Hi. My family has a freehold bungalow house, now vacant and located in mature neighbourhood in KL (under DBKL jurisdiction)
We would like to rent out. Few proposal came through such as for old folks home, maternity home, kindergarden / child care.
May i know if
1. Need special license from DBKL as it will become for business usage .. Who to apply the permit ? Tenant themself
2. Need to changes landtittle from freehold to commercial use . Is it allowed to be converted ? again whose responsibility if required, to pay the conversion.
3. For examples, there are many houses along main road in bangsar , SS2 area that have become bridal studios, restaurant , lawyer office etc .. how did they do that ??
Any idea any runner available.

Thks in advance

You as owner must first get approval to convert the title to commercial use, and then do the conversion process.

Best is go check with your local authorities (DBKL) for requirements.

Recently saw a few cases in KL area where business forced out of bungalows they rented because the land for their specific unit isn't registered for commercial use/the type of business is not permitted to operate within that lot, even though the area has other houses that are also being used for commercial lots like shops, cafes etc.

The ones that had legally converted is allowed to do their business, only the ones where the land use still registered as residential have been forced to close by authorities.

Check with your local council/authority to get approval permit, architectural plans and zoning plans, mechanical and electrical (M&E) plans, as well as any other additional procedures needed to get approval to change.

Need to check the permitted area quota for certain businesses also as these depend on the nature of the commercial operations that you plan to rent the unit out to. If the property is near school or places of worship, for example, only certain types of businesses can operate in the zone.

Subsequent taxes and bills (assessment, quit rent, water, electricity etc.) will under commercial rate.

In some places, any business that wants to transform a residence into a commercial establishment must put up a signboard seeking public feedback before any renovation or construction is done, so need to check local council again on requirements. Don't want quiet residential area suddenly have a unit turn into a noisy bar, for example.

You will also need to renovate the house to install additional safety features (sprinklers, soundproofing, extend the doorway/windows to make a proper storefront etc.) or other types of features that facilitate commercial usage (electricity outlets etc.). For old folks home, for example, usually require additional rooms for staff lodging (for night shift), areas for medical care, additional sanitary areas etc.

Costs for documentation and renovation will be well above RM30k, will easily reach 50k-70k in this day and age of expensive materials and labor cost.

Time taken can be anywhere from several months to over a year, depending on the authorities efficiency and how strict are requirements for type of business.

This post has been edited by DragonReine: May 26 2023, 04:41 PM

TS, the title owner need to do the conversion. Tenant cannot do the conversion. You may want to state in your tenancy agreement that you as the owner willing to facilitate the conversion ( document to be signed by owner ) but the cost of the conversion to be borne by the tenant, the process to convert it (runner by tenant). Usually this kind of tenancy, the tenant will lock in a long tenancy agreement.

i thought not necessary to convert the title from residential to commercial, there can be apply a temporarily license and subject to annual renewal and need consent for neighbors and also limited to certain type of business... cant remember what is the term called already....

Really got temporary license type.. ? Looks like need to pay DBKL a visit. Thks