+1

If it's not stamped, it means you did not pay stamp duty. Stamp duty is tax. If you don't pay tax, is it legal?

what about those 'tourist homes' as listed in airbnb?

BTW I used airbnb when travelling to HK last year. Back in the 1990s, I stayed in someone's home in Copenhagen - was pretty traumatic as the owner left for her holidays and her daughter decided to hold a teenage through-the-night party and my room could not be locked.

Very good discussion here..
Mr Dariofoo.. If the tenancy agreement took place, stamp duty paid, is that OK for me to use 3rd party (company) to represent me to collect the rental and I pay the commission to them? My concern is base on below statement as tenant may request receipt, so 3rd party (company) will issue the receipt on behalf of me.

'On another note, if there is sufficient proof to show that there is a commercial aspect to the rental (i.e. it is essentially a motel business disguised as a tenancy), then a complaint to the Local Authority can be done. Evidence such as:
1. The issuance of receipts with the landlord/proprietor being represented by a commercial entity in name, or even a name of a motel; or
2. Advertising and notices with the landlord/proprietor being represented by a commercial entity in name.'

This post has been edited by abgkik: Aug 12 2012, 09:41 AM

So, the owner(individual) MUST get his tenancy stamped, else he is breaking the law?

But if one is paying the income tax from his rental income, is it still illegal if tenancy is not stamped?

lets speak disregard to the period of tenancy. can one get into trouble if tenancy isn't stamped?

1) at what point is the tenancy becoming commercial?
2) if a company owns the prop & renting it out short term. is that commercial?
3) if a person owns the prop & renting it out short term, is that commercial?
4) is 2 different from 3?
5) is advertising for rental considered commercial? as everyone needs to advertise in order to get tenant.
6) if advertising is OK, is advertising at certain websites will deem it commercial?
7) if there is a company that manages props for owners to rent out, is that company legal? since that company will be issuing receipt, and its biz is to find tenants regardless of tenancy period.

As of now, after reading, it is quite vague to determine. As owner might get into trouble if he is unlucky(no tenancy or tenancy w/o stamping, he issues receipt & advertise on website...)

i think ok gua..

i stayed in home stay before in other states. They are definitely more cozy and cheaper than hotel..

a room with aircon, personal bath, astro and beds only rm38 a night i remember when it cost rm110 to stay in hotel room

in hk, if you need to pay, sure illegal.
it is controlled by hotel/motel law.

Great info, what if the residence community went to sign in n book the landlord house every week. Keep all the transaction record and sue or report the owner to LA of doing trading without proper license and signage? I believe the landlord will end up lose more than earn. So I guess will this be the easiest and cheapest way to make landlord who do these business In trouble? If the landlord financially is tight, he might increase the number of bankruptcy in Malaysia by 1 unit

This post has been edited by re_freako: Aug 16 2012, 06:59 AM

Hehe that's what my management office told me that they're planning to do
In fact one of our resident had meeting with COB, the COB officers said they themselves will call and book

Actually doesn't worth the risk to earn that tiny bit of money and risk thousands to defend himself and believing to reap profit by bending the law on the hairline flaws in the preset act.

In one year, owner who lease out daily as hotel is having 365 days of risk to loose thousands in order to make less than RM200, before less house keeping and utility bill.

Who win? Reader can judge.

Worse still if the community residence continue reporting the act of daily hotel activity with long list of petition from residence community.

residence community vs solo investor. Outcome?

Did you read the progress of the discussion or did you just read that particular quote of mine? Start frm where Backkom put in the relevant clause of the Act. Look at the clause where it states that an exemption to definition of a Hotel is where the owner gives put the premises on a landloard-tenant relationship. Now, in order to prove such relationship, you need to have a tenancy agreement, even if it is for a day. Otherwise, cakap mulut is of no use or else everyone can cakap mulut that he is giving it out on a daily tenancy, etc.

Next, the agreement must be stamped, in order for it to have legal basis. An unstamped document is of no value when authorities come knocking on the door to check. Likewise to cakap mulut, an unstamped tenancy agreement lends you little credibility to honestly show a genuine landlord-tenancy relationship. I'm not saying that it is illegal to have an unstamped agreement. No one is going to fine you for not having an unstamped agreement per se. It does not have strong evidentiary value. Don't confuse it with income tax on tenancy rental. That is a different issue altogether.

What I'm trying to say is - don't mix up the terms tenancy,renting out and commercial. It is considered that you are dealing it on a commercial basis as an unlicensed hotel unless can show that your case falls under one of the exceptions under the secton of the Act as quoted earlier. Read it again. Nothing else matters.

Utimately, when you're the owner of a condo, your rights must be balanced against the rights of all the other owners of the units. This is where the MC/JMB plays an important role to weed out the problems and attempt to strike a balance between the individual rights of an owner to deal with his own property as he likes AND the rights of the other owners to enjoy quiet and peaceful use of their own unit and the common property of the condo.

This post has been edited by dariofoo: Aug 16 2012, 09:03 AM

what is the condo is under commercial title? owner who are paying commercial rate for utilities? Izzit still illegal?

Check on property rules.. even condo (HDA) built on commercial land title, parcel only can be used as residential..

I currently have some issues with the Management as they are claiming that I am running my property as a hotel. They currently block my access card and disallowing my guest from entering the building even I am happy registering them.

From what I read, I'm thinking of preparing a tenancy agreement on daily basis to have the landlord tenant relationship when they want to enter the property for the night. Do you think this would be able to solve my issues with the management? And after their stay I can still issue them a receipt of payment for the night as a landlord right?

This post has been edited by winter_evolution: Dec 17 2014, 11:08 AM

Which apartment/condo is this? i wan to make sure never to buy there.

Hahaha your property is service apartment or residential condo?

If residential condo I think you will become one most hated house owner

It's residential. I don't intent to rent it out on daily basis if I can get a monthly tenant. Most of the owners here rent it to students but it's not easy getting students here. Just fyi, renting on daily basis does not give me more than my rent as the daily rent occupancy I'm getting is very low. Just trying to survive here.

Hi your condo is residential so I think is illegal, but mine is mixed development so I am not very sure if the owners are legal doing short term rental.

Anyone have any idea can we ban Short Term Rental on Mixed Development property?