Homestay licences from MBPP Penang, Malaysia

[Sc0]

Hi Penang hosts, the news of the fines to Birch House hosts yesterday was alarming. This is the first time I've heard of homestay licences in Penang. Anyone got more to share? Before I call the council on Monday? 

tx! Sharon 

#Penang #SEACommunity #Hosts.

[Eng-Beng0]

I just received mppp notice to stop in 14 days. Want me to apply licence. Any idea?

[Jeannie29]

How's the hosting in a residential title....are you all continuing to host. I'm new and wanted to host my place soon, hopefully that's some information to update.

Cheers

Jeannie

[Say-Boon0]

Kindly read below article from the news.

I am a homeowner for my owned condo named 1Sky in Penang. Currently this condo under commercial titles. My assessment fee is RM1,800 /year, which is maybe 6 times higher compare to residential titles condo. 

Currently i got challenges by some local residents. Hope can brainstorm with you guys here. 

[Ken111]

Could you let them know about your legal rights? Homestay in Malaysia remained unregulated right?

[Say-Boon0]

Article from 

http://www.freemalaysiatoday.com/category/nation/2017/08/17/dbkl-says-condo-management-can-impose-ru...

[Say-Boon0]

But I am not sure how this could implement in Commercial building. If they not allow me to do homestay, I think there would have excess of the condo. It is the similar case for other condo in Penang. As far as I can see, now the condo is supply over demand.

For the condo does not have the homestay, they rental is super cheap, as there are too many unit remind vaccum which nobody want to rent.

[Shiraj1]

challenge mppp in court.they have no authority or law to ban.how a short rental becomes home stay .a home stay has must have certain specifications to register.

[Kah-Hooi0]

Is commercial title allowed to do short term rental?
From what I've researched, its a Yes.

But what if the JMB opposed it?
Means we cant do something commercial in our own commercial units?

[Meri9]

Frankly the current local council position is flawed for the following reasons:

1) Their only premise of "illegality" will be to claim that airbnb is a commercial activity and hence is not allowed unde the Town and Country Planning Act 1976 for residential zoned properties. Nonetheless, this becomes problematic of the unit is a commercial title? 

2) As for Penang, they have the  1991 MPPP bylaw for Trade, Business and Industries (This is the channel MPPP is using to issue fines at the moment). I believe this requires "businesses" to have a license. Again this is flawed because airbnb can be argued as merely short term rental (which is not regulated in Malaysia) and NOT a business. Nonetheless, this is a bit of a "grey area". Points that help us justify that it is not a business will be as follows:

(a) There is no transactions at the house (i.e. no Point of Sale)

(b) At any point in time, there is only "one party" using the place, unlike a business that will cater to multiple parties at any point in time.

(c) I believe very few Airbnb hosts see even a 60% booking load on their property. Businesses usually need to involve more "activity".

(d) If short term rental is a business, then how about longer term tenancies? It seems the only distinguishing factor is time which I feel is a very shaky justification.

3) Some local government has come out to say that JMBs have the right to implement by laws that ban airbnb. Is this so? This is because according to the Strata Title Act 2013, JMB's cannot implement by laws which infringe upon an owner's right to lease. 

4) I believe fundamentally there is propaganda war going on in Malaysia and the authorities are unwilling to decide either way hence creating ambiguity which allows for stake holders to "control the narrative". Nonetheless, I believe many of the decisions by local councils or even JMBs may be challenged in court and there is a possibility with a good lawyer and a smart judge, those decisions will be voided (at least until such time the parliament enacts laws otherwise).

Anyway, this is my two cents worth. We need to also group together and fight the narrative. I have written to the country manager for airbnb Robin Kuok to get them to push back on the narrative. I suggest you all do the same. Her email is robin.kwok at airbnb dot com.

[Amber100]

The JMB in my condo also just issued a "ban" too. They have even put up a "NO HOMESTAY" banner at the main entrances of each blocks. I agree with Meri, that homestay is still a grey area. It is not regulated yet MPPP is issuing summons to homestay owners. Do they even have the right to raid the units without warrants? If they do have warrants, based on which rule do we break that grant them the right to raid and summon? Has anyone already done any groundwork to push the state government to regulate this? Please reply here so we can work together on this. I would rather run homestays officially than to be ambiguously summoned without knowing exactly why.

On a sidenote, I would also encourage all the homestay owners to set guidelines for your guests to ensure that they will not cause nuisance to the residents. This was the triggering factor that made the JMB in my condo ban homestays. Some irresponsible homestay owners (perhaps not from airbnb) allowed any activities at all. Eg: partying until late nights, smoking in the prohibited areas, simply throwing rubbish along the alley, lifts and common areas, misusing the common facilities (not wearing swimming attire in swimming pool, did not turn off gym equipments properly). Having said that, these acts might also come from long term tenants as well. Just my 2 cents.

[Say-Boon0]

I am say boon from Penang. I would like to gather more homestay owners to fight for our right for rent out our property for homestay.

Currently we would like to gather strength in number & ideal. Kindly join Malaysia homestay group in FB. thanks.

https://web.facebook.com/groups/1624370814295770/

[Jmb0]

https://www.thestar.com.my/news/nation/2018/03/31/doors-shut-on-home-share-venture-operator-loses-cl...

https://www.thestar.com.my/news/nation/2016/07/22/mbpp-steps-up-crackdown-on-illegal-homestay-operat...

The management of my property evicted 15 vehicles with approximately 60 guests for running illegal short term stay two Saturday ago. The security firm also made a police report against the host/owner.

We also collected/downloaded all host profiles, host property listings and all photos as evident against these illegal short term stay. 

These activities have deprived the rights of genuine owners and tenants to have peaceful surroundings throughtout the past nine months. Drunk person at 2 am in the morning, constant loud door closures late into the nights, kids running early in the mornings and late at nights, hosts putting nine matresses and allowing up to 15 guests in a three bedroom condo units, wearing full clothing into swimming pool, etc.

The MBPP rules are clear that these are illegal activities. All property by-laws definitely have a clause stating no illegal activity allowed within the compound. Hosting is allowed on commercial titles such as serviced apartments and NOT residential title. 

This is not a small matter like illegal parking where you could inconvenient few people during day time. Such activities have caused lots of problems to genuine residents and tenants in our property. Please be civilied and have respects to other people rights and entitlements. 

[Meri9]

Hi,

For your information, there are articles claiming that Airbnb in Malaysia is legal too. As a home sharing advocate group, we have investigated the issue thoroughly and in Malaysia home sharing is NOT deemed illegal. Even MPPP is relying on an ambiguous provision in the 1991 MPPP bylaw for Trade, Business and Industries. Whether home sharing operations can be considered a business that requires a license still is yet to be truly tested at the court level. For us, it is short-term rental and if rental is a business then many owners will start needing licenses. 

Can I find out from you what is the name of your condo? We have found many JMBs taking law into their own hands even for commercial titled properties. FYI, not all condos are built on residential titles. Anyway, the only way you may "bar" homestay is if you enact by-laws. This will require 75% of the residents to pass the resolution and still could be challenged because of certain provisions in the Strata Management Act 2013. Furthermore, your unilateral action of evicting the guests of residents might invite legal action against your JMB which does have a strong potential of losing (if there was no authority given for such action by the residents through AGM / EGM). Good luck! 

[Min-Chien0]

Eng Beng, did you successfully apply for license?