Running a business from home might seem like a great convenience. Still, in Malaysia, it’s important to remember that whether it’s allowed depends on zoning laws, which dictate what activities are permitted in residential areas.
Q: I’ve lived in a good neighbourhood for over 20 years, which has always been safe and peaceful. However, this year, a neighbour opened a café in their house. Initially, we were supportive, enjoying the cosy place to ‘lepak,’ but it has since gone viral, attracting large crowds. The surge in traffic and parking problems raises safety concerns and disrupts the community. From a legal standpoint, what steps can I take to resolve this issue?
Can Business Premises Operate in Residential Areas?
I completely understand the frustration of seeing a peaceful neighborhood change overnight due to the success of a local café. When a small, home-based business suddenly goes viral, it can bring unexpected challenges to the community, particularly with traffic, parking, and safety.
Running a business from home might seem like a great convenience. Still, in Malaysia, it’s important to remember that whether it’s allowed depends on zoning laws, which dictate what activities are permitted in residential areas.
Local authorities, such as municipal councils (Majlis Perbandaran) or city halls (Dewan Bandaraya), primarily regulate Zoning laws. The most common zoning categories in Malaysia are residential (areas intended for housing and related facilities), commercial (areas where businesses such as retail stores are located), industrial (zones designated for factories, manufacturing, and other heavy industries), and mixed-use (a combination of residential, commercial, and light industrial activities).
In Malaysia, most neighbourhoods are designated strictly for residential use, meaning businesses aren’t typically permitted unless you get special approval from the local municipal council. That said, it’s not unusual to see small home-based businesses or even cafes operating in residential areas. This is possible through a process called “rezoning” or by “applying for special permits”
If you want to run a business in a residential area, you can apply to the local council (Pihak Berkuasa Tempatan), whether it’s a municipal or city council, to have the land rezoned for mixed-use or commercial purposes.
While rezoning is a more permanent change to the classification of land, a special permit (sometimes called a “special use permit” or “temporary business license”) allows for certain activities to be carried out in an area without changing its zoning status; they may to the local council for a special permit. Some cases allow businesses to operate within residential areas but under strict conditions. For example, home-based businesses or small cafes might be allowed if they don’t disturb the peace, create traffic issues or cause noise pollution.
What steps can you take to tackle this issue?
If someone’s activities, like running a café that attracts loud crowds, start to interfere with your enjoyment of your property, you may have grounds to take legal action. This is known as “private nuisance.” It’s all about your right to peacefully enjoy your space. When those disruptions become ongoing rather than just a one-time disturbance, it’s considered unreasonable and could warrant further steps.
Other examples of private nuisance could include noisy construction work, blaring music, open burning that leads to air pollution, littering or illegal dumping, unauthorised street vendors, or even illegal construction that blocks drainage, causing flooding. These kinds of disruptions can seriously affect your quality of life and may also be grounds for action.
If you’re dealing with this kind of issue, here’s a simple step-by-step guide to help you navigate and resolve the situation effectively.
- Keep detailed records of the disturbances caused by the business. You should track details like the dates and times of noise, traffic jams, parking problems, or any other disturbances. Adding photos, videos, or sound recordings can make your case stronger. If other neighbours also deal with these issues, gather their complaints or statements, too. A collective effort can be much more impactful.
- Find out the current zoning of the area where the business is operating. This information can usually be obtained from your local council’s planning department or their website. You can also check with the local council to see if the café even has the proper licenses and permits to operate in a residential area.
- Consider having a friendly and informal chat with the business owner. Sometimes, a polite conversation can resolve issues more smoothly on the impact they’re causing and suggest reasonable changes to mitigate the issues. They may be willing to make adjustments to mitigate the impact on the neighbourhood.
- If informal discussions do not resolve the issue, file a formal complaint with your local council. This can be done by submitting a written complaint or filing out an online form, depending on the council’s procedures. Include all evidence you’ve gathered. Local councils have the authority to issue fines, demand business closure, or even revoke business licenses if the café violates the law.
- You may also request the local council to inspect the premises to determine if the business is violating zoning laws or operating without the necessary permits and/or
- If such an issue persists and the local council’s actions do not resolve it, consider making a complaint to the police and/or consulting a legal professional to obtain an injunction to stop your neighbour from carrying on the acts and/or claims of monetary compensation for damages suffered (if any).
What steps should you take if you’re thinking about running a business in a residential area?
If you are considering operating a business in a residential area in Malaysia, here are the steps you should take to ensure compliance with the local regulations and minimise potential issues with your community and neighbourhood:
1. Understand local zoning laws
Determine the current zoning designation of your property. Residential zones usually have restriction on commercial activities. You can find this information from your local council or their website. Contact your local council to understand the specific regulations and requirements for operating a business in a residential area.
2. Apply for rezoning or special permits
- Rezoning
If you’re looking to permanently change how the land is used, you might need to apply for rezoning. This involves applying to your local council, including detailed plans like site layouts, your business proposal, and how the change might impact the neighbourhood. Be prepared for public hearings or consultations with your neighbours as part of the process. However, if your business is on a smaller scale, rezoning might not be the most practical option.
- Special Permits
For temporary or limited business activities or for home-based businesses or small-scale operations, you can apply for a special permit from your local council, which is available either online or at the council’s office.
Make sure your application clearly outlines what your business is all about, how it will operate, and how you plan to meet any conditions like operating hours, noise limits, and traffic management. You’ll also need to provide a detailed property plan, including the layout and any changes you’ll be making. Don’t forget to include documentation proving that you have legal rights to the property or premises.
3. Obtain necessary Licenses and Permits
Firstly, make sure to register your business with the Companies Commission of Malaysia (SSM) and apply for a business license, which is required for most types of commercial activities. This license is usually obtained from the local council or relevant authorities.
If your business involves food, childcare or other regulated activities, make sure you obtain the necessary health and safety certifications. And if you need to modify your property for your business, such as constructing new facilities or making alterations, do remember to apply for building permits too.
4. Comply with Regulations
Always ensure that you adhere to all local regulations and guidelines for operating a business in a residential area. This includes maintaining compliance with noise restrictions, parking regulations and operating hours.
5. Address Potential Issues
Always plan how you will minimise any negative impacts on your neighbours, such as controlling noise levels, managing traffic and parking, and ensuring the business does not disrupt the residential character of the area. You may want to inform your neighbours about your business plans and address any concerns they might have. A good relationship with the community can help reduce objections too.
6. Monitor and Adjust
Regularly assess the impact of your business on the residential area and be open to feedback from neighbours and the local council. If issues arise or if you receive complaints, be proactive in making necessary adjustments to address them and remain in compliance with regulations.
The primary recourse is to check whether your neighbour complies with the relevant zoning laws and business licensing requirements. If they are violating these regulations or causing a disturbance, you can file a complaint with the local council and the police or consider pursuing legal action for nuisance if the issue persists.
However, starting with a friendly chat to mediate the issue is often the best way to keep things peaceful. Building good relationships with your neighbours and avoiding conflicts is always the smarter and more amicable choice.
Best Regards,
Tsu Jean Yinn, Legal Associate, Melissa Lim & Associates