When a condo cannot be rented out, it becomes a pressing issue for the owner. This situation hinders their ability to generate rental income and achieve a return on their investment. Therefore, it is essential to address this problem and find a solution. By doing so, the owner can overcome the challenges and make the most of their property.
Here, we will explore various strategies and approaches to tackle this issue effectively.
Turn the unit into a Condotel or Vacation Rental
A condotel is a hybrid or an Airbnb concept that offers guests the convenience and luxuries of a traditional hotel and the flexibility and privacy of a condo. It can be an attractive real estate investment option, generating rental income and increasing property value.
However, owning one carries responsibilities, such as the maintenance, cleaning, and management of staff, that must be taken into account. If the decision is made to turn a condo into a condotel, thorough research and evaluation of demand for this property type in the condo’s location is imperative.
Offer Short-term Rental
Short-term rentals involve renting out a property for shorter periods, ranging from a few days to a few weeks. The primary benefits of short-term rentals include the potential for higher rental income and greater flexibility compared to longer-term leases.
To capitalize on this trend, optimizing rental listings with high-resolution images and detailed descriptions can make the property stand out and attract first-time renters. Additionally, offering competitive rates and highlighting the unique features of the property are effective strategies for attracting potential renters.
Meanwhile, for those willing to invest in longer agreements or extended stays, providing discounts for longer lease periods can be an attractive incentive.
Adjust the rental price
Consider adjusting the rental price of your condo if it cannot be rented in Cambodia. Start by conducting market research to determine the appropriate rental rates in the area.
By comparing these rates to your current pricing, you can identify if your prices are too high, potentially deterring potential tenants. Adjusting the rental price can attract more interest and increase the likelihood of finding tenants for your condo.
Improve the interior
Another effective strategy is to improve the interior of the condo. Begin by evaluating the current condition and overall appeal of the property. If needed, make necessary repairs, apply fresh paint, or update fixtures and furnishings. These improvements may increase your condo’s rental value, making it a more desirable option on the market.
Consider Selling the Condo
Selling the condo can often be the optimal solution for a variety of reasons. Whether you need immediate cash flow or want to invest in other assets, selling the condo can provide the necessary funds.
To effectively market the condo for sale, price it competitively within the market and promote it actively both online and offline. Pricing it appropriately will attract potential buyers. On the other hand, digital marketing will increase visibility and exposure.
Before making the decision to sell, consider the potential loss of long-term return on investment. Selling the condo means giving up future rental income and potential appreciation.
Hire a Property Manager
Hiring a property manager can alleviate the responsibilities associated with renting out a condo. They take charge of various tasks, such as marketing, tenant screening, and maintenance, which can be time-consuming and demanding.
To find a trusted property manager, it is important to thoroughly review their track record and evaluate their past performance. Furthermore, considering their fees and comparing them to the level of service provided will help in making a decision.
Given the unique circumstances of the Cambodian market, it is vital to thoroughly evaluate the feasibility of each solution. This assessment will ensure that the chosen solution aligns with the local context and can be implemented successfully.
In order to proceed, it is encouraged to take action and seek professional advice from property managers or real estate agents in Cambodia. These professionals possess extensive knowledge and experience in the Cambodian real estate market, which can provide valuable insights and guidance throughout the process.
If you are ready to get started, get in touch with us here.