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Investment AIRBNB unfriendly condo, Please help input if you know of those

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TStrust4you
post Oct 25 2018, 08:44 PM, updated 6y ago

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PETALING JAYA: Although the government has declared that Airbnb is legal, apartment and condominium owners may only rent out their units on the popular app if their management’s bylaws permit it, says a Kuala Lumpur City Hall (DBKL) official.
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For some time now, there have been calls for online accommodation service, Airbnb, to be regulated – much like how e-hailing services Uber and Grab are now legislated – with some warning of the safety and security risks posed to neighbours of those renting out their units on a daily basis, though Putrajaya has made its stand on the matter clear last year.

Speaking at a dialogue organised by the Rehda Institute here yesterday, Md Azmi Mohd Shari, a legal officer from DBKL’s valuation and property management department explained a federal government circular pertaining to the use of Airbnb to rent out strata properties.

He said a circular from the urban wellbeing, housing and local government ministry states that in the case of strata properties, a management body’s by-laws will determine whether units in a building can be rented out via Airbnb.

“Residents have to check their apartment or condominium by-laws. If the management allows it then it’s ok, if they don’t, then residents should abide by the relevant by-law on the matter.

“If the building’s by-laws does not allow it, then residents who are aware of neighbours flouting the by-laws, should lodge a complaint with the management,” Azmi said, adding that the management can then impose a fine of up to RM200 on residents who flout the by-laws.

He said that as Airbnb was a relatively new issue, many management bodies had yet to decide on this in their annual general meetings (AGM) or extraordinary general meetings (EGM).

“So it’s up to the management bodies to decide on whether to allow it in their building or not. It must be brought up at their AGM and EGM.

“They must also specify whether the RM200 fine will be issued on a per instance basis, per night and so on.”

Azmi added that if residents of an apartment or condominium complained to DBKL that the issue had yet to be addressed at an AGM or EGM, they could inform DBKL who could then instruct the building management to conduct an EGM on the matter.

Azmi said if the management does not take action according to its own by-laws, then residents can report the management to their local council’s Commissioner of Building, who can then charge the management body’s members in court.

“They risk a fine of up to RM250,000 and a jail term of up to three months.”

Regulation the way forward

For Chris Chan, who owns a condominium near KLCC, the issue isn’t whether Airbnb should be allowed, but rather if it should be regulated.

“Some will say that renting out a unit on Airbnb can lead to security issues, but security issues can also exist without Airbnb,” she told FMT.

“The problem isn’t Airbnb, the problem is security guards and management bodies who don’t do their jobs properly. Even now, outsiders can often gain access to apartments and condominiums if security is lax.”

Chan said that at least with Airbnb, home owners were renting out their units to a person who used their identity card and credit card as cash payments weren’t allowed.

However, she did concede that the way forward was in regulating Airbnb, with the right measures in place to ensure owners declare to the management that they are renting out their units.

“Perhaps every time a Airbnb guest arrives at the property, their proper ID verification should be carried out and the amount of access cards given to guests could be limited,” Chan said.

She added that the owners who are renting out their units must also be contactable by the management or security should any issues arise while their property is being occupied by Airbnb guests.

Managing new regulation

Property expert Ernest Cheong says it would be difficult to manage Airbnb regulation.
Property expert Ernest Cheong however, believes that it would be difficult, if at all possible, to manage and monitor the regulation of Airbnb.

“Security in apartments and condominiums is lax enough as it is. Once an owner passes their access card to Airbnb guests, it’ll be difficult for the security guards to monitor and control their movements.

“I fear that Airbnb could be misused for illicit activities and residences end up being treated like vice dens.

“The best thing is to just ban the use of the app outright, adding that some countries have placed restrictions on Airbnb, including barring short term rentals,” Cheong said.

Airbnb, which has gone from a small start-up in 2008 to a company worth some US$30 billion (RM127 billion) has a presence in 191 countries around the world.

In Malaysia, some 11,698 accommodation providers were listed on Airbnb as of April this year.

