Room rental business or boarding house is one of the many property business models with promising benefits. Therefore this one business is one of the prima donnas in the eyes of conventional business people or investors.
Boarding-lodging businesses and “rental business or boarding house” that promise capital gains (capital gains) that are long-term and can pass down this business to their children and grandchildren, make business people and investors no longer hesitate to start a boarding-lodging business, especially in big cities close to office areas , education and shopping centers.
The need for boarding rooms in the area is usually quite high because people will prefer to rent boarding rooms that are close to the location of their workplace or campus, if their homes are far from these locations.
For those of you who want to start a boarding business do not need to worry, but if you are still hesitant to start, here are some advantages of boarding businesses that you need to know:
Advantages of Boarding-Boarding Business
- Minimal Investment Risk
Business boarding-lodging can be said to be minimal loss or have a low risk. Why? Because the price of land and buildings or property tends to be stable, although property prices will continue to increase not as fast as the stock prices.
Property prices are not too affected by the country’s economic conditions, although the economy is sluggish but property prices will remain stable. The stability offered is what makes the boarding-businessman sleep soundly even though the economy is down.
Especially if you rent out exclusive boarding houses, then the rental price can compete so that the profits will be even more doubled.
- Long-term
Income Income will continue to flow as long as the boarding house stays firm and the boarding house is fully occupied. If the boarding house is located in a strategic location, it is most likely that the boarding house will continue to be filled and as long as the boarding house is fully occupied, you just enjoy the time while doing other activities. However it may require occasional maintenance. - Minimal Maintenance Costs
Another advantage of this business is because the building is always well maintained when compared to rented houses. Boarding dwellers are usually young, single or young couples so they can be more controlled. In contrast to rented houses that usually residents do not necessarily care about home maintenance. - High Capital Profits
As property that continues to produce cuan, boarding houses certainly have a resale value that is much higher than the initial value. This makes the boarding-lodging business very attractive to new buyers because they understand the capital will be quickly returned. Boarding houses are also an investment that can be passed on to children and grandchildren later. - Other Income
If the income from boarding fees is still considered lacking, maybe my friend can seek benefits not only from renting boarding rooms only. There are other ways to be able to still get other benefits by providing additional services for boarders, such as laundry and catering services.
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In a business, certainly has advantages and disadvantages, for that you also need to consider the shortcomings of the boarding business.
Shortage of Kos-Kosan Business
- Routine Control Regularly Boarding
owners must control the boarding house regularly. This is to ensure that all the regulations that have been made go well, with the hope that the boarding house will remain clean and neat or the residents will not change the contents of the building and interior inside. - Late Fee Dues
The economic conditions of each person is certainly different, so sometimes there are residents who are late paying the fee for fees when they are due. Not to mention if the boarding houses are students, because students do not have their own income so they are still waiting for the money sent by their parents. This can also be experienced by an employee, even though he already has income but there are other pressing needs. Therefore as the boarding house owner must have clear and strict rules. - Potential Quiet
Boarding HousesDoing business certainly has risks either because of the wrong strategy or because of the sustenance that sometimes goes up or sometimes goes down. The boarding house business also has the potential to be quiet if the facilities that attract the boarding houses are lost at any time, such as campuses, offices, and shopping centers.
If one of these three things closes or moves to another place, the boarding house may become quiet. For that, it is necessary to research before starting a boarding business for at least the next 20-30 years. Or maybe it’s also due to lack of maintenance so that the boarding house looks unattractive so the occupants slowly start leaving to rent another boarding house in the vicinity.
Friend, that’s the strengths and weaknesses that certainly must be known before starting a boarding business in order to run properly and correctly, so that you get the maximum benefit and of course can avoid things that are not desirable.
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