Hi guys. Im buying an office lot for cashback. Currently serving loan n maintainence is around 3500/month.

Office rental very low at current situation. So i was thiking to do some renovation and rent it out as theme home for AirBnb. Its 1000sqft open space. That way i can manage the installment.

Question is. Is there any issues converting office space to a theme home doing airbnb?

bomba permit, amongst other things.

@Cyberjaya right?

Office lot as in .....

1. Shopoffice or

2. Office lot in office tower / complex ?

I am a homestay operator. Current demands are more for quarantine booking than holiday guests.

This post has been edited by mini orchard: Jul 21 2021, 08:42 PM

Developer should already apply for this correct?
Building VP already. Should already get CCC i assume. Pass all safety requirement

Office tower. Building is 10 storey. My unit is at level 3. So can just go up by stairs reached the unit.

Thinking to convert it to a home. Guest can come and stay. In and out. Next to my office/house got some small SME buisness etc. Only share the foyer to access in and out.

Yeah. Correct.

I am currently working in cyberjaya. How much is exactly the rate for renting an office in cyberjaya by the way? From what I know- there's a lot of unutilised building in cyberjaya. It's very hard to find tenants here

Empty 1.5k
Furnish 2.5k

Yaa. Hard to find tenant plus rental very low. Thts why decide to convert it to airbnb.

Personally i think the building is good looking brand new. And the location is central. Easy access.

This post has been edited by homi: Jul 21 2021, 09:31 PM

sorry misread, thought it was shoplot. my bad.

Ensuite toilet and bathroom?

This post has been edited by icemanfx: Jul 21 2021, 10:39 PM

Like any homestay in condos, is better to sort out the plan with the building management first. The last you want is after spending on reno the management have issues with your operation.

Understanding the homestay business is important. You need to ask yourself what you want in the unit b4 you book. Then only you can proceed to plan your renovation. If you go through some of the listings, some units are better furnished and equiped than a hotel suite. But then, you dont need to be like those listings. And is also not simply putting beds.

Homestay ratings and reviews are VERY important. One or two bad reviews will affect future bookings. Listing in Airbnb that I know will push such listing to the last page.

Pricing is also important as it will detetmine the type of guests who book. There are good and also problematic guests.

Like in any new ventures, planning is important.

There are seminars for beginners to understand more about the industry. A caution thou ... some are not easy as said.

Many have started and many more have closed down, esp last and this year.

can be done. depends on renovation layout

Whats the target tenant for current situation?
Previous cyber airbnb still possible with uni convo and business trip tenant.

Airbnb basic rules is relatively low maintainance but wt tower office style believe cost is high, how much to charge at the end per head/nite?

Ever think of share store room+office for online seller or share kitchen for online food small business owner? Just blow water btw me.

yes. will be the high side for bills and utilities.

target tenant would be those who need a place to stay at cyber. in general. not to specific.
but there will be large open space. hall. due to its a 1000sqft studio

was thinking also to use the office itself for a new e-commerce venture. stockpile rebranded item from china sell it nationwide.
wht u had in mind was my 2nd option.

may i know what the the SPA price? rebate how much?

830k spa. 350k cashback.

Where to connect water supply and discharge?

what is the exit plan ?

because when u sell, next taker wont not want to buy the residential unit...

so the renovation cost will need to considered as burnt..

second question, who want to rent a place to stay in a office building ?

better u convert to co working place better...

If Cyberjaya, there have too many units proper airbnb at condo,soho,sofo...

So your shoplot what make you outstanding than others? How much you want to spend for renovation and interior fittings?

Air BnB also not good now. Many stop operation already.

i see. thanks for the info. i can see it kind of make sense to aim for the cashback in order to save the business. Housing loan interest rate vs personal loan interest rate is a no brainer. i do wish you success in your business. however, just be prepared to sell your unit below SPA price in the future. it kind of like a chain effect.

the unit not saleable due to whatever reason, the developer throw out super deal to make sales. if the unit not saleable which could also means that no one like to be in that location. You may face difficulty to rent out / sell out in the future. But of course you still have your cash back to tahan the instalment. Once this runs you or other owner might rush to sell it to cut loss even at below SPA price.

purely my thought on this.

Sorry just curious, isn't quarantine required to be in govt approved hotels?

To be honest this is the most worrying part. The exit plan.

Basically just need to pay the bank the total 90% from loan amount. 380k loan for property. 350k for the cashback. I dont see myself going to sell the unit unless i have pay the loan 100%.

Need to push the buisness to make enough profit to pay back the bank. Only thing i can do is either rent it out at good price, airbnb, or use the space run buisness or company.

If i can furnish the space around 30k budget for an office space and rent out for 2.5k~2.8k and lock the tenant for 2-5 years already perfect enough for me as i only need to pay 800~1k only per month to serve the bank monthly.

I am not too sure about that but I reckon that they must have permission to self quarantine at home. Otherwise they wont book.

Another possibilty, quarantine hotels are full.

This post has been edited by mini orchard: Jul 22 2021, 11:00 AM

Co working space is my first option. But not sure if market right now is good. From the layout i think i can split it into 5 small office and rent it out for RM500-700 each. Include bills internet machineries n others. Quite feasible. Just not sure whats the market rate for small office.

As for now, around 30k. Unique perhaps in a sense tht its a 1000sqft open space. Was thinking new york brooklyn theme or a neon gaming house with 200' projector. Mini scale cinema. Just an idea. Havent finalize yet. Can fit 8 people.

Yes, just think the way, why i choose this rather than normal condo with facilities.

