Is short-term rental legal in Malaysia?
Short-term rental in Malaysia is not banned by a national statute. Whether it is legal for a specific unit depends on three separate layers: your tenancy agreement, your building's by-laws (if strata), and any local council rules. All three must permit it — one silent layer does not mean approval.
SPEEDHOME has managed 30,000+ tenancy agreements across Malaysia — this operator volume is why the guide focuses on the three practical permission layers, not on a single statute that does not exist.
Malaysia has no Residential Tenancy Act in force as of 2026. The proposed RTA remains a draft Bill that has not been tabled in Parliament, so residential tenancies are governed by the tenancy agreement together with general law: the Contracts Act 1950, Civil Law Act 1956 and Specific Relief Act 1950.
This means short-term rental is not prohibited by a single federal law — but it is also not universally permitted. The rules sit at the building, agreement and council level, not in a statute. You need to check all three before listing.
The three-permission-layer test
Before operating any short-term or Airbnb-style rental in Malaysia, check: (1) your tenancy agreement clause, (2) the building's strata by-laws (if applicable), and (3) local council rules. Passing one layer and ignoring the others is the most common legal misstep.
| Layer | What controls it | What happens if you breach it |
|---|---|---|
| 1. Tenancy agreement | Subletting/Airbnb clause drafted by landlord or agent | Landlord can terminate the tenancy, claim damages, and pursue eviction through lawful process |
| 2. Building by-laws (JMB/MC) | Strata Management Act 2013; by-laws voted in by the management body | JMB/MC may enforce the prohibition; the Federal Court confirmed a management body can ban short-term lettings by by-law |
| 3. Local council rules | DBKL, MBPJ, or the relevant authority for your address | Varies; some councils have issued guidelines on Airbnb-style operations; check with the relevant authority |
The Federal Court ruled in Innab Salil & Ors v Verve Suites Mont' Kiara Management Corporation [2020] 6 MLRA 244 that a management corporation may pass a binding by-law prohibiting parcel owners from using their units for short-term rental, treating such lettings as licences rather than tenancies. That ruling is on the validity of a strata by-law, not a nationwide ban — each building's by-laws govern what is and is not allowed in that building.
Who can legally operate a short-term rental?
A property owner can usually operate short-term rental if the title is freehold or leasehold with no strata restriction, no JMB by-law prohibition, and no local-council bar — and the operator stays within the law on contracts and licensing.
The position is different for tenants. If you are a tenant and want to list a room or the whole unit on a short-stay platform:
| Scenario | Position |
|---|---|
| Tenant lists whole unit short-term (Airbnb) | Requires landlord's written consent + building rules must permit it + local council check |
| Tenant sublets a room to a long-term sub-tenant | Requires landlord's written consent; if TA is silent, do not assume it is allowed |
| Owner lists own unit short-term in a strata building | Must check building by-laws; JMB can prohibit this by by-law |
| Co-living operator holds a master tenancy and licenses rooms | The building owner's consent is required; the operator is simultaneously a tenant upward and a sub-licensor downward |
The original tenant remains contractually responsible to the landlord even if a sub-tenant causes damage or does not pay. This liability does not transfer to the sub-tenant.
What is the difference between short-term rental, subletting and co-living?
Short-term rental is typically a licence for days or weeks (Airbnb-style). Subletting is a paid occupancy arrangement where the original tenant takes rent from another person. Co-living is a managed shared-room setup, often with house rules, shared utilities and services included.
| Short-term rental | Subletting | Co-living | |
|---|---|---|---|
| Typical duration | Days to weeks | Months (sub-tenancy) | Months (room tenancy or licence) |
| Legal relationship | Licence (not a tenancy) | Sub-tenancy or licence | Sub-licence or direct room tenancy |
| TA clause needed? | Yes — and building rules | Yes — landlord written consent | Depends on who operates the unit |
| Airbnb platform use? | Common | Not typical | Rare |
| Key permission risk | JMB by-laws + local council | Landlord written consent | Landlord consent + JMB if strata |
Subletting without authorisation is a civil breach of the tenancy agreement — it is not a criminal offence unless there is fraud or the premises are used for illegal activity. The consequence is contract termination, loss of deposit (subject to proven loss under general contract law), and potential civil damages.
What does Malaysia's law actually say on deposits and disputes?
Malaysia has no statutory residential rent-deposit cap. Disputes over deposits or short-term rental arrangements go through the ordinary civil courts — there is no dedicated residential tenancy tribunal.
Key legal positions:
- No deposit cap: Malaysia has no statutory residential rent-deposit cap; deposits are governed by the tenancy agreement, and a landlord's right to retain is limited to proven loss under general contract law (Contracts Act 1950 s.74).
