That’s right, in Malaysia Airbnb has become an increasingly popular platform to increase rental yield. Investors can use Airbnb as a way to maximize their rental yield on their property and reap superior gains.<\/p>\n
In this article, we will look into how you, as a property investor, can use Airbnb to maximize your investment potential.<\/p>\n
If you want to maximize the earning capacity of your property on Airbnb, you will need to consider the following:<\/p>\n
![\"a](\"https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2019\/01\/Using-AirBnB-for-Real-Estate-Investment-In-Malaysia-03-300x222.jpg\")
<\/p>\n
1. A strategic location<\/strong><\/h2>\nA point that stays true throughout real estate marketing is location, location, location. Where your Airbnb property is located will play a large role in how many bookings you will get and how much your average rent may be. Finding a strategic location can be done through the app itself. If a customer is looking for a good place, they will just pay attention to the following:<\/p>\n
\n- Units with a lot of good reviews. This will help them decide on the type of property they should get<\/li>\n
- It will also help them decide on the area they should get it.<\/li>\n<\/ul>\n
Read the reviews so you can understand why the units are popular. Plan so that you can emulate the services these units provide as well.<\/p>\n
![\"check](\"https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2019\/01\/Using-AirBnB-for-Real-Estate-Investment-In-Malaysia-08-300x222.jpg\")
<\/p>\n
2. Check local regulations<\/strong><\/h2>\nAt the time this article is being written, there are no laws or regulations in Malaysia forbidding the renting out of property as Airbnb by property owners. However, strata-owners (such as condominiums) will need to consult the management body on whether they will allow the use of the property as an Airbnb.<\/p>\n
![\"hospitality](\"https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2019\/01\/Using-AirBnB-for-Real-Estate-Investment-In-Malaysia-04-300x222.jpg\")
<\/p>\n
3. Hospitality and Socialising<\/strong><\/h2>\nAs an Airbnb provider, you will need to show your guests a certain level of hospitability. You will need to provide them with fresh towels, body wash, shampoo, toiletries, pantry perishables, cooking utensils and so on. Socialising with your guests is also a plus. Guests like a nice, warm welcome from a patron; on occasion, they would also enjoy some enlightening conversation or even suggestions on where they should go visit.<\/p>\n
![\"managing](\"https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2019\/01\/Using-AirBnB-for-Real-Estate-Investment-In-Malaysia-09-300x222.jpg\")
<\/p>\n
4. Managing The Property<\/strong><\/h2>\nIt is important to decide and plan beforehand whether you will be managing the property yourself or whether you will need to get a third party involved. If you cannot handle it yourself, you may consider asking a local real estate agent or negotiator to assist you on your behalf.<\/p>\n
![\"cost](\"https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2019\/01\/Using-AirBnB-for-Real-Estate-Investment-In-Malaysia-05-300x223.jpg\")
<\/p>\n
5. Costs Involved<\/strong><\/h2>\nLike any property, there are many costs that come with owning an Airbnb including maintenance, restocking amenities and commodities, interior design, cleaning, electricity, water, internet connection and so on.<\/p>\n
![\"the](\"https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2019\/01\/Using-AirBnB-for-Real-Estate-Investment-In-Malaysia-10-300x223.jpg\")
<\/p>\n
6. The Right Price<\/strong><\/h2>\nIn this case, the right price means a benchmark against similar properties in the same area. When you first start off, it may be a good idea to start at a lower rate so that you can gain popularity and good reviews. Once that is done, you can raise the rate (just don’t lower or raise it by too much).<\/p>\n
![\"expected](\"https:\/\/iqiglobal-web-revamp.s3.ap-southeast-1.amazonaws.com\/wp\/blog\/wp-content\/uploads\/2019\/01\/Using-AirBnB-for-Real-Estate-Investment-In-Malaysia-06-300x222.jpg\")
<\/p>\n
7. Expected returns<\/strong><\/h2>\nYou need to do some calculations to estimate the investment and revenue you may gain. For example, let’s make the following assumptions for your property in a typical month:<\/p>\n
<\/p>\n
Earnings:<\/p>\n
Number of bookings (7 Nights rented) =25<\/em><\/p>\n <\/em>Average nights per booking = 3.7<\/em><\/p>\n <\/em>Average cost per night = RM175<\/em><\/p>\n <\/em>Gross Revenue = RM4375<\/p>\n <\/p>\n
Running Costs:<\/p>\n
Cleaning: RM350 (RM50 per booking x7)<\/em><\/p>\n <\/em>Supplies: RM175 (toileteries, Toilet Paper, coffee, etc)<\/em><\/p>\n <\/em>Utilities: RM200 (internet, power, cable tv)<\/em><\/p>\nTOTAL: RM725<\/p>\n
<\/p>\n
NET GAIN:<\/p>\n
Gross Revenue: RM4375<\/p>\n
Costs: RM725<\/p>\n
