PETALING JAYA: As short-term rental accommodations (STRA) are increasing in popularity, stakeholders are advocating for a single, comprehensive law to govern them across Malaysia.
While the government has proposed national planning guidelines for these rentals, consumer groups say more must be done to safeguard renters, particularly students.
Federation of Malaysian Consumers Associations (Fomca) chief executive officer Dr Saravanan Thambirajah highlighted the current patchwork of planning and local government by-laws, which are inconsistently applied across states and local authorities.
“This fragmented approach allows short-term rentals, popular among students, to operate in a grey area without consistent safety or accountability standards,” he said.
Saravanan acknowledged that the proposed Uniform Planning Guideline (GPP) for STRA, developed by the Housing and Local Government Ministry through PLANMalaysia, was a positive step.
These guidelines, which will be presented to the Cabinet before being tabled at the National Council for Local Government, aim to clarify which residential properties can be rented, outline safety requirements, and define host and operator responsibilities.
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Saravanan noted that requiring hosts to register or obtain licences from local authorities would ensure they are identifiable and accountable, addressing the lack of verification in current listings.
“Renters currently have limited protection. Without dedicated legislation, tenants, especially students seeking affordable or flexible housing, are exposed to risks like unsafe living conditions and fraud,” he said.
“Most agreements fall under general contract law, making it unrealistic for students or low-income tenants to pursue civil action if issues arise.
“This lack of legal protection has led to an increase in scams involving fake agents and unverified listings.”
Mustapa Kamal Mohd Razali, administrator of the Tenants Rights Malaysia Facebook group, echoed this sentiment, and stressed the need for clearer regulations to protect young tenants.
“First-time and international students, unfamiliar with Malaysian practices, are easy targets for fake listings and fraudulent agents,” he said.
“Without proper regulation, accountability is weak, leaving students to bear the financial and emotional burdens when problems occur.”
Mustapa Kamal, a chartered accountant and business consultant, suggested that better regulation, including compulsory licensing of operators, would not stifle the market but strengthen it.
He added that tighter rules would help universities and communities reduce safety incidents, unauthorised stays, and nuisance complaints.
When contacted, Housing and Local Government Minister Nga Kor Ming (pic) said the STRA guideline was prepared as a reference for all local authorities in Malaysia to cover rentals of less than six months.
This was because such short-term rental accommodation are also mainly used by tourists.
“Among the key provisions in the guideline are regulatory controls for STRA hosts, which fall under the jurisdiction of local authorities.
“These include categories of permitted residential premises, registration and licensing requirements, safety measures, duration of stay, and enforcement mechanisms.”
Nga said PLANMalaysia has also submitted the GPP to the Tourism, Arts and Culture Ministry to strengthen the regulation of the STRA ecosystem and tourist accommodation premises.
“Meanwhile, local authorities will be responsible to issue the relevant permits.
“The Penang state government and the Petaling Jaya City Council are among the state and local authorities that have taken proactive measures to regulate STRA and can serve as useful references for other states,” Nga said.
