OH Residences (not the actual name) is strategically situated near the epicentre of Kuala Lumpur city and easily accessible to popular landmarks frequented by both locals and foreigners. When it was launched a couple of years ago, MyRehat knew that this building will be a popular residential spot and quickly saw an opportunity to run a vacation rental business here.
With less than five minutes walking distance from Maharajalela Monorail Station, OH radiates luxury and modernity in the eyes of people near and far. To date, MyRehat is operating seven units of short-term rental homes at OH and let’s take a look at what makes the investment here worthwhile.
Prime location that attracts the desired crowd
Investing in a property in a strategic place is one of the most significant success factors in a rental business. For OH, it is well-connected with shopping hubs like Pavilion, Lot 10, Fahrenheit88, Berjaya Times Square, The Starhill and Petaling Street as well as food heavens all around Bukit Bintang and Pudu. Therefore, we are aware that it inevitably becomes a crowd puller, especially for travellers who are looking for short-term accommodations.
In addition, OH is situated across Menara Merdeka 118, the tallest building in Southeast Asia and the second-tallest in the world. The 118-storey skyscraper is scheduled for completion this year-end and will undoubtedly be a major attraction for visitors around the world.
KL City featuring Menara Merdeka 118
The current market selling price for a three-bedroom unit at OH is at RM1.15 million and the monthly bank loan is easily more than RM4,000. Take a look at the calculation below as an example:
Image source: iProperty
For hosting a three-bedroom unit for a one-year duration (Oct 2021 to Nov 2022), MyRehat made RM81,778 which means RM6,814 of monthly gross income. Taking into account RM3,500 for the rental fee to its owner and RM700 for utilities, maintenance and quit-rent, MyRehat’s net profit is RM2,614 each month.
Example of Earning from October 2021 to November 2022
Monthly gross income
Rental fee to the owner
Utilities and expenses
Monthly net profit
However, it is expected to have low and peak seasons that play a part in this business. As seen in the figure above, occupancy rates peak in March, July, September and October. Fun fact, December is known as the month with the highest occupancy rate for most accommodations (although not illustrated in the chart as it is only showing a one-year revenue). This is because the year-end is the busiest period involving long school holidays and people’s most favourite time to unwind before a new year begins.
On the other hand, during a low occupancy period, we will make a negative cash flow as net profit can drop below RM1,000 per month.
Maximum utilisation of the unit’s layout
In one of MyRehat’s three-bedroom units, we greatly utilised its spaciousness by furnishing one King size bed, one Queen size bed, two single beds as well as two additional single floor mattresses – all of which can easily accommodate up to eight people!
From our data, customers who come in a big group prefer to stay at a unit like this because they definitely don’t have this option at any hotel or resort. Therefore, it is a huge plus point to target large families or groups by offering a comfortable stay at an affordable cost. If this unit can be booked starting at RM486 per night and eight people are staying, one person only needs to spend RM60.75 for a restful stay together. How affordable is that? Not to mention the unit is fully furnished with air-conditioning, high-speed internet, bathroom amenities, a washing machine and dryer as well as kitchen and dining utilities!
MyRehat believes that each of its properties can be cleverly utilised through a well-thought-out arrangement and masterful fix-up. Hence when customers choose MyRehat as their host, they won’t have to settle for less and can always expect high-quality hospitality.
Tasteful designs that make all the difference
According to Tourism Malaysia, the average occupancy rate from January to September 2022
was recorded at 46.6%. But guess what, MyRehat’s occupancy rate has surpassed this benchmark and achieved 81% for a one-bedroom unit at OH, which is also astoundingly above the industry’s average.
With MyRehat’s professional renovation and revamp services, we elevate a property’s value and marketability to create a more desirable living environment that attracts potential buyers and tenants. Not only does the aesthetic appeal of a property enhanced, but the functionality of each space can also be upgraded through expert interior designs. In turn, we get to enjoy a steady income stream by attracting customers to stay with us.
If your property needs a makeover or revamping services, do not hesitate to engage with us and everything will be professionally handled!
MyRehat’s one-bedroom unit at OH
In a nutshell, investing in properties for short-term rental businesses come with its risks and benefits, just like any other business in the world. The only difference is how you turn those risks into a raise and transform prospects into profits.
Zainal Zikri, the Founder of MyRehat will be happy to share further insights and tips on how to find properties suitable for short-term rentals or Airbnb as well as secret ingredients in navigating this business. So, if you are interested to become a host but don’t know where to start or have a property that is sitting idly, reach out to us and we will be of assistance!
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Disclaimer: The contents of this blog are for informational purposes only. They are not intended to be professional or expert advice. They are the operator’s personal opinions and experiences which may not necessarily reflect the opinions of any organisation or company that they are affiliated with. All investment strategies and investments involve the risk of loss. Nothing contained in this website should be construed as investment advice. Any reference to an investment’s past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit. We reserve the right to change the overall content and focus. While we try to be as accurate as we can, there may be errors or omissions. We are not able to disclose all information needed to assess a particular situation. Please consult an independent professional advice for your specific needs.