Rules · 8 min read
Is Airbnb legal in JB? Here's what we found.
As of 15 October 2026, we found no Johor rule or licence written for Airbnb in homes; the 2025 Hotel Enactment's text isn't public yet. Penang has required a council licence since 1 August 2026, and bars residential condos on the island. In both states, your building has a say.
In short
- We found no Johor rule written for Airbnb, but 2 grey areas remain. Penang's law stops at Penang.
- Penang shows what new rules can look like: a licence, a fee, some homes left out, and a say for your building.
- National rules are at final review. Nobody knows when they'll start.
- Your building can stop short stays sooner than any law. Ask what it has passed, in writing.
In this article
In August 2026, Penang started requiring a council licence for short stays like Airbnb. On Penang Island, residential condos can't take short stays at all.
If you own a condo in JB, you're probably asking: will Johor do the same? Here's where Johor stands today, what Penang did, what could change, and what to check on your own unit.
First, where we stand. We're RoomGuru, a team in Johor Bahru (JB) that manages short-term rentals. Tighter rules would hurt our business, so we have a side.
That's why every fact here comes with its source, listed at the end. Check anything you doubt.
| Rule | Johor | Penang |
|---|---|---|
| Council licence | None written for Airbnb (general trade licence rules untested; hotel law text not yet public) | Needed since 1 August 2026 |
| Cost | No fee written for Airbnb | RM2,800 a year for up to 3 rooms, plus RM50 to apply. Strata buildings may add their own fees |
| Residential condos | No ban found | Island: not allowed. Mainland: allowed by the law |
| Cap on nights | None found | None in the 2026 by-law. Strata buildings that adopt a 2023 state guideline: 180 days a year, 3 days a week per booking |
| Who can hold a licence | No rule found | Island: citizens, or companies owned only by citizens. Strata and landed homes statewide: 2023 guidelines say citizens only |
| Your building’s say | Can ban it, with 3 in 4 of the votes cast | Mainland condos must approve it first, with 3 in 4 of the votes cast |
Does Johor have any Airbnb rules?
Penang's new law is a Penang law. It doesn't apply in Johor.
In June 2023, the state told its assembly no Johor council had given a licence for homestays or Airbnb. None had even had an application. In May 2025, Johor's exco for housing and local government, Mohd Jafni Md Shukor, said there was no specific policy or guideline.
We found nothing newer: no Johor council has a licence written for Airbnb-style short stays in condos. That includes Johor Bahru City Council (MBJB) and Iskandar Puteri City Council (MBIP). Village homestays have their own scheme.
We also found no raids, fines or closures on Airbnb units.
We'll be straight with you: 2 grey areas remain.
- Council trade licences. Council by-laws on trade licences, like MBJB's from 2016, say any place used for business needs a licence. Their fee lists name hotels and lodging houses, not Airbnb. In 2023 the state said short-stay hosts needed no business licence, and we found no case of these rules used on a condo.
- Johor's new hotel law. Johor passed a Hotel Enactment, a state law, in November 2025. The state says it covers hotels, lodging houses and accommodation. It starts the day it's gazetted, but we couldn't find that text, so we can't tell if it reaches condo short stays.
The same law set a RM3 travel charge on hotel stays, announced for 1 January 2026. According to China Press, the state said the charge doesn't apply to Airbnb for now. It's studying a charge for Airbnb, to bring in step by step.
Nobody, us included, knows how either works for a condo until the council puts it in writing. If you want to be sure, ask yours.
Tax still applies: ask a tax agent about the rent you earn.
What exactly did Penang do?
Its new law, the Private Accommodation (Penang State Local Authority) By-Laws 2026, started on 1 August 2026. A by-law is a law made by a local council. This one covers paid stays of up to 6 months in a row, in homes with fewer than 5 rooms.
Penang has 2 councils, and their rules differ:
Which homes can apply?
| Penang Island | Penang mainland | |
|---|---|---|
| Residential condo | Not allowed | Allowed by the by-law |
| Serviced apartment or SOHOon commercial title | ?May be considered | Allowed by the by-law |
| Low-cost, price-controlled or PPR home | Not allowed anywhere in Penang | |
For every owner who can apply:
- A licence costs RM2,800 a year for up to 3 rooms: RM1,000 for the licence and RM1,800 for the unit. Applying or renewing adds RM50 each time.
- The deadline to apply is 1 November 2026. After that, the councils can enforce.
- Low-cost, low-medium-cost, price-controlled and public (PPR) homes can't get a licence anywhere in Penang.
- Without a licence, you can be fined up to RM2,000, jailed for up to a year, or both, if convicted. The council can also close the unit.
The 2026 by-law itself sets no cap on nights: licensed units may run all year.
In strata buildings (buildings with shared parts, like condos) across Penang, a 2023 state guideline adds more. Buildings apply it through their own by-laws:
- On the mainland, residential buildings, like condos, must say yes first, with 3 in 4 of the votes cast at an owners' meeting. On the island, the guideline left residential condos out. In commercial buildings, like serviced apartments and SOHOs, owners register, and hosts need the building's OK and must follow its rules.
