---
title: "AirBnB Short-Term Rental Regulations & JMB Bans Malaysia 2026"
description: "Airbnb is legal in Malaysia, but a JMB or MC can ban it by special resolution and fine up to RM200 per breach. Federal Court ruling, STRA guidelines and tourism tax."
datePublished: "2026-07-28"
dateModified: "2026-07-28"
canonical: "https://www.superhomes.my/resources/airbnb-short-term-rental-regulations-malaysia"
---

# AirBnB Short-Term Rental Regulations & JMB Bans Malaysia 2026

**AirBnB Short-Term Rental Regulations & JMB Bans Malaysia 2026**

Short-term residential accommodation (STRA) means renting out a home by the night through Airbnb, Agoda Homes, Booking.com and similar platforms. It is legal in Malaysia, and no federal law bans it. Three sets of rules still decide whether **your** unit can do it: the building's strata by-laws, your local council's licensing, and tax.

Short-term letting has caused friction in many condominiums. Long-term residents complain about security, noise, lift congestion and wear on shared facilities. Management bodies have answered with house rules, and in 2020 the Federal Court confirmed that a management corporation can ban short-term rentals by by-law (*Innab Salil & Ors v Verve Suites Mont' Kiara Management Corporation*, details below). At national level, the Housing and Local Government Ministry (KPKT) and the Tourism, Arts and Culture Ministry (MOTAC) have been preparing a licensing framework for STRA operators.

This guide covers what the law says, how a JMB or MC can lawfully ban Airbnb and what fine it can impose, why a commercial title does not protect you, and a compliance checklist for hosts. Every legal figure below was checked against the Act text or a primary report on 30 Sep 2026.

---

## At a Glance: AirBnB & STRA Regulatory Rules in Malaysia

| Layer | What applies | Key point |
| :--- | :--- | :--- |
| **Federal law** | No statute bans or licenses STRA as such | Legal by default. Other rules decide your unit |
| **Strata by-laws (SMA 2013)** | A JMB (s.32(3)) or MC (s.70(2)) can make additional by-laws by **special resolution**: three-quarters of the valid votes cast at a general meeting with 21 days' notice | Can ban short-term rentals, as the Federal Court upheld in 2020. Fine for a breach: **up to RM200** |
| **National STRA guidelines (KPKT / MOTAC)** | STRA Planning Guidelines drafted by KPKT through PLANMalaysia | Framework: council operating licence first, then MOTAC registration. Status: see Section 3 |
| **Local council** | Business or lodging licences are a council matter | Penang has licensed STRA since 1 Aug 2026 and bans it in MBPP strata residential units. Selangor and KL rules are still evolving (Section 4) |
| **Tourism tax** | RM10 per room per night, charged on foreign guests | Platforms registered with Customs collect it for bookings made through them |
| **Income tax** | Rental income, or business income if you run it like a hotel | Declare it every year. See our rental income tax guide |

---

## 1. How JMBs Pass Legal AirBnB Bans (Section 70 SMA 2013)

**The law.** The Strata Management Act 2013 (SMA) lets the body that runs a strata building make "additional by-laws" on top of the standard by-laws that apply to every building. Before strata titles are issued, the joint management body (JMB) does this under **section 32(3)**. After strata titles are issued, the management corporation (MC) does it under **section 70(2)**. The by-laws may regulate "the control, management, administration, use and enjoyment" of the building and common property, including safety and security measures and behaviour. They may also impose a **"fine not exceeding two hundred ringgit"** against any owner, occupant or invitee in breach (Source: Strata Management Act 2013, ss.32(3), 70(2)(i); checked 30 Sep 2026).

**The vote.** Additional by-laws need a **special resolution**. That means a resolution passed at a general meeting (AGM or EGM) called with at least 21 days' notice of the proposed resolution, carried by at least three-quarters of the valid votes cast. The threshold is 75% of the votes cast at the meeting, not 75% of all owners (Source: SMA 2013, s.2 definition of "special resolution"; checked 30 Sep 2026). The JMB must file the by-law with the Commissioner of Buildings within 14 days of the resolution, and the MC within 30 days (ss.32(6), 70(6)).

