I have one Airbnb unit at Genting Highlands. I did my analysis before investing in that area.
Criteria to Consider Before Buying a Condominium for Airbnb
1) Potentials visitors to the particular area
Check the number of visitors to the area. For Genting Highlands, the number of visitors is easy to get. If you search on the internet you can find it is around 22 millions visitors per year.
2) Current offerings
Check whether the current hotels or Airbnb capacity. If more than enough, than you should reconsider your investment.
If you can get the numbers of rooms within the area will give you better accurate analysis.
In my case, during my analysis the hotel capacity never enough at Genting Highlands especially during peak season.
3) Local law on Airbnb
Check whether local law allows any Airbnb. Recently Penang state government bans Airbnb in the state.
4) Joint Management Body (JMB) supports of Airbnb
Check whether the JMB is supportive or no any Airbnb unit in the condominium. If most of the residents of the condo lives in the units, you will face challenges doing Airbnb in the condominium.
In my case, most of the buyers plan for investment so the JMB will be supportive of Airbnb visitors to the condo.
Check the amenities provided by the condominium. Put yourself whether you would like to have the amenities if you are a guest to the condominium.
Besides, check your competitors amenities as well example they have heated swimming pool or no (which is a must in Genting Highlands)
If you like it, then it is a good buy.
6) Number of lifts
During check out, the waiting time will be terrible if the number of lifts are not enough to cater for the visitors traffic.
Most of condominium in Genting Highlands, visitors have to wait more than 30 minutes during check out time.
7) Future competition
Check any future development within the area, new condominium will be your future competitions and will reduce further your unit occupancy.
In Genting Highlands, there are so many condominium under development that I’m afraid will impact on my profitability.