Thursday, November 19, 2009

CIV: Serviced Room/Hostel

Have you ever think of setting up your own serviced hostel for rent out?
I think your answer is YES and will keep asking me the same question, "I got no money, how to do ar?".

Of course you don't ask me where to get the money. If you really wana start up a business, you have to think your way out.
1. Borrow from bank.
2. Borrow from friends, relatives, or family.
3. Make a partnership with your friend (Less encouraged cause they will steal your idea or prefered location)
4. Borrow from loan shark (Unless you think you can make more profit than their never ending high insane interest)

Why Serviced Room/Hostel?
Rental = Passive income
(I don't think there is anything better than money automatically flow into your pocket)
Definitely smart investors like you have to balance between risk and return.

Why People Would Stay In Serviced Room/Hostel?
People staying in a rented room (serviced room/hostel sounds better ^^) often come with various reasons regardless of their origin. Below are the possible reasons.
i. Study purpose
ii. Working in outstation
iii. Wana stay away from parents
iv. Privacy (Because some people don't like to share living space)
v. Conveniences (Serviced hostel often located near to the facilities)

Where Should A Serviced Room/Hostel Located?
Basically, a serviced room/hostel should locate near to the facilities such as cafe, 7-11, grocery shop, bank, mamak shop, cybercafe and etc.

A serviced room/hostel can be build in a shophouse (more than 2 storey), terrace house, semi-d house, apartment (then it will become serviced apartment) or flat.

The place I stay have all these facilities just around the corner.

Near To The Best Private College In Malaysia
Play Hard Study Smart =)

Asia Cafe with variety choices of food

Starbucks & McD

Baker's Cottage

Nice Grocery Shop
(Kinda Expensive but I can get any essential item at any time)

Snowflake Taiwan Dessert Shop
(Must try in Subang, but the ice layer is getting thicker and thicker)

Selvan Magazine Shop
(Basically almost all magazine available in the market can be found here)

Old Kawan Cafe
(A bit expensive and taste OKAY lor)

How Does A Serviced Room/Hostel Look Like?
I am showing you the place I am staying currently.

The entrance is preferably a steel door with pad lock.

As I walk up the stairs, there is another steel door to separate tenants of different gender (The male and female shouldn't stay together, they will create alot of troubles)

My room is in level 2. You can see quite a number of rooms (there are 12 rooms) in this storey. They are being singled out by partition. The only thing I don't like is that there is no sound cut-off in each room. So, it is advisable not to speak too loud.

Take a look in my room. It cost me RM650 because it located in the premium area of Subang Jaya, SS15/8A.

These are the basic home appliances such as air-con, fan, washing machine, refrigerator, bathrooms (More bahrooms are needed to avoid jam), dryer (because there is no place to hang your cloth for drying), and water dispenser machine.

How To Manage?
My suggestion for you is to hire a hostel/apartment manager. A hostel manager can help to maintain the security and handle complaints from tenants. Moreover, the hostel manager can help to solve any emergency problem occur at any time. The Hostel Manager are also request to maintain the occupancy of rooms.

There are several factors determine the profitability of your serviced room/hostel,
1. Nearby competition
2. Pricing strategy (You can set a lower price if you are the landlord of the serviced hostel)
3. Location (Strategic or not, you can set a higher price for strategic ones)
4. Room occupancy
5. Reputation (Depend on your promotion and the history of the place)
6. Cost (The renovation cost can burn a hole in your pocket, try your best to get a good contractor with reasonable price)
7. Luck

- Such investment require a substantially large amount of capital, please do your own research before making decision.
- Location saturated with colleges, universities and big companies are consider strategic.
- This above post is for reference only, everyone will meet different kind of situation. Luck factor is quite important sometimes.
- I wish you gud luck in generating your own passive income. Stay tune and read more and more interesting post in the coming future.


Beauty said...

nice information friend, yeah, go go vacation there

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