Short-term rentals still allowed on mainland Penang

GEORGE TOWN: There will be no ban on short-term rental accommodation (STR), such as those provided via Airbnb, on mainland Penang.

However, operators of existing STRs in apartments or condominiums on the mainland must now register with the Seberang Perai City Council (MBSP) and comply with regulations similar to those governing commercial outlets.

According to the guidelines obtained by FMT and confirmed by MBSP, owners of apartments or condominiums in Seberang Perai are required to pay a security deposit of RM1,000 to RM3,000, along with other fees to the joint-management bodies (JMB) or management corporation (MC) of their respective properties.

The other payments due include a registration fee, ranging from RM100 to RM250, and an annual fee of RM250 to RM500.

STR operators must also obtain the approval of fellow apartment or condominium owners with at least 75% of them voting in favour at the JMB or MC’s annual general meeting.

Currently, all strata properties, except for low-cost, low-medium cost, affordable homes (purchased below RM300,000), and PPR flats, can be used as STRs.

Meanwhile, those hoping to use their landed properties as STRs have to pay all fees and the security deposit to MBSP.

However, the final decision to allow landed properties including bungalows, semi-detached houses, and terrace houses, rests with MBSP.

Approval must also be obtained from the town and country planning department, the building department, and the fire and rescue department.

All landed properties used as STRs must also have appropriate lighting, ventilation, and railings similar to that of commercial buildings.

An application for a licence must include a fire escape plan, adequate firefighting equipment, and a declaration of the maximum occupancy capacity.

Once the relevant departments provide their approval, MBSP will issue a licence that must be renewed annually. The proposed fees for the licence include RM50 in administration fee, RM1,000 for each landed unit, and an STR fee of RM10 per unit, all payable to the council.

The Penang government recently established general guidelines for STRs in response to complaints of nuisance in some neighbourhoods. Only commercial high-rises are allowed for STRs on the island, with landed properties strictly barred from operating an STR.