Penang govt to ban short-term rentals, homestays

GEORGE TOWN: The Penang state executive council has agreed to not allow “check-ins” at landed and high-rise buildings for short-term rental homes or homestays.

However, state housing committee chairman Jagdeep Singh Deo said no date on the ban has been decided yet.

“Whether people like it or not, we will be firm on this. Housing areas are for residents. If you are holidaying, go to a hotel,” he told an online news portal.

Jagdeep said the ban would come in the form of a “guideline” which will be passed to local councils for enforcement.

He said the guideline, among others, would empower management bodies of apartments, condominiums or any stratified properties to take action against errant homeowners who allow short-term rentals.

Jagdeep had said in 2021 that the joint management bodies (JMB) and management committees (MC) of residential buildings have the right to lay down house rules to prevent homestays and short-term guests.

He said the JMB and MC of strata schemes are allowed to enact a bylaw to prevent short-term accommodations under Section 70(2) of the Strata Management Act 2013 (SMA).

Jagdeep added that the JMB or MC could issue a compound to the owner if the residents are not agreeable to the idea and the unit owner insists on continuing the homestay business.

“Under the Strata Management Act, 2013, the JMB and MC can enact their own bylaw to compound the owner RM200 for each time the unit was rented out for a short-term stay," he had said.

Jagdeep added that the JMB and MC-issued compounds to the unit owner can be referred to a tribunal if there are disputes or if they are not paid.

He had also said if unit owners want to rent their units out to short-term guests or turn them into homestay units, 75% of the residents there must first agree to it.