How should you run a residence to actually make money? We asked an expert who's seen it all.
Hi, we're ONDA — building the digital backbone for Korea's hospitality industry.
Last time we talked to Song Min-jun from ONDA Management about running pensions like a pro.
This time? We're diving into serviced residences — what it really takes to make them profitable.
Let's get into it.
Hi, Min-jun! ONDA has a whole division focused on residences.
What does the Residential Lodging Division actually do?
Hey — I'm Song Min-jun.
I lead solution planning for ONDA's Residential Lodging Division, and I'm also CEO of Wassong Co., which operates properties in Gangwon-do under ONDA's management model.
ONDA's Residential Lodging Division provides custom solutions — like hotel-grade operating systems — tailored for serviced residences.
Residences are popular as income-generating real estate. Why do investors like them?
First: versatility.
Residences are built for extended stays, but you can pivot to short-term bookings depending on demand.
And unlike office-tels, you can outsource operations and still use the unit yourself whenever you want. Earn passive income and keep access — that's a big deal.
Second: lower entry cost.
Yes, new-build residence prices have climbed recently. But you can still pick up units well below market rate in certain areas.
If you target regions with strong occupancy rates, residences are a smart play — especially in today's regulatory environment.
How do you actually run a residence to maximize returns?
Start with a trustworthy operator. That's table stakes.
Average yields on Seoul-area office-tels sit around 4–5%.
But when I talk to residence investors, most expect 8–10% returns.
Sure, that's possible in some regions — but operators who promise those numbers? Almost none deliver.
So if a sales agent or management company is pitching unrealistic yields, dig deeper before you sign.
Profitable residences match their concept to the local market and adapt to shifting guest preferences with differentiated service.
Cutting costs with contactless systems is fine — but the real edge comes from smart marketing and guest experience design that drives repeat bookings.
What's the biggest operational pain point residence owners mention?
Like I said, a lot of residences have gone contactless.
But most of those systems are half-baked.
They make operations easier for the owner, but guests get stuck with check-in/check-out tools that don't let them communicate with staff. That kills repeat rates.
And if one building has multiple operators? Guest service becomes a mess.
The root cause? Operators optimizing for profit over service.
People say the operator matters more than the builder.
Why should residence owners work with ONDA specifically?
A lot of investors do pick residences based on the construction company. Fair enough — quality matters.
But residences are income assets. How you manage a well-built property matters more than the build itself.
ONDA is a hospitality tech company built on years of big data. We know what guests want and what investors need better than anyone.
That insight powers the ONDA solution suite.
We're not just doing check-in/check-out. We've built contactless systems that replace dozens of staff efficiently, plus transparent operations that keep everyone happy. You won't find that anywhere else.
Where should the residence market go from here?
The Korean Wave has created massive latent demand for Korea tourism.
Operators who can capture inbound travelers early will see dramatically better performance.
Residences are hybrid products — they flex between short-term and long-term stays. If you tailor your offering to local demand, you can outperform traditional hotels.
But only if owners stay committed and operators stay transparent.
ONDA is here to be that partner — for residence success.
That's it from Song Min-jun — his take on where the residence market stands and where it's headed.
Interested in residences? Not sure who to trust with operations? Talk to ONDA.
Our hospitality experts will help you run a profitable property.