Airbnb and short-stay rentals in Johor Bahru (2026): the rules, the numbers and the risks

This is for Johor Bahru condo and house owners, and for Singaporean, Indonesian and Indian buyers, who are thinking about putting a unit on Airbnb or another short-stay platform. The short answer as of 29 October 2026: I could not find a Johor-specific short-stay licence in force, a national guideline is being finalised, and your own building’s by-laws can still ban short stays outright. Tax applies either way. Below are the rules layer by layer, the published numbers and the risks.

Federal level: a national short-stay guideline is being finalised

On 26 October 2026 the Deputy Housing and Local Government Minister, Datuk Aiman Athirah Sabu, told the Dewan Rakyat that guidelines for short-term rental accommodation (STRA) are being finalised. They are drafted by the housing ministry (KPKT) through PLANMalaysia, with the tourism ministry (MOTAC), state governments and local authorities. The next steps she described are the Cabinet, then the National Council for Local Government, then adoption by each state and local council. No dates were given.

• Registration. Under the framework, only registered premises that meet local authority licensing requirements may operate legally.
• Scope. Registration, safety, cleanliness, operational management and operators’ duties to the local community.
• 180-night cap. A proposed limit of 180 nights a year is being assessed. No decision was announced.
• Platforms. The government is encouraging platforms to check licences before a unit is listed and to delist unlicensed premises.
• Existing powers. Councils can already act under the Town and Country Planning Act 1976, the Street, Drainage and Building Act 1974 and their own by-laws.

For comparison, Penang already has its own rules: guidelines for private accommodation in strata schemes from 1 April 2023, and Private Accommodation (Local Authority) By-Laws enforced from 1 August 2026, according to Bernama.

Johor, MBJB and MBIP: no specific short-stay licence found

In May 2023 the chairman of the Johor housing and local government committee, Datuk Mohd Jafni Md Shukor, said the state had no immediate plans to regulate short-term stays. I looked for a later Johor state, Johor Bahru City Council (MBJB) or Iskandar Puteri City Council (MBIP) licence or guideline for short stays in homes and did not find one in force as of 29 October 2026.

That is not the same as permission. Once the national guideline is approved, Johor and its councils are expected to adopt it, and councils already hold the planning and building powers listed above. Before you list a unit, ask the licensing department of your council in writing whether any licence or approval applies to it.

Your building: strata by-laws decide

For condos and serviced apartments, the Strata Management Act 2013 is the layer that most often stops short stays. Every strata scheme in Peninsular Malaysia starts with the default by-laws in the Third Schedule of the Strata Management (Maintenance and Management) Regulations 2015, and the joint management body (JMB) or management corporation (MC) can add its own by-laws at a general meeting. KPKT confirmed in October 2026 that strata premises remain subject to JMB and MC by-laws under the national framework.

In the Verve Suites case (Innab Salil & Ors v Verve Suites Mont’ Kiara Management Corporation, Federal Court, October 2020), the court upheld a house rule, passed at an extraordinary general meeting, that banned short-term rentals. It held that short-stay arrangements were licences rather than tenancies, so the rule did not breach section 70(5) of the Act, and that a City Hall letter saying short stays were not impeded had no binding force. The case involved commercial serviced suites in Kuala Lumpur and turned partly on that building’s title conditions, but it settled that a properly passed rule can restrict short stays.

The Commissioner of Buildings (COB) at the local council oversees strata management in its area, and disputes over by-laws can go to the Strata Management Tribunal.

Which buildings allow short stays?

There is no public list of Johor Bahru buildings that allow or ban short stays, and seeing a building’s units on Airbnb does not mean the building permits it. For the specific building, check:

• House rules and additional by-laws. Ask the management office for the current version and any general meeting resolutions on short stays.
• AGM and EGM minutes. A ban may have been passed recently and not yet shown on lobby notices.
• Title and land use. Check the land use category and express conditions on the title; the Verve Suites ruling turned partly on these.
• SPA and deed of mutual covenant. For a new launch, check whether the developer’s documents restrict how units are used.
• Guest registration and access cards. Ask how visitors are registered, because it decides how you would run check-ins.
• Insurance. Ask your insurer in writing whether your policy covers paying short-stay guests.

Landed homes sit outside strata by-laws but not outside council rules, residents’ associations or the planned use of the land.

Realistic numbers from published sources

There is no official occupancy or nightly-rate data for JB short stays. The most recent published figures I found are from AirROI, a data vendor that estimates performance from listing data. For Johor Bahru over the 12 months from October 2025 to September 2026 (page updated 1 October 2026), it reports:

Measure	Johor Bahru, Oct 2025 to Sep 2026
Active listings	5,254
Average daily rate per booked night	RM348
Occupancy (share of open nights booked)	28.9%
Average annual revenue per listing	RM27,258
Revenue per open night	RM100
Busiest month	December (Dec 2025 occupancy 43.1%)
Quietest month	April (Apr 2026 occupancy 24.1%)

Two things stand out. Average occupancy under 30% means most open nights in the average listing go unbooked, and the gap between December and April shows how seasonal JB short stays are. The revenue figure is also gross: platform fees, cleaning, laundry, utilities, internet, furnishing, repairs, any management fee and tax all come out of it.

