How To Start Your Own Homestay Business and Make a Recurring Passive Income for Your Travels

How To Start Your Own Homestay Business and Make a Recurring Passive Income for Your Travels

How To Start Your Own Homestay Business and Make a Recurring Passive Income for Your Travels

Most people think starting their own homestay business is an excellent way to get ahead – make money and use that “passive income” for their vacations.

Sometimes when I travel with a group, we will stay in an apartment homestay rather than a hotel, which is excellent as we work together online.

Plus, we get to chill out late at night to watch a game or Netflix.

Sometimes, we get an hour or two of work in as well.

For most guests, high-speed internet is a must, and this is one of the requirements that I look for when I book.

If you’re thinking of partnering up with s friend to host an apartment, holiday home, guest house, or even a homestay – I’ll like to share some ideas that will make you a great host and repeat business from travelers.

If you’re interested in making a passive rental income, you’ve come to the right platform.


How To Start Your Own Homestay Business?

As a host, you will want good quiet tenants who don’t cook up a storm, flood the bathroom, and party at the pool area.

Business people and entrepreneurs are good guests to have. We don’t touch your “stuff,” and it’s’s more comfortable to run homestay experience this way.

Some of my friends, who have run an Apartment for over three years, tell me that it is a good investment.

You will reap the rewards if you do it right.

Some of them run their business from Facebook business pages.

Here are the tips on how to be not just a good homestay host but a great one.

Be Honest With Guests if You Want to Start Your Homestay

While your apartment homestay may not be brimming with ideas nor be the most beautiful apartment ever, you will do well to manage your guests” expectations.

People are happiest when you price it accordingly.

If there are stairs, show these. Using poetic license (Photoshop) to patch up that hole in the wall or clean up pipes, etc., doesn’t work in your favor.

Be upfront about the condition of your rental.

If it has the world’s smallest bathroom and a shower that doesn’t drain properly, please fix the shower.

Please don’t magically make the bathroom bigger or worst; still use another photo from “elsewhere.” Be open about the condition of your apartment.

State clearly if you provide cooking facilities and describe the equipment and utensils in the kitchen.

As a business owner, you need to ensure that the photos you upload must show the room just like what is described.

If you price the rent low, you will attract budget travelers and backpackers who just wanted a cheap, clean room to rest i

Ideas: Remember, it is the reviews that make or break your listing on Airbnb.

Familiarize Yourself with the Local Laws as a Homestay Owner

If you are renting an apartment, the Management Cooperation has rules and conditions you need to adhere to – some states explicitly that you CAN NOT let others occupy your unit.

Even though many others are hosting their rooms and apartments are doing it without letting their landlords know, they have gone against their lease agreements.

What they are doing is subletting, and if your landlord or neighbors find out about it, there may be consequences.

Find out about the local laws and zoning so you can have a plan or even buying your own space to list.

You can also try finding a landlord who doesn’t mind, which might prove a challenge as noisy occupants will cause the neighbors to complain.

Be flexible with check-in and check-out time.

Sometimes the best vacation plans fall short due to a flight or car delay your guests might encounter.

You need to be contactable either by phone, WhatsApp or Messanger.

Find out their flight schedule, and sending a text to enquire works in your favor.

Your guests will know that they can count on you to have a smooth vacation, no matter what.

Adopt a Business Mindset by doing a bit more than what you promised in your Homestay Business Listing

If you plan to do business through Apartment hosting, you will need to consider how you can make your listing more attractive.

A friend of mine offers some 3 in one Coffee and Milo and a beautiful box of famous Local Biscuits to guests.

He also throws in a few Instant Cup Noodles for good measure in case of very late check-in.

His guests appreciate this as sometimes they are too tired to go out to eat.

Maybe it’s’s providing breakfast and coffee.

A loaf of bread with some jam is always right.

You could provide a free guided walk through your neighborhood.

Please encourage them to stay longer by giving a discount on the 4th night, for instance.

If you can offer fresh coffee every morning or even go the extra mile to get them an iron and ironing board, think about how happy you would have made your guest.

The reward is in gaining both their friendship and trust and hopefully more recommendations and good reviews.

Plus, getting some electrical items is a deductible business expense that your other guests can use.

You can turn on the Smart Pricing feature in your hosting profile, which lets you set your prices to go up or down automatically.

Based on the demand for listings like yours, you can control by settings that you can adjust.

Send guests an email a week before their arrival.

If you can personalize your email written to your guests, you can send them some information about the house and the neighborhood.

Guests appreciate a list of places to eat, cafes, gyms, and other free activities around the neighborhood.

An email is excellent, as some international visitors may not have access to data on their phones.

The best is sending them a Jpeg with the information they can download to their phone for reference.

