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GEORGE TOWN: The courts have ruled that host family guests are not tenants, says Penang Executive Councilor Jagdeep Singh Deo (Photo).
Jagdeep told the state assembly here that two weeks ago, the Federal Court ruled in a ruling that terms like “host” and “guests” in the agreement used by homestay providers clearly showed that they intended to use residential locations to conduct the business of providing accommodation.
“We are happy about this judgment because it shows that the joint management bodies (JMB) and the management committees (MC) of residential buildings have the right to establish house rules to prevent unit owners from renting guests to short term”. said on Wednesday (October 14).
Responding to an oral question from Syerleena Abdul Rashid (PH-Seri Delima) about the state of host family business in Penang, Jagdeep said that the state is encouraging all JMBs and MCs in the state to establish internal rules.
He said they are allowed to do so by law and can fine unit owners up to RM 200 each time they are found renting their houses to guests.
Imagine if you live in a tiered building and every day, people come and go from your home like a hotel.
“It is not good. It is not a commercial premises,” he said.
He said that some JMBs, such as on Gurney Drive, had taken legal action against the owners of those units and had won their cases.
The state government, he said, was finalizing the guidelines to help JMBs and MCs address the issue and keep their homes safe.
He said that Penang is the state with the third highest number of high-rise residential buildings and as such, the state will strive to ensure that the well-being of these residents is not affected by homestay operators.
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