Airbnb rentals in Malaysia can start from as low as RM44 per room per night to just over RM1,000 for an entire house which can accommodate 10 people or so, with some including facilities like private swimming pools.


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This post has been edited by trust4you: Oct 5 2020, 04:58 PM
SUSNew Klang
post Oct 25 2018, 08:55 PM

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HELLO HELLO
post Oct 25 2018, 09:00 PM

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Now property sale and rental market already Sibeh kaolat koyak jialat. Lagi impose this rules. More condo unit popping in lelong market.
AskarPerang
post Oct 25 2018, 09:33 PM

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Parkhill Residence
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and many more

is becoming a trend. others will follow soon.
theevilman1909
post Oct 25 2018, 09:39 PM

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protex protex mode on..

GG condo... auction everywhere like no tomorrow..
owners die leh...
luxurysuites
post Oct 25 2018, 09:41 PM

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icemanfx
post Oct 25 2018, 09:52 PM

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Residence is meant for home not business.

Strangers could compromise security and exclusivity else condo need not restrict strangers access.

Pugbunny
post Oct 25 2018, 10:32 PM

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nivota
post Oct 25 2018, 10:47 PM

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can see some investor already reacted with sour face in the whole lowest forum.

Ofcourse I'm not surprised as this goes against their interest, even the person mentioned in the report is trying to divert the topic and objective from private nuisance to lax of security monitoring, despite I agree to the person's POV.

However for investors I would rather go on a less sympathy note, as they should have consider this factor before they purchase their property.
BEANCOUNTER
post Oct 25 2018, 11:53 PM

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QUOTE(icemanfx @ Oct 25 2018, 09:52 PM)
Residence is meant for home not business.

Strangers could compromise security and exclusivity else condo need  not restrict strangers access.
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Guess u prefer to pay higher price for nothing to stay in hotel or hotel suite?

So there is absolutely no crime if rented to longer term tenants like for one month to 6 months?

This post has been edited by BEANCOUNTER: Oct 25 2018, 11:55 PM
smallikanbilis
post Oct 26 2018, 12:11 AM

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QUOTE(icemanfx @ Oct 25 2018, 09:52 PM)
Residence is meant for home not business.

Strangers could compromise security and exclusivity else condo need  not restrict strangers access.
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Agree. Should only allow if the development is commercial title and paying commercial rate for utilities.
icemanfx
post Oct 26 2018, 03:48 AM

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QUOTE(BEANCOUNTER @ Oct 25 2018, 11:53 PM)
Guess u prefer to pay higher price for nothing to stay in hotel or hotel suite?

So there is absolutely no crime if rented to longer term tenants like for one month to 6 months?
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Prefer to stay at chain hotel as facilities and services is more consistent.

Do you like your neighbour to be Airbnb, have strangers come and go regularly?


DesRed
post Oct 26 2018, 07:26 AM

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The Reach @ Titiwangsa is also one of them, but I did manage to catch a glimpse of one listing there while I was browsing airbnb. hmm.gif
gld998
post Oct 26 2018, 08:09 AM

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QUOTE(HELLO HELLO @ Oct 25 2018, 09:00 PM)
Now property sale and rental market already Sibeh kaolat koyak jialat. Lagi impose this rules. More condo unit popping in lelong market.
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Where got? I go suria klcc, foodcourt pack like park! If poor all tapao go work eat.All restaurants still pack.

Btw alot of my frends says service apartments is the best if u do airbnb, not condo. Anyway, pls rebute my statement if u think is incorrect and why.

