The rapid growth of short-term rentals, facilitated by platforms like Airbnb, has raised concerns about their effects on housing affordability, community dynamics, and the local economy. The effects are growing concern amongst the people since studies have found that short-term rentals have affected the local community and the local real estate economy. The first objective in this research is to identify the effects of short-term rentals on socioeconomic in Kuala Lumpur. The second objective is to investigate the most effective strategies to minimize the effects of short-term rentals on socioeconomic of Kuala Lumpur. The selected study area is Kuala Lumpur where short- term rentals listings are the most prominent at. A set of questionnaires was distributed to 102 respondents consisting of working ages participants from age of 18 until 70 years old. In addition, for the purpose of data analysis, quantitative method is adopted by using cross-tabulation analysis and mean comparison analysis. The findings of the study for the first objective shows that most of the respondents agree that short-term rentals are affecting the neighbourhood dynamics which causes concern among property owners and renters. Furthermore, for the second objective, respondents mostly agreed that the government should propose a licensing scheme to the property owners who wanted to opt for short- term rentals. Lastly, the key takeaway from this research is the implementation of strict rules and regulations on short-term rentals. Recommendations for policymakers and stakeholders are provided based on the research findings. This research contributes to the growing body of literature on the effects of short-term rentals on socioeconomic aspects, specifically in the context of Kuala Lumpur. It provides empirical evidence and insights that can inform decision-making processes and support the development of effective policies and strategies.