Gbagura:
Mrsage, that's for this educative thread. My question is who does the cleaning of the apartment during and after each occupation? Do you do it yourself, hire a cleaner or the client do the cleaning?

Some short let apartments in Nigeria do not offer daily cleaning. Some offer cleaning once or twice a week. The cleaning days are already fixed.

If a guest wants cleaning outside the pre arranged days, they pay extra.

For the short let I manage, cleaning is done twice a week.

Hire a cleaner and pay him or her monthly. You could get a cleaner from a cleaning agency.

mrsage:


The lease amount is far more than 500k

Kindly check my previous post for the price guide.

Picture after furnishing

Nice!

MonogramMaster:
I've finished reading it all. I must commend MrSage for his good heart to enlighten people and to guide others in their journeys to real estate business establishment.

Thanks once again for all the info. I've saved your number and will certainly give you a call.

Thanks once again. Please find some questions below.

Some quick questions.

1. What measures do you put in place to avoid the Ataga/Chidinma problem that got the shortlet accommodation owner into trouble and got the place closed for a while (I don't know if it's been reopened now)?

2. In what currency do your clients pay - NGN and/or USD?

3. Aside Airbnb what other platforms do you advertise on?

4. What fee do you pay to the advert platforms?

5. What's your typical annual occupancy rate?

6. How do you manage cleaning and incidentals? Do you send in managers at end of stays?

7. What's your average investment payback period?

8. Who is responsible for keeping the building in a good state given the long lease that you advise? A building will in 15 or 20 years require an extensive repair/renovation. Who picks this bill up?

9. What measures do you put in place to prevent damage to equipment and service materials e.g. beddings? Do you make lodgers pay?

10. What measures do you put in place to prevent theft by lodgers and how do you ensure restitution?

I'll stop here for now. Other questions to follow later. Thanks once again MrSage.

MonogramMaster:


Thanks MrSage for starting this class. I'm a late entrant. I saw this yesterday and I'm bidding my time to read through all posts.

The part in bold here took me by surprise. I'd thought that selfcon and minis would be the favourites as against 2 bed and 3 bed.

Please elucidate on this.

I must thank you for starting a useful thread like this.

The home away from home factor.


Although a classic hotel operator and a short-let/serviced apartment provider share the same objective which is selling accommodation for a night.

Short let/serviced apartment providers attempt to provide ‘a home away from home personalized service, and larger living spaces.

The attraction of short let apartments is that they offer the comfort and facilities of a hotel, with the privacy and facilities of home.

Also when people travel with their family members or in groups, short lets tend to be cheaper in terms of cost.

I came across some statistics some time ago but cant recall the source.

I will try and dig up some statistics to back up my point.

MonogramMaster:
Some quick questions.

1. What measures do you put in place to avoid the Ataga/Chidinma problem that got the shortlet accommodation owner into trouble and got the place closed for a while (I don't know if it's been reopened now)?

2. In what currency do your clients pay - NGN and/or USD?

3. Aside Airbnb what other platforms do you advertise on?

4. What fee do you pay to the advert platforms?

5. What's your typical annual occupancy rate?

6. How do you manage cleaning and incidentals? Do you send in managers at end of stays?

7. What's your average investment payback period?

8. Who is responsible for keeping the building in a good state given the long lease that you advise? A building will in 15 or 20 years require an extensive repair/renovation. Who picks this bill up?

9. What measures do you put in place to prevent damage to equipment and service materials e.g. beddings? Do you make lodgers pay?

10. What measures do you put in place to prevent theft by lodgers and how do you ensure restitution?

I'll stop here for now. Other questions to follow later. Thanks once again MrSage.

Question 1

-Know your Customer (KYC)

-Your client should fill a form.

-They should provide IDs

-Install Cctv cameras outside the premises

-Use finger print door handles if possible ( optional ).

-Payment should be via bank transfer. No cash payments

-Also let your landlord know about your business.

-Also inform the nearest police station. Walk in and inform them about what you do. Get contact details of police officers just in case something happens..

Also to be clear, if someone is murdered or injured on your property the constitution of Nigeria doesn't automatically make you guilty as at the last time I checked.

-Have a lawyer on Stand by

To be continued tomorrow morning.

I'm out of town.

You do not have to be physically on ground to run a short let business. Just have a system in place.

Question 2

I'm a patriotic Nigerian so I collect Naira .

I accept dollars from foreigners on rare occasions


Question 3

www.booking.com
Jiji
Then google

Question 4

If I list my apartment at 10k. I get exactly 10k. I don't pay any fees. They charge the guest.

They charge the guests extra 15% or there about.

Question 5

I'm less than a year in business. However I have studied the market for about 2 years.

If your location is good, your apartment is in good shape and you have good reviews you are guaranteed at least 70% occupancy.

This requires a lot of hardwork on your part, I must be sincere.

A good location alone can guarantee good occupancy.


For a conservative estimate just work with 40% occupancy.

Question 6

Cleaning already answered in my previous post.

Data and Statistics From a Research Report in 2021

According to a report by Tech Cabal, Short-lethomes, maintained a 75% occupancy rate during the COVID-19 pandemic.

At the same time, the hotel industry took an unprecedented hit in bookings, with a month-on-month decline in sales, with the majority of hosts experiencing close to zero percent occupancy rates due to the different regulations imposed by the government during that time.

This agrees with the projection by Market Watch that the occupancy rate in short-let apartments in Nigeria will increase to about 70% in the next five years.


