Real estate investing especially homestay investment is one the well liked choice for Malaysians to diversify their investment portfolio. And the most common reason Malaysians like to invest in real estate is that real estate always can serve as a hedge against inflation. So, what actually you can do when you have real estate in your hand? You can turn it into a homestay. Tourism industry in Kota Kinabalu, Sabah is developing rapidly and getting attention from international tourists in these few years, which makes homestay investment a great choice for Sabahan.
But how can you really create passive income from homestay investment in Sabah? Here, Pinstay will show how to turn your real estate into a homestay that can generate more income to your savings!
Short Term Rentals
By renting out your homestay in a short term period, you can charge more on the guests since it is counted on a nightly basis. The type of people who usually rent for short term are international tourists, businessmen who are on business trips, local tourists who are having short getaways to Kota Kinabalu and people who rent it because of special occasions such as birthday gathering, wedding preparation etc. You can always choose to rent a room of your house, whole unit or apartment. However, you will stress yourself a lot if there is always a vacancy for your homestay. Hence, it is recommended to use a third party lodging platform such as Airbnb, Booking.com and Agoda as these platforms can increase your homestay exposure rate and contribute to your booking rate. With these, you can create passive income relatively.
Long Term Rentals
Another option is long term rentals if you have a homestay near Universiti Malaysia Sabah. Some of the students prefer to rent a homestay outside their campus as there are too many rules to follow in the hostel provided by the campus. Compared to short term rentals, long term rentals are more secure as the vacancy period is shorter. Other than that, the demand led by students offers more flexible contracts where you can worry free during their rental periods. Of course, if you are still stressed by all this management stuff, you can always look for a reliable homestay management company in Sabah to manage it for you.
In conclusion, no matter if you are trying to create passive income from short term rental or long term rental, you still need to put some effort into it. For example, do some renovation and furnishing, take some good photos, communicate with your guests and also list rooms on online platforms. There is nothing to reap with sowing. However, if you are a busy person, you can get a trustworthy third party company such as a homestay management company to do it for you. But you will need to pay for them.