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Many owners struggle with the decision of whether to use their property for long-term rental vs Airbnb (homestay) upon receiving the keys. We all understand the general pros and cons of long-term renting versus Airbnb, so let me directly compare with an example: (Condo in the city center of Ipoh with three bedrooms and two bathrooms) Income Long-term Rent:Stable rent (1.8k) Airbnb: More variable, but generally higher than long-term rent (2.2 – 4K, after deducting operator fees and miscellaneous expenses) ✅ Set Up Cost Long-term Rent:For an empty property, decoration + appliances cost about 15-20 thousand Airbnb: For an empty property, decoration + appliances cost about 20-30 thousand (including 2-3 sets of hotel linens per room, dinnerware, etc.) ✅ Cleaning and Management Long-term Rent: Not much need for management, but if rented to a problematic tenant, the house might need renovations after 1-2 years Airbnb:The house is inspected and cleaned after each booking checkout, any damages are repaired immediately, ensuring the house is always in perfect condition ✅ Rent Collection Long-term Rent: Chasing after problematic tenants can be a hassle, with a risk of not receiving rent Airbnb:Payments are collected in advance, either through platforms (like Airbnb, Agoda) or direct WhatsApp bookings. If managed by an operator, payment is reliably made at the beginning of each month. ✅ When Relatives and Friends Visit Long-term Rent: The owner cannot enter, relatives and friends need to find external accommodations Airbnb: Simply block the booking for those days, stay whenever you want, and show relatives and friends the beautifully decorated house ✅ So, in the debate of long-term Rental vs Airbnb, is it better to use all properties for Airbnb? Not necessarily. The above example is based on a condo in the center of Ipoh. It also depends on your location, condo management, condo title, and other factors. Want to know what kind of properties are completely unsuitable for Airbnb?Follow us! Our next topic will be: Is My Condo Suitable for Airbnb?Learn how to analyze data, and understand laws and regulations about Airbnb. Can’t wait and want to know if your property is suitable for Airbnb right away? Feel free to Whatsapp us for inquiries.We offer a free 15-minute consultation and can directly analyze for you.

Once you’ve resolved the long-term rental versus Airbnb dilemma and chosen Airbnb, it’s essential to assess if your condo suitable for Airbnb hosting. “I thought all condos are suitable for short-term rentals or homestays like Airbnb. Why does my Condo Management say it’s not allowed?” “I bought it because the agent said it was “suitable for Airbnb” for investment purposes. How come it is not allowed after the AGM?” In Malaysia, whether a condo suitable for Airbnb depends on: 1) Local State Government Regulations For example, in Sabah, the Kota Kinabalu City Hall (DBKK) treats Airbnb as a “hotel,” so it must comply with the 1966 Hotel Regulations. In Sabah, regardless of whether it’s a terraced house or a condominium, these regulations (including fire safety requirements, etc.) must be followed. Generally, these requirements are high and difficult for a typical homestay to meet. Penang Island City Council has effectively regulate all Airbnbs effect 1 March 2024. All properties with residential titles are not allowed to operate Airbnb, except for six types of commercial properties, including serviced apartments, Small Office Home Office (SoHo), Small Office Flexible Office (SoFo), Small Office Virtual Office (SoVo), office suites, and duplex offices.However, these properties need approval from the Joint Management Body (JMB) and a 75% “favorable” vote from the Annual General Meeting (AGM). 2) JMBThe Joint Management Body (JMB), comprising condo administrators and members elected at the AGM, can impose restrictions. This means, apart from Sabah and Penang, other states might also face JMB restrictions (for example, if most homeowners vote against Airbnb) and cannot operate Airbnb. So, remember to check with your condo management! Next Topic: “How to Do Research on Airbnb?“ Does operating an Airbnb always mean higher profits?Even if your unit complies with all regulations and can be used for Airbnb, learn how to determine whether long-term renting or Airbnb is more profitable for your unit! Feel free to Whatsapp us for inquiries.We offer a free 15-minute consultation and can directly analyze for you.

If your property complies with local state government regulations and the Joint Management Body (JMB) allows short-term rentals, should you consider operating a homestay? Here is our method of doing research on Airbnb, now taught for free! Open a Google Sheets (or Excel) and fill in the data according to the following method: 1) Find the average price near your unit on Airbnb Search for your area near your unit on Airbnb, then1) Choose weekdays (Monday to Thursday) or weekends (Friday and Saturday). 2) Go to the Filter function and select “House” (our Landed) or “Flat” (our Condo) to find the price. It must be the same type as your unit, otherwise, the price will not be accurate. After finding it, roughly note it down, for example, RM271-469 for weekdays, maybe RM300-500 for weekends. 2) Roughly estimate their rental rate Note similar units and record their prices:1) Weekday prices (Sunday to Thursday)2) Weekend prices (Friday and Saturday)3) The number of days these units are booked (grey dates indicate booked). 3) Estimate the sales amount Multiply the weekday price by the number of weekdays, and the weekend price by the number of weekends, to get the total sales of the unit. For example:RM 200 x 2 nights for weekdays = RM 400RM 300 x 8 nights for weekends = RM 2,400a total of RM 2,800. 4) Deduct regular expenses to get the profit Here’s an estimate of costs:electricity is RM30 per night (10 nights = RM300)water is RM5 per night (10 nights = RM50)cleaning and laundry fees are RM80 per booking (10 nights = RM800, assuming all staying 1 night only)monthly Wi-Fi costs RM150and about RM100 per month for consumables like shampoo, toilet paper, etc. Sales amount = RM2,800Expenses = RM1,400Assuming installment / rental = RM700Profit left = RM700 5) How to determine if the Airbnb income is good or bad? We use our profit ratio format to calculate. Profit = ? times installment payment/renta) Best ratio: Profit is 1 times or more than the rentb) Normal ratio: Profit equals rentc) Poor ratio: Profit less than rent In the calculation example shown above, this case belongs in the normal ratio. Now that you know how to do research on Airbnb, you will be able to calculate the earnings. Are you satisfied with the results? Why don’t we just pay for data? Like AirDNA, etc.For beginners or those who only own one unit, this monthly fee is too expensive to begin with. Well you might be wondering, why do we keep telling you which condos can’t do homestay, and constantly remind you to thinking about whether it’s worth setting up your unit for Airbnb.Because at the end of the day, whether you make money or not, the short-term rental business management company still takes the management fee before giving you the remaining amount to pay installment etc. Here, we want to clarify some myths about homestays, by letting owners know clearly how much money their unit can make, what limitations there are, etc.This way, owners can make an informed decision on their own, instead of finding out that they can’t recoup their renovation costs. Next Topic: The Correct Process of Operating an Airbnb Can’t wait and want to know if your property is suitable for homestay?Feel free to Whatsapp us for inquiries.We offer a free 15-minute consultation and can directly analyze for you.