**The landmark case: *Innab Salil & Ors v Verve Suites Mont' Kiara Management Corporation*.** Verve Suites in Mont Kiara, Kuala Lumpur, is a serviced-apartment development. Its land is in the "Building" category, with an express condition for commercial building use. On 18 November 2015 the Commissioner of Buildings for Kuala Lumpur issued a circular telling JMBs and MCs to curb short-term rentals. At an EGM on 25 March 2017, the MC then passed House Rule No. 3 by **96 votes to 4**. The rule:

- limited units to use as service suites and banned short-term rentals, naming bookings through Airbnb, booking.com, agoda.com and klsuites.com;
- also caught stays without a stamped tenancy agreement filed with management, and tenancies that allow the tenant to sublet;
- set a penalty of **RM200 for each day** a breach continued (later struck out, see below), and let management deactivate access cards.

The MC sent fines by invoices in July and August 2017. Some owners took the MC to the Strata Management Tribunal and lost. The MC then sued in the High Court and won. The Court of Appeal upheld the ban but struck out the daily fine: the SMA allows a RM200 fine for a breach of the by-laws, but does not provide for RM200 for each day the breach continues (*Innab Salil & Ors v Verve Suites Mont' Kiara Management Corporation* [2020] 3 CLJ 480). The owners appealed on the ban. On **5 October 2020**, the Federal Court dismissed the owners' appeal with costs. The panel was Tengku Maimun Tuan Mat CJ, Rohana Yusuf PCA and Mohd Zawawi Salleh FCJ. The court held:

1. An MC may make a by-law prohibiting short-term rentals even where the land's express condition is "commercial building". The by-law was made for legitimate purposes under s.70(2), such as safety, security and the use of parcels.
2. The ban does not breach **s.70(5)(a)** SMA, which stops by-laws from restricting "the transfer, lease or charge of, or any other dealing with" a parcel. Short-term guests booked online are **licensees**, not tenants, so there is no "dealing" under the National Land Code.

(Source: Federal Court judgment, Civil Appeal No. 02(i)-74-10/2019(W), [2020] MLJU 1563, also reported as [2020] 1 LNS 1131; checked 30 Sep 2026.)

**A note on fines.** The Act caps a by-law fine at RM200 against a person in breach. Verve Suites' own rule charged RM200 for each day of a continuing breach, and the Court of Appeal struck that part out. The Federal Court was not asked about the fine, so that ruling stands. A by-law that bills "RM200 a day" goes beyond what the Act allows.

**What a ban can and cannot do:**

- **Can:** Prohibit short-term or "business" use of units. Require tenancies to be registered with management. Deactivate access cards for units in breach (Verve Suites' rule reserved this right). Fine anyone in breach, within the RM200 cap in the Act.
- **Cannot:** Stop you from selling, charging or leasing your unit on a normal tenancy (s.70(5)(a)).
- **Enforcement:** The JMB/MC, or any owner, can apply to the Strata Management Tribunal or a court to enforce a by-law or restrain a breach (ss.32(7), 70(7)).

For how the vote is run in practice and how owners can challenge a resolution, see our guide on [whether a JMB can ban Airbnb in a condo](/resources/condo-short-term-rental-ban-jmb-malaysia-2026) and [JMB vs MC](/resources/jmb-vs-mc-strata-malaysia-2026).

---

## 2. Commercial Titles (SOHO / SOFO / Serviced Apartments) vs. Residential Titles

Many investors assume a commercial title ("Building" or "Commercial" land category) means short-term rental is safe. **Verve Suites shows it is not.** That development sat on commercial-category land, and the Federal Court still upheld the MC's ban. The land category only affects what the state and council permit on the land. It does not stop the owners in the building from voting a ban into the by-laws.

| Title type | Typical examples | STRA position |
| :--- | :--- | :--- |
| **Residential strata** | Condominiums, apartments | Can be banned by special resolution. Banned outright in strata residential property on Penang Island (MBPP) from 1 Aug 2026 |
| **Commercial strata** | Serviced apartments, SOHO, SOFO, SOVO | Council may be more open to lodging use, but the MC/JMB can still ban it (Verve Suites) |
| **Landed (non-strata)** | Terrace, semi-D, bungalow | No JMB/MC by-laws. Council licensing and planning rules, plus any residents' association rules, still apply |

Before you buy a unit for Airbnb, ask the management office for the current additional by-laws and the minutes of the last two general meetings. If a ban was proposed and narrowly failed, expect it to come back. Our [SOHO, SOFO and SOVO guide](/resources/soho-sofo-sovo-malaysia) explains what each commercial title means for financing and tax.

