Penang short-stay licence fees and rules for 2027
Compare the announced Penang short-stay licence fees, annual savings and unit eligibility before buying for short-term rental.
Reviewed and published by PropIn · Reviewed
THE STORY IN BRIEF
Summary and key findings
Penang announced a reduction in the annual private-lodging licence fee for units of up to three rooms, from RM1,000 to RM500. A 3 November State Assembly update said the amendments were awaiting gazettement and were expected to take effect on 1 January 2027. The underlying by-laws were already in force.
RM500 less per year on the announced base fee
For a private lodging unit of up to three rooms, the announced annual licence fee falls from RM1,000 to RM500.
The fee amendments were awaiting gazettement
The 3 November State Assembly update expected them to come into force on 1 January 2027. The underlying by-laws came into force on 1 August 2026.
The announcements also covered room limits and lodging categories
The state described changes to those categories alongside the fee amendments. The underlying private lodging by-laws give councils powers to act against unlicensed operators.
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Source Penang State Assembly and Buletin Mutiara
Read PropIn’s report summary
The state announced lower fees for eligible operators and described changes to room limits and private lodging categories. The later assembly update gave a target date for the amendments and said enforcement powers already sit under the underlying by-laws.
PROPIN ANALYSIS
Why this matters
- The base-fee saving is about RM42 per month when spread over 12 months. Use the fee carousel to compare the same room band and the separate table for the announced Fi TIP charges.
- The state’s 3 November update gives a target date for the amendments. Recheck the gazetted wording and the council’s fee schedule before relying on a 2027 figure in a purchase decision.
- Some units could leave the market if they cannot meet the applicable requirements or if the costs change. Hotels and licensed apartments may serve different trips, but the effect on supply and demand needs evidence after implementation.
FROM THE START TO WHAT’S NEXT
Timeline and milestones
1 Aug 2026Underlying by-laws take effect
The private lodging by-laws establish the council framework.
19 Oct–3 Nov 2026Amendments approved and reported
The state approved amendments on 19 October and later reported that gazettement was underway.
1 Jan 2027 targetProposed amendments
Check the gazetted text and the current council requirements before relying on this date or fee.
Annual base fee · before and announced change
Announced Fi TIP fee line
The announcement described this as a separate fee line. Confirm which fees apply to the proposed operation and any extra charges with the relevant council.
Three things to watch in 2027
Eligible units can pursue licensing
A workable route depends on the council, approved use and building rules. For landed residential properties, establish whether planning approval or a change of use is required before committing.
Some listings could leave the market
Owners may exit if their building disallows short stays or the cost of compliance changes the economics. Measure active listings after implementation before estimating the scale.
Hotels and licensed short stays can serve different trips
Hotels can cater to conference delegates and travellers who want services. Licensed apartments may suit family groups and longer stays. Some guests will choose between both.
PROPIN OUTLOOK
What buyers and investors can expect
- Short-stay investors
Start with a written building and council check. Run a separate budget for each relevant fee and stress-test income at lower occupancy.
- Own-stay buyers
Ask how guest access, noise and shared facilities are managed. That affects everyday life even if you never intend to host.
- What to watch in 2027
Follow the gazetted fee schedule and changes in active listings. This will give a clearer picture of how licensed apartments and hotels share demand.
CONTINUE YOUR SHORTLIST
Recommended projects
Short-stay project candidates
These projects are categorised as Airbnb-friendly in PropIn’s directory. Verify the building’s written rules, permitted use and council licence eligibility for the specific unit.
Serviced Apartment (Airbnb Friendly)Add to compareGeorge Town & Gurney
G’Vinton
From RM 560,000 indicative SPA
- Tenure
- Freehold
- Completion
- Est. 2028
- Bedrooms
- Studio / 2 / 3
- Built-up
- 387–1,356 sq ft
Serviced Apartment (Airbnb Friendly)Add to compareGelugor & The Light Waterfront
Keeperz Suites
Price to confirm indicative SPA
- Tenure
- To be confirmed
- Completion
- To confirm
- Bedrooms
- Studio
- Built-up
- 484–581 sq ft
Serviced Apartment (Airbnb Friendly)Add to compareTanjung Tokong & Tanjung Bungah
Crown Penang
From RM 783,000 indicative SPA
- Tenure
- Freehold
- Completion
- Est. 2028
- Bedrooms
- Studio / 1+1 / 2 / 3
- Built-up
- 614–1,625 sq ft
Compare the shortlist
Swipe or scroll the table on smaller screens. Confirm price, title, suitability and completion for the selected unit.
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Questions and answers
Does a lower fee make my Airbnb unit legal?
The fee applies within the licensing framework. A specific unit must satisfy the applicable council and building rules before operating.
Can a landed home be used for short stays?
Ask the relevant council to confirm permitted use, planning and licence requirements for the address. Requirements depend on the property and activity.
Will there be fewer listings in 2027?
That is a plausible scenario. It needs listing data and enforcement evidence after implementation.
Sources and updates
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