News: Offer Unused Property For Short-Term Rent

Jul 2, 2019

Andre Tan, founder of Luxury Boutique Accommodation, believes that converting unused properties into short-term rental accommodations could help reduce homeowners’ financial stress related to servicing the mortgage loan, reported The Malaysian Reserve.

“I always believe that a vacant property is a waste of resources and properties tend to get ‘spoiled’ faster if it is just lying idle,” he said.

“Another issue is that, most of the properties are sold at a highly inflated price which demands a higher rental to cover their monthly mortgage repayment. As such, I don’t think the rental market is actually declining.”

READ MORE: What is the Home Ownership Campaign (HOC) all about?

Tan noted that while the business model could be a good way out, those who want to experiment must be considerate towards joint management bodies handling residential properties.

“However, if anyone’s keen to explore in this business model, I would highly recommend that you look for properties that are ‘Airbnb-friendly’, in which the management would allow for short-term rental,” he added.

In the face of many property management bodies still blocking hosting and short-term rental activities within their buildings, the recent Hari Raya season gave rise to 9,700 Airbnb-registered hosts having over 197,000 international guests, earning around RM27.82 million.

Mike Orgill, Airbnb South-East Asia, Hong Kong and Taiwan General Manager said the company still sees Malaysians opting to stay with Airbnb during peak times such as Hari Raya.

“At a time when hotels are busy, Airbnb helps Malaysia host more travellers and grow tourism. Every Airbnb visitor is an extra customer at local stores or eateries.”

“During these periods, most people will travel with their family members. Booking the entire apartment unit would seem more economical than making reservation for several hotel rooms.”

An Expedition Strategies’ research commissioned by Airbnb showed that 89% of Malaysians would permit people to rent their places via Airbnb, while 78% would consider staying in short-term rentals.

 

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Victor Lim
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