Net gains: 4375 – 725 = RM 3650<\/p>\n
Therefore, in one month you would presumably earn RM 3650.<\/p>\n
Dealing in real estate with Airbnb can be an extremely lucrative business venture, with the chance of good returns, which you could even put into a new unit in the future. So be sure to seriously consider it.<\/p>\n
Want to know more about the different types of real estate investment? Send us a message at hello@iqiglobal.com or call us at 012-299-6155 or 03-7450-6655.<\/p>\n
Liked what you read? Check out this article next: The Advantages of Short Term Rentals<\/a><\/p>\n
Read the reviews so you can understand why the units are popular. Plan so that you can emulate the services these units provide as well.<\/p>\n
<\/p>\n
2. Check local regulations<\/strong><\/h2>\nAt the time this article is being written, there are no laws or regulations in Malaysia forbidding the renting out of property as Airbnb by property owners. However, strata-owners (such as condominiums) will need to consult the management body on whether they will allow the use of the property as an Airbnb.<\/p>\n
<\/p>\n
3. Hospitality and Socialising<\/strong><\/h2>\nAs an Airbnb provider, you will need to show your guests a certain level of hospitability. You will need to provide them with fresh towels, body wash, shampoo, toiletries, pantry perishables, cooking utensils and so on. Socialising with your guests is also a plus. Guests like a nice, warm welcome from a patron; on occasion, they would also enjoy some enlightening conversation or even suggestions on where they should go visit.<\/p>\n
<\/p>\n
4. Managing The Property<\/strong><\/h2>\nIt is important to decide and plan beforehand whether you will be managing the property yourself or whether you will need to get a third party involved. If you cannot handle it yourself, you may consider asking a local real estate agent or negotiator to assist you on your behalf.<\/p>\n
<\/p>\n
5. Costs Involved<\/strong><\/h2>\nLike any property, there are many costs that come with owning an Airbnb including maintenance, restocking amenities and commodities, interior design, cleaning, electricity, water, internet connection and so on.<\/p>\n
<\/p>\n
6. The Right Price<\/strong><\/h2>\nIn this case, the right price means a benchmark against similar properties in the same area. When you first start off, it may be a good idea to start at a lower rate so that you can gain popularity and good reviews. Once that is done, you can raise the rate (just don’t lower or raise it by too much).<\/p>\n
<\/p>\n
7. Expected returns<\/strong><\/h2>\nYou need to do some calculations to estimate the investment and revenue you may gain. For example, let’s make the following assumptions for your property in a typical month:<\/p>\n
<\/p>\n
Earnings:<\/p>\n
Number of bookings (7 Nights rented) =25<\/em><\/p>\n <\/em>Average nights per booking = 3.7<\/em><\/p>\n <\/em>Average cost per night = RM175<\/em><\/p>\n <\/em>Gross Revenue = RM4375<\/p>\n <\/p>\n
Running Costs:<\/p>\n
Cleaning: RM350 (RM50 per booking x7)<\/em><\/p>\n <\/em>Supplies: RM175 (toileteries, Toilet Paper, coffee, etc)<\/em><\/p>\n <\/em>Utilities: RM200 (internet, power, cable tv)<\/em><\/p>\nTOTAL: RM725<\/p>\n
<\/p>\n
NET GAIN:<\/p>\n
Gross Revenue: RM4375<\/p>\n
Costs: RM725<\/p>\n
Net gains: 4375 – 725 = RM 3650<\/p>\n
Therefore, in one month you would presumably earn RM 3650.<\/p>\n
Dealing in real estate with Airbnb can be an extremely lucrative business venture, with the chance of good returns, which you could even put into a new unit in the future. So be sure to seriously consider it.<\/p>\n
Want to know more about the different types of real estate investment? Send us a message at hello@iqiglobal.com or call us at 012-299-6155 or 03-7450-6655.<\/p>\n
Liked what you read? Check out this article next: The Advantages of Short Term Rentals<\/a><\/p>\n
<\/p>\nAs an Airbnb provider, you will need to show your guests a certain level of hospitability. You will need to provide them with fresh towels, body wash, shampoo, toiletries, pantry perishables, cooking utensils and so on. Socialising with your guests is also a plus. Guests like a nice, warm welcome from a patron; on occasion, they would also enjoy some enlightening conversation or even suggestions on where they should go visit.<\/p>\n
<\/p>\n
4. Managing The Property<\/strong><\/h2>\nIt is important to decide and plan beforehand whether you will be managing the property yourself or whether you will need to get a third party involved. If you cannot handle it yourself, you may consider asking a local real estate agent or negotiator to assist you on your behalf.<\/p>\n
<\/p>\n
5. Costs Involved<\/strong><\/h2>\nLike any property, there are many costs that come with owning an Airbnb including maintenance, restocking amenities and commodities, interior design, cleaning, electricity, water, internet connection and so on.<\/p>\n
