ON April 28, the Penang state executive council proposed to not allow short-term rentals or homestays at high-rise and landed properties.
However, according to a news report, a date has not been set for the ban. Guidelines will be drawn up.
Some of the reasons given were: "People do not want their house to be turned into a hotel" and "We do not want a situation where the the wellbeing of other residents is affected." But the question remains: are these reasons good enough to justify the ban?
Let's address the issue.
Short-term rentals and homestays are a means of supplementing the income of those with rooms to spare in their house.
Many young people have left the nest. Therefore, the older generation who continue to live on the property have the privilege of not only adding to their income but also having some young folks living in the house. This is companionship and something to be encouraged, not banned.
How will the ban affect short-term rentals in high-rise properties? Post-Covid-19 pandemic, the idea of being in crowded places haunts many people even though we are now in the endemic stage.
Families with young children and older persons may prefer to have a short-term rental (for three days, one week, two months or even six months) at a high-rise unit due to security and to avoid crowded scenarios in a hotel. The families will be in their own unit with cooking facilities and other amenities, which are not available in a hotel.
Apart from holidays, many homeowners would need to move out of their property while it is renovated.
This is a short-term rental. Should it be banned? The period could be anything from three months up to a year while their property is renovated.
From news report, the ban seems like a knee-jerk reaction by the authorities.
It also appears that one popular short-term/vacation rental platform is being targeted.
Are the authorities playing to the gallery of hoteliers? Could it be pressure from the hoteliers in the state?
One of the comments in the report said: "There are so many hotels in the state, those looking for short-term rentals should have plenty of accommodation."
This now begs the following questions: are hotel rates cheap enough for a family of five or six to stay for a week?
A family room sleeps three persons at the most. Do hotels have two- or three- bedroom units that are available for a family at an affordable price?
Do hotels allow cooking on the premises?
Will the state government implement a price-control mechanism for hotel room rates so that consumers are not overcharged?
Airbnb plays an important role in satisfying the needs of families and those who wish to have a weekend getaway.
Under the National Land Code 1965, tenancies are exempted from registration for a period of up to three years. All that a person has to do is book directly with the owner of the property for a term of rental not exceeding three years. There is no minimum period.
The vacationer can also book through the Airbnb platform, and draw up a tenancy agreement with the property owner.
A simple template and stamping fee are all that he needs. Any period of rental under three years is perfectly within the law.
Short-term stays and homestays, whether at landed properties or high-rise buildings, must be encouraged. There must be guidelines to regulate such short-term rentals and homestays, not an outright ban.
The behaviour of guests should be the responsibility of the property owner and not something that is policed by the state.
The writer is research fellow at Faculty of Law, Universiti Malaya
