Short answer: for an ordinary Johor Bahru condo the two routes often pay about the same. In our worked example a managed homestay takes home roughly RM23,400–24,300 a year and a RM2,200 long-term tenancy roughly RM24,200. Homestay only pulls clearly ahead when the unit grosses above about RM49,000–51,000 a year. Below that, long-term is the calmer choice.
Why does everyone say homestay pays more, and is it true?
Because the headline numbers look bigger. A homestay unit might gross RM4,000 in an average month against RM2,200 of rent. But the homestay figure is revenue, and the rent is nearly profit. Cleaning, laundry, toiletries, utilities, internet, platform commission and the management fee all come out of the homestay figure before you see a cent. So the fair comparison is take-home against take-home, not gross against rent.
For scale, Airbtics' market data for Johor Bahru (September 2025 to August 2026) shows a median listing earning about RM51,000 a year at 45% occupancy and an average daily rate of RM294. That is every kind of listing in the city, managed and unmanaged, and it is not our figure. Keep RM51,000 in mind, because it lands almost exactly on the break-even line we calculate below.
What does a long-term tenancy really pay you?
Start with the rent. Portal listings we looked at earlier this month for the condo-ban article put long-term rents at roughly RM2,300–2,550 in Paragon Suites, RM2,000–2,400 in KSL Residence 2, and RM1,300–2,300 for two-bedroom units around Johor Bahru generally. For the example we use RM2,200 a month.
Then be realistic about gaps. Units do not rent out the day the last tenant leaves, so we assume one empty month a year. That is an example, not a statistic.
| Long-term, RM2,200 a month | Per year |
|---|---|
| Rent for 12 months | RM26,400 |
| Minus one empty month (example) | −RM2,200 |
| Rent actually collected | RM24,200 |
Costs that exist under both routes, such as the building's maintenance fee, quit rent, assessment and your loan repayment, are the same either way, so we leave them out of both sides. Costs that only exist under long-term: stamp duty on the tenancy agreement (the 2026 schedule is RM1 per RM250 of annual rent for a tenancy of one year or less, RM3 for more than one and up to three years). On RM26,400 of annual rent that is about RM106 for a one-year tenancy or RM318 for a two-year one. Who pays is negotiable and usually split, so it is small either way. Agents and solicitors charge extra if you use them.
SPEEDHOME's 2026 market commentary quotes gross yields of roughly 5–6% across Johor Bahru, with some city-centre towers near the RTS Link corridor quoted at 6–8%, and says net yield typically runs 1.5–2 percentage points lower. Those are agency estimates, not official statistics, but they point the same way: long-term rental income is steady and modest.
What does a managed homestay really pay you?
Here we reuse the full-year example from our article on the three management plans: four peak months at RM6,000, four average months at RM4,000 and four off-peak months at RM2,400. That is RM49,600 of revenue, a little below the Airbtics median, and it assumes expenses of about 41% of revenue. These are illustrative numbers for a typical condo, not a quote or a promise.
| Plan (example year) | Take-home |
|---|---|
| 90% of revenue (owner pays expenses) | RM24,320 |
| 80% of net profit | RM23,424 |
| 70% of net profit | RM20,496 |
Put side by side:
| Route | Take-home per year (example) |
|---|---|
| Long-term, RM2,200 a month, one empty month | RM24,200 |
| Homestay, 90% plan | RM24,320 |
| Homestay, 80% plan | RM23,424 |
| Homestay, 70% plan | RM20,496 |
A homestay that earns the market median ends up in the same place as a decent long-term tenancy. The homestay income is spikier, though. For a real sense of the swing, one owner with 10 units in central Johor Bahru grossed RM67,081 in December 2025 and RM23,877 in November 2025, which is about RM6,700 and RM2,400 per unit. Long-term rent does not move like that.
At what revenue does homestay actually beat long-term?
Take-home from a homestay is a fixed fraction of revenue once you assume how big expenses are. With expenses at about 41% of revenue, the 90% plan keeps about 49 sen of every ringgit and the 80% plan keeps about 47 sen. Divide the rent you would collect by that fraction and you get the revenue where the two routes tie:
| Long-term rent (example) | Rent collected (11 months) | Homestay revenue needed, 90% plan | Homestay revenue needed, 80% plan |
|---|---|---|---|
| RM1,800 | RM19,800 | about RM40,400 | about RM41,900 |
| RM2,200 | RM24,200 | about RM49,400 | about RM51,200 |
| RM2,500 | RM27,500 | about RM56,100 | about RM58,200 |
In monthly terms, a unit that could rent at RM2,200 needs to gross roughly RM4,100–4,300 a month, averaged over the year including the slow months, before homestay is worth the extra trouble. The higher the rent a unit would fetch, the higher the bar.
What else changes besides the money?
Set-up cost. A homestay must be furnished to guest standard with smart lock, internet and linen. A long-term unit can be rented bare or lightly furnished. See our article on what a bare unit costs to turn into a homestay.
Rules. Long-term rental needs a tenancy agreement and stamping. Short stays need you to check the building's rules and the licensing position first; our article on what you actually need covers it. If your building's management votes to ban short stays, homestay stops being an option, and this article lists the four routes after that.
Effort. Long-term is a few big tasks a year (find tenant, sign, repair) and then quiet. Homestay is daily operations: check-ins, turnovers, messages, price changes. A management company takes that off you, and the fee is already in the take-home numbers above. Doing it yourself is a different calculation, covered in self-managing Airbnb versus management.
Risk shape. Long-term gives you a predictable income with concentrated risk: a tenant who stops paying is a legal process, not a phone call. Homestay spreads the risk across many guests but exposes you to seasons and to guest damage, which is why deposits and screening matter.
Tax. The two are taxed differently. See how homestay income tax differs from long-term rental. This article is not tax or legal advice, so ask a licensed tax agent about your own case.
So which one should you choose?
Choose long-term if your unit is in a building that restricts short stays, if its likely revenue sits below the break-even for its rent, if you want income that barely moves, or if you simply do not want guest turnover in your unit.
Choose managed homestay if the unit is compact (studio to two bedrooms), close to the city centre, causeway or RTS Link, in a building that allows short stays, and you can live with a good month and a slow month in the same quarter.
Being honest: what this means for us
On an average unit with an average year, our own worked example shows long-term rent matching homestay income, and for a unit that would rent well, long-term can pay more. We only earn from homestay, so we have a clear interest in you choosing it, which is exactly why we put the break-even in front of you. The expense share, empty months and rent in this article are examples; your unit's real numbers will differ.
If you are weighing the two for a specific unit, send us the building, size and furnishing at /ownerenquiry and we will run both sets of numbers for you. Any area of Johor Bahru and Desaru is fine.