5 days ago
- Business
- New Straits Times
Short-term rental rules under review to protect consumers
KUALA LUMPUR: The Tourism, Arts and Culture Ministry (Motac) and the Housing and Local Government Ministry (KPKT) are currently in the process of reviewing the planning guidelines for Short-Term Rental Accommodation (STRA).
Its deputy minister, Khairul Firdaus Akbar Khan, said the review incorporates input from various stakeholders and aims to develop an appropriate and effective mechanism for monitoring service quality within the STRA ecosystem.
"To address issues related to STRA, KPKT, through the Town and Country Planning Department, has developed the planning guidelines as a reference for all local authorities across Malaysia.
"The guidelines outline several regulatory aspects for STRA hosts, including the categories of residential premises allowed, requirements for registration and licensing, safety considerations, duration of stay, and enforcement actions.
"Since the regulation of tourist accommodation premises falls under the jurisdiction of state governments and is administered by their respective local authorities, Motac and KPKT are currently reviewing the STRA planning guidelines," Khairul told the New Straits Times today.
He said the Penang government and the Petaling Jaya City Council are among the local authorities that have taken proactive steps in regulating STRA, and they could serve as models for other states in Malaysia.
STRA refers to the rental of residential properties — such as apartments, condominiums, or houses — for short-term stays, typically of less than 30 days.
On June 3, Malaysian Budget and Business Hotel Association president Dr Sri Ganesh Michiel had urged the government to address the issue of unregulated STRA and the unlicensed sale of lodging options through online travel agencies (OTAs) and social media platforms.
Ganesh said five key issues stem from the lack of regulatory oversight, including safety risks to tourists due to non-compliance with fire safety and health standards, as well as disturbances to residential communities caused by unchecked transient occupancy.
Other concerns include loss of tax revenue for local councils and the federal government, distorted market pricing, disadvantageous law-abiding hotel operators, and weak consumer protection, leaving tourists vulnerable to scams and unsafe premises.
