Investing in a motel room business thought it was super profitable, but it was missed

Petrol prices, gold prices increased, causing prices to escalate, causing many people with capital to hesitate in investing. Especially, in the real estate sector, things are still very unpredictable. However, some people choose a safe solution that is to invest in room rental.

This is seen as an idea of ​​”steadfast wear”, less risk because the need for housing always arises very large. Moreover, investors can earn regular monthly payments without spending too much effort and time like other businesses.

Investing in a motel room business thought it was super profitable, but it was wrong (Description photo)

However, there are still many people who taste “bitter fruit” because of the impact of the current socio-economic context. Mr. NVT (38 years old, from Thuong Tin, Hanoi) is an investment expert in the form of room rental for decades. He worked very hard to search for mini apartments or adjoining areas right from the time the new owner finished building in order to negotiate the rent and then sub-let each room.

However, the impact of the epidemic situation and the escalating prices made him have to let go of many apartments. He shared: “Until now, I only like to invest in motel rooms. I rented it from the owner and then split each room for students and workers to rent. Each apartment I eat is about 10 million VND difference. But since March of last year, the situation has been extremely difficult because the disease broke out across the country while the vaccine has not been widely vaccinated.

That’s why schools let students take a break from online classes from the Lunar New Year to the end of last year. That took a toll on my business because the homes I chose near universities were mostly rented out to students. The school gives off online classes, so students check out of the room. I can’t hold as many apartments as before, so I have to ask the owner to liquidate the contract soon. But there are owners who don’t let that mean the motel room is empty, how much money do I lose every month to make up for the loss?”

The situation is still not better for Mr. T, although the schools allow students to go to school directly. Due to the escalating prices, students also have no money, so Mr. T can’t raise the price because the price increases, and there are no tenants left to make up for losses because at least he is still “hugging” 3 adjacent houses. because the long-term contract cannot be liquidated because the compensation is too high. The subletting of the motel room that once brought him “super profits” has now pushed him into a very tragic situation.

Not following the form of sub-leasing the motel room, Mr. TVH (40 years old, from Phu Tho) fell into a dilemma again because of his intention to run a motel business. After years of struggling, going through all kinds of businesses, he found the motel business the safest and had a stable monthly source of money.

Thinking to do it, Mr. H put all his capital, borrowed more relatives to buy land and built a row of motels in Thanh Xuan district (Hanoi). But the price of land escalated according to the price of gold, so the money he spent had eaten into the money expected to spend on construction.

In particular, in the midst of everyone’s difficulties, he did not know where to turn, so he left the land in a place that did not dare to build anything. Mr. H regrets: “When the epidemic began to subside a bit, I saw that the universities had plans for students to go to school, so I dared to invest in buying land for the purpose of building rooms for rent because around the area. Thanh Xuan district on Nguyen Trai street has many universities.

Unexpectedly, the price of gold escalated, causing the landlord to force me to raise the price too high. Now the land is only empty land, but I can’t build anything because I can’t borrow money because I can’t borrow anyone, the price of construction materials is afraid that the price of gold will also increase. I also thought of selling it off, but I regretted it because the land I bought was very convenient for the business of accommodation in the future.”

Mr. H had to accept to switch to online business in moderation to wait to earn some money and wait for the price escalation in the hope of completing his motel business plan. But that expectation still seems too far away because the gold price has not shown any signs of cooling down.

In the past, renting a room has become one of the most popular types of investment because it always ensures safety. But until now, many investors “cry half-heartedly” before the unpredictable fluctuations of market prices.

Pham Bac