Is Airbnb legal in Johor Bahru?

In Johor Bahru, like the rest of Malaysia, Airbnb hosts must navigate a framework of regulations and best practices designed to ensure responsible hosting while complying with local laws. These regulations encompass a variety of areas, from health and safety to tax obligations.

1. Hosting Compliance and Local Regulations: Hosts are required to adhere to various local regulations such as the National Land Code, the Tourism Industry Act, and the Registration of Businesses Act. Specific restrictions may apply to short-term rental activities, particularly in residential buildings where transforming the designation from residential to commercial might be necessary. Ongoing discussions by the government aim to simplify processes for hosts, potentially easing regulations governing the operation of short-term rentals in residential areas.

2. Guest Registration: Under the Registration of Guests Act, hosts must maintain a detailed registry of all guests, including foreigners. Failing to do so can result in significant penalties, highlighting the importance of compliance in managing guest records.

3. Health and Cleanliness Standards: Adhering to health protocols is essential, especially in the context of enhanced cleaning procedures mandated by Malaysian health authorities. Property owners are responsible for ensuring their units are clean and sanitized, especially between guest stays.

4. Tax Obligations: Income earned through hosting is subject to Malaysian taxation laws. Individual hosts must declare their earnings on personal tax returns, while corporate entities have different requirements. Additionally, hosts earning more than RM 500,000 annually may need to register for service tax. Notably, since January 2023, hosts are no longer required to collect tourist tax on Airbnb bookings.

5. Safety Measures: Safety is a priority for hosts. They are encouraged to implement preventive measures, such as providing emergency contact information and ensuring proper safety equipment (like smoke detectors and fire extinguishers) is in place.

6. Insurance and Liability: Hosts should verify their insurance coverage to ensure it meets liability standards when renting properties. Airbnb also offers host insurance options, but independent coverage is recommended.

7. Community Engagement and Courtesy: Good hosting practices include informing neighbors about hosting plans to foster goodwill and clearly communicating house rules to guests to minimize disturbances. Hosts are also encouraged to clarify local customs and rules to guests, enhancing the overall experience and maintaining community relations.

Airbnb's voluntary Code of Conduct encourages hosts to familiarize themselves with these obligations, promoting responsible hosting practices that contribute positively to the local community. Compliance with these regulations not only protects hosts and guests but helps maintain the integrity of short-term rental practices in Johor Bahru.