PETALING JAYA: Letting out units as short-term rental accommodations (STRA) in properties with strata titles such as condominiums and apartments in Malaysia is mostly a case of “breaking the law until one is caught”, say housing law experts.
Lawyer and the secretary-general of the National House Buyers Association Datuk Chang Kim Loong said a Federal Court judgment in 2020 had ruled that management corporation bodies of residential strata buildings, through their own house rules, can prohibit short-term rental of residential units in their buildings.
Verve Suites Mont Kiara Management Corporations had passed a by-law to stop short-term rentals because residents complained that guests in such arrangements were a nuisance and a breach of its by-laws. Following the circular, Verve Suites Mont Kiara held an extraordinary general meeting, proposing to enact “House Rule No. 3,” which essentially prohibited the use of apartments for short-term rentals.
STRA has become a common form of lodging and accommodation all over the world for tourists and travellers. In Malaysia, in the past two decades, many owners of condominiums and apartments have started to let out their units for STRA by advertising them on various platforms. “Currently, in Malaysia, only when those guests in STRA cause chaos or threaten , then the by-laws are enacted by the management bodies of the buildings. Otherwise, they are allowed to operate with not much problem.
“In the grant of title of a property, for example a house or apartment, the category of usage for these dwellings have been clearly stated, namely for residential use only,” said Wong.
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