Food & beverage operators
Leasing-out your premises to an F&B operator is common practice. The landlord can even participate by being a JV shareholder, by offering lower rent in exchange for a percentage share or charging higher rent for bearing certain renovation costs. However, bear in mind the general census that 80% of F&B operators in Malaysia close shop within 2 years.
Its best to avoid amateur operators or new-kids-on-the-block. Functionally, these operators are rather inexperienced, and learn and improve their operations by everyday trial and error. If an amateur operator decides to vacate shortly after, you will not only be left with the problem of leasing it again, but may also face issues with the property’s vacant condition, as well as multiple non-property related issues created by the tenant.
Ideally, it is best to look for an elite operator; well-established and experienced ones. They may have a chain of shops, be a famous multinational brand, or could even be a single-shop operator which has been around for a number of years. The safety and security offered through elite operators provide a greater chance of a successful long-term lease.
Virtual & serviced offices
Virtual offices are catered for those who do not need a physical office nor its facilities. Instead customers just require a business address, and possibly supplementary services such as for receiving calls, mail and packages. Serviced offices have physical office spaces, along with facilities for use. They come fully furnished, inclusive of utilities, maintenance & upkeep.
They may even include value-added services such as IT infrastructure, broadband and phone systems, factoring in all overhead costs. Three compelling reasons for setting-up virtual and/or serviced offices are that: It is a means to generate recurring income; you have no inventory costs, and which; provides for a recessionproof business, due to the constant need for low-cost office space.
Capsule hotels
Capsule Hotels, because of their convenience, low price-point and relative no-frills experience, has been flourishing in recent years. Although a barebones and budget experience, this type of accommodation seems to suit the simple needs of the solo traveler, backpacker or officer-on-a-businesstrip just right.
Low barriers to entry into this business is a significant motivator. Comparatively with traditional accommodations; set-up costs are lower, there is no need to apply for a special license, set-up period is shorter, and you offer the best of both worlds with a small yet private space to sleep – and very affordable too.
Tourist attractions
As a creative way to capitalize a space, turning it into a tourist attraction has always been a lucrative business. Setting your tourist attraction apart, making it special and unique is key to generating interest. A tourist attraction, although seemingly catered to foreigners, surprisingly attracts a significant bit of local interest too.
AirBnB
It is a strong possibility that the returns from running a AirBnB accommodation can be more lucrative then just renting-out the property in a longterm lease. With AirBnB’s tried and trusted platform, many niggling doubts have vanished, as it has become by far and large, the most well thought out, mechanism-efficient, trusted and successful online platform to book accommodation the world over.
Themed hostels
Providing a difference by way of providing a special theme for shared accommodations of a hostel enlivens a place and creates interest which can better generate bookings. As shared sleeping and living spaces, a thematic experience though interior design and visual elements create a stylistic look and feel for a memorable stay experience.
Internet marketing through social media, reviews and word-of-mouth are key drivers that can become viral. Partnership with groups such as educational institutions, clubs and associations are also highly beneficial, and these could also have been motivated from the hostel’s ‘themed’ accommodations.
After-birth care facilities
After-birth care facilities provide for an innovative and unique niche for creating income from property. Confinement is a common practice in Asia where new mothers observe a period of confinement of 28 – 44 days after birth, to properly rest and nurture themselves back to health.
As the trend from having a live-in confinement lady shifts to staying in a confinement home grows, so will the need for this innovative and unique niche market business. At this current time, there are more mothers-to-be chasing after places in confinement homes then there are available places.