The Rise of AirBnB in Sabah
Airbnb, especially in Sabah, has gained tremendous popularity in the years since its launch. Mainly because travellers find it to be a much better alternative to hotel rooms and how profitable it can be for property investors. Very much like our internal investor partners, others are also benefitting from listing their property on the platform to not only increase rental yield but to also earn higher income; especially in hotspots such as Sabah. In this article, we’ll explore on how you can maximise your real estate investment and earning capacity using Airbnb.
1. Find a Strategic Property Location in Sabah
In the real estate industry, location is always important. It can determine the number of bookings you get, and how much the average rent of your Airbnb property can be. Identifying which locations are strategic can be done through the app. A bonus tip is to read the reviews on the popular units as it can help you to understand why these units are doing well. You can then start your planning around those determinants.
One of the best online tools to use is AirDna.co where it shows u property prices for location and season! One of the most popular areas in Sabah is Gaya Street. It’s where all the events and nightlife take place. From shopping, street markets to a Malaysian and Sabahan favourite, Bak Kut Teh!
2. Set the Right Property Price
When you first start, it is advisable that you set a lower rate. This will help you to stand out from your competitors, gain popularity and get good reviews. Once you’ve gained all of that, you can adjust the rate as you like (just not too low or raise it too high). It is also reccommended you research on nearby property prices to get a good benchmark.
3. Calculate your Property Expected Returns
For you to estimate the revenue you can gain on your investment; you will need to do some calculations. To find your estimated net income per month, you would first need to assume your monthly gross revenue (GR) and total expenses (TE) then subtract GR to TE.
Gross Revenue – Total Expenses = Net Income
4. Socialise and be Hospitable to Homestay Guests, like a true Sabahan
Not a social butterfly? Try making a small yet informational conversation that can help them throughout their trip like downloading Grab on their phone. To show your hospitality, simply provide them with things such as fresh towels, shampoo and body wash. They will surely appreciate it and leave a positive review. Especially in Sabah, property managers should be very friendly to guests as tourists expect friendly and hospitable services.
5. Managing your Sabah Property
Property can be tough to manage especially when you own multiple of them. It’s more difficult when do not live in that area and you have a different job. If you find it overwhelming, consider hiring property managers such as Pinstay. These professionals can help to you manage and rent your properties, making sure guests are always available.
Bonus: A Guide on Buying new properties in Sabah 2019
Newly developed properties often have great location and stunning interior design to meet the requirements of the investors. In recent years, we’ve seen an abundance of new developments across Malaysia which makes it difficult for real estate investors to choose the perfect property.
Investors often ask, “where should we purchase properties from? Should we buy it from real estate agents or from the developers themselves?”.
There is no right answers, but there sure is more profitable ones, at Pinstay, we suggest purchasing it from property management companies.
– Why should I buy from these companies you ask?
Well, these companies gather investors from across the country to do bulk purchase order from developers. This action can benefit the investors as they will get the wholesale buyer price instead of the standard price. you can get around 20% discount which is around 40k ringgit.
Unlike most property agencies or brokers whose duty is to help developers advertise and sell properties then be rewarded with commissions. The duties of property management companies are to gather investors as a whole and to ensure every client can gain profit by helping them manage their properties at a minimum price.
– Two words that investors often confuse over is discount and rebate.
Discount is the reduction of price before it is stated in the sales and purchase agreement (SPA) whilst rebate is the cashback received from developers. That cashback is recommended for you to clear off monthly repayment to the bank or to be used for renovations that can add value to your property (flipping).
Next time you want to buy a property, do consider purchasing from property management companies. These companies will not only help you manage properties but also make sure you get the best deals in town through the best procedures.
A Short Guide by PinStay
Airbnb has absolutely changed how you can do property investment. It not only allows investors to fill up their empty properties but also turn negative cash flow investment to positive ones.
Talk about being a game changer, right?
So be sure to consider on using Airbnb for your real estate investment.
Written by Pinstay Property Management Sabah
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