mrsage:
First determine what type of apartment.

Is it a studio flat also called Room self con?
Or Mini flat or 2 or 3 bedroom flat.

The options available

a) Build/ Buy and use for short let.

Here you either buy or build from scratch then use the property for the short let business.

This is good if you have the resources. Here you own your property and you have total control.


b) Long Lease to Short let.

Here you take a long lease on an apartment. Maybe for 10 years and above.

You pay the lease amount and you are free to use the apartment for the agreed duration.

This is what I mostly recommend and this is the path I also follow.

The apartment I manage now is on lease.

I took a 20 year lease on the apartment so I have rest of mind and freedom for 20 yrs.

No landlord wahala. No annual payments.

The apartment is here in Lagos in a very acessible part of the mainland in Lagos.


c) Rent yearly and use for short let.

Here you rent an apartment, pay rent yearly then use it for short let.

This is a risky option. The risk factors are very high. I usually do not recommend this option for obvious reasons.

Landlord troubles. A landlord could increase rent by 50% at any point. This will affect business planning.

Also it is important to add that a typical short let business may need about 2-3 years just to break even and attain stability.

What if the landlord decides tp issue a quit notice after the 1st year? What will happen to the business?

If you must rent to short let you must thread with Caution. You must be very sure of your sales projections.

Its a risky path but possible if you have the "liver" and knowledge.

This is the cheapest option by the way.

John360comng:


This man is dropping gems and I wonder why his post is not FP.

mrsage:
Ideal location fro short let business.

Short let apartments thrive in popular residential areas with a good mix of commercial activities and recreational centres.

A place where people can reside and easily gain access to bank branches, supermarkets, cinemas, hang out spots and many more.

A place where they can easily get all basic needs met.

Ideal places for short let in Lagos:

Lekki Phase 1
Victoria Island / Oniru
Ikeja
Yaba
Surulere
Gbagada
Festac/ Amuwo Odofin etc.

Its important to realise that patronage differ based on Location.

The neighbourhood should be relatively safe and secure.

There is a website where you can check demand trends for short lets based on Location. The website has statistics to cover every state in Nigeria.

It will be revealed later.

Generally short lets do not thrive in remote areas or outskirts of cities. Outskirts like, Sango Otta, Epe, Ikorodu. These areas are not hot spots for shortlet.

However you can still do business here and make money if you are very business savvy and understand the market. It will require more work.

mrsage:
What is the ideal Apartment for short let business

Research has revealed that 2 and 3 Bedroom apartments are the most sought after in the industry.

Next on the demand scale are Apartments for parties. 4 bedroom or party cribs specifically suited for house parties, get togethers, Bach eve parties, baby showers etc.


However there is also reasonable demand for Studio apartments and Mini flats.

Other factors to consider:

The apartment must be in a clean and serene compound.

It should be spacious with adequate parking space and some room for outdoor relaxation no matter how little.

If you have space and resources, make adequate provision for an outdoor play area, swimming pool, gym etc. This will also enhance acceptance.

mrsage:
First determine what type of apartment.

Is it a studio flat also called Room self con?
Or Mini flat or 2 or 3 bedroom flat.

The options available

a) Build/ Buy and use for short let.

Here you either buy or build from scratch then use the property for the short let business.

This is good if you have the resources. Here you own your property and you have total control.


b) Long Lease to Short let.

Here you take a long lease on an apartment. Maybe for 10 years and above.

You pay the lease amount and you are free to use the apartment for the agreed duration.

This is what I mostly recommend and this is the path I also follow.

The apartment I manage now is on lease.

I took a 20 year lease on the apartment so I have rest of mind and freedom for 20 yrs.

No landlord wahala. No annual payments.

The apartment is here in Lagos in a very acessible part of the mainland in Lagos.


c) Rent yearly and use for short let.

Here you rent an apartment, pay rent yearly then use it for short let.

This is a risky option. The risk factors are very high. I usually do not recommend this option for obvious reasons.

Landlord troubles. A landlord could increase rent by 50% at any point. This will affect business planning.

Also it is important to add that a typical short let business may need about 2-3 years just to break even and attain stability.

What if the landlord decides tp issue a quit notice after the 1st year? What will happen to the business?

If you must rent to short let you must thread with Caution. You must be very sure of your sales projections.

Its a risky path but possible if you have the "liver" and knowledge.

This is the cheapest option by the way.

mrsage:
You can secure a long lease for a room self contained ( Studio Flat ) in a fairly decent part of Lagos for as low as 1.8M for 15 years.

This is very economical.

Lets do the maths.

1,800,000 ÷ 15 = 120,000

So in the real sense you are getting the room at 120 per annum.

If you decide to rent to a tenant, rent in the same area as at today is N300,000 per annum.

So in 6 years or less you will have recovered your 1.8M.

You have 9 years to enjoy pure profits.

vinehedge:
You didnt talk about marketing or did i miss something?

JDistribute:
We can help you market your shortlet, or if you want property to buy or rent to use as shortlet, contact us. Real Estate is the most profitable business, aside from energy.

mrsage:




The long lease amount was paid at once. Its not charged yearly.

Pay once and the apartment is yours for 20 years.


The amount is far more than 500k

Steelarmy01:
Nice! But you didn't show us a picture of how the 500k self con turned out after furnishings.

Wonder why this post didn't make fp?

9janinja:



We need to know d exact amount or a price range it falls into. Cos my colleague sells his for 3.5M-5M 20yrs max...

Kindly du so. Thx

Figured out

mrsage:
As we all know security is a big problem in the entire country called Nigeria.

The short let business is not left out. We also face a lot of security challenges. This is a major risk factor and it must be effectively managed.

Lets discuss this all through this week.

Security in the short let apartment business in Nigeria.


Feel free to drop your comments.

I will also drop mine every evening till the end of tbe week

alakara:


I wanted to drop this but you beat me to it.
I think a house keeper/ security man should be drafted into this business from the beginning.
Also verified means of id should be documented.
Lastly, a security personnel like a policeman within the jurisdiction of the apartment should be placed on tips.

mrsage:
As we all know security is a big problem in the entire country called Nigeria.

The short let business is not left out. We also face a lot of security challenges. This is a major risk factor and it must be effectively managed.

Lets discuss this all through this week.

Security in the short let apartment business in Nigeria.


Feel free to drop your comments.

I will also drop mine every evening till the end of tbe week

eastgates1:

I thought about this yesterday as one of the draw backs of this business, I was thinking about how do you pay the security when there is business down time? But with this now one has to be cautious and employ the security personnel.

Theophinio:
Very insightful thread

Am gathering quality information here

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mrsage:


You welcome

Theophinio:


So sorry to digress boss

I know you are very knowledgeable regarding transportation

Please how do you see buying mini truck for like 5M and use it for carrying stuffs like drinks, cement, foodstuffs etc for customers that need my service

Though I will employ a driver

Or lease it out per day to clients or companies that needs it

How lucrative is it

mrsage:



All through my transport business sojourn I never did haulage for once, I honestly don't know about the haulage aspect.