While STRA offers economic productivity, it has raised discussions and concerns on how the industry should be regulated.
“The guideline aims to enhance productivity, economic growth, innovation and competitiveness in this space without compromising regulatory objectives such as ensuring safety, security, health, public good, and welfare,”
said the director-general of MPC, Datuk Abdul Latif Abu Seman.
Benefits of the short-term rental guideline
[Image credit: MPC]
THE KEY COMPONENTS OF THE GUIDELINE
The main objectives of the guideline would be to address the main concerns of STRA which are:
1. Land zoning
2. Public nuisance
3. Safety & security
4. Tax collection
5. Industry concern
Speaking on the key components in the guideline, Datuk Abdul Latif Abu Seman said, “The draft guideline has six components, which covers the licensing of hosts and agents, licensing of platforms, number of days that the STRA can operate, fire safety requirement, managing public nuisance, and taxation.”
As part of the new guideline, short-term rental hosts and/or agents will need to obtain a license to operate their business. For those with strata properties (high-rise properties which are typically gated & guarded), it is essential to note that a consent letter from the Joint Management Body (JMB) is needed to operate a short-term rental business. Additionally, they would need to comply with the rules set by the JMB.