Hello everyone,

First of all, I'm new to this scene, spent around 2-3 weeks to learn this so called property game. Hence, if I sound foolish and naive, please excuse me and please by all means, critically and constructively point out my wrong train of thoughts. Genuinely looking forward to learn from all the gurus and sifus here.

Reason I have created this topic is to humbly ask for any existing owners of Airbnb investment projects within KL City Center area, as I am trying to gather data to see whether this investment project or more so whether this category of projects is feasible or not. One most important question, are you able to cover your monthly instalments, and if so, what are the nett returns after profit sharing and costing with the Airbnb operators? One step further, if you do not mind sharing, could you reveal the nett average returns monthly?

There are so many out there such as the many Airbnb accommodations on the stretch of Jalan Yap Kwan Seng as well as so many Airbnb operators in the market. Scrolling through Airbnb, and taking the Airbnb projects on Jalan Yap Kwan Seng as benchmark, there are a lot of units with a lot of unoccupied days in the month of August.

I am looking to invest in such projects namely Armani Raja Uda, Exsim Hugoz. As per usual, their entries are attractively low with cashbacks and all, basically just 2% MOT and bank valuation fees. My thinking and calculation are as below:

Taking Armani Raja Uda as an example, I've booked a dual key unit and computed a monthly commitment of around RM 4.7k including mortgage payment, maintenance + sinking fund, fire insurance, cukai pintu, cukai tanah, wear and tear.
Total upfront around RM 40k.
Assuming average daily rates across the year is 200 and average occupancy per month is 15 days and since it is dual key the calculation is as follows: 200 * 15 * 2 = 6,000. Operators take 70%, and I would minus another 10% for utilities etc.: 6,000 * 60% = 3,600.
Monthly commitment around 4.7k so that leaves me on a monthly deficit of 1,000.

Are my computations too prudent and too below expectation?

Below is a quick video where I go through Airbnb website to see occupancy rates. Area in focus is IJN, Jalan Tun Razak and Kampung Baru as it is near to Armani Raja Uda.

https://www.youtube.com/watch?v=D7OatE1F6uk

Also, Kampung Baru, being an old Malay neighborhood, still some time to come before it gets more developed.
New development approach for Kampung Baru
Kampung Baru redevelopment to be realised through the latest masterplan

This post has been edited by YoungLad: Aug 3 2023, 03:08 AM

What makes you think AirBnB owners will be lurking in this thread?

Do you think they’ll divulge these information and welcome new competitor to take away their pie?

Why don’t you contact the host in AirBnB on pretext of booking and fish for more info?

Why do you need agents/operators? Can’t you manage on your own

Did you factor in miscellaneous cost like bad tenant that will damage your unit and make it untenable?

1. I dun think you can benchmark kampung bahru with Jalan Yap Kwan Seng. Tourist normally dun stay at kampung bahru.
2. If want to do short rent, I think somewhere walkable (enjoyably) to both Bukit Bintang and TRX is where the future demand is. KLCC demand will drop once TRX is opened.
3. Buy something that you still can rent out assuming Covid come back. somewhere near TRX still can cater to the working professional.
4. buy at least 1+1 room. if it is a studio or 1 bedroom, you are competing with hotel.

And every building ages and AirBnB building ages faster. So, you really have to buy it cheap and get out when the building is at its prime. There is no long term rental income strategy for short rent property.

expressionz dual key owner average return from operator after mco, around 4-6k into their pocket depending on season... you can think and see those that are really in proper yap kwan seng or BB area how much potentiall you can get...

Airbnb capex is much higher than equivalent hotel room.

airbnb average room rate is lower than equivalent hotel room.

airbnb occupancy rate is lower than similar hotel room.

airbnb opex is higher than similar hotel room.

there are many airbnb in kl city center. how many are making reasonable profit?

To truly earn money from Airbnb/short term rental property:

1) Must reduce cost as much as possible, INCLUDING BANK INTEREST.

This means that you'll ideally put as much paid upfront as possible, so that your monthly commitment is lower. This allows you to set more competitive rates and get positive cash flow ASAP. Too much monthly deficit is bad because of the quick wear and tear of Airbnb properties (detailed below in #3).

Very general rule of thumb is try to aim for 70% or less for loan margin, and make use of cashback for reno/styling/maintenance.

2) Remember to factor in cost of renovation and appliances. Airbnb in KLCC area can be extremely competitive and you're going to be fighting against people who spend higher on reno+amenities to give attractive photos, which tend to attract higher income tourists.

