Strengths and Weaknesses of the Boarding Property Business

Boarding Property Business

The boarding property business is one of the many business models with promising profits. Therefore, this one business certainly cannot escape the eyes of businessmen and investors.

What makes the Boarding Property Business so Promising?

Because of the disgusting profits, business people and investors no longer doubt this business because the need for boarding rooms is very high. Especially in urban areas close to office areas, education, and shopping centers.

Usually, people will prefer to rent a boarding room close to their workplace or campus if their house is far from that location.

This business has long-term capital gains (even decades) so that one day you can pass this business on to your children and grandchildren.

Capital gains obtained from renting out boarding rooms are on average higher when compared to investment in vacant land or rented houses.

Get benefits not only from renting out boarding rooms. There are other ways that you can get other benefits by providing additional services for boarding house residents. Such as laundry and catering services.

Property Business Advantages

1. Anti-Loss Investment

This business can be called an anti-loss investment. The reason being that the price of land and buildings will continue to rise over time, so this business has minimal risk of loss. If you have an exclusive boarding business, the profits can be doubled!

Also Read: Anti Los! Follow This Investment Tips For Beginners

2. Return on investment in a short time

Although this business requires a large amount of capital at the beginning. The velocity of money in this business is very fast and the capital you spend at the beginning can be returned in a relatively short time.
If on average, usually within a period of 5-10 years, the capital will return with additional profits.

3. Long Term Income

As long as the boarding house remains standing and as long as the boarding room has many residents, you will continue to benefit.

If your boarding house is in a strategic location, chances are that your boarding house will continue to be filled even for decades.

And as long as the boarding house is fully occupied, you can just enjoy the time while doing other activities.

4. Higher Income Compared to Rented House

If you pay attention, the management of a boarding house is indeed more troublesome than a rented house.
But if you compare the income, boarding houses are much more profitable than rented houses.
Not to mention that you can provide additional services to boarding house residents such as laundry and catering.

5. Enough Fans

One of the keys to successfully building this business is choosing a strategic location.
However, even if the location of your boarding house is not so strategic. There will always be an interest in your boarding house.

As long as the rental price is competitive and the facilities are adequate, then you can attract potential residents of your boarding house.

6. More well-maintained buildings

Another advantage of this business is that buildings are always well-maintained when compared to rented houses. Because you usually need to do some routine repairs such as water, electricity, wall paint, and roof problems.
In contrast to a rented house, we know that the occupants don’t necessarily care about house maintenance.

So if at any time you want to sell the building, your building can be sold at a very high price because it is in very good condition.

7. High Capital Gain

As a profitable property, boarding houses certainly have a much higher resale value than their initial value.
This is also what makes this one business very attractive to new buyers because they understand that their capital will return later.

What Is Capital Gain?

A boarding house is also your investment that you can pass on to your children and grandchildren later.
In addition to the advantages described above, you also need to pay close attention to the disadvantages of this business.

Running a business must have its advantages and disadvantages, just as this business also has its drawbacks.

Lack of Boarding Property Business

1. The boarding house owner must be able to manage well

As a boarding house owner, of course, you must be able to manage your boarding house well, such as making regular visiting schedules, determining strict and clear rules for all boarding residents such as curfews, bringing in outsiders, especially the opposite sex, as well as a policy for paying boarding fees. and so forth.

2. Late payment of boarding fees

Sometimes there are residents who are late in paying their boarding fees when you collect them, because most boarding house residents are students who do not have their own income and are still waiting for money to be sent from their parents.
Or employees whose income is not too high, therefore you as the owner of the boarding house must have clear and firm rules.

3. The boarding house has the potential to be lonely

It is undeniable that the opportunity for a boarding room to be empty can happen at any time. That is, if the facilities that attract your boarding house are lost from time to time, such as campuses, offices, and shopping centers.
If one of the three things closes or moves to another place, your boarding house may become lonely. Of course this kind of thing is very rare, but still we must not forget this one calculation.

4. Lack of Supervision

Often boarding house owners find it difficult to supervise every boarding house occupant. This causes unwanted things to happen such as crime and terrorism. It makes the reputation of your boarding house bad in the eyes of other boarding house residents and prospective new boarding house residents.

To anticipate things that are not desirable, it is important for you to know the identity and motivation of prospective boarding house occupants before accepting them.

If necessary, you can pay someone to always look after your Boarding Property Business, such as hiring a security guard.

Well, those are the advantages and disadvantages that you must know before you get into this business later, so that you can run this business properly, get maximum profit, and of course can avoid things that you don’t want.

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