9 Reasons Why You Should Invest In Shortlet Rentals In Lagos And Abuja Nigeria: Lagos Shortlet Market

9 reasons why you should invest in shortlet rentals in Lagos and Abuja Nigeria: Lagos Shortlet market

Shortlet Rentals have been more and more in demand for short-term rental apartments. In Nigeria, corporate travel, conferences, tourism, and general travel are the main causes of this rising demand. When travelling, many individuals like to feel at home, and a short-term rental property fulfils this need.

Interesting in short term rentals is a very profitable venture with a high potential for profit. The advantages of investing in short-let apartments are numerous and should be considered by beginners and experienced investors.

These advantages include increased control over property management, flexible income streams, maximized income potential and many others which we will be discussing further below.

Advantages of investing in shortlet apartments

1. Increase in property value

It is well-known that properties and lands belong to their owners and are considered assets. Investing in short-let properties offers a notable benefit in the fact that your property is expected to increase in value over time.

As a short-let property owner, when you renovate or repair facilities in your apartment, you are investing in sweat equity. So, when you are repainting, landscaping, or remodeling your bathroom, kitchen, or refurnishing, you are invariably adding value to your property and increasing its market value.

2. Maximized Income Potential

When it comes to rental income, shortlet apartments have the potential to yield more than standard long-term leases. Investors can maximize revenue by capitalizing on peak periods and adjusting rental rates according to demand, seasons, and local events, property owners access to a large pool of possible guests, making it possible for them to regularly draw guests and maintain high occupancy rates.

More intriguing is the fact that you can charge between N100,000 - 150,000 per day for a 2 bedroom fully-furnished apartment. If you do the math, you could earn up to ?1,000,000 if your property is occupied for only ten days within a month. This is quite a realistic projection, and earnings could be more, depending on demand and season

3. Flexibility and Control

Unlike long-term leases, shortlet agreements offer investors greater control over their properties. Owners can choose when to rent out the apartment, for how long, and to whom, providing flexibility to accommodate personal use or make necessary property improvements. This level of control empowers investors to adapt quickly to market dynamics, optimize rental income, and ensure the property remains well-maintained.

4. Diversification and Risk Mitigation

Incorporating shortlet flats into your real estate portfolio diversifies it and lessens the vulnerability to market and economic volatility. Investors can diversify their risk and protect their capital by investing in several properties in various locations. Also, rental agreements’ short duration reduces the possibility of tenant default or long vacancies, resulting in a more reliable source of income.

5. Higher Returns on Investment

When compared to conventional long-term rentals, Short-let apartments provide Larger returns on investments Considering that nightly prices are usually higher than monthly leases, investors could benefit from an increased return on their initial capital. Additionally, the ability to leverage dynamic pricing strategies and capitalize on seasonal demand spikes further enhances the potential for increased profitability.

6. Adaptability to Market Trends

The shortlet market is dynamic and adapts quickly to changing consumer preferences and trends. Data analytics and market insights can be used by investors to spot new opportunities, modify their rental policies, and enhance the performance of their properties. Whether serving tourists, business travelers, or remote workers, short-let apartments provide flexibility to meet changing consumer needs and take advantage of new trends.

7. Lower Operational Costs

Shortlet rentals have lower operating costs than long-term rentals. Owners are free to choose whether to handle the property themselves or hire a manager as necessary, however, there may be expenses associated with this service. In addition, it is possible to charge visitors for utilities and maintenance, which would minimize investor debt and increase revenue.

8. Opportunity for Personal Use

Owning a shortlet rental unit has the advantage of both earning rental revenue and allowing for personal use. The property can be reserved by owners for short-term stays, family get-togethers, or personal vacations without being bound by a long-term lease. Because of this flexibility, investors can still make money from their investment property while it’s not in use while still taking advantage of its facilities.

9. Scalability and Portfolio Expansion

The ability to scale is a feature of shortlet apartments that lets investors progressively grow their holdings over time. Compared to other real estate projects, this one has the potential for better returns and lower entry challenges.

Investors can reinvest the profits to buy more properties and diversify their holdings. Because of its scalability, investors can create a solid real estate portfolio that can produce long-term, sustainable wealth.

Investing in shortlet apartments presents a compelling opportunity for investors seeking to capitalize on the dynamic and profitable short-term rental market. From maximizing income potential and enhancing control over property management to mitigating risk and adapting to market trends, the advantages of investing in short-let apartments are evident. By leveraging the flexibility, scalability, and higher returns offered by this investment strategy, investors can unlock the full potential of their real estate portfolio and achieve long-term financial success.

Article Summary: The shortlet market in Lagos and Abuja has recently caught the attention of many investors. Flexibility has been this market’s selling point, as it provides renters with a homely experience, as well as access to hospitality services. Lagos as a location for short let rentals has seen massive growth of up to 263% in the past three…

The shortlet Market in Lagos has recently caught the attention of many investors. Flexibility has been this market’s selling point, as it provides renters with a homely experience, as well as access to hospitality services.

Lagos as a location for short let rentals has seen massive growth of up to 263% in the past three years. Seasonal demand from Nigerians in diaspora has been the major driver of this sector, as well as the flexibility in services compared to the traditional hotel setup.

Based on our analysis of the market, there are a total of 6,830 units of shortlet apartments in Lagos. Areas most populous with these apartments include: 

• Lekki Phase 1, 
• Ikate, Ilasan, Lekki 
• Victoria Island, 
• Ikoyi, 
• Yaba
• Ikeja 

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