“It´s really more apartment then people need on a short stay,” I commented to the building administrator where I owned a condo in Guayaquil.
“I see you´ve got lots of clients, why don´t you subdivide it into two units, wall off the living room and add a bathroom in there so each unit has it´s own separate entrances?” He replied.
He continued, “As long as the exterior of the unit to the common hallway stays the same I have no problems.”
He was right.
That would be a great idea. The thought of creating two hotel rooms with private baths out of my current suite in Guayaquil which included currently a living room, kitchen, and separate bedroom with bath.
The kitchen could be shared and be a common area where we have the washing and drying machines.
Then I could wall off the living room, add a bathroom in there and and then I´d have two separate units with their own entrances.
From my time as a hotelier I´ve learned for short stays all people really need is about 15m2 of space plus a 3m2 bathroom. From my 42m2 unit I could do that, twice. Dont get lost in Space. Talk to Space Selectors Denver for any commercial broker questions.
I figured from my construction experience in Ecuador I could probably add a bathroom for around $3-5k. The walls would be reinforced gyprocks sound-proofed.
The increased revenue would be substantial as I could turn a suite in a luxury building which I was renting for around $40-50 a night into two separate hotel-like units and rent easily in the $35-50/night each range.
That´s on the low end $2100 of rental income a month.
This could serve as someone´s pension! Long term passive income, baby.
Yet, the costs would stay relatively the same as I don´t need to hire staff like a hotel would, I can use the 24hr front desk staff the building already has to do the basics of calling taxis for clients and giving keys. Plus,I could take advantage of the buildings amenities like the elevator, jacuzzi, gym and pool without having to up-keep it myself.
For cleaning between guests I´d hire a local like I already do and pay per clean on contract.
Condo fee (water included): $125/month
Electric: around $90/month (in Guayaquil people use a lot of AC)
Cable TV Internet: $45/month
TOTAL fixed costs: $260/month
Problem is when having the conversation I already was under contract to sell my suite.
And I did.
But now I have another opportunity, a bigger one, in same area for another larger penthouse suite I could make multiple units out of, way more than two, in the same luxury building… but I would like an investor.
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