Good luck bro

Actually its a mix development. Behind the office have all the apartment facilites. Can access also. Swimming pool, gym, jog track, etc. Same actually.

But i get wht u mean.

mind to share what project is this? or else perhaps just pm me. thanks.

Instead of AirBnB, will co-working space arrangement work? Or as you mentioned; partition it and use it as stock-pile centre rental for those doing online sales. As currently, there are many online businesses running and I believe WFH is here to stay for awhile and people will need comfortable work spaces / meeting spaces to hold virtual meeting.

Airbnb is down for the time being, due to Covid and your building is on commercial title without eligibility for HDA; which means your utility price will be high.

This post has been edited by dayalan86: Jul 22 2021, 07:05 PM

The agent also suggest me this. Will heavily consider this. Will check office space rental market in cyberjaya how much

reno into call center then market as call centre ready move in chinese. u sure get tenant in cbj.

Co sharing is good if can have regular full load. The variable cost per sharing is low. On the other hand, if is only few, cost will be higher. A staff need to be there, lighting and AC needed plus an office cleaner is required if is 1 or 20 person daily.

As for Airbnb, variable cost will only be incurred if there is a booking. Airbnb business dont need 30 days to breakeven to cover bank loan.

When I started my Airbnb four years ago, I have given the business 2 years and if I cannot sustained, I will revert to long term tenancy.

Fast forward, I see Airbnb business picking up after travel restriction is lifted as everyone likes to travel. In addition many hotels have closed down which makes demands higher in the short term for those still in the business.

may i know which area u doing yr airbnb ? u managing how many units? would like to learn few things from u

My area is in Subang and is a DST. I have only 1 unit.

Before I started, comments I received it is not KLCC area and who wants to stay 20 to 30 km from city.

When I listed it in Airbnb, within 1st week I received a four nights booking from a UK family ! Throughout the 4 years, other than locals, I have received bookings from China, Hongkong, Singapore and Germany.

Other than holiday guests, I also received bookings for 2 to 3 months from those owners doing their house or condo reno.

Local movie and advertisement production house also booked my place for filming.

Many who have no experience in this business thinks Airbnb is only about KLCC and foreign tourists.

You be surprised if I say few of my bookings came from neighbours.

Like in any business, there are some downsides relating to lousy guests that dont take care of the unit, stealing and unreasonable demands. It takes experience to handle all those.

The pricing will determine the type of guests who booked.... similar to 5* and 3* hotels.




This post has been edited by mini orchard: Jul 22 2021, 11:02 PM

But the thing is now Airbnb is dying in country. and it will prolong to at least another year before start picking up. as long as border not open, no need to talk about homestay.

If you dont have train or upcoming train within the distance, no need think about airbnb. unless u have super search ranking. but no use ppl will still comment on ur place.

Ya dabao to convert jadi room rental already, some even close shop and sell furniture. especially those tourist oriented one. KL city one ppl still struggling.

sendiri use better if ur biz is profitable. rent or sell also die ... co-working space also susah, nowadays ppl work from home, office lot has the greatest impact in covid than residential unit. Shop still ok when recovery, ppl thinking will change post era, WFH and zoom and e-wallet are the post era.

room rental can make money?

Everyonne knows many businesses are dying and not limited to Airbnb.

My Airbnb is about 10 minutes walk to the station. During my 4 years running, non of my guests ride the train although a route map is up on the wall for their refetence. Is either selfdrive or Grab even for those from overseas.

Is a plus point if the unit is near the train station.

Is normal for anyone to cut losses if business is slow or zero.

If cannot Airbnb, Office Co-Sharing, Rent, Sell or not for self use, one cannot just sit down and watch the clock ticking away.

Some actions are need.

This post has been edited by mini orchard: Jul 23 2021, 12:29 PM

Sharing office+storage space better than co working space, co working too common and struggling now. Why put urself into trouble while others struggling still.

FB live or online seller need a space to store their stock/laptop,live materials/printer n etc and a space to do live and arrange postage. Potential than airbnb or co working at the moment in this location with youngster student mindset

When many novices talk about a profitable business/investment, that business/investment is likely/often to have peaked.

This post has been edited by icemanfx: Jul 23 2021, 03:36 PM

For now is at least better than Airbnb, can do both at the same time.

Ya, I converted my own property from Airbnb private room to full rooms rental.

It's +ve cash flow now.

Your location must be very good and easy to get tenant.

Yes, in Bukit Jalil, walking distance to LRT.

That's why a big no no in Cyberjaya to operate airbnb.

high risk low return ...

https://www.airbnb.com/s/Cyberjaya-Selangor...pe=search_query

Currently, there are 300+ active listings in CJ and surrounding area. Many of the hosts reviews are current ...meaning for July bookings.

Data dont lie.

No wonder. Walking distance to LRT somemore.

LRT is not a benefit to Airbnb guest.

For example .... no guest will book a place near Puchong IOI station and take an hour ride to KL. Is no brainer. Similarly, those who come to KL city for business wont book a hotel in Subang !

For those who book CJ will have business or actiivity in CJ or surrounding area. I dont see how a train line helps.

For long term tenant, a train station is definite a selling point. Similary to a buyer.

1000sqft can divide how many sub office ? recctangle layout shape

Yes. Actually i am talking about long term tenant.

Occupancy rate is very low based on the reviews, if you look at KL area, those top listing are 300 - 500 reviews.

I can dare to say CJ operator is not doing well pre-covid and now.

and FYI train like LRT & MRT really has an impact especially for foreigners and tourist.

For Local, some of them drive so searchable will do but usually they're last minute booking.