- Owner and host must both be Malaysian citizens, registered with SSM. The island's 2026 council guideline also lets firms owned only by citizens apply.
- Short stays are capped at 180 days a year and 3 days a week per booking, unless the owners vote for more.
- Affordable homes priced at RM300,000 or less are out too.
- The building may charge its own fees: RM100 to RM250 to sign up, RM250 to RM500 a year, and a RM1,000 to RM3,000 deposit per unit, as the guideline suggests.
The state says the new by-law adds detail on enforcing the earlier guidelines. We found nothing that cancels this one.
Who decides if your unit can take Airbnb guests?
There isn't one rule. There are 4 layers, and any one of them can say no.
Which gate stops your condo?
Pick a place to see where a residential condo stops today.
The country National guidelines
ComingAt final review, not in force yet.
The state Rules for the whole state
Johor: None foundNo rule written for Airbnb in homes. Its 2025 hotel law covers accommodation, but the text isn’t public yet. Its RM3 hotel charge doesn’t apply to Airbnb, for now.
Penang: In forceSince 1 August 2026, a by-law made by both councils covers all of Penang. Licence: RM2,800 a year for up to 3 rooms, plus RM50 each time you apply or renew.
Your council Each council’s own rules
Johor: None foundNo licence written for Airbnb-style short stays in condos from MBJB, MBIP or any other Johor council. General trade licence rules exist, but we found none applied to a condo.
Penang mainland: In forceUnder the by-law, short stays are allowed in residential and commercial areas. The council is still reviewing its criteria.
Penang Island: In forceThe island council’s 2026 guideline allows no residential condos at all. Serviced apartments and SOHOs on commercial title may be considered.
Your building Its own by-laws
Johor: Can ban todayA by-law with 3 in 4 of the valid votes cast at a general meeting can ban short stays.
Penang: Must approve firstUnder a 2023 state guideline, residential strata buildings on the mainland need 3 in 4 of the valid votes cast to allow short stays (commercial ones register with it, and still need its consent), and buildings that adopt it cap stays at 180 days a year.
Penang acted at layers 2 and 3. Johor hasn't acted at either. At layer 4, your building can stop you in both states, and in residential strata buildings on Penang's mainland it must say yes first.
Will Johor regulate Airbnb next?
Nobody can give you a date. But there are 3 signs it may come one day.
- Hotels keep asking. Johor hotel groups asked for short stays to be regulated in 2023 and again in 2025. In Penang, budget hotels welcomed the new law.
- Johor's hotel law follows one that covers Airbnb. Johor based its Hotel Enactment on Perak's and Pahang's. Perak's version covers Airbnb and homestays.
- National guidelines are at final review. Here's the road they still have to travel:
How close are the national rules?
At least 3 steps still to go before they could reach a unit in Johor. None has a date, and earlier target dates have all passed.
National rules
- Draft2023
- Final reviewOctober 2026You are here
- The CabinetNo date
- National Council for Local GovernmentNo date
- Each state, including JohorNo date
Your building
A by-law, voted at a general meetingCan act on its own, and sooner
Your unit
What might they say? A law firm summarised the 2023 draft. It defined a short stay as up to 180 nights in a row, and industry groups later called it a 180-day cap.
It also required a council licence, commercial insurance, and a 75% vote at the building's general meeting. The final version may differ.
Our reading: a licence in Johor looks likely one day. A ban on condos, like Penang Island's, would be a bigger step, and nothing points to it yet. So expect tighter rules, but don't plan around a date.
Could my building ban Airbnb first?
Yes, and it doesn't have to wait for the state.
In 2020, Malaysia's Federal Court ruled in Innab Salil v Verve Suites Mont' Kiara. It said a building's management can ban short stays with a rule the owners pass at a general meeting.
That building was a serviced apartment block on commercial title in KL. The law it rests on, the Strata Management Act, covers condos too.
What it takes:
How many votes a ban needs
A building bans short stays with a by-law, voted at a general meeting. Drag to see how many of the votes cast it needs.
The by-law passes. With 3 in 4 of the valid votes cast, your building can ban short stays.
House rules may not be enough. In a case reported in 2025, the Court of Appeal found that one building’s house rules didn’t allow a ban. The law isn’t fully settled.
Fines of up to RM200. A by-law can fine an owner up to RM200 each time it’s broken.
Access cards and unpaid charges. The strata regulations let management turn off the cards of owners who don’t pay charges or other money owed within 14 days of notice. If yours does it for another reason, ask a lawyer.
So the real question for your unit is simple: has your building voted on this? Only your management office can tell you.
What should I check now?
- Your building's by-laws. Ask the management office, in writing, whether short stays are allowed and what they need from you. Ask for the minutes of any meeting that voted on short stays.
- Your title. Check if your title deed says residential or commercial. On Penang Island, that decided whether you could apply.