- No dedicated tenancy tribunal: Malaysia has no dedicated residential tenancy tribunal. A deposit dispute is a private contract matter decided in the civil courts: claims up to RM5,000 use the Magistrates' Court small-claims procedure (no lawyer required, Order 93), and larger claims go to the Magistrates' or Sessions Court. The Tribunal for Consumer Claims does not hear private residential tenancy deposit disputes — a tenancy is an interest in land and is excluded from its jurisdiction.
- Stamp duty: If you sign a short-term tenancy agreement of any length, stamp duty follows the Finance Act 2024 scale of RM1/RM3/RM5/RM7 per RM250 of annual rent by duration, done via e-Duti Setem on MyTax (mytax.hasil.gov.my). The former RM2,400 annual-rent exemption was removed in January 2025. The stamp duty rates listed in some older guides (RM4/RM250) are wrong for agreements signed from 2025 onward.
- Self-help eviction is unlawful: A landlord cannot lawfully evict by changing locks, removing doors, or cutting utilities. Recovery of possession must go through the lawful process — a written demand, then court action if needed.
How to check whether your specific unit allows short-term rental
Get a copy of the building's by-laws from the JMB or management office before listing. Read your tenancy agreement for any subletting or short-stay clause. Then check the local council guidance for your address.
Step-by-step:
- Read your tenancy agreement: look for a subletting, sublicensing or short-stay clause. If silent, the safe position is to get landlord written consent before proceeding.
- Request the building by-laws from the JMB or Management Corporation office. A strata management body has the legal power to prohibit short-term letting — you need to know what their rules say, not assume silence equals permission.
- Check your local council (e.g., DBKL for Kuala Lumpur, MBPJ for Petaling Jaya) for any registration, licence or approval requirements for short-stay rental operations.
- Get all consents in writing. An oral agreement that your landlord or building manager is "fine with it" is not protection if a dispute arises later.
If you discover you have been operating without checking all three layers, the risk is not just eviction. A tenant's entire rental arrangement can be terminated. An owner in a strata building may face JMB enforcement action. Neither the co-living operator nor the short-stay platform takes liability for your tenancy agreement or building-rule position.
What SPEEDHOME listings offer for tenants
Browse SPEEDHOME rental listings for verified room and whole-unit listings with written tenancy agreements and a clear path from listing to signed agreement.
If a listing shows Zero Deposit, confirm it on the actual listing and agreement. Zero Deposit is a managed rental-risk system, not a financial guarantee product. It replaces the upfront cash deposit; in the rare case of severe end-of-tenancy damage the recoverable amount can be limited, so it is not a blanket guarantee. Not every unit qualifies.
For more on shared-living decisions, see the room rental and co-living guide and choosing co-living vs room vs whole unit. If you are a landlord considering room-by-room or co-living setup, the landlord guide to room rental and co-living covers the consent, utilities and agreement structure from the owner side.
FAQ
Is short-term rental (Airbnb) legal in Malaysia?
There is no national statute that bans short-term rental in Malaysia. Whether it is legal for a specific unit depends on the tenancy agreement, the building's by-laws (if strata), and local council rules. A management body in a strata building can prohibit short-term lettings through a by-law — the Federal Court confirmed this in the Verve Suites case. Check all three layers before listing.
Can a tenant in Malaysia do Airbnb in a rented property?
Only if the tenancy agreement permits or the landlord gives written consent, the building rules do not prohibit it, and the local council has no restriction. Three separate permission layers must all allow it. One layer being silent does not mean approval.
Is there a law that caps short-term rental deposits in Malaysia?
No. Malaysia has no statutory residential rent-deposit cap. Deposits are governed by the tenancy agreement and a landlord's right to retain is limited to proven loss under general contract law. A tenant cannot rely on a statutory cap because none exists for residential lets.
What happens if a tenant sublets or runs Airbnb without permission?
Subletting without authorisation is a civil breach of the tenancy agreement — not a criminal offence. The landlord can terminate the tenancy, retain deposit to the extent of proven loss, and pursue eviction through the lawful court process. The landlord cannot lock the tenant out, disconnect water or electricity, or remove the tenant's belongings — those would be unlawful self-help.
Does Malaysia have a residential tenancy court or tribunal?
No. Malaysia has no dedicated residential tenancy tribunal. Deposit disputes and short-term rental disagreements are decided in the ordinary civil courts: the Magistrates' Court small-claims procedure for claims up to RM5,000, or the Magistrates' or Sessions Court for larger amounts. The Tribunal for Consumer Claims does not hear private residential tenancy deposit disputes.
What is the Residential Tenancy Act and is it in force?
As of 2026, Malaysia has no Residential Tenancy Act in force. The proposed RTA remains a draft Bill that has not been tabled in Parliament or gazetted. Residential tenancies are governed by the tenancy agreement and general law. Any guide that references the RTA as current law is wrong.