Have you ever wondered which is more profitable between shortletting and yearly rental for property owners?
Short let apartments in Nigeria are becoming popular as it gives guests the privacy they need during their time away from home. Plus, it is less expensive for short stays compared to lodging in a hotel.
From our research, the shortletting shows great prospects as guests are becoming more comfortable opting for short let apartments over hotels. The market for short let apartments continues to grow evident in the increasing popularity of global and local tech companies around this service. Holiday seekers, expatriates, government officials, and celebrities form part of a greater pool of customers choosing to go for short let apartments over conventional hotels.
What this means to property owners?
More money from shortletting
On profitability, property owners in choice areas like Ikeja GRA, Ikoyi, Lekki in Lagos and Maitama, Wuse 2, and Garki in Abuja charge as much as N40,000 to N70,000 per day. Now let’s do the maths for a 2-bedroom short let apartment in Lekki, which costs about N60,000 per day.
A 2-bedroom flat in Lekki costs about N3,000,000 yearly. If this flat is short let up to 250 days, we have a total of N15,000,000. The property owner only needs to rent the property for 50 days a year to match the yearly rent amount.
Peace of mind
Short-term rental apartments are designed to be as simple as possible while providing homeowners with the peace of mind they require. Shortletting enables the property owner to list his apartments on short letting websites. This means that the shortletting company will manage the facility from sourcing for a tenant, to maintaining the facility. Hence the property owner enjoys more freedom and peace of mind while earning from his investment.
Available for use when needed
A property owner who seeks to visit the location where his apartment is situated can book his flat for personal use during the period of his stay. This will not be possible for a property that is leased out on a yearly rental plan. This is very beneficial to investors in the diaspora.
In conclusion, while the amount paid for rent is determined by several factors, including the property’s size, quality, and location, short let property investment in Nigeria is a gold mine with huge untapped opportunities. Short-stay rental properties can also be used as collateral to secure bank loans for investment or business purposes.
As a property investor, finding a suitable location for a short-let apartment is another important thing to consider. With flexible payment plans, OPOD can help you purchase a luxury short-let property at an affordable rate.
For further information, visit this link.
