4th August 2025 - 2 min read
Thinking of renting out your property on Airbnb, or already running a short-term stay business? You’ll want to keep an eye on new government regulations that are in the works. While first announced back in 2024, the government’s plan to introduce a new framework for Short-Term Residential Accommodation (STRA) is still in progress as of August 2025.
These changes aim to create a more organised, sustainable, and clear system for the short-term rental market across the country.
The plan, which comes from the Housing and Local Government Ministry (KPKT), aims to create a new national framework for STRA. The draft guidelines were presented to the Cabinet after being announced by the Deputy Tourism, Arts, and Culture Minister, with the goal of giving state governments and local authorities a clear structure to manage these rentals, as was initially reported.
While an initial timeline was discussed in 2024, the guidelines are currently still under review by the government. An official, updated timeline for when these rules will be rolled out has not yet been announced.
One of the biggest proposed changes for property owners is the need for a business operating licence. Under the proposed rules, you would need to secure a business licence from your local authority, such as your city or municipal council, before you can officially register your property as a tourist accommodation.
This step is intended to formalise the process, as the licensing and enforcement for accommodation premises fall under the responsibility of local councils.
To ensure everything works together smoothly, there is also a plan to amend the Tourism Industry Act 1992. This is to prevent any confusion or overlap in authority between the different ministries involved.
However, this amendment is on hold and will only proceed after the main STRA framework is finalised and approved. For now, property owners should monitor for future announcements from the relevant ministries.
While we wait for the final details, staying informed is the best strategy. For those considering property as a rental investment, understanding these potential new rules is crucial. It’s also wise to compare home loan options to ensure your finances are ready for your next move.
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Comments (2)
How will behaviour of guests be controlled in residential areas? My nice house at the ocean became a HomeStay Horror place since the house next door was sold and turned into Homestay. Loud bang-bang music, karaoke machine in the garden, weekly heavy fireworks resulting in ashes and firework stones on my car and in my garden. Communication with owner no chance for normal conversation and reporting to police a few times already but officers don’t come. All neighbours upset about it but seems we just have to accept it. Everybody has neighbours who of course have occasional party, that’s normal.… Read more »
Hi there, thanks for sharing your experience. We are truly sorry to hear about the difficulties you’re facing with the homestay next door; that sounds like an incredibly stressful situation for you and your neighbours. To answer your question based on the report, the government aims to control these situations specifically through the new business operating licence requirement. Currently, many operators exist in a grey area. However, the proposed rules state that enforcement will fall under the jurisdiction of local councils. By requiring every host to secure a proper business licence to operate, the local council will finally have the… Read more »