**What if a ban passes after you buy?** Your fallback is ordinary [long-term letting](/rent/kuala-lumpur), which a by-law cannot stop. Price it in from the start. For example, the median asking rent for a **1-bedroom high-rise unit in Mont Kiara**, where Verve Suites is, is **RM2,150 a month** (SuperHomes rent listings dated Dec 2025 to Mar 2026, de-duplicated, n=32). If the unit only works as an investment at nightly rates, a ban could leave you with a loss. Compare current [Mont Kiara listings](/area/kuala-lumpur/mont-kiara) before you commit.

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## 3. Essential Compliance Checklist for AirBnB Hosts

1. **Read the by-laws first.** Get the building's current additional by-laws in writing. The JMB/MC must supply a copy on request at a reasonable cost (ss.32(5)(b), 70(4)(b)). If short-term or "business" use is banned, stop there.
2. **Check your title and the council's rules.** Ask the local council's licensing department whether nightly letting needs a business or lodging premises licence, and whether planning permission for a change of use is needed.
3. **Track the national STRA guidelines.** KPKT, through PLANMalaysia, has drafted STRA Planning Guidelines with MOTAC. In a written parliamentary reply reported on 19 Aug 2025, the Housing Minister set out the intended framework:
   - The operator first gets a business operating licence from the local council.
   - The operator then registers with MOTAC as a tourist accommodation premises.
   - Operators register with SSM and carry insurance.
   - Online platforms must check the council licence and MOTAC registration before listing a host.

   The guidelines are **not yet in force**. In a Dewan Rakyat reply on 8 Jul 2026, KPKT said they were still being reviewed by MOTAC and would go to the Cabinet and then the National Council for Local Government. States and councils adopt them only after that. MOTAC and KPKT are also amending the Tourism Industry Act 1992. (Source: Dewan Rakyat Hansard, 8 Jul 2026; NST, 19 Aug and 8 Sep 2025; checked 30 Sep 2026.) Until the guidelines are adopted, your council's own rules apply (see Section 4).
4. **Tourism tax.** Tourism tax is **RM10 per room per night**. It is charged on foreign tourists. Malaysian citizens and permanent residents are exempt. Since 1 January 2023, digital platform service providers registered with Customs (such as Airbnb) charge and collect it on bookings made through them. Accommodation premises with **four rooms or fewer**, and MOTAC-registered homestay and kampungstay operators, do not need to register as operators. Larger operators must register and account for the tax, but they need not charge it again if the guest shows it was paid through the platform. (Source: Tourism Tax Act 2017; P.U.(A) 423/2025, in force 15 Dec 2025; Tourism Tax (Exemption) Order 2017; RMCD Guide on DPSP, 11 Mar 2025; Public Ruling No. 1/2025; checked 30 Sep 2026.)
5. **Income tax.** Declare what you earn. A single unit let occasionally is usually rental income under Section 4(d) of the Income Tax Act 1967. A portfolio run with cleaning, linen and check-in services may be a business under Section 4(a). See our [rental income tax guide](/resources/rental-income-tax-malaysia-2026).
6. **Insurance.** A standard home or fire policy may exclude paying guests. Get a policy that covers short-term letting and public liability. Do not rely on platform host-protection schemes alone.
7. **Guest registration and house rules.** Register guests with management as the by-laws require. Give guests the building's rules on access cards, pool hours and noise. You are liable for your guests' breaches.
8. **Self check-in with care.** Smart locks cut down key handovers in the lobby, but many buildings require guests to register at the guardhouse. Follow the building's process instead of working around it.

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## 4. State and Council Positions (Penang, Selangor, Kuala Lumpur)

Because licensing is a local council matter, the rules differ by state. Below is what was reported as at 30 Sep 2026. Rules change often, so confirm with the council before you list.

| Area | Position | Source |
| :--- | :--- | :--- |
| **Penang: MBPP (Penang Island)** | New short-term accommodation by-laws in force from **1 Aug 2026**, with enforcement from **1 Nov 2026**. They cover paid stays of up to six consecutive months without a tenancy agreement. **All strata residential property is banned**, plus named areas such as Jesselton Heights, Pearl Hill and Minden Heights. Serviced apartments, SOHOs and shophouses may be licensed, subject to management rules. Landed homes need planning permission for a change of use | Malay Mail and The Star, 21 Aug 2026 |
| **Penang: MBSP (Seberang Perai)** | Same by-laws. Residential and commercial areas may be licensed | The Star, 21 Aug 2026 |
| **Penang fees and penalties** | RM50 to apply. Licence RM1,000 a year for up to 3 rooms, plus RM200 per extra room (2 extra at most), plus a separate reported fee of RM1,800 a year per unit. Operating without a licence: fine up to RM2,000, up to one year's jail, or both | Malay Mail, 21 Aug 2026 |
| **Selangor** | A proposed 180-night-a-year cap is **still under review** with no start date (state exco, 9 Jan 2026). The state's "Lestari Charge" of RM2 to RM7 per stay, collected by operators for councils, started 1 Jan 2026. MBPJ has its own STRA rules | The Star, 9 Jan 2026 and 22 Nov 2025 |
| **Kuala Lumpur (DBKL)** | No dedicated short-term rental licence yet. DBKL says STRA falls under "Tourist Accommodation" use in the Draft Kuala Lumpur Local Plan 2040. Building by-laws are the main control: DBKL's Commissioner of Buildings told JMBs and MCs to curb short-term rentals in 2015 (the circular behind the Verve Suites rule) | The Star, 22 Apr 2025; Federal Court judgment |