<\/p>\n
6. The Right Price<\/strong><\/h2>\nIn this case, the right price means a benchmark against similar properties in the same area. When you first start off, it may be a good idea to start at a lower rate so that you can gain popularity and good reviews. Once that is done, you can raise the rate (just don’t lower or raise it by too much).<\/p>\n
<\/p>\n
7. Expected returns<\/strong><\/h2>\nYou need to do some calculations to estimate the investment and revenue you may gain. For example, let’s make the following assumptions for your property in a typical month:<\/p>\n
<\/p>\n
Earnings:<\/p>\n
Number of bookings (7 Nights rented) =25<\/em><\/p>\n <\/em>Average nights per booking = 3.7<\/em><\/p>\n <\/em>Average cost per night = RM175<\/em><\/p>\n <\/em>Gross Revenue = RM4375<\/p>\n <\/p>\n
Running Costs:<\/p>\n
Cleaning: RM350 (RM50 per booking x7)<\/em><\/p>\n <\/em>Supplies: RM175 (toileteries, Toilet Paper, coffee, etc)<\/em><\/p>\n <\/em>Utilities: RM200 (internet, power, cable tv)<\/em><\/p>\nTOTAL: RM725<\/p>\n
<\/p>\n
NET GAIN:<\/p>\n
Gross Revenue: RM4375<\/p>\n
Costs: RM725<\/p>\n
Net gains: 4375 – 725 = RM 3650<\/p>\n
Therefore, in one month you would presumably earn RM 3650.<\/p>\n
Dealing in real estate with Airbnb can be an extremely lucrative business venture, with the chance of good returns, which you could even put into a new unit in the future. So be sure to seriously consider it.<\/p>\n
Want to know more about the different types of real estate investment? Send us a message at hello@iqiglobal.com or call us at 012-299-6155 or 03-7450-6655.<\/p>\n
Liked what you read? Check out this article next: The Advantages of Short Term Rentals<\/a><\/p>\n
<\/p>\nLike any property, there are many costs that come with owning an Airbnb including maintenance, restocking amenities and commodities, interior design, cleaning, electricity, water, internet connection and so on.<\/p>\n
<\/p>\n
6. The Right Price<\/strong><\/h2>\nIn this case, the right price means a benchmark against similar properties in the same area. When you first start off, it may be a good idea to start at a lower rate so that you can gain popularity and good reviews. Once that is done, you can raise the rate (just don’t lower or raise it by too much).<\/p>\n
<\/p>\n
7. Expected returns<\/strong><\/h2>\nYou need to do some calculations to estimate the investment and revenue you may gain. For example, let’s make the following assumptions for your property in a typical month:<\/p>\n
<\/p>\n
Earnings:<\/p>\n
Number of bookings (7 Nights rented) =25<\/em><\/p>\n <\/em>Average nights per booking = 3.7<\/em><\/p>\n <\/em>Average cost per night = RM175<\/em><\/p>\n <\/em>Gross Revenue = RM4375<\/p>\n <\/p>\n
Running Costs:<\/p>\n
Cleaning: RM350 (RM50 per booking x7)<\/em><\/p>\n <\/em>Supplies: RM175 (toileteries, Toilet Paper, coffee, etc)<\/em><\/p>\n <\/em>Utilities: RM200 (internet, power, cable tv)<\/em><\/p>\nTOTAL: RM725<\/p>\n
<\/p>\n
NET GAIN:<\/p>\n
Gross Revenue: RM4375<\/p>\n
Costs: RM725<\/p>\n
Net gains: 4375 – 725 = RM 3650<\/p>\n
Therefore, in one month you would presumably earn RM 3650.<\/p>\n
Dealing in real estate with Airbnb can be an extremely lucrative business venture, with the chance of good returns, which you could even put into a new unit in the future. So be sure to seriously consider it.<\/p>\n
Want to know more about the different types of real estate investment? Send us a message at hello@iqiglobal.com or call us at 012-299-6155 or 03-7450-6655.<\/p>\n
Liked what you read? Check out this article next: The Advantages of Short Term Rentals<\/a><\/p>\n
<\/p>\nYou need to do some calculations to estimate the investment and revenue you may gain. For example, let’s make the following assumptions for your property in a typical month:<\/p>\n
<\/p>\n
Earnings:<\/p>\n
Number of bookings (7 Nights rented) =25<\/em><\/p>\n <\/em>Average nights per booking = 3.7<\/em><\/p>\n <\/em>Average cost per night = RM175<\/em><\/p>\n <\/em>Gross Revenue = RM4375<\/p>\n <\/p>\n Running Costs:<\/p>\n Cleaning: RM350 (RM50 per booking x7)<\/em><\/p>\n <\/em>Supplies: RM175 (toileteries, Toilet Paper, coffee, etc)<\/em><\/p>\n <\/em>Utilities: RM200 (internet, power, cable tv)<\/em><\/p>\n TOTAL: RM725<\/p>\n <\/p>\n NET GAIN:<\/p>\n Gross Revenue: RM4375<\/p>\n Costs: RM725<\/p>\n Net gains: 4375 – 725 = RM 3650<\/p>\n Therefore, in one month you would presumably earn RM 3650.<\/p>\n Dealing in real estate with Airbnb can be an extremely lucrative business venture, with the chance of good returns, which you could even put into a new unit in the future. So be sure to seriously consider it.<\/p>\n Want to know more about the different types of real estate investment? Send us a message at hello@iqiglobal.com or call us at 012-299-6155 or 03-7450-6655.<\/p>\n Liked what you read? Check out this article next: The Advantages of Short Term Rentals<\/a><\/p>\n