VietNamNet Bridge - Most travelers choosing homestays and short-term rentals like novelty and often change tourism destinations, and do not return to the same rental.

Short-term apartment rentals have become more popular in recent years, especially at tourism sites and in big cities like Hanoi and HCMC. 

Analysts note that most developers are young investors. Many of them rent apartments for business. However, not all of them can profit from the business.

Ha Anh, 25, in district 5, HCMC, rented an apartment in the central business district 1 in HCMC but had to stop after four months of incurring big losses.

Anh said she had over 10 foreign guests in the first months, but the number of clients decreased in following months. One month, there were only two clients who booked for one night and the money she got was not enough to cover rent, electricity and water bills.

Most travelers choosing homestays and short-term rentals like novelty and often change tourism destinations, and do not return to the same rental.

She tried to look for clients through different channels, including Facebook, but the number of guests was unstable.

“The competition was too stiff,” she said. “I finally decided to give up as the financial burden became unbearable.”

Unlike Ha Anh, Vu Van Khoi, born in 1989, in district 2, HCMC, has two years of experience in running short-term apartment rentals. Vu now has a 100 square meter place in Da Lat which brings him profit of VND25 million a month.

In late 2017, Khoi decided to rent a 60 square meter room on Nguyen Du street at VND35 million a month. His major clients were foreign backpackers. 

However, the business performance was not satisfactory. In September 2018, Khoi gave back the apartment to the landlord and focused on the business in Da Lat.

Mai Thi Huong, 30, in district 3, HCMC, has been renting on the ‘westerners’ street’ of Bui Vien for five months and has been taking losses.  

She has to pay VND7 million a month from her pocket to cover expenses. Huong fears that she may not be able to maintain the business if the current situation does not improve.

An analyst said that the investors who take losses don’t have long-term capital to invest, so the competitiveness is low. And the monthly rent is high, which eats up the profit. 

The number of clients is unstable and very few tourists return for subsequent visits because they want to stay in different places to have other experiences.

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