Why Investors Love Short Let Apartments In Lagos

Short let apartments in Lagos is the new hot cake! Owning a short let apartment in Lagos is now a big deal! As a matter of fact, investors are crazy about owning short let apartments in Lagos. In this post, I’ll be giving you a walk through on why investors are rushing to invest in short let apartments in Lagos. Before we go into that, let’s see what a short let is.

Why investors are investing in short let apartments in Lagos

What is a short let apartment?

A short let apartment, also known as a short stay apartment is an apartment that is rented out for a particular period of time (usually a short period ranging from weeks to a few months). Unlike long term rentals, short term rentals mostly attract temporary residents like tourists, and people on vacation or business trips. The short let sector in Nigeria has expanded quickly in recent years, particularly in Lagos. Here’s why investors are investing in short let apartments in Lagos!

1. High income potential

Studies have indicated that the potential for income from short-term rentals is higher than that of long-term rentals. According to Punch Newspapers, in 2018 alone, the global market valuation of short-term rentals was $169bn, providing 30% more profit for homeowners than long-term rentals. The amount of money that can be made from a short-term rental has no upper limit. However, some factors like the ones listed below can influence how much income a short term rental will generate.

Some factors that can influence how much income a short let will generate

  • Where the short let is located – Is the short let located in a strategic location? If your short let is not positioned strategically, it will affect your income.
  • Is the short let situated in a busy area? – If your short let is located in an area with very low traffic or an area that barely gets any visitors, your short let might end up being a total flop.
  • How furnished the short let is – When people rent a short let, their main aim is to be comfortable. How comfortable is the short let? Can it be referred to as home away from home? Also, people love aesthetically pleasing items. Aesthetics is a plus, a huge plus.
  • Is it advertised properly – If your short let meets all the possible requirements, and you don’t market it properly, it will flop. Marketing is very important.

2. Flexibility

Short-term rentals provide flexibility. Owners of short-term rentals have the freedom to choose when they wish to rent out their properties and when they do not. Also, short term rentals allow the owners to specify the length of stay for each occupant, allowing them to control income and tenancy.

3. Increased demand for short let apartments

Short let rentals have become a popular lodging option for people, particularly travelers and tourists. This is because they provide a home away from home feel, and are less expensive when compared to hotels. Also, unlike hotels which provide a few necessary home appliances like a refrigerator, and a television, short let apartments provide full home appliances, and are designed just like a home.

Who wouldn’t choose a cheap, comfortable short let with full home appliances over an expensive hotel with few appliances, and no home-like ambience?

4. Sweat Equity

A short let’s cash flow can be enhanced by renovating it, replacing its furnishings, upgrading its appliances, or simply adding some finishing touches. Making the right renovations, upgrades, etcetera can increase the value of the property, & the cost of rent can be increased.

Conclusion….

Investing in real estate is one of the most lucrative businesses in 2022, and investing in short lets is one way to invest in real estate. Short stay apartments have proved to be a gold mine for real estate investors. It’s amazing how much money some investors have made from investing in short-term rentals.

If all the necessary factors are put into consideration, investing in a short let could be one of the best decisions you’ll ever take. Investing in a short let could literally turn your financial status around. From bringing in high return on investment, to rapid appreciation, we can safely say that short let is the future of real estate.

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