From Mr Kong, a viewer who wrote in by email
Mr Kong bought his first property, a new unit in central Kuala Lumpur, to run as a short-term rental and lined up an Airbnb operator. Soon after he got the keys, building management required a RM100,000 deposit from short-stay operators and restricted their access. His operator pulled out, and he hears only one operator is now allowed in the building.
Is it fair for management to allow only one operator, and what should he do now?
“focus on the problem just move on as quickly as possible”
A large deposit for operators is reasonable and keeps a building manageable, and he cannot challenge the arrangement until a joint management body is formed. Meanwhile his unit earns nothing, so sign with the approved operator or furnish it and rent it out long-term.
Why
Short-stay should be plan D
Sean rates a project by whether long-term, medium-term or room rental can cover the instalment, with Airbnb only as a last option. A unit that relies on Airbnb alone has nothing to fall back on.
Short-stay can be banned
Penang has limited it to commercial-title projects, Singapore bans it nationwide, and a building's owners can vote it out. Any of these can end the strategy overnight.
Why a big deposit helps
With seven or eight operators, residents and managers cannot tell whose guests caused damage. A RM100,000 deposit filters for operators with the money to pay for repairs, and fewer of them is easier to manage.
Airbnb buildings need a quick exit
Heavily used buildings can deteriorate like student housing, families won't buy into them, and about 10,000 similar units are coming around Bukit Bintang and KLCC. The time to sell is while rates are high, which is when owners least want to.
What to do
- Talk to the approved operator, even if its terms are less generous.
- If you have no budget to furnish, buy simple furniture online and rent the unit long-term for now.
- Use zero-interest instalment plans to furnish if your credit is good.
- Raise the operator question at the AGM once the joint management body is formed.
- Keep short-stay units for later in your portfolio, after projects whose long-term rent covers the loan.
Editorial Note: Summarised from Sean Tan's full episode. The quoted answer is in his own words; the rest is our paraphrase. Figures reflect the recording date, so check current rates and rules before acting on them.
ASKING SEAN #271 | DILEMMA FOR AIRBNB FOCUSED PROJECTS
Sources & Verification Data
Summarised from Sean's full English captions for Asking Sean #271. The quoted line is verbatim; everything else is paraphrased. Figures are as stated in January 2025. The episode is sponsored by Versa, a savings app, and Sean mentions the instalment plans of The Makeover Guys, a renovation company he works with.