For a rough comparison, EdgeProp put 2-bedroom units in Mount Austin and other residential districts at about RM1,500 to RM2,000 a month for a long-term let in October 2026, or RM18,000 to RM24,000 a year before costs. The two are not like-for-like: the AirROI average mixes every listing type, and a long-term tenant usually pays the utilities. Put your own building’s figures into my rental yield calculator, compare with long-term rental yields in JB by area, and see my guide to renting out property in Johor for the long-term route.

Tax: income tax, tourism tax and service tax

• Income tax. LHDN Public Ruling No. 12/2018 treats letting as a business source under section 4(a) of the Income Tax Act 1967 when the owner, or someone the owner engages, provides maintenance or support services comprehensively and actively; otherwise it is rental income under section 4(d). The ruling does not deal with short stays specifically, so ask a tax adviser how cleaning, linen and check-in services affect your case. Resident individuals pay scale rates; non-resident individuals are taxed at a flat 30%. My rental income tax guide has the details.
• Tourism tax. Tourism tax is RM10 per room per night, charged to foreign tourists; Malaysian citizens and permanent residents are exempt. Under the Customs general guide, an operator must register once it offers five or more rooms in total across all its premises, and an owner who only collects rent and provides no other services is not an operator. Since 1 January 2023, registered digital platforms collect the tax on foreign guests’ bookings, and Customs Public Ruling No. 01/2025, in force from 1 December 2025, sets out whether the operator or the platform accounts for it. Check your own setup with Customs (MyTTx).
• Service tax. Accommodation is a taxable service. Registration is required once annual taxable accommodation turnover passes RM500,000, and the service tax rate for most services, accommodation included, has been 8% since 1 March 2024. A single-unit owner is unlikely to reach that threshold; an operator managing many units may.

Risks to weigh

• A building ban. A general meeting can pass a by-law against short stays after you buy or furnish, with penalties set in the by-laws.
• New licensing. Once Johor adopts the national guideline, it may bring registration, fees, safety standards or a cap on nights.
• Tax errors. Treating business income as rent, missing tourism tax, or keeping poor records.
• Seasonality and vacancy. The published occupancy figures swing widely through the year.
• Wear and complaints. Frequent check-ins mean more cleaning and repairs, and residents’ complaints about noise, safety and shared facilities are the concerns KPKT cited.
• Insurance gaps. A claim involving a paying guest may fall outside a standard household policy.
• Resale. If a building bans short stays, a unit bought and furnished for short-stay income has to compete as an ordinary rental or home.

Notes for Singaporean, Indonesian and Indian owners

Foreign owners face the same building and council rules. In practice you also need someone local for check-ins, cleaning and emergencies, and the Malaysian income is taxed at the non-resident rate if you are not tax resident here. Your home country may tax the same income, so ask an adviser about the tax treaty position. If you would rather keep things simple, a long-term let to commuters is the common alternative; my guide on renting a JB unit to Singapore commuters covers that tenant group.

Frequently asked questions

Is Airbnb legal in Johor Bahru in 2026?

I could not find a Johor, MBJB or MBIP licence or ban specific to short stays in homes as of 29 October 2026. A national guideline is being finalised, councils already have planning and building powers, and your building’s by-laws can ban short stays. Check all three before you list.

Can my JMB or MC ban Airbnb in my condo?

Yes, through a by-law or house rule passed at a general meeting under the Strata Management Act 2013. The Federal Court upheld such a ban in the Verve Suites case in October 2020.

Do I need to collect tourism tax?

Tourism tax is RM10 per room per night for foreign guests. Operators with five or more rooms in total must register with Customs, and registered platforms collect it on many bookings. Check how Customs Public Ruling No. 01/2025 applies to you.

How is short-stay income taxed?

It is taxed either as rental income or as business income, depending on whether you actively and comprehensively provide services, under LHDN Public Ruling No. 12/2018. Non-resident individuals pay a flat 30%.

What occupancy do JB short-stay listings get?

AirROI estimated average occupancy of 28.9% and an average daily rate of RM348 for Johor Bahru from October 2025 to September 2026, with December busiest and April quietest. These are third-party averages, not a forecast for any unit.

Questions about your situation?

Tell me the building and how you plan to rent it, and I will go through the rules I can find and the long-term rent numbers with you.

Sources: The Star, “Guidelines to regulate short-term rental accommodation being finalised”, 26 October 2026; Bernama, “KPKT moves to standardise short-term rental accommodation rules nationwide”, 26 October 2026; The Star, “No plans to regulate short-term rentals in Johor for now, says exco man”, 30 May 2023; Allen & Gledhill, on the Federal Court ruling in Innab Salil v Verve Suites, November 2020; Skrine, “Federal Court: Management body can stop short-term rentals”, October 2020; LHDN, Public Ruling No. 12/2018, “Income from Letting of Real Property”, December 2018; LHDN, individual tax rates; Royal Malaysian Customs Department, General Guide on Tourism Tax, revised May 2018; MyTTx announcements, including Public Ruling No. 01/2025, December 2025; MySST, “Registering Business”, accessed October 2026; AirROI, Johor Bahru Airbnb data, updated 1 October 2026; EdgeProp, “What Can RM2,000 Rent You in Johor Bahru?”, October 2026

Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 29 October 2026, not legal, tax or financial advice.