How to start a short let apartment Business in Nigeria

A short let is any property that is rented out for a specified period of time. Just as the name implies, it is usually let out for a short period of time which could range from weeks to months. It could include self-con rooms, two bedroom or three bedroom apartments, bungalows and even duplex.

Serviced apartments offer the convenience of staying together in one apartment while providing separate bedrooms for parents and children. This arrangement allows you to monitor your kids while granting them more space to play and rest.

According to Statista, revenue in the Vacation Rentals market is projected to reach $0.47 billion in 2027 and the number of users is expected to amount to 14.01m users by 2030.

The world has witnessed an ever increasing adoption in short-let business since the inception of COVID and the acceptance of the remote operating system. A good one, I must say! As this has provided more opportunities for the hotel sector and has supported the adoption of remote operations in the corporate world.

Nigeria is a country of vast opportunities and a thriving tourism industry, making it an ideal market for short-term rentals. Understanding the short-term rental market in Nigeria is essential to ensure your business is successful.

Short lets are profitable real estate investments that many investors are starting to tap into in Nigeria. In recent years, shortlets have been gaining popularity in Nigeria as real estate investors have been getting increasingly aware of the profit it yields and the benefit it provides.

High Income Potential: The primary advantage is the potential for a substantial income stream directly from renters. Depending on the season and location, a well-managed three-bedroom duplex can earn the owner an impressive daily income, sometimes reaching as high as N250,000.

Currently, short stay apartments in Lagos, Abuja and Port-Harcourt are operating at a 76% to 97% occupancy rate depending on how well managed and the marketing effort done. Returning clients also make up a reasonable amount of the monthly figure. This figure will definitely go up giving that countries are gradually lifting restrictions to in coming/out-going  travelers and tourists. Considering the level of return on short stay properties the investor can easily re-evaluate and refinance it thereby raise funds for other business.

Property Value Growth: Another significant benefit comes from the appreciation of the property’s value over time. Changes in demand and the overall market can lead to substantial increases in property value, even without any significant modifications to the property itself.

Tenancy Flexibility: Short-term let properties offer flexibility in tenancy, giving owners the ability to control the duration of stays for occupants, thereby managing income and occupancy efficiently.

Cater To The Millennials: Catering to millennials is essential as they dominate the short-let rental market. Millennials are willing to spend generously on travel experiences but seek affordability and exceptional customer service. Quick and personalized communication is a must to satisfy their demands. They crave unique experiences, so offering novel activities and local perks can make your property stand out.

Marketing: Create an inviting online home (website) for potential guests. Employ the services of a professional photo studio to capture stunning photos and videos that highlight the best features of your property. Additionally, hire a skilled copywriter to craft engaging and welcoming website text. Ensure easy navigation between listings for a seamless user experience.

Your website should start with a persuasive landing page that includes testimonials, reviews, featured listings, and contact details. This will serve as the homepage for your promotional activities, capturing the attention of potential guests.

Setting competitive rates is a crucial aspect of promoting a short-term rental business. Conducting market research and analyzing competitor pricing can help you set rates that are attractive to potential guests while still generating revenue for your business. Stay agile and flexible by continuously monitoring and analyzing market conditions, trends, and competitor pricing, and stay open to adjusting your pricing strategy based on new information. By setting competitive rates, you can attract more guests, optimize occupancy, and maximize your revenue potential, ultimately leading to the growth and success of your short-term rental business.

Furnish the property/apartment to a required standard considering the fact that you are competing with the best hotels within your location. Some of the things the property/apartment should have are; 24/7 Electricity, 24/7 Security, Clean Towels & Bed sheets, Access to internet, DSTV subscription, Fully fitted kitchen with utensils, Refrigerator with complimentary tea/coffee and snacks in it.

In terms of decoration, incorporating local flair and cultural elements can create a unique and memorable experience for your guests. Use artwork, textiles, and decor that reflects the vibrant Nigerian culture and showcases its rich heritage.

Pay attention to the details. Provide high-quality linens, towels, and toiletries to ensure your guests have a comfortable stay. Add personal touches, such as fresh flowers or a welcome basket, to make guests feel special and appreciated.

Lighting is also important. Opt for a mix of natural and artificial lighting to create a warm and inviting ambiance. Use soft lighting in bedrooms and common areas, and ensure adequate lighting in workspaces and bathrooms.

Embracing the evolving industry and staying innovative will lead to greater profitability and establish the short let apartment as a top choice for travelers seeking a comfortable and homely experience.

How to set up a short let business in Nigeria. With its booming tourism industry and growing economy, Nigeria offers a promising market for anyone looking to start a successful short let business. Whether you’re a homeowner looking to make some extra income or an entrepreneur seeking a new venture. Our valuable resource information on short let business will guide you.

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