While data from Statista put the average occupancy rate of Nigerian hotels at 47.5 percent in March 2021.


A survey by BusinessDay across three of Nigeria’s busiest cities shows the average occupancy rate for short let apartments increased to 76.3 percent in March from 54.6 percent reported three years ago.

Described as the most affordable option for month-long stays, estimates by analysts show that a short let in Nigeria could be 25–50 percent cheaper than a hotel room

To be continued by 7pm

Mrsage thanks for the eye opening.
This is a cool business.
Which other cities other than Abuja, lagos and PHC can this business thrive?

alakara:
Mrsage thanks for the eye opening.
This is a cool business.
Which other cities other than Abuja, lagos and PHC can this business thrive?

State by state demand trend for short let apartments in Nigeria according to an online property search platform.

Note: Oyo State has more demand compared to Rivers state. The demand in Oyo is largely from Ibadan.

As they say, the devil is in the details.

Kindly view image.

Very informative.
Thanks mrsage.
Still following!

Very informative

Question 7

Investment pay back period

Short let owners / investors can expect to get back their return on investment in just 5 years compared to 20 years for local rental income and then experience year on year profit after each consecutive year.


Investing in short let apartments is a very wise and strategic business investment with even more significant potential in the years to come.

Quite an interesting read.
Thanks a lot.
Very informative!

mrsage:
Question 7

Investment pay back period

Short let owners / investors can expect to get back their return on investment in just 5 years compared to 20 years for local rental income and then experience year on year profit after each consecutive year.


Investing in short let apartments is a very wise and strategic business investment with even more significant potential in the years to come.

Thanks for treating the questions up to 7. I've been waiting for answers to the rest and I kept checking. It's been 3 days now since you were last seen here. This is checking to know that all is well with you.

Have a great week ahead.

Good morning.

I've been very busy lately.

Lets continue by 7pm tonight.

Thanks

Question 8

In a long lease arrangement you are responsible for renovation of your apartment. Not the entire building.

Remember you only have a flat/apartment in the building. You do not have any business with other peoples flats/ apartments.

You are basically the landlord of your apartment/ flat

Questions 9 amd 10

To prevent issues like theft, damage and all.

First Know your customer

Then you make guests sign an indemnity agreement. Basically they agree to pay for any damage.

Ensure you have someone on ground during check out.


Also you insure all assets in the apartment. Tv, all electronics, furniture etc.

Yes Insurance helps too.

Well done mrsage.

mrsage:
Questions 9 amd 10

To prevent issues like theft, damage and all.

First Know your customer

Then you make guests sign an indemnity agreement. Basically they agree to pay for any damage.

Ensure you have someone on ground during check out.


Also you insure all assets in the apartment. Tv, all electronics, furniture etc.

Yes Insurance helps too.

Thanks for doing justice to all 10 questions.

Good morning everybody.


Ive been away for a couple of days cooking up some stuffs for the house.

I have an idea and I will love to share with my Nairaland family.

It's a plan that will be of great benefit to every member here.


Kindly join me by 7pm tonight. Let's talk.

Ok, am here already waiting. Thanks

Okay

I want us to discuss, ask questions and have a conversation.

Feel free to ask questions. Lets talk.

Or contact me on WhatsApp if you are interested.

Hello,
Let's continue by 7pm tonight.

Good evening,

I want to teach how to convert your existing house or flat to a short let.

This is for people who have flats already and wish to convert to short let in order to earn income.

mrsage:
Good evening,

I want to teach how to convert your existing house or flat to a short let.

This is for people who have flats already and wish to convert to short let in order to earn income.

? ? RavisH

mrsage:
Hello,

I'm here to share my business story. I observed that real educative threads have practically vanished here on Nairaland. And trust me I have been here for several years

These days its all about Social media gossip, politics, insecurity, bla bla bla.

So I have decided to share my practical story and hope to make it educative and interactive.



I have been actively involved in Transportation business for a while and quite a number of people know me here on Nairaland.

However I decided to take a dive into the real estate sector.

Sincerely real estate is one of the most profitable businesses in Nigeria and the reason is simple. You provide a basic need.

People must live in a house irrespective of social status, tribe or religion.

Every human being sleeps in a house on a daily basis.

Its plain and simple.

However the industry is very big and as an investor you choose what aspect of real estate business you wish tp dabble into.

After series of researc I decided to venture into the short let rental business.

Basically provide fully furnished apartments for short let.

Let the journey begin.............

Hello MrSage,

Our company runs a PoS business and just at about the time I was about to start an educative series on how to run a successful PoS business, I came across your thread.

To say that this is one of the best, informative and insightful threads I have come across on Nairaland is a great understatement. Thank you for your willingness to share these business insights and also for your act of kindness and selflessness.

I also commend your patience in perfectly answering the numerous questions thrown at you.

You have a new follower in me. Please keep up the great work. I will keep in touch.

God bless you always.

Nadeol:


Hello MrSage,

Our company runs a PoS business and just at about the time I was about to start an educative series on how to run a successful PoS business, I came across your thread.

To say that this is one of the best, informative and insightful threads I have come across on Nairaland is a great understatement. Thank you for your willingness to share these business insights and also for your act of kindness and selflessness.

I also commend your patience in perfectly answering the numerous questions thrown at you.

You have a new follower in me. Please keep up the great work. I will keep in touch.

God bless you always.

I appreciate your kind words.
You welcome.


I believe the sky is large enough for everybody to fly and explore.