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.
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