Hi Camelia, Glad you found us out on FB. That page has a lot of resources and we can discuss further there if you want.
Anyway, my past experience has told me that Majlis are willing to slap "notices" very freely as most of the time the general public will get intimidated and back off. Nonetheless, the process to execute this notice is very different. The notice is usually issued by the relevant department but actual action will need to be brought by their legal team.
I would suggest the following:
Write to the officer and cc all the senior representatives in the majlis (perancangan, bangunan, penguatkuasa, datuk bandar) and highlight the receipt of this notice and query the section of the law you have broken. They usually return with a very generic section (if they reply at all) that says things like "operating a business without a license" as in Malaysia there is nothing specific preventing short-term rental. If they do not reply just keep following up and say that you will ignore the notice until you receive a formal reply.
The issue then becomes whether is short-term rental a business? For us hosts, our position is that it is a tenancy, not a business but opponents will try to make us out as one (coz that is where they can cause us to have "issues"). Nonetheless, this area is very grey and could swing either way depending on the competence of the lawyers and the judge.
My gut is that they are slapping the notice coz some of your neighbors have been complaining. The majlis are just trying to make it seem that they are "taking action" as frankly they are stuck between two hard rocks.
