Who do you actually want to prevent from renting, foreigners or criminals? If you're targeting criminals, why limit yourself to foreigners? If your goal is to ban foreigners, why bother yourself with a background check? Your idea is unworkable, let alone immoral.

Under strata title act, JMB/MC has no right to screen/choose tenant on behalf on owner,
but JMB/MC has the right to request tenant profile from the owner, just like JMB/MC has the list of all owners profile for the entire building. 

This is something JMB/MC can work on.

First off, what do you think you can find out about a foreigner here?

Beyond their immigration status there isn't anything as a JMB you can find out.
Credit checks? Most likely if they are crooks they live under the radar of CCRIS/CTOS.

Reference checks? These can very easily be forged for tenancy purposes.

Also what are you going to do if the following happens?

Owner overseas. Gives it to the care of a managing agent. Agent finds a tenant who is an agent for foreign tenants, everything checks out perfectly because the JMB would not have known that person is an agent, after 2 weeks a bunch of Africans moves in and assumes the tenancy? What could have your background checks have done to prevent that?
Absolutely nothing at all.

As a JMB chairperson, I can tell you any type of system you can think off there will be a way to circumvent it.

First and foremost screening is useless because your providers are local (example CTOS [CCRISS only available for banks], bankruptcy search, criminal records) and you are implementing it on foreigners.

I have heard of "certificate of good conduct" issued by the respective embassy/consular. Basically, this is intended to confirm that the person has no criminal records in their home country. I will let you guys do research on this point.

I think the key point to note here is:
(1) you can't restrict landlords from letting out their property;
(2) you can't discriminate; and
(3) you can't prevent a person from going to their parcel.

Before they get to their parcel however, they need to pass through "Common Area". This is where JMB/MC have most control over residents.

The strategy here is to deploy various paperwork, access card followed up by strict enforcement. Shady characters will typically find this challenging to comply and will naturally opt out of the tenancy.

Strategy 1:
Issuance of a separate access card (example for barrier gates, lifts etc...) for tenants and owners.

If you have facilities, you may want to consider a seperate access card system, if you can afford it(or already in place)

Note: This will be a huge exercise and you will need to pass this as an agenda during AGM.

Strategy 2:

Control over property agents. All property agents must register themselves with the management office. Registered property agents will be published on the notice board. Reason being, if there are nasty tenants and the property agent does not assist to rectify, they will be barred from entering the property.

Strategy 3

Before obtaining access card, the tenant must provide the following information:-
(1) the property agent must appear in person and provide details to management;
(2) tenancy agreement (full set);
(3) identification document (passport together with proof of stay ex: study pass);
(4) if student, letter from university/college;
(5) certificate of good conduct from the tenant's respective home country;
(6) emgency contact details (email, phone) of the tenant's parents/guardians; and
(7) terms of use of the access card.

The terms of use of the access card should be signed-off by the tenant. If the tenant misbehaves, their access card will be revoked and they have to sign-in each and every time and they have to produce identification documents/tenancy agreements and a letter showing JMB/MC has provided temporary access to the tenant (if applicable). At entry point in the guard house, at the lobby (if guards are posted) and the common facilities (if guards are posted). The tenant will be escorted or tapped-in by guards.

Strategy 4
If the tenant manages to get past the documentation phase but behave badly, have their access card disabled based on the "terms of use of the access card". (refer to sign-in every time).

The above arrangement can also be used to defeat renting out of units to Airbnb occupants.

The procedures should be adopted via AGM.

No, if this is airbnb, it will considered as commercial usage, because it will act similar to hotel operator.

If this is residential title, i think you can report this to COB/licensing/PTG..

You may refer the case:

Verve Suites Mont Kiara Management Corporation v Innab Salil and 20 Others (Kuala Lumpur High Court Civil Suit No. WA-22NCVC-461-09/2017)

In this case, MC held an EGM for additional by-law prohibited short-term rental of the parcels and obtained majority vote. airbnb owner/operator dissatisfied and file to strata title tribunal to nullift this addtional by-law.

Decision of the Court

Short term rental guests are mere transient lodgers and in fact the airbnb terms of service describes the booking as a "license". Short term rental guests can be more appropriately be described as akin to hotel guest.

"House guests" who have booked their unit online are in law mere "licensees" who have been allowed to enter the licensor's parcel for a consideration. No proprietary rights passed to them.

From the facts that short term rental activities severely disrupted the peace and quiet of Verve Suite, as such the additional by-law introduced by MC is valid and enforceable.

Restricting short term rental activities can be made through passing a resolution at a general meeting and introducing additional by laws. Imposition of fine of RM200 is for each infringement.

You may search online for this case for more details.

thank you.