owning properties for short lets is a new wave in the real estate business

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👤By Anthony Ebere 📅April 26, 2023🏷️Real Estate Advisory

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The short-let market is still an untapped segment of the real estate market, Do you know what the business of shortlisting entails?

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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.

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LET’S DO SOME MATHS

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Rental value for one night (4 bedrooms Semi-Detached) – N100,000

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Average expected revenue at 60% occupancy rate (219 nights) – N9,855,000

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Average returns annually – N9,155,000

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The remainder is pure profit in addition to the ongoing increase in the value of your property, asides from other minor repairs and replacements.

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WHY YOU SHOULD INVEST IN SHORT LETS

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HIGH RETURNS ON INVESTMENTS:

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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

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MORE IN DEMAND

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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.

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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.

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HOW TO GET STARTED

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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.

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Invest collectively

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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.

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In summary, the short let market is getting renowned and is slowly overtaking the hotel business, due to its flexibility and accessibility.

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STAY STRONG, STAY HONEST, STAY FOCUSED, STAY BLESSED

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