Switch from Long Term Rental to Airbnb Malaysia: Complete Conversion Guide
You have a property with a long-term tenant. You're considering Airbnb. Is it worth the switch?
This is one of the most common questions we get from property owners. The answer isn't simple - it depends on your location, property type, market conditions, and risk tolerance.
The good news: We've helped 50+ owners make this transition. We know exactly when it makes sense, how to do it smoothly, and what returns to expect.
This guide covers everything you need to know about switching from long-term rental to Airbnb in Malaysia.
ROI Comparison: Long-Term vs. Airbnb
The Numbers Don't Lie (Real Data from Melaka Properties)
Scenario: 2-Bedroom Condo in Town Centre
Long-Term Rental:
| Item | Amount |
|---|---|
| Monthly Rent | RM1,800-2,200 |
| Annual Rental Income | RM21,600-26,400 |
| Annual Expenses | |
| - Assessment + Maintenance | -RM3,600-4,800 |
| - Insurance | -RM1,800 |
| - Repairs (tenant damage) | -RM500-1,500 |
| - Vacancy (1 month/year) | -RM1,800-2,200 |
| Total Expenses | -RM7,700-10,300 |
| Net Annual Income | RM13,900-16,100 |
| Yield on RM500k property | 2.8-3.2% |
Pros: Stable, predictable, low effort
Cons: Low returns, tenant issues, locked in
Airbnb (Professional Management):
| Item | Amount |
|---|---|
| Occupancy Rate | 30-35% |
| Average Daily Rate | RM200-240 |
| Gross Annual Revenue | RM65,000-75,000 |
| Annual Expenses | |
| - Platform Fees (3-15%) | -RM5,000-7,000 |
| - Assessment + Maintenance | -RM3,600-4,800 |
| - Insurance | -RM1,800-2,400 |
| - Utilities | -RM1,200-1,800 |
| - Cleaning + Supplies | -RM6,000-8,000 |
| - Maintenance/Repairs | -RM2,500-4,000 |
| - Management Fee | Contact us |
| Net Annual Income | RM37,000-47,000 |
| Yield on RM500k property | 7.4-9.4% |
Pros: Higher returns, flexibility, appreciation
Cons: More effort (unless managed), seasonal fluctuations
The Verdict:
| Metric | Long-Term | Airbnb | Difference |
|---|---|---|---|
| Annual Income | RM15,000 | RM42,000 | +180% |
| Yield | 3.0% | 8.4% | +2.8x |
| Effort Required | Low | High (unless managed) | Significant difference |
| Risk Level | Low | Medium | Manageable with professional help |
Key Insight: Airbnb generates 2-3x more income, but requires more effort or professional management.
Get Started: Free Conversion Assessment
Thinking about switching? We offer:
Free Assessment:
- ROI calculation for your specific property
- Airbnb suitability analysis
- Market comparison (long-term vs. Airbnb)
- Conversion timeline and budget
- Management quote (transparent pricing)
Ready to Start Your Airbnb Journey?
Contact iHousing today for a free consultation about your Melaka property.
Contact Us Now