Short-term rental licence in Penang: steps and fees (lesen TIP)

The short version

First check that your home can be licensed at all: on the island the state says residential strata homes are barred (see Can I rent out my condo short-term in Penang?). Then apply to MBPP on the island or MBSP on the mainland. 1 November 2026 was the end of the grace period before enforcement, not a cut-off for applying. Because the by-law changes are expected from 1 January 2027 (see "The date" below), ask your council for the current fees before you pay.

Council lines: MBPP hotline 04-263 7637 or 04-263 7000 (WhatsApp 016-2004082); MBSP call centre 04-269 6969 in office hours, or aduan@mbsp.gov.my. More on who answers what is in A neighbour is running an Airbnb in your building.

Sources: MBPP Hotline and MBSP home page, read 2026-11-03.

Fees, from the gazette

These are the fees in the by-law gazetted in August 2026. The state has approved restructured fees in an amendment that is not yet in force, so this table may change.

The gazette charges the RM1,800 for "each private accommodation unit" without defining a unit, so ask your council whether it is charged per room or per home. It defines private accommodation as having fewer than five rooms, but its fee schedule charges for up to two extra rooms beyond three (five in all).

If you do not pay the TIP fee, the council sends a notice of arrears and you must pay, with the arrears, within 14 days of receiving it. The fee for a licence of less than one year is as the council sets.

Source: Penang State Gazette, P.U. 37, read 2026-11-03. The Star and the NST report the same figures.

Steps

1. Work out your council. See MBPP or MBSP: which is yours. The by-law covers both.
2. Check the premises. The gazette says the home must be in a "residential and commercial area" and permitted to operate all year. No licence can be given to government or statutory body premises, private health or child care centres, workers' hostels, private school hostels, or low-cost, medium-low-cost, price-controlled and People's Housing Project homes.
3. Check the council's rules for your type of building. On the island the state says serviced apartments, SOHO units, shops, shophouses and shop offices may be considered, and landed homes need MBPP's planning permission for a change of use. On the mainland the state's statement lists apartments, condominiums and townhouses, but MBSP is reviewing its requirements.
4. Get your building's approval if it is strata. Penang Property Talk, as reposted on Newswav, reports that the building's JMB (joint management body) or MC (management corporation), the owners' body that runs it, must approve at a general meeting, with a special resolution of at least 75% of valid votes. The gazette does not mention strata or JMB approval. For a serviced apartment, the MC's house rules apply.
5. Apply to the council in the way the council prescribes, with the RM50 fee. The gazette does not name a form or portal.
6. Answer the council's questions. It may ask for more details or documents and must give you at least 60 days. If you do not send them in time, the application is treated as withdrawn and the RM50 is not refunded.
7. The decision. The council may grant or refuse. If it refuses, it must tell you in writing within seven days of the decision. It may refuse a company not owned by a Malaysian citizen, unsuitable premises, barred premises, or a building put up without council approval.
8. Pay the licence fee each year once it is granted.
9. After you are licensed: a licence lasts up to three years and cannot be transferred. Display it where it is easily seen. Keep a guest register with each guest's name, nationality and address, phone number, check-in and check-out dates and a copy of their passport or ID. Keep fire equipment working, exits clear, a first aid kit, clean premises and enough water. Put up a notice about prohibited activities and nuisance in Malay and English, with the Malay wording larger.

Sources: Penang State Gazette, P.U. 37, The Star, NST and Penang Property Talk (via Newswav), read 2026-11-03.

The date

The by-law began on 1 August 2026. Buletin Mutiara reported on 21 August that the state's local government chairman gave owners and operators a two-month grace period, to 1 November 2026, to submit licence applications before enforcement. The NST quoted him saying enforcement follows after that.

On 3 November Buletin Mutiara reported that the state approved amendments to the by-law on 19 October, including restructured fees and a higher maximum number of rooms. They are being gazetted and are expected to take effect on 1 January 2027. No new application date or fees have been published; check with MBPP or MBSP before you apply or pay (their phone lines are under "The short version").

If you do not have one

A person who breaks the by-law can be fined up to RM2,000, jailed for up to one year, or both. Prosecution needs the Public Prosecutor's written consent, and the Mayor can compound an offence (settle it for a payment instead of a court case) with that consent. The council may enter, inspect and close premises.

Sources: Penang State Gazette, P.U. 37 and Buletin Mutiara, read 2026-11-03.

Related

• Can I rent out my condo short-term in Penang?
• A neighbour is running an Airbnb in your building: what you can do
• MBPP or MBSP: which is yours