PROS #1: Higher Flexibility for Host
Host is able to set desired house rules (no smoking, no
parties, no pets and etc.) to avoid dealing with unwanted hassles. Host is able
to be present at the compound with lesser restriction compared to long-term
rentals. With this, host could communicate with guests to get to know them
better and to understand their purpose of the stay, as well as to overlook the
space rented to ensure it is in good hands.
PROS #2: Earn More
Short-term/daily rental fee is often charged more than
long-term rental fee. It has been calculated that property owners are earning 2
to 5 times more than the gross of profit by renting for nightly short-term
compared to traditional long-term rental. Trending in the market, there are
many rental websites (including RentMarket) that
offers host to list their homes and available rooms/spaces for rent.
PROS #3: 100% Money Guaranteed When Booked
Upon booking confirmation, guests are required to pay the full amount of
the days that they are staying for short-term rental in advance. The rental
service/platform would have the â€˜paymentâ€™ step to ensure that guests pay for their booking reservation. The platform service would then transfer
the full payment to the host during the first day when the guest check-in. As
for long-term rental, tenants are usually given a period of time for payment in
PROS #4: Higher Occupancy
The turnover rate for rental is very high and larger amount
of people are actually looking for short-term stay. Travelers and tourists
would definitely opt for a practical and more affordable short-term
accommodation. This said, listings as such are an alternative to the expensive
luxurious hotel stay. With a good location and a well-furnished place, the high
percentage of occupancy could be maintained consistently.
Done with the Pros? Now, letâ€™s move on to the Cons.
CONS #1: Having to Furnish
Staying for a short-term period, guests/travelers wouldnâ€™t
want to be running around just to get all the basic needs! Therefore, hosts would
have to spend a sum of money to get all the necessities to maintain the place,
and to replace the basics regularly for every guest. Same thing-think of hotel,
it is crucial to prepare for details such as towel, bedding, toothbrush, sofa
set and so on; but now in a budget way of a simple homestay.
Tips for host: buying in bulks would definitely be more
convenient and save cost!
CONS #2: Effort to Manage
As a host for short-term rental, much more effort is
required. Updating calendars to avoid double-booking and cancellations,
managing the check-in and check-out of guests, and regular cleanings are among
the tasks to handle. These may seem simple but it would take up your time. However,
once you get the hang of it and have a systematic procedure from the beginning,
you would be able to work more productively for other aspects, such as
advertising your space rental. Remember, guests would always review, especially
on your efficiency.
Tips for host: Invest in automated system- door locks,
auto-reply messages, be as responsive!
CONS #3: Risk of Having Unpleasant Guest
Once in awhile, you might experience bad guest. A mess after
a long party night? Missing stuff? There are no guaranteed ways to avoid them
but only to take precautions; but hey, we cannot expect to have a forever list
of good guests, right? Some of the precautions for the host would be to have
CCTV in your compound; and if you are planning to be a remote host, you should
always have a local manager to standby for any issues of your space/guest. You
should also have your own insurance that covers short term lettings.
Tips for the host: Always communicate with your potential
guest before confirming your booking (this will help you to know their
personality and the intention of their stay)
Short-term rental will benefit you if you would like to take
the challenge and put in more effort (especially in the beginning) to promote
your space! However, this will be a great investment in the long run and it is
a good opportunity for you to earn passive income as well.
Have an extra space?
Think about it.
RentMarket is the No. 1 Malaysia Renting Platform for you to list your
Written by Alice Ang Ying Ying
This article is brought to you by RentMarket
10th October 2017