Another helpful tip is to find out if they are driving to your home – if they are, tell them of the parking restrictions if any.

Tips: If your guests are driving, tell them where to park.

Breakfast in the garden.

Think of how pampered your guests will feel if you include breakfast during their stay. Why not provide this option when they book? Credit:

Ask about their food preferences or restrictions when they book.

When you email your guests and ask how they take their coffee or if they have any dietary restrictions, it shows that you care.

If you decide to leave some fruit for my guests, give them some options. Perhaps there is some fruit that they like to try.

If it’s a Durian or Mangosteen, you can restrict certain items in the home, say No Pork or Beef.

Tips: Be sensitive; your guests may have religious restrictions on the consumption of pork or beef. Some could have a nut or shellfish allergy.

On Arrival – Have soft music playing when your guests arrive.

Choose elevator music or soft classical piano or instrumental rather than other genres.

It’s been an excellent way to set a relaxing atmosphere.

Tips: Stick to classical instrumental music rather than what is current. 

Whenever possible, greet guests when they arrive at the door.

Offer to carry their belongings. Guests appreciate some help with bags and a friendly face to greet them upon arrival.

A Warm Welcome puts people at ease.

Sometimes guests are stressed out or may not be feeling well on arrival.

Be sensitive and ask them if there’s anything they need.

Offer them a drink, even if it is cold water that you fill up in a glass bottle in the fridge.

Offer cold juice, coffee, tea, or even a Milo if they want.

Sometimes they may need something for a migraine or need to have some water and sleep off jet lag.

Idea: Create a simple DIY, a welcome basket, filled with 3 in one beverage, biscuits, or some snacks.

Use a key-less lock if you’re not able to greet them.

I have stayed at apartments where the owners send me a preset code that allows me to open their letterbox to pick up the house keys.

An excellent idea that offers the guests complete security to know that no one else has a copy of the keys.

For the owner, the guest can check-in (very late) and leave (very early) without any worries about lost keys!

Idea: Add the apartment keys to a Badge Holder Card, including your contact phone number or email on the tag.

You can add some necessary information, such as handy phone numbers for emergencies.

Luggage on the floor

Guests appreciate a suitcase stand where they can plop their luggage.

Could you give them a quick tour of your Homestay?

If you are there, offer a quick tour where you turn all the switches and appliances to show that everything is in good working condition.

If you’re not at home, leave them notes that explain where you keep all the essential items in the apartment.

You can always drop by later with any extras that they require.

Idea: Have an affordable, sturdy suitcase stand where guests can plop their luggage.

Invest in good ambient lighting to set the right mood

Good ambient lighting makes your home feel warm and welcoming, even if you are not there.

General lighting should be bright enough without being harsh or cause shadows.

Make sure there is sufficient light, and there are no dark unlit spots in the house.

Idea: Your guest will love the warm ambient lighting from unusual lamps and wall lights!

Leave small explainer notes on switches and around all of the electrical appliances.

Explainer notes will help guests navigate the home, so they know which light switches to use.

You can ask them to leave one or turn off the timer if necessary.

Tips: Your guest will appreciate your effort to label the switches!

Think Positive: Most of Your Guests Will Be Amazing

With repeat customers who come through recommendations of former Apartment guests, you will receive bookings from amazing and well-behaved people.

They won’t expect you to do the dishes.

However, you can provide daily cleaning services at an additional cost.

Idea: A good host tends to attract a good house guest, which adds a fun cultural component to the experience for all.

We don’t mean to scare you, but sometimes you may get one or two odd guests.

You can fill out the House Rules section on your host profile, so guests know what’s okay — and what’s not — while they’re staying there.

Just be prepared to enforce if tenants break any item.

A friend of mine who runs a homestay once asked one guest to leave for smoking in the house.

Some could misbehave by bringing random girls back to the apartment or making disrespectful comments to other people living there.

Idea: If someone does something that makes you or your other guests feel uncomfortable, don’t be afraid to stand your ground.

Master Bedroom in a villa

When you make the bedroom look so comfortable, guests will book multiple nights’ stay. Credit:

Make Minimum-Night Stay Requirements

Daily changing of guests’ check-in will increase your rental and maintenance costs.

If you let people book just one night without a minimum night stay, it is not worth it.

Does this make sense?

A one-night stay over the weekend will make you miss out on a longer and more lucrative booking for long weekends!

You will be doing a lot of laundry and clean-up more every day!

Idea: List your place with minimum-night stay requirements. It will work out better for you.

Keep All Payments and Messaging Within Listing

If you’re starting and testing the market, you can list your place and pay no commission on your first five bookings on

Using a booking engine has the added security benefit since the company vets and knows who is coming into your home.

The booking engine takes a small cut of your profit.

