👤By Anthony Ebere 📅April 26, 2023🏷️Real Estate Advisory
The short-let market is still an untapped segment of the real estate market, Do you know what the business of shortlisting entails?
Simply said, it’s the process of renting or buying a property with the intention of using it for short-term rentals. You furnish it and then list it on well-known websites like booking amenestate.com, emeraldbayestate.com, etc. It appeals to visitors to the country, newlyweds seeking a romantic getaway, friends hosting house parties, and pretty much anyone seeking a home away from home experience.
LET’S DO SOME MATHS
Rental value for one night (4 bedrooms Semi-Detached) – N100,000
Average expected revenue at 60% occupancy rate (219 nights) – N9,855,000
Average returns annually – N9,155,000
The remainder is pure profit in addition to the ongoing increase in the value of your property, asides from other minor repairs and replacements.
WHY YOU SHOULD INVEST IN SHORT LETS
HIGH RETURNS ON INVESTMENTS:
The average returns on investment for a 2 bedroom on short lets with a 60% occupancy rate is around 9,000,000 to 9,855,000 annually
MORE IN DEMAND
For 100-120K, you can rent a three-bedroom shortlist that can accommodate 5 to 10 people, while hotels typically have two or fewer occupancy limits for each room. Short lets typically have access to services like Netflix, a kitchen, and a spa at no additional charge, which is uncommon for hotels.
Therefore, short-term lodging is more popular than hotels. The occupancy rate of the majority of short lets is up to 90% in the busiest areas like VI and Lekki.
HOW TO GET STARTED
Find an apartment/land to buy. Amazing deals are currently available from respectable real estates businesses, like the @Emeraldbayestate at Amen Estate Phase 2 by Amen City Limited and properties located in Amen Estate, Beach Road, Ibeju-Lekki, Lagos with a flexible payment plan for up to 3months to 12 months.
A group of investors can pool their resources and purchase a property with the goal of using it as a shortlist. Each person receives a quarterly return on investment of up to 30% for the rest of their life. Shares may be transferred from one investor to another, and the property will be held in trust for the investors.
In summary, the short let market is getting renowned and is slowly overtaking the hotel business, due to its flexibility and accessibility.
STAY STRONG, STAY HONEST, STAY FOCUSED, STAY BLESSED