Hi Maged,
Renting the entire apartment can generate higher nightly rates, making it appealing for families, groups, or business travelers who value privacy. However, it might result in fewer bookings compared to renting individual rooms, especially in areas where budget-conscious travelers dominate the market. Entire units also attract longer stays, which can reduce turnover costs but increase wear and tear since guests use all amenities and spaces.
Dividing the apartment into rooms and renting them individually can maximize occupancy and potentially yield higher overall income, especially in areas with high demand for budget accommodations. However, this setup often involves more frequent turnover, increased cleaning and maintenance, and a greater likelihood of disputes or damages due to multiple guests sharing common areas.
From a preservation standpoint, renting the entire apartment might be better for maintaining the property’s condition, as a single group is less likely to cause conflicts or mishandle shared spaces. Conversely, individual room rentals can lead to more significant wear and tear in shared areas, such as kitchens and bathrooms, due to varied guest habits.
Ultimately, the choice depends on the target market, location, and personal priorities for managing the property. If preserving the apartment is a priority, renting it as a whole unit may be the safer option. For maximizing occupancy and income, renting by room can be advantageous if managed carefully.
I hope this helps.
All the best,
Upfish Management
