SR Residences (not the actual name) is a luxury residential building located in the heart of Kuala Lumpur with just a seven-minute walk to the KLCC Twin Towers. Its architectural design exhibits trendsetting elegance that attracts many occupants be it the locals or foreigners. MyRehat too was allured and took our best chance to secure several units at SR back in 2022 and fruitfully benefits from the short-term rental business here.
Surrounded by a great multitude of landmarks, retail, food and beverages as well as entertainment hubs, SR offers a 5-star luxury living for its prime grandeur in the bustling cosmopolitan. At the moment, MyRehat is operating two exceptional units of short-term rental homes at SR and let’s take a look at what makes the investment here worthwhile.
Winning points that seal profits
- Central, strategic, well thought out location. See it for yourself!
Who doesn’t love staying in the epicentre of ALL things and places? At SR, you are literally in the thick of what Kuala Lumpur has to offer. Restaurants, nightlife, shopping malls, schools, medical centres and every other convenience – you name it, all are within reach via convenient transportation of your choice.
2. High demand by foreign residents and travellers
Due to its strategic location, SR naturally draws the desire to stay especially among the international comers. KLCC is definitely one of the top attractions to visit in KL, thus choosing a place near it would mean a major convenience right on their doorstep. To top it off, KLCC LRT Station is only two minutes away from SR while KL Central Station is two stations away from KLCC – another favourable connectivity to the international airport. Living here could actually mean no car required and you can get to any place with ease. Even if not by train or subway, other means of transportation like buses and taxis are highly accessible.
3. Affordable electricity
SR’s building falls under residential property hence tenants enjoy a 30% lower bill rate compared to other commercial buildings in its surroundings. Better yet, MyRehat’s clientele at SR tends to be dominated by foreigners who are environmentally conscious. They only use electricity when necessary – some long-term guests even had electricity bills averaged out at RM150 or so per month. This is considered low for a luxury condominium!
High occupancy all season long
Since operating two one-bedroom units at SR, MyRehat enjoys a high occupancy rate in most months. For instance, one of the units achieved an occupancy rate close to 80% from December 2022 to August 2023:
Of course, there are units with different layouts at SR which may have a different occupancy rate depending on customers’ booking needs. As SR is dominated by foreign residents who are unlikely to come in a big group, operating one-bedroom units may be the most ideal to keep the occupancy rate steadily high.
Other factors to consider for short-term rentals near KLCC
Besides the abovementioned points such as location and property value, hosts who wish to operate a short-term rental business or vacation home in the city centre also need to consider the following:
- The latest short-term rental or Airbnb laws and regulations
First thing first, you need to be aware of the most updated regulations or rules imposed by the local state, district, area or the condominium building itself. With the rise of Airbnb largely in capital cities like KL, it is of the utmost importance to study what needs to be prepared such as licenses, specific documents, certifications, forms and many other paperwork required to operate your business.
Not all condominiums or high-rise residential buildings allow Airbnb operation or some have a specific quota for Airbnb operators, hence be sure to check beforehand. If you don’t have experience in this area, feel free to reach out to MyRehat for rental-related guidance and professional consultation.
2. Match your budget with the estimated profit
Decide on which property to invest in according to your allocated budget. Once your decision is made, calculate the financial projection for the course of six months to one year by factoring in all expenses, not forgetting liquidity, miscellaneous payments as well as financial plan to cover losses during off-peak seasons.
Short-term rentals can be enjoyable and profitable if done right. For inexperienced hosts, don’t be afraid to seek assistance from those who have been long in the industry to learn the ins and outs. Knowledge and information are vital in giving you the confidence boost to venture into this business and differentiate yourself from your competitors.
3. Deepen your research and analysis with investment tools
To get more solid data to back your investment – whether you are buying a property or renting one to turn it into a vacation home business, don’t hesitate to use real estate tools for better results. This is because the fast-growing Airbnb market has the numbers and data that you can utilise to make appropriate forecasts as well as Airbnb’s operational plan to achieve high profitability.
If you can’t get your hands on any professional tool, reach out to property agents or online platforms that offer Airbnb calculators and other analyses. To make this step easier, you can simply connect with MyRehat’s professional team and we will be able to lend a hand too.
4. Competition can be intense but you can still stand out
There is a great number of short-term rental hosts and Airbnb operators who also take the same opportunity to operate in the town centre. At the moment, there are easily six completed condominiums around SR so intense competition is expected. MyRehat made the right choice of choosing SR due to its favourable view, location and fantastic facilities. The same can be for you if you do proper fact-finding on properties that are suitable for short-term rental accommodations.
In conclusion, operating short-term rental accommodations is a challenging but high-yielding pursuit. Dare to say that if you are already hosting Airbnb in major cities like Kuala Lumpur, you have taken a big step to achieve the priority standards in the Airbnb industry and don’t be afraid to expand further.
And if you are thinking of unlocking the potential of luxury residences like SR, it is best to manage the rental business here yourself rather than risk its advantage in the hands of others. Trust us, it is much more satisfying to see the results of turning a luxurious place into a lucrative income that would set a benchmark for your brand.
If you require professional consultation regarding property investment and Airbnb operations, visit www.myrehat.my today.
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.