same time, provides guests better and more affordable accommodation choices.

Based on an Airbnb survey of more than 2,000 Malaysian hosts and guests, half of the Airbnb hosts said it had helped them pay for their homes while 40% said Airbnb provided a supplementary income for them to make ends meet. As more Malaysians are relying on Airbnb to settle their mortgages, Malaysia has been Airbnb’s fastest growing country in Southeast Asia for two consecutive years straight.

This may inspire you to turn your own home into an Airbnb but before doing so, here are the things you need to look into.

Although the government has declared that Airbnb is legal, apartment and condominium owners may only rent out their units on Airbnb if their management’s bylaws permit it. In the court case of Verve Suites Mont Kiara Management Corporation v Innab Salil and 20 others (Kuala Lumpur High Court Civil Suit No. WA-22NCVC-461-09/2017), the federal court has ruled that management corporation communities of residential strata buildings have the right to prohibit short term rental of residential units in buildings.

Under the Strata Management Act 2013, your building’s Joint Management Body (JMB)  aka condo management has the right to make additional by-laws as they see fit. 

This court case is the first precedent case concerning Airbnb or short stay in Malaysia, and its outcome is likely to set an example for similar coming cases. 

What does this mean to unit owners?

It is up to your building’s management whether or not you’re allowed to host an Airbnb. Hence, be sure to check with your condo management if Airbnb hosting is allowed in order to avoid violation and all the hassles that follow. Otherwise, you may be fined up to RM200 for each infringement.