Sentiment of Airbnb varies across Malaysia with some hosts being restricted.
Founded in 2008, Airbnb is now a household name. An online marketplace with a global reach where owners, known as hosts, can rent out their properties for any length of time. The host is responsible for marketing their property. They add comprehensive details about their listing that includes a description, photographs, location and house rules. The terms of the letting are transparent. For example whether pets or smoking are permitted and the length of stay. Amenities such as Internet, doormen and safety features are also highlighted.
Every host and user has a profile. Each can review each other which aids in users assessing the suitability of prospective bookings. Booking is made easy and is all done online.
Airbnb has created a whole new industry. It has allowed people to rent out their homes privately to generate an income. It is predicted that there are 100 million users and 640,000 hosts. With an estimated 2.3 million listings worldwide there are 500,000 stays occurring every night. Listings are across 65,000 cities in 191 countries. The most active city is Paris where stays average 2.9 days longer than stays in a hotel. This longer duration boasts the local economy and figures from Airbnb reveal that the company generated USD 240 million in economic activity in Paris alone.
What the law says
The rules for short term rentals vary across Malaysia. For example there are no requirements for hosts to hold a license in Kuala Lumpur to let their property out. This is provided that the property is being used solely for residential purposes. However, each building may have their own individual rules that restrict lettings of a certain period of time in order not to disrupt other residents of the buildings. These rules must be adhered to.
There is a different story however on Penang. The Town and Country Planning Act of 1976 plus the Trades, Businesses and Industries By-Laws of 1991 by Municipal Council of Penang Island are two laws which hosts are in breach of should they let their properties for a short term. Any property that is let on a short term is considered a hotel, serviced residences or lodging house. As such they require approval from the local planning department in order to use the property in this way. Anyone not seeking this prior approval could receive summonses according to the Environmental Health and Licensing Department.
Nevertheless the power of Airbnb is recognised within Malaysia. The federal government have little interest in regulating this sector of property leasing. This is according to the Urban Wellbeing, Housing and Local Government Ministry. However as laws can change quickly it is advised that anyone wishing to let out their property for a short term keeps an eye on any new proposals on a local and country level.
