How to Strategize Your Rental Property
Owning a unit but it is not being utilized at this time? Still think yearly tenancy is your only option to rent out the entire unit? Apparently, it is not.
Bigger units with 2 rooms and above are not only suitable for long term rentals but also highly in demand for short stays. Why short stays, you might wonder. Here’s the reason: families & friends in a large group typically prefer a private & large accommodation space over hotels for their getaway. Besides, you may also consider renting by the room rather than renting out the property as a whole. Room rental typically ranges between RM500 to RM1200 per room. Renting individual rooms gives you access to multiple tenants, which means multiple rent checks. With co-living, you can rent rooms to students, young professionals etc. to yield higher rental income.
Owning a smaller unit with less than two rooms? If your small and compact units are located at touristy areas, business districts and has convenient access to public transports, you may find short stays more favourable than long term rentals. Aside from demand, short stay daily rates of these strategic locations can go up to RM 200 per night. This allows short stay rental to more easily beat the rental return of a traditional tenancy for this type of properties. Why smaller units may not be suitable for room rentals? With limited space, it's difficult to make space for partitioned rooms and rent by rooms.
Never blindly jump into property rentals without a strategy. You may think short-term rental is the trend yet it may not be suitable in your property's area. Turning your home into a rental property may seem like a simple task, but there are a lot of details that need to be worked out before your tenant moves in too. Will your tenants pay a flat rent fee monthly, or will they be responsible for a portion of the utilities? How should utilities be divided among room tenants? What about access to other common living areas? All these details need to be worked out, and discussed, before your tenant moves in. Still unsure what to do? Get your free consultation from us here.