Homesharing has become an emerging trend in the property landscape of Malaysia, with services like iBilik and AirBnb popping up to offer home owners an alternative way to connect with the tenants and travellers.
StarProperty.my recently interviewed Living Space managing director Ikhram Merican on the trends and situation of homestay and homesharing in Malaysia.
1. What are the characteristics of a successful homestay?
A successful homestay is unique, at the right location. It has a very efficient processes for check-in, check-out and maintenance. It is priced correctly, photogenic, and it has rave reviews.
All this requires a lot of effort from the host and an attitude of genuinely caring for your guests. If you do not genuinely care for your guests and empathize with them, you will not be successful in homesharing.
2. How advance is the homesharing industry in Malaysia compare to other countries?
What are the things that the homeowner can improve on as a host?
The homesharing industry in the context of what it is today is rather new. So Malaysia is pretty much on par in terms of industry development with other more advanced countries. However, a common problem in Malaysia that could have a negative impact on the industry is price-cutting. I think we’re entering a phase where price wars are becoming increasingly common. If hosts do not learn to compete on value instead of price, the industry will lose its appeal over time. This would affect growth, quality and guest experience.
If you look at the statistics, 91% of travellers want to live like a local and 79% want to explore a particular neighborhood. Taking this as a reference point, it becomes clear that homesharing guests are as interested in an experience as the accommodation itself, if not more.
Beyond improving on cleanliness, home amenities and processes, the hosts should focus on providing an experience that is local and truly Malaysian. Guidebooks on the local neighborhood where the property is situated is very handy. Travel recommendations focusing on Malaysian-style hospitality and deeper interaction with guests are areas for improvement.
I know hosts who cook nasi lemak or bake kuih and send them over for their guests. Some hosts take their guests to places like Malacca or Kuala Selangor and provide a very local dimension to the whole experience.
3. Do you mind sharing with us some statistics regarding the growth of homesharing industry in Malaysia?
The growth from 2013 to 2016 has been phenomenal but if you look at statistics provided by AirDNA, the growth is beginning to plateau.
If you look at the growth statistics for Kuala Lumpur, which is generally the same for most of Malaysia, the highest growths since 2010 were seen between 2013 and 2016. The growth during this period exceeded 100%. The growth from 2015 to 2016 growth was a whopping 165%. Between 2016 and 2017, the growth dropped to 51%.
As I mentioned earlier, I believe the significant drop in prices is triggered by a price war.
4. On average, what are the minimum and maximum cost of setting up a homestay?
To set up a typical studio apartment for homesharing, the cost can be about RM25,000 to RM30,000. This is to set up from scratch – a totally bare apartment.
A 1,000-sq-ft, 2-bedroom apartment would be slightly more at roughly RM35,000 to RM40,000..
5. What is the biggest risk of becoming a host in a homestay establishment using modern-day homesharing services?
The biggest risks are low occupancy and being unprepared.
Most people think that damage to your property is the biggest risk. However, in terms of statistics, the cases in which significant damages are caused to the properties is 2% or lower.
Most people think that damage to your property is the biggest risk. However, in terms of statistics, the cases in which significant damages are caused to the properties is 2% or lower.
However, low occupancy is very common and this affects your cash flow and profitability. This is a much bigger risk in my opinion, if homesharing is supposed to cover your mortgage.
Being unprepared is also a big risk. If you do not know and understand the operational, marketing and management aspects of homesharing, you can make costly mistakes, including renting your property to horrible guests. These can affect your reviews and your bottom line. This happens all too often in the industry.
StarProperty.my Fair i-City Edition to feature Ikhram Merican
If you want to know more about homesharing services, come join us at the StarProperty.my Fair i-City Edition, where Ikhram Merican will be giving a talk on this subject.
The three-day property exhibition will be held from June 10 to 12 (Saturday to Monday) from 11am to 7pm.
In tandem with the fair, I-Bhd will be giving away up to 1,000 free tickets daily on a first-come, first-served basis, enabling recipients to enjoy the attractions in its theme parks within i-City.
Homebuyers will be given a chance to win air tickets to popular cities such as London, Tokyo and Paris via a lucky draw. The developer will also be offering free SPA and Loan legal fee to buyers during the fair.
The biggest prize still awaits as you may be the lucky one in a million to win a prestigious condo in the heart of Petaling Jaya worth more than half a million ringgit.
If you missed your first chance in competing for the Win A Home (WAH) Contest, here is your chance. Visit wah.starproperty.my for more details.
Those attending or buying properties during the StarProperty.my Fair will be in the running for the high-end home.
For details and registration, visit fair.starproperty.my.
Source: StarProperty.my
