Why Investors Love Short Let Apartments In Lagos
Short let apartments in Lagos are the new hotcake! Owning a short-let apartment in Lagos is now a big deal! Lots of investors are actively investing in short let apartments. This post will explain 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.
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 (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 love 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 kind of profit that can be made from a short-term rental has no upper limit. However, 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 – If your short let is not positioned strategically, it will affect your income, and you won’t get the desired result.
- Is the short let situated in a busy area? – If your short let is located in an area with meager traffic or an area that barely gets any visitors, your short let might end up being a total flop. The location is one of the significant determinants of the success of any real estate investment.
- How comfortable the short let is – When people rent a short let, they want to be comfortable. How comfortable is the short let? Can it be referred to as home away from home? The short let should offer maximum comfort.
- Is it appropriately advertised? – If your short let meets all the possible requirements, and you do not market it properly, it will flop. Marketing is essential. If you don’t put your services out there, potential customers may never know that you can solve their problems.
Short-term rentals provide flexibility. Owners of short-term rentals can 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, especially travelers, and tourists because they provide a home away from home feel and are less expensive than 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 an affordable, comfortable short let with full home appliances over an expensive hotel with few appliances and no home-like ambiance?
4. Sweat Equity
A short let’s cash flow can be enhanced by renovating it, replacing its furnishings, upgrading its appliances, or adding finishing touches. Making the right renovations, upgrades, etcetera can increase the value of the property, & the cost of rent can be increased.
Short-stay apartments have proved to be a gold mine for real estate investors. It’s incredible how much money some investors have made from investing in short-term rentals. From bringing in a high return on investment to rapid appreciation, we can safely say that short let is the future of real estate.
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