Hello readers, happy holidays! Hope you had recharged yourself with good energies during this long weekend. Today I’m going to share about a global phenomenon in real estate.
Consensus thinking said that property is the best investment. Although the real estate in Malaysia experienced a slowdown during past few years, once the market revitalized, buyers are always optimistic about investing in real estate. This is not a single case that only happening in Malaysia, it happens all around the world.
It is a truth that buying properties is simpler and more stable compared to other methods of investment. However, if you plan to depend on your tenants to pay down your mortgage, you most likely will be facing some difficulties now.
When your apartment is ready for rent, don’t forget that the maybe a quarter of the apartments in your block are ready for rent too. There is no guarantee that you could successfully rent out or sell out your apartment anytime soon. If you’re lucky, you might manage to find some good tenants, but as the supply is more than demand, you may need to compromise on the deal.
The question is if you couldn’t rent out your unit successfully, or you’re not willing to compromise on the renting price, what could you do?
The first thing comes to most people’s mind is Airbnb. Airbnb is a very successful brand because it makes us believe that it is a hospitality utopia where you can rent out your property with good prices and you can set your own house rules. The problem is the risks behind it are bigger than we knew. I’ll let Adam present you a mind-blowing speech.
Besides the legal issues, the additional costs behind it are higher than you could imagine. You will need to renovate your property good enough to attract guests, maintain the property’s cleanliness and safety, and provide extra hospitality services such as pick-up service, basic kitchen facilities, etc.
There is always a better solution.
There is a new accommodation concept, which is Aparthotel. Daily Suites Berhad has been acquiring emptied apartments to transform them into boutique hotel suites. They partner with apartment owners, take the responsibilities to renovate the apartment and install fundamental and even some luxury amenities. The best part of it is you wouldn’t need to reveal any of your personal contact information to the guests.
Renting out your apartment as an Aparthotel might have more limitations compared to other options – you might earn lesser – but it is more safe and hassle-free. You don’t need to bother about the booking chart, the payment, the guests’ behaviours, etc.
There is not much information disclosed about Daily Suites Berhad but the overall concept of their services is very inspirational.
Will it become a new trend in real estate? What do you think about the concept of Aparthotel? Feel free to drop us a comment to share with us your opinion!