Although long term rental is popular in Miri due to the establishment of Curtin University Malaysia, short term rental is common in Miri too. The reason being is due to the strategic location of Miri, which is near to Brunei border. Hence, people from Brunei who like to have a short getaway to Miri will rent a homestay for a few nights. Before you start your investment in short term rental, there are some pros and cons you will need to know. 

 

What Is Short Term Rental?

Short term rental also commonly known as vacation rental. The fully furnished property is rented out on a short term basis, which is usually on a nightly basis or weekly basis. The fully furnished property is becoming a popular alternative to hotels as it is more price worthy and suitable for a large number of pax, especially families. 

 

Pros Of Short Term Rental

Although long term rentals are easier to manage, some of the property owners still prefer short term rental. Below are some pros of short term rental:

Flexibility

Short term rental provides more flexibility to owners especially when the owners require the property for personal uses. By blocking off the specific dates on the booking calendar, the property can remain vacant for owners’ uses and will be available for booking after that. Besides, the owners can block off the calendar when maintenance is carried out on the property.

 

Higher Potential Of Rental Income

Another advantage of short term rental is that it offers higher potential of rental income to owners. There are several peak seasons throughout the year in Miri, which are public holidays, student year end holidays and the graduation ceremony of Curtin University Malaysia. During these peak seasons, owners can raise the nightly fees and set the minimum length of stay to maximise their profit. Although the vacancy rate could be higher than your expectation, the additional income generated during the peak season typically covers the differences. 

 

Better Condition Of Property

Owners can expect less wear and tear of the property when they offer short term rental. Generally, short term renters will not have a thought of renovating or redecorating the property. The reason behind this is that the renters are just staying at the property for rest after day time travelling. Hence, they don’t really care how the property is as long as the property is clean and cosy.

 

 

Cons Of Short Term Rental

Short term rental definitely offers high income for the owners. However, there are several disadvantages of short term rental that will set the owners apart, which are:

More Time Spend On Management

When the property is invested for short term rental, owners need to spend more time to manage the property. Every time the guests check in and check out, owners have to be there for key handover. The owners also need to check the calendar availability daily in case there is any booking cancellation or occurrence of multiple bookings on the same days. 

 

Inconsistent Income

Another disadvantage of short term rental is that it can’t offer consistent income to the owners. Generally, short term rental has a higher vacancy rate compared to long term rental. Depending on the peak and low season, the property may be fully booked or vacant for a certain period of time. Some of the stability-seeker types of owners are very concerned about this issue and thus convert their short term rental investment to long term rental investment.

 

More Competitions

Since Miri is a popular destination for people of Brunei to have a short getaway, short term rental is still a common thing to see around. When there is a market, there must be competitors. When there are too many listings when the guests search for short term rental. The chances the property is getting chosen become lower, except for the property’s location is very strategic for travellers. This situation is even worse during the low season. 

 

Frequent Maintenance

Moreover, short term rental requires frequent maintenance that is time consuming and trouble the owners. Before every guest checks in, owners have to ensure the facilities are functioning well and amenities are provided. After every guest checks out, owners have to ensure the property is well maintained by the guests before refunding their deposit. Besides, owners responsible for the property cleaning and regular monthly maintenance such as air conditioning servicing etc to make sure that the property is always neat and cosy for guests to live in.

 

In conclusion, the short term rental industry is still a good option for property investment as different types of investment have their own risks. However, short term rental is not suitable for stability seekers and busy people as it is a time demanding investment. Short term rental is just not about listing the property on Airbnb, booking.com etc, it is more than you can imagine. Hence, if you are still planning to invest it, it is recommended to get a professional property management company around you to manage it for you. 

Evernent is a professional property management company with years of relevant experiences in the industry in Miri. We offer management services for short term rental and long term rental.  No matter if you are looking for someone to manage properties for you or just need some consultation, feel free to contact us!