if you flip through Agoda, Airbnb, booking.com in KLCC, Bukit Bintang, Genting

you will see many of the residential properties are up for listing, for short-term rentals and nightly stays,

even before MCO, properties with the sole intention of hosting it for Airbnb already pops up, with psf price of RM 800-1500, buyer needs to spend 25k-40k to renovate the unit, usually only go through the designated ID and contractors such as Makeover Guys

the profit sharing method in use is usually pool sharing, which means the risk is shared across all owners in the block, then the owner and management is split in 70:30

now my question is, how good is these business nowadays?

Although from the example of The Face Suite, the rate can be as high as RM 500 per night for size arund 800 sqft

but how long would it take to break even that initial upfront of renovation cost of say 25k

This post has been edited by dattebayo: Mar 17 2024, 10:07 AM

My recent VP 500sqft partly furnished unit was quoted for 35k-50k renovation & setup fees from Airbnb operators. The profit margin is at least at half of the quoted price, feel like they really squeezing profits from us owner

This post has been edited by chuanyou: Mar 17 2024, 10:40 AM

A biz is a biz there is not charity in biz.

To sell u the props or to earn fr reno or to slaughter u with their management fee is just part of the biz model.

I onli notice many young wannabe using them. Yes some oldies oso testing out with them. It's not hard to do up a brand new unit. Some say no time some say no idea some say no budget. Use money buy results is ok but got skinned is not gd to me.

There is no short cut in prop investment. The faster u wanna to reach the destination the higher risk of getting failure. No doubt v stil see 1 or 2 lucky dudes but would u be the 1 or 2???

Actually now the devs have up the game by stating that all buyers must go through certain makeover companies, leaving no alternatives for the buyers

That being said, despite that they monopolised the whole block, I don't feel any price benefits nor discounts at all

Given no DP and free legal fees, the reno fee is the cost that gonna take years to break even, that is given the monthly rental generates surplus after deducting the installments and maintenance

If you want to know whether airbnb is doing well. Just use the app and check the availability of units in the area you are buying.

If you see most of the units not booked, only one or two booked for the month, then it is a red flag.

There are not short of suiyu for them to slaughter so to speak

Airbnb in Kuala lumpur has average occupancy rate of 29% and USD 40.7 average daily rate. Means most Airbnb in kl are unprofitable.

https://www.airdna.co/vacation-rental-data/...lumpur/overview

This post has been edited by icemanfx: Mar 17 2024, 06:04 PM

but why still many studio targeting for abnb biz and still got ppl renting for such biz ?

Seem like many poorperly investors are underwater and yet many are still buying to invest. There is no shortage of suckers.

This post has been edited by icemanfx: May 28 2024, 04:22 AM

Renovation cost definitely has gone up but if your unit is partly furnished from developer (Aircon, kitchen) you are definitely "slaughtered" upfront by the Airbnb operators.

Also you bear the crazy wear and tear of the Airbnb activity. You can count after 2-3 years the operators will dump your unit.

How long it is going to take for our fellow landlords to learn that no free lunch in this world and most of these co-living and Airbnb operators just want to slaughter you.

https://www.channelnewsasia.com/singapore/w...tay-ura-4366206

This is how authorities make an example of people. Sadly, we do not have SG levels of enforcement.