It is safer to let the booking engine handle the payment instead of getting paid in cash.

Handling your booking one-on-one without the middleman will leave you vulnerable as there is no record of who stays with you.

When you host your place through the service, you are always assured of peace of mind and feel confident about welcoming guests.

You get to set your rules, prices, policies, and regulations for guests. helps you – Access 24/7 support and guest misconduct reports.

So if something unexpected happens, you can report the misbehavior to the team.

Scenic view of rooftops with a riverside view

You will want to visit and stay in a beautiful city, so would your guests. Credit:

Use Referral Links to Grow Your Travel Fund

Many tourists start with search engines, and some travelers begin by looking for maps.

Either way, if you want to make some extra cash, whether you are a traveler or a host – you get a unique referral link that earns you money whenever they get someone to sign up.

Think Twice About Turning on Automatic Booking

One word of advice, it is smarter to host the entire apartment out than just a room in your home as you will be living there at the same time.

You may get more bookings if you activate the auto-booking feature, BUT getting a guest with the same lifestyle as yours may be a problem.

So it is always good to find out the nature of their visit so that you can decline the reservation.

Clean! Cleaner! Cleanest!

A meticulously cleaned accommodation means the shower, toilet, sink, floors behind every door is swept and cleaned after every guest checks out.

There is no better way to make a good impression than a spotlessly clean home free from smudges and fingerprints.

Idea: Clean means everything is CLEAN!

Create a Fridge “Concierge Station” and leave plenty of information on to do in the area

You can offer free brochures of sightseeing spots, travel books, and menus of local attractions and restaurants.

Leave them a sheet of information about buses and transportation, museum information, and short local day trips to take.

One of the things I like the most whenever I stay is finding out fun things to see and do in the neighborhood.

So if you have coupons, maps, or helpful brochures, you could hang these by refrigerator magnet on your fridge.

Your guest could use the references, and you need not repeat yourself every time someone stays at your place.

Sunset view over Villa and Pool

Not everyone has a home like this, but that doesn’t mean you can make your apartment or guesthouse the best. Credit:

What to provide for the ideal Homestay?

Every host needs to provide guests with essentials:

  1. soap
  2. toilet paper
  3. clean sheets
  4. towels
  5. pillows
  6. blankets

When you offer a little bit more, you can make your guests stay more comfortable, and in return, you can earn good reviews.

You can raise the bar on essentials by providing sources of shower gels and great smelling bath salts locally.

Hosting Tips from other successful hosts will inspire you to be creative while staying on budget.

You will only need a little time and effort. ‘

While folding back the corners of that first sheet on the roll is something you will find in a hotel and looks impressive – necessary items like mattress and pillows need to be comfortable clean and something you can sleep comfortably.

I have stayed in a very nicely decorated apartment in Bandar Utama with the most uncomfortable pillows made of rigid foam.

All 47 units run by the same host have the same type of “soft” fittings. If only the operator would spend just a little on the right mattress and pillows!

I checked out after one night of the most uncomfortable sleep!

All these little things have an enormous potential for injecting new charm into your space.

Have fun!

Check out these great Homestay businesses and Passive Income Ideas that you can implement!

  • Use a high-speed Internet service provider.
  • Soap and Shampoo in regular size from a wall-mounted dispenser.
  • Provide one toilet roll per bathroom per night stay.
  • Provide a Bath towel per guest.
  • Washing machine and Dryer
  • Clothesline with pegs
  • Wardrobe with hangers
  • Hair Dryer
  • Mirror in Bathroom
  • Electric Kettle
  • Coffee Mugs
  • Melamine Plates
  • Stainless Steel Cutlery Set
  • Air-Conditioning in Bedrooms
  • Shoe cabinet
  • Non-Slip Floor Mat in Bathroom

Conclusion – How Not To Run a Homestay business

You can make an online booking for homestay accommodation in a local’s home for an authentic holiday experience.

I was appalled to stay in one unit in Kuala Lumpur.

The host family rented out his own home so that I could move in!

When I walked into that homestay and found the closets filled with their clothes and toilets with their toothbrushes – it gets too weird!

My thought is, where does the entire family go?

One cheeky reply from my traveling companion was – to a hotel nearby for a staycation!

What’s The Status For Homestay Regulations In Malaysia?

Applicants for Short-term rental businesses in Malaysia must register with the Ministry Of Tourism and Culture (MOTAC) by applying the Accommodation Premises Registration Form.

Accommodation Premises for registration with MOTAC are as follows Kampungstay and Homestay Malaysia Experience Program.

For more information, visit the MOTAC website.

So how do you list your apartment Homestay and where?

List your place and pay no commission on your first five bookings on

If you have any hosting tips of your own to share? Sound off, below.




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