But you also need to know how to style the place with as low budget as possible, money invested in reno isn't necessarily reflected in higher Airbnb booking rates.

3) Prepare an exit strategy to sell and leave in 5 years. Related to Item #1, having a high loan means that it can be difficult to sell enough to cover outstanding loan and exit, in the event that cost of operations/value of the property goes bad.

Short term rental-oriented projects tend to wear and tear extremely quickly, within 5 years can see building age very quickly. Investors of this type usually want to up profit margin and there's high possibility that they'll try to cut maintenance cost as much as possible.

Airbnb is very vulnerable to changes in economic situation, moreso than regular rental. Lack of tourists=lack of income. Prices of property are still relatively high and KLCC is so easily accessible by public transport+so many high end hotels nearby. You have to be prepared to compete not just against owners of the same building, but the hotels and other Airbnb in the vicinity AND those that are built along the train lines.

===

As far as Kampung Bahru redevelopment, it's an uphill battle to gentrify the area, as a regular visitor of KLCC/Yap Kwan Seng area for 15+ years it has not changed much.

Do you have an Airbnb?

My experience: I rented out my condo near BB to an air B&B operator but once MCO hit, totally zero income and I had to foot the instalment for couple years. But during the good times the profits were good. He paid me enough to cover bank instalment and maintenance and he still made money. However in these times I would not advise it as there is too much competition and times are unstable. What if war in Taiwan/ Middle east breaks out and tourist supply cut? Or another MCO? Can you hold for a couple years?

Not directly, but speaking from friends and family who invest in tourist hotspots.

During times like MCO with really 0 income and economic troubles, can see the financial difference of those who overspend/overleverage with no backup vs those who are more prudent with their finances.

The ones who invested really early when property prices were low or with as minimal loan as possible, are able to survive better, compared those who overleverage with high loan margin beyond their affordability/buy overpriced during the property boom of early 2010s/jump on the compressed loan bandwagon sold by "gurus".

Basically because investing in property involves using loans (usually, unless you're one of those rare people who can afford to buy immediately), need to be sensible about if you're able to stay afloat and keep repayments even when no money from Airbnb is rolling in. Otherwise your unit can become another of Askarperang's posts dy 😁

This post has been edited by DragonReine: Aug 4 2023, 05:09 PM

bump collecting more feedbacks

https://www.nst.com.my/news/nation/2025/07/...bnb-style-stays

This will likely kill off the prime tourist hotspot airbnbs unless one is willing to go through a lot of trouble. The stra management businesses have to level up if they want to stay afloat. The added costs may make it unviable.

- Average length of stay on Airbnb in Kuala Lumpur is 4.6 days.
- There are 22,159 active Airbnb listings.
- The most common group size of Airbnb booking is 3.2 people
- A typical listing was booked for 58% of available nights.
- On average Airbnb users paid for RM223 per night for each night of stay. (excluding airbnb service fee and cleaning fee)
- On average Airbnb users spent RM714 for 4.6 nights of stay on Airbnb in Kuala Lumpur.
- In June, 2024 - May, 2025, the average annual short-term rental revenue in Kuala Lumpur was MYR45K
https://airbtics.com/tourism-statistics-kuala-lumpur-my
https://airbtics.com/annual-airbnb-revenue-...lumpur-malaysia

A typical short-term rental in Genting Highlands is booked for 117 nights per year, generating a medium Airbnb occupancy rate of 32% and an average daily rate (ADR) of MYR289 ($61). In June, 2024 - May, 2025, the average annual short-term rental revenue in Genting Highlands was MYR37K
https://airbtics.com/annual-airbnb-revenue-...hlands-malaysia.

Past ministers have spoken before and I guess this is another syiok talk.

Maybe the current one will implement it since both ministers are the tak takut mati type 🤭

This post has been edited by mini orchard: Jul 31 2025, 08:41 AM

Bukit bintang and klcc now all time high with 90% occupant everyday .

https://www.airroi.com/atlas/charts/occupan...y-Centre-(KLCC)

Not according to recent data.

This post has been edited by icemanfx: Jul 31 2025, 11:12 AM

I said before the hotel industry will lobby to regulate airbnb. We're slow enough as it is but it's finally happening.

for KLCC and Bukit Bintang Area can do Airbnb, sure high Occupancy rate, but TRX, PN118 and other area better dont, will die one. haha

Mind sharing what is considered "high occupancy rate"? 50%? 75%? 90%? Interested to know.

Above 80%