In recent times, the short let business has become very popular in Nigeria as a profitable investment one can venture into.
Recent statistics shows that there is a high demand for the short let market in Lagos, which has grown by over 30% yearly. It is important to carry out thorough research before you venture into short let flats and apartments.
In this article, we will look at what shortletting is all about, how best to acquire good short let properties, and the most sought-after locations for the short let business. Let’s begin.
What is Short Let Business?
In simple terms,A short-let is a type of rental that usually lasts between a few days and a few months.In Nigeria, many use short let apartments as places where they can get away from their home or environment to relax and chill, or it could be a place where one can have a relaxing business retreat with their team.
They are highly flexible, have the fastest tenant turnover rate, have higher maintenance costs, and have higher profit potential.
What is the most sought-out location for short let accommodation?
The location you choose for your short let business is as important as the way the property looks. Short let apartments thrive in locations that offer convenience, privacy, and a homely feel.
A lot of people go for calm short-term apartments with proximity to stores, banks, restaurants, clubs, movie theatres, outdoor spaces, and more.
Recent research has identified the most popular short let locations in Nigeria, including Lekki Phase 1, Victoria Island, Ikoyi, Yaba, Ikeja in Lagos, Abuja, and Port Harcourt because of their convenient location near commercial and recreational centres.
P.S. short let flats and apartments don't tend to do well in remote areas or on the outskirts of cities like Sango Ota, Epe, Ikorodu, and others.
What Type of Structure Should Be Used for a Short Let Business?
Recent studies indicate that most individuals seek out two- or three-bedroom apartments, particularly those with ample parking and outdoor leisure areas. Studio apartments and mini flats are also popular choices, while individuals hosting in-house gatherings tend to opt for four-bedroom apartments.
Ways to Acquire Short Let Properties for Business
There is no “one size fits all” when it comes to acquiring properties for short let houses. This can be done in the following ways:
- Outright Purchase: This means buying a property or building one from scratch. With this method, you can furnish it according to your preferences.
- Renting or leasing properties: This could be either long-term (10 years and above) or short-term (1 year and above) as it involves obtaining a property from the owner. For long-term leasing, you are safer compared to short-term rent.
- Joint Ventures: This means partnering with other investors to acquire a property together with a legal agreement.
Other ways to acquire properties for short let businesses are Real Estate Investment Trusts (REITs) and crowdfunding.
P.S. Short-term renting may present challenges like landlord involvement and rising rental costs.
Ways to Attract and Maintain Occupancy Rate
To keep your short-term rental business thriving, it's essential to have a carefully planned marketing plan to reach potential customers efficiently. Listing your property on Zerodip.ng and similar short-term rental platforms can also boost your visibility.
Referrals are crucial for business success; satisfied customers can become powerful advocates if you provide exceptional service, uphold cleanliness and safety standards, and offer competitive rates.
The importance of security and KYC
Security is so important in the short let accommodation business. It is essential to conduct a thorough background check on your clients. Implementing a Know Your Customer policy will help mitigate security risks.
This also helps you know where to go if any of your property is missing or destroyed. It is also of great importance to have a security guard on the property, especially if the property is a stand-alone one. Always factor in your security costs during pricing.
How to Smartly Price Your Apartments
Market research is essential to identify local rental rates to ensure competitive pricing and reflect property and service quality.
It is also essential to consider factors like the festive season, property location, local events, and amenities. Offering promotional discounts, long-stay packages, and value-added services can also increase your revenue streams.
P.S. We advise that you buy appliances that consume less power and are cost-effective.
In conclusion, operating a short let business in Nigeria can be a promising investment opportunity but requires a blend of industry knowledge, strategic planning, and leveraging technology and partnerships effectively. With Zerodip.ng as your partner, understanding the technicalities of the short let market becomes more manageable, ensuring your venture thrives in the vibrant hospitality landscape of Nigeria.
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We try to make sure that the information here is accurate at the time of publishing. But the property market moves fast and some information may now be out of date. Zerodip accepts no responsibility or liability for any decisions you make based on the information provided. Graphics and images used here are for information purposes - we do not have ownership right over them.
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