Homestays, a booming business

HOMESTAYS, once popular in rural areas, have now become big businesses in towns and cities nationwide.

Thousands of homeowners have discovered how to make money with their properties and avoid paying taxes.

They have joined global home-sharing marketplaces, and just like how Uber has made life for government-regulated taxi drivers difficult, the home-sharing phenomenon is shaving off hotel revenues.

By paying a mere 3% service fee per booking, homeowners – also called hosts – can connect with over 60 million travellers worldwide through online giants like American company Airbnb and Singapore-based HomeAway.

Airbnb Track Record

Airbnb’s website has a tool to help homeowners gauge their expected weekly income and according to this.

The country’s chart-toppers are those in

1. Langkawi who can make RM2,801 a week

2. Malacca’s Jonker Walk (RM2,495 a week)

3. Penang home-shares in Tanjung Tokong (RM2,494) and Pulau Tikus (RM2,449)

4. Bukit Bintang in Kuala Lumpur, they can expect to earn RM1,676 weekly

5. Taman Pelangi in Johor Baru can expect RM2,287 a week

There are homeshares even in the hinterlands. They can make an average of RM923 a week in Kota Baru, Kelantan. In Kangar, Perlis, homeshares can expect to collect RM1,619 a week.

Unlike hotel occupancies, the government has no

knowledge nor way of tracking these check-ins.

“People are buying residential properties specifically to start short-term rental businesses. We believe this is growing at an alarming rate but we don’t have any way to track them.”

In 2014, Airbnb was reported to have over 800,000 listings worldwide. Now, the company declares on its website that it has over two million.