The Federal Court today ruled that management corporation bodies of residential strata buildings, through their own house rules, can prohibit short-term rental of residential units in their buildings.

A three-member bench, chaired by Chief Justice Tengku Maimun Tuan Mat, said even if the state authority permitted the use of the land for commercial purposes, such use was still subject to other laws in force such as the Strata Management Act 2013.

“Hence, the passing of the house rules is not unlawful,” she said in affirming the decisions of the High Court and the Court of Appeal in dismissing an appeal by four appellants.

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