In Penang, strata properties also stay subject to their MC's house rules. A council licence does not override a by-law ban.

---

## Frequently Asked Questions (FAQ)

### Q: Is Airbnb legal in Malaysia?
Yes. No federal law bans short-term rentals. Whether you can run one depends on your building's strata by-laws, your local council's licensing and planning rules, and your tax filings. A JMB or MC can ban short-term rentals in its building by special resolution. The Federal Court upheld such a ban in 2020.

### Q: Is Airbnb legal in Kuala Lumpur?
Yes, subject to the same rules. DBKL had no dedicated short-term rental licence as at Sep 2026. It treats STRA as "Tourist Accommodation" use in the Draft KL Local Plan 2040. Many KL condos and serviced apartments have by-laws banning short-term rentals, including Verve Suites in Mont Kiara, whose ban the Federal Court upheld in 2020. Check the building's by-laws first.

### Q: Can a JMB or MC ban Airbnb in my condo?
Yes. Under the Strata Management Act 2013 (s.32(3) for a JMB, s.70(2) for an MC), additional by-laws passed by special resolution can prohibit short-term rentals. In *Innab Salil & Ors v Verve Suites Mont' Kiara Management Corporation* (Federal Court, 5 Oct 2020), the court held that such a by-law is valid. A short-term guest is a licensee, so the ban is not a prohibited restriction on "dealing" with the parcel.

### Q: What is the maximum fine a JMB or MC can impose for running Airbnb?
The Act caps a by-law fine at RM200 against a person in breach (SMA 2013, ss.32(3)(i) and 70(2)(i)). It does not allow RM200 for each day of a continuing breach: Verve Suites' house rule charged a daily fine, and the Court of Appeal struck that part out ([2020] 3 CLJ 480). For continuing breaches, the JMB/MC can also apply to the Strata Management Tribunal or a court for an injunction.

### Q: How many votes does a JMB or MC need to ban short-term rentals?
A special resolution: at least three-quarters of the valid votes cast at a general meeting called with at least 21 days' notice of the proposed resolution (SMA 2013, s.2). That is 75% of the votes cast at the meeting, not 75% of all owners.

### Q: Does a commercial title (serviced apartment or SOHO) protect my Airbnb?
No. Verve Suites was on commercial-category land and the Federal Court still upheld its MC's ban. A commercial title may make council approval easier, but it does not stop owners from voting a ban into the by-laws.

### Q: What can I do if my building bans Airbnb after I bought the unit?
Comply, or challenge the resolution if it was not validly passed (for example, notice under 21 days or the vote short of three-quarters). A valid ban cannot stop you from selling the unit or letting it on a normal tenancy, so long-term letting is the usual fallback. Plan for that rent before you buy.

### Q: What do I need before listing my property as a vacation rental in Malaysia?
The by-laws allow it, the council has confirmed what licence (if any) you need, your insurance covers paying guests, and you are set up to declare the income. Platforms such as Airbnb collect the RM10-a-night tourism tax from foreign guests. If your premises have more than four rooms, you must also register with Customs as an operator. In Penang, you now need an MBPP or MBSP licence. Once the national STRA guidelines are adopted, expect a council licence and MOTAC registration to be required everywhere.

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## Related Resources
- **SOHO vs SOFO:** Read our [SOHO SOFO SOVO Malaysia](/resources/soho-sofo-sovo-malaysia) guide.
- **Room Subletting:** Explore [Subletting & Co-Living Rental Malaysia 2026](/resources/subletting-co-living-rental-malaysia-2026).
- **Strata Governance:** Learn about [JMB vs MC Strata Malaysia 2026](/resources/jmb-vs-mc-strata-malaysia-2026).