This post has been edited by gld998: Oct 26 2018, 08:19 AM
AskarPerang
post Oct 26 2018, 08:09 AM

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QUOTE(DesRed @ Oct 26 2018, 07:26 AM)
The Reach @ Titiwangsa is also one of them, but I did manage to catch a glimpse of one listing there while I was browsing airbnb. hmm.gif
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Even after M City ban airbnb, if you search the website, still can find ads listing over there.
I would say still able to do it. Just need to pakat with the guests (brief them what to say) and you must be around to check the guests in, hand them the keys / access cards personally. Even maybe checking out time also you must be around. More hassle. So is it worth the time and effort to manage? Guess not anymore.
DesRed
post Oct 26 2018, 09:12 AM

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QUOTE(AskarPerang @ Oct 26 2018, 08:09 AM)
Even after M City ban airbnb, if you search the website, still can find ads listing over there.
I would say still able to do it. Just need to pakat with the guests (brief them what to say) and you must be around to check the guests in, hand them the keys / access cards personally. Even maybe checking out time also you must be around. More hassle. So is it worth the time and effort to manage? Guess not anymore.
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I'm not too familiar with M City's unit layouts but if the airbnb unit there is a dual-key where the studio part operates as one while the owner stays in the other part, then it shouldn't be too much of a hassle to meet and brief the guest(s) personally. If its the entire unit turned into one and the owner is living elsewhere, then I agree that it will be a hassle.

I do remember seeing one or two layouts at the Reach also being dual-key ready and not surprised a few owners of those units plan to operate as such. They'd better hope the neighbours don't raise a stink later on. hmm.gif
pilotHans
post Oct 26 2018, 09:59 AM

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QUOTE(DesRed @ Oct 26 2018, 09:12 AM)
I'm not too familiar with M City's unit layouts but if the airbnb unit there is a dual-key where the studio part operates as one while the owner stays in the other part, then it shouldn't be too much of a hassle to meet and brief the guest(s) personally. If its the entire unit turned into one and the owner is living elsewhere, then I agree that it will be a hassle.

I do remember seeing one or two layouts at the Reach also being dual-key ready and not surprised a few owners of those units plan to operate as such. They'd better hope the neighbours don't raise a stink later on. hmm.gif
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for residence, i can imagine, having strangers come and go from ur neighbour unit.

on another hand, some suggestions. or just wild suggestions biggrin.gif
1. maybe in future people want to buy units specific, for example Level 9 is for AirBnb only. other levels cannot do airBnb. something like that. so monitoring would be more effecient . hmm.gif just thinking laugh.gif
2. Units that put airbnb or whatsoever, need to pay some xtra maintenance. so win-win situation from management + owner . I don't know monhtly commitment or per guess. 1 guess RM10. so passive income to the management + the condo as a whole biggrin.gif
aaronpang
post Oct 26 2018, 10:21 AM

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This thread is pointless because end of the day an owner rent their unit as they see fit.

If anyone stops owners from renting including the JMB and MC they will get sued period nod.gif

See the SMA 2013 pg87.

(5) No additional by-law shall be capable of operating -
(a) to prohibit or restrict the transfer, lease or charge of, or any other dealing with any parcel of a subdivided building or land; and
(b) and to destroy or modify any easement expressly or impliedly created by or under the Strata Titles Act 1985.

http://www.federalgazette.agc.gov.my/outpu...TA%20757-BI.pdf
pilotHans
post Oct 26 2018, 10:25 AM

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QUOTE(aaronpang @ Oct 26 2018, 10:21 AM)
This thread is pointless because end of the day an owner rent their unit as they see fit.

If anyone stops owners from renting including the JMB and MC they will get sued period  nod.gif

See the SMA 2013 pg87.

(5) No additional by-law shall be capable of operating -
(a)  to prohibit or restrict the transfer, lease or charge of, or any other dealing with any parcel of a subdivided building or land; and
(b)  and to destroy or modify any easement expressly or impliedly created by or under the Strata Titles Act 1985.

http://www.federalgazette.agc.gov.my/outpu...TA%20757-BI.pdf
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come to think about it, if JMB/neighbours make life difficult for unwanted residence ,
later on -ve comments on airBnb will surely effect the owner right. one cannot simple ignore the JMB, sooner or later they will feel the effect sweat.gif
Hofmann33
post Oct 26 2018, 10:29 AM

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Heard that Southbank Residences along Old Klang Road got warring factions between airbnb operators and whose against it, not sure if banned or not.

Be great if anyone could confirm.

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