- Your type of home. Penang left out low-cost, low-medium-cost, price-controlled and PPR homes, and in strata buildings, affordable homes up to RM300,000. If yours is one, short stays carry the most risk.
- Who would hold a licence. If you're not a Malaysian citizen, watch if national rules copy Penang's rule that only citizens can host.
- A plan B. If the rules tighten, could your unit switch to a tenant? We weigh both in Airbnb vs a long-term tenant.
Rules can change fast
Check the date at the top of this page, and ask your building in writing before you list. We'll update this page when Johor or the national guidelines change.
Living in Singapore? See running a JB condo from Singapore.
Want a second opinion on your building? Send us its name. If we think short stays are a bad idea there, we'll say so.
Questions owners ask
Is Airbnb legal in JB (Johor Bahru)?
As of October 2026, we found no Johor rule or council licence written for Airbnb in homes. The grey areas: the 2025 Hotel Enactment, whose text isn't public, and council trade licences, never used on a condo that we know of. Your building's by-laws can still ban short stays.
Is Airbnb illegal in Malaysia?
No: as of October 2026, no national law bans Airbnb, and each state and council sets its own rules. Penang licenses short stays, and we found no rule written for Airbnb in Johor. National guidelines are at final review.
Does Penang's new Airbnb law apply in Johor?
No. It's a Penang law, made by Penang's councils, and it covers Penang only.
Does Penang allow Airbnb?
Yes, with a council licence, and owners have until 1 November 2026 to apply. On Penang Island, residential condos are out, but serviced apartments, SOHOs on commercial title and some landed houses may be considered. On the mainland, a residential strata building, like a condo, must first approve short stays with 3 in 4 of the votes cast.
Can foreigners get an Airbnb licence in Penang?
Mostly not: in strata buildings anywhere in Penang, a 2023 state guideline says owner and host must both be Malaysian citizens. On the island, the council's 2026 guideline wants a citizen host, or a firm owned only by citizens. Across Penang, the by-law also lets a council turn down a firm not owned by Malaysians.
Is there a limit on nights for Airbnb in Penang?
Not in the 2026 by-law, which lets licensed units operate all year. But a 2023 state guideline caps strata short stays at 180 days a year and 3 days a week per booking. A building brings it in through its by-laws, and 3 in 4 of the votes cast at an owners' meeting can allow more.
Can my condo's management ban Airbnb?
Yes, with a by-law that needs 3 in 4 of the votes cast at an owners' meeting. But in a 2025 case, the Court of Appeal found one building's house rules couldn't ban short stays, so the law isn't fully settled. Get legal advice, and ask your management office in writing what your building has passed.
When will Malaysia's national Airbnb rules start?
Nobody knows: in October 2026, the housing minister said the guidelines were at final review. Next come the Cabinet, the National Council for Local Government, and then each state. Earlier target dates have all passed.
Sources: Johor: no homestay or Airbnb licence issued by any council: Johor State Assembly, written answer, 15 June 2023. General trade licence rule: MBJB Trade, Business and Industry Licensing By-Laws 2016, by-law 3(1) and Schedule. No plans to regulate, no business licence needed: The Star, 30 May 2023. No policy or guideline: Johor State Assembly, written answer, 21 May 2025. Hotel Enactment covers hotels, lodging houses and accommodation: Media Digital Johor, 21 November 2025. RM3 travel charge: FMT, 21 November 2025. Charge not for Airbnb for now: China Press, 21 November 2025. Hotel Enactment based on Perak's and Pahang's: Johor State Assembly record, 21 November 2025, page 384. Perak's covers Airbnb: Perak Hotel Enactment FAQ. Hotel groups: The Star, 30 May 2023 and The Star, 27 August 2025. Penang: by-law text, fees, penalties: Penang Government Gazette, 6 August 2026. Island guideline (property types, landed houses, operators): MBPP, in force 3 August 2026. Strata guideline (property types, building approval, citizens only, 180 days a year and 3 days a week, fees): Penang State Government, in force 1 April 2023, hosted by MBPP. Mainland and grace period: The Star, 21 August 2026 and Buletin Mutiara, 21 August 2026. Strata operators need the building's consent: Buletin Mutiara (Chinese), 21 August 2026. Hotels' reaction: Bernama, 24 August 2026. National: final review: Media Selangor, 6 October 2026. Still awaiting the Cabinet in 2025: The Star, 18 January 2026. The 2023 draft and its earlier dates: Zaid Ibrahim & Co, 11 September 2024. Your building: Innab Salil v Verve Suites Mont' Kiara: Skrine, 23 October 2020. Special resolution and the RM200 fine: Strata Management Act 2013, sections 2, 32(3) and 70(2). Wawasan Raya v MARC Service Residence (Court of Appeal, 9 April 2025): Malaysian Bar, Circular 204/2025. Access cards: Strata Management Regulations 2015, Third Schedule, by-law 6. This is general information, not legal advice.