ShortStayCompass
Heritage shophouse in George Town, Penang
Gray zone; building rules decide

Airbnb rules & returns in Penang (George Town)

Photo: CEphoto, Uwe Aranas / CC BY-SA 3.0

Malaysia licensing & tax guide →

Penang now has Malaysia's clearest short-stay rules, and on the island they're strict. Since 1 Aug 2026 every operator needs a council license, and condos and other strata homes on Penang Island can't be licensed at all. Check the property type before you look at returns.

Not legal advice

ShortStay Compass is general information, not legal, tax or investment advice. Rules change often. Confirm with the official source, your building management and a licensed local professional before you buy, list or host.

Rules

Rules file · Penang

As of 2026-10-19

  • The Private Homestay (TIP) by-law took effect on 1 Aug 2026. Every short-stay operator needs a license from the local council: MBPP on the island, MBSP on the mainland. The grace period to apply ends 1 Nov 2026, when enforcement starts.
  • Penang Island (MBPP): all strata residential property is barred. Serviced apartments, SOHOs, shops, shophouses and shop offices may be considered, and so may landed houses with planning approval for a change of use.
  • Seberang Perai (MBSP, mainland): apartments, condominiums, townhouses and landed strata may be allowed.
  • Strata units also need JMB or MC approval by special resolution (at least 75% of valid votes) at a general meeting. Serviced apartments must follow the MC's house rules.
  • MBPP's planning guideline limits operators to Malaysian citizens or Malaysian-owned companies registered with SSM.
  • Fees: RM50 per application, a RM1,000 yearly license (up to 3 rooms, plus RM200 per extra room) and a RM1,800 yearly TIP fee per unit. Breaches carry up to a RM2,000 fine, 1 year in jail, or both.
  • Inside the George Town World Heritage Site, the Special Area Plan also applies. Short stays aren't allowed in low-cost or affordable housing.

Sources

Market estimates

Estimates, not projections

AirROI's figures include Penang Island condo listings that can't be licensed under the 2026 rules. Treat them as context for the property types that are allowed, not a forecast.

George Town

Aug 2025 – Jul 2026 (trailing 12 months)

ADR
$89
Estimate
Median ADR
$70
Estimate
Occupancy
31.3%
Estimate
Annual revenue / listing
$7,484
Estimate
Active listings
4,001
Estimate

Source: AirROI, updated 2026-09-12

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Setup & management costs

Management fees

Not yet sourced: we only publish costs we can cite.

Setup and furnishing Estimate

As of 2026-10-19

ItemLocal rangeUS$ rangeNotesSource
Furnishing (studio/1BR)Not yet sourcedNot yet sourcedNot yet sourcedNot yet sourced
Licensing & registration (council fees, first year)MYR 2,850US$ 698RM50 application fee + RM1,000 yearly license (up to 3 rooms) + RM1,800 yearly TIP fee per unit. Excludes planning or change-of-use approval and any professional fees.
Listing photosMYR 500US$ 123Professional photos (Malaysia-wide figure).
Smart lock & basicsMYR 1,500US$ 368Smart lock plus CCTV (Malaysia-wide figure).

Setup cost ranges are estimates compiled from published guides, retailer prices and official fee schedules, as of 2026-10-18. US$ conversions use mid-market rates on 18 Oct 2026 (open.er-api.com): US$1 = PHP 63.03, THB 33.43, IDR 18,014, MYR 4.08, VND 25,861, JPY 158.0. They exclude the property price, deposits and renovation unless stated. Where we found no solid source the item says "Not yet sourced".

Local managers

Not yet sourced

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