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Airbnb in residential areas will be given a notice to stop operating

Property News/ 14 October 2020 Leave a comment

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The Penang State Government through the local authority (PBT) will issue a notice to stop homestay or Airbnb activities in residential areas.

Local Government, Housing Town and Country Planning Committee chairman Jagdeep Sing Deo said that the notice will also be issued for all modification and extension to the Airbnb unit.

“This notice will be issued under Section 27 (2) (a) of the Town and Country Planning Act 1976 to stop activities carried out and restore land or buildings as before.

“For units involved with modification and extension, the notice issued is under the Roads, Drains and Buildings Act 1974.

“Therefore, demolition action will be taken on the units involved after the notice is issued,” he said when answering the question from Seri Delima State Assemblyman (ADUN), Syerleena Abdul Rashid at the Second Meeting of the 14th Penang State Assembly, just now.

Jagdeep said, for the strata building, the Council will advise the Joint Management Body (JMB) and the Management Corporation (MC) to make additional by-laws as stated in Section 32 (3) and Section 70 (2), Act 757.

“This is because there is no provision in act 757 related to the issue of homestay or Airbnb.

“Therefore, the JMB or MC is empowered under the section to make additional by-laws through a special resolution at the general meeting to regulate, manage the use of the strata property.

“Besides that, the JMB or MC can also impose a fine not exceeding RM200 on any owner who violates the by-laws,” he added.

According to Jagdeep, the State Government will also check with the Ministry of Housing and Local Government (KPKT) on the matter.

“The next action is to provide a complete set of guidelines for this activity, especially in residential areas,” he added.

Earlier, the Federal Court in the decision of the Innab Salil & Ors case. against Verve Suites Mont Kiara Management Corporation (2020) states that the management body of a share may prohibit any short-term lease on a flat from exercising its powers under Section 70 (2), Srata Management Act 2013 (APS).

 

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