Value
Short term
- High return 10-200%
- Regular inspections between each guest
- Regular cleaning and maintenance
- Flexible dates
- Similar maintenance cost
long term
- Return 3-5%
- 0-4 inspections a year
- Cleaning only when tenant move in and out
- 6 or 12 months
- Similar maintenance cost
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1. Is short term rental income unstable
A: Yes. But It depends on the city and suburb. We use professional statistics and grading system to advise our customers. In most popular suburbs, 70% occupancy rate could still receive higher return than long term rent. During the peak season occupancy rate is between 90-100%. Owner could really sit back and relax and pay off the mortgage earlier or earn more income regardless of the season.
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2. Is maintenance cost for short term rental higher due to tourist activity?
A: Yes, the cost is higher in terms of cleaning. However, we can always pass the cleaning fee to the guests. The repair cost is almost similar as tourists and businessmen are out most of the time. They may cook even less than long term tenants.
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Case study 1, since Feb 2016 – Studio Apartment
Daniel tried wowmange when he was away to Europe for 4 weeks. After much success, he decided to move in with his girlfriend and turned his home into an investment property.
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Case study 2, since Aug 2017 – 2-bedrooms + 2-bathroom unit
Grace has an investment property. After having overcrowding issues with long term tenant and huge repair cost. She found wow manage and turned to the short-term rental market with high return yield.
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Case study 3 -since Jan 2017 - 2-bedroom + 1-bathroom Terraced house
Paul has been managing his investment property by himself for many years. After visiting one of the managed properties of wow mange, he was impressed with the cleanliness and condition. He started to use the service and no need to show inspections and wait for new tenants. More importantly, he gets extra income to fund his travel with peace of mind.
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Case study 4 – since Dec 2016 – 1-bedroom apartment in Patong Thailand
Alexie and Kay had difficulty in renting out their holiday accommodation in Patong due to communication being one of the problems. They could rent out THB 38000/month for only 3 months in 2016 which is THB $3166/month in the year.
After they were referred to us, our team in an office in Patong helped them to successfully rent out at an average THB$47000/month since Dec 2016.
