How do you start a homestay business in Malaysia?

Is my unit allowed to operate as a homestay or Airbnb?

Malaysia has no single national licence for short-term rentals yet. The national STRA guideline is still being finalised, and until then the rules come from local authorities, strata by-laws and planning permission ^[2].

The MOTAC homestay programme is only for rural families who host guests in their own home, and premises in housing estates or Airbnb premises are not eligible to apply ^[1].

In Penang, the private lodging by-laws took effect on 1 August 2026, and stratified homes may not operate in the MBPP area ^[3]. In Petaling Jaya, a Rumah Penginapan (lodging house) application is made by an SSM-registered company, and strata units need JMB or MC consent ^[5].

A condominium's management body can also ban short-term rentals through its by-laws, and the Federal Court upheld such a ban in 2020, according to a law firm's summary ^[4]. Our homestay licensing guide covers each of these rules.

How much capital do you need to open a homestay?

There is no fixed figure, because it depends on whether the unit is your own, rented or bought for the purpose. List every cost before deciding, then use the homestay payback calculator to see how many months it takes to earn that back at your occupancy.

• Furniture, mattresses, linen and enough kitchenware for your guest count.
• Utility deposits, internet and any TV subscription.
• A smart lock or key box so guests can let themselves in.
• Good photos for your listing, because photos are the first thing a guest sees.
• Council licence fees where they apply. Penang, for example, charges an administration fee of RM50 per application and a licence fee of RM1,000 a year for up to three rooms, according to Buletin Mutiara ^[3].

How do you set a nightly rate that pays?

Start from your fixed monthly costs, divide by the nights you expect to fill, and add the margin you want. Weekends, school holidays and festive seasons can usually carry a higher rate than weekdays.

Keep the cleaning fee separate from the nightly rate so a one-night stay still pays. The UrusPro homestay rate calculator and cleaning fee calculator help work out both.

Where should you list a homestay: Airbnb, Booking.com, Agoda or Google Maps?

Airbnb, Booking.com and Agoda bring guests who are already searching, and take a commission on every booking. Most owners start with one or two of them, then add their own booking page for returning guests.

A Google Business Profile can be added or claimed at no charge through business.google.com/add, and it puts your homestay on Google Maps ^[6]. Link that profile to your own booking page so guests can book direct.

Your own booking page takes no platform commission, but you have to bring guests to it yourself through Google, social media and past guests.

How do you avoid double bookings when you use more than one platform?

Connect each platform's calendar with an iCal link, so a night booked in one place is closed everywhere else. Airbnb updates connected calendars automatically every 3 hours, and you can press Refresh to pull them sooner ^[7].

That still leaves a short window in which two guests can book the same night. One central calendar that pulls every platform often, and blocks the night on your own booking page, makes that window smaller. UrusPro pulls every iCal link every 15 minutes.

What taxes does a homestay operator pay?

Homestay income is declared to LHDN. If you provide comprehensive and active services, the rent is taxed as business income under paragraph 4(a), and otherwise as non-business income under paragraph 4(d) ^[8].

Tourism tax is RM10 per room per night, and Malaysian citizens and permanent residents are exempt ^[9]. Our rental income tax guide explains allowable deductions and e-invoicing.

How do you handle check-ins, cleaning and records every day?

Set the same routine for every booking: a message before arrival, a door code or key, cleaning after check-out, and a payment record. Complete records make the tax return at year end much easier.

In UrusPro, a cleaning task is created after check-out, a TTLock smart lock code is generated for each booking and expires after check-out, and income reports export as CSV.

Frequently asked questions