KUALA LUMPUR, June 14 -- As rental costs rise and hefty deposits put traditional housing further out of reach, some Malaysians are choosing an unlikely alternative: living in hotels for months, or even years.

For some, hotel living offers a way to avoid large upfront rental costs and long-term tenancy agreements. For others, it provides flexibility and convenience that conventional renting cannot match.

For 38-year-old legal consultant Fareez, who requested that only his first name be used, the decision was straightforward.

He moved into Swing & Pillows Danau Kota, where he paid RM1,150 a month and stayed for a year.

The biggest draw was simple: no deposit.

"That's the first reason. I was living alone and didn't need a large space. T...