Basically all Mix Development is by nature are Service Apartment anything that build upon a commercial land falls under that category,is a recent trend by developer who are building condominium on commercial land or above shopping centers have being using term like Service Residence, Service Suite etc to market their property, it is just a marketing term which is misleading, under the present legislation, service apartments and condominiums adjoining shopping malls fall outside the category of residence.

According to National Property Information Center(NAPIC) report under section 3 The Housing Development (Control and Licensing) Act 1966 (as amended 2002):

1)serviced apartments which is defined as short-term accommodation either owned by an individual as a second home, as corporate housing or as an investment that maybe run as a hotel.

2) The owner may occupy the unit himself or elect a management company to rent the unit on a daily, weekly, monthly, yearly or timesharing basis.

So by law it is legal to rent out their apartment on daily basis and renting out apartment run by individual owners are consider residential use not commercial use where by commercial use is running a laundry, office or mini market etc.

Hope this clarify your question.

You can't set a by law that restrict individual owner to do on their property.

If the renting indeed violated the council rule (please read the old thread that I mentioned before about the running an illegal commercial activities without local council license), then you can report the matter to the local council.

The law is weak and plenty of grey area to tackle such an issue.

Am not familiar with mix development...

Very interesting questio by TS....

My question though... Mixed dev or service apt/Condo sit on commercial land and has a commercial title to the parcel, if I can a business (making it into an office) from my apt/Condo, what's stopping me from short term renting?

What's the purpose of service apt/Condo in the first place???

Hi Good Day,

In which part of the document does it states out that short term stay or daily use is commercial use?

I agree with you that mostly the management office will disallow owner to run short term stay but also to add in that this will need to look into their residents handbook and SPA as well, because if is in the house rules then calling for a AGM/EGM for majority vote can change or add rules to control, but if is the rules implement by the AGM/EGM are against the rights of SPA then we might have a problem, to my understanding SPA for residential falls under schedule H and SPA for Mix Development do not falls under this we might need to clarify this with the Authority but as usual the authority is inefficient. 

Regards
Nik

Hi Good day,

Just gone through the document.

The Royal Malaysian Customs document on the GST and how it will apply to accommodation (in particular, paragraphs 5 - 10). This clearly states that service apartments which are sold for residential purposes (are demmed "residential" ; we cannot run a hairdressers' or an office there) are not subject to GST because they are not "commercial".

However, apartments run as a timeshare (paragraph 10e) ARE deemed to be "commercial" and are subject to the GST.

So this mean is clear that STR do some how are legal, in some way if they do it correctly.

While only local council rules is against STR based on commercial activities being run at residential premise which is prohibited.