₦airaland Forum

Time will tell

engineerboat:
Good morning this morning

Here we go again.

it's a 3 horse race at Osun Election

APC || PDP ||| LP

Its a 2 horse race.

Between APC and PDP.

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.

mkoabiola:
These are thugs that loyal to the governor
Jus like arresting Mc oluomo in lag

Good

So are you sure Oyetola has control over the Police and Military in Osun today?

mkoabiola:
They will realese him soon

Order from above.. Hahahaha

Don't be too sure.

Good news.

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.

To be continued by 7pm

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

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.

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

Ok

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.

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

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.

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.

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.

Will answer this by 7pm

Question 5

As a business owner, all I want is patronage.

Show me any platform that can drive patronage to my business and I jump at it. I don't even waste time.

So I market on my own and list on all other booking platforms as well. It's free to list on booking platforms and they have reputation so I have nothing to lose.

Question 4

You see those Diaspora people they all dont visit at the same time. This is because they visit for various reasons.

Its not centred around vacation alone. They visit for burial ceremonies, weddings, business projects, spiritual problems and so many reasons. As a matter of fact they visit all year round.

Have you noticed that Airlines have daily flights to Nigeria?

Also the local guests always vist too. A combination of Local and diaspora guests will always keep you in business.

Question 3.

Before payment always inform the property developer.

It may be stated in the long lease agreement. So its clear what your apartment will be used for.

Concerning other tenants. I simply inform them too.

Its not an illegal business so no worries.

Its not a problem as long as everybody minds his or her own business and the house has a facility manager to sort things out.

Question 2.

Thr answer is yes, factor in growth prospects. However in real estate generally prices always go up.
There are areas I will never invest in.

laivwire:
Thanks mrsage.

I'd like to ask.
1. Isn't it better to test run a property for say a year before commiting fully to a long term lease.
2. Do you put macro economic factors into consideration for an area as well like if the area has the potential to appreciate in value in the near future.
3. How do you handle neighbors who see different faces every other day in the apartment.
4. If folks in diaspora coming on vacation are the major demand makers, won't that affect the frequency of patronage and cash flow of the business?
5. Is it better to float and market your apartment on your own or advertise through AirBnb and other platforms.

Thanks

Lets take it one after the other

Question 1.

In the world of real estate investment you do not test run a property. What you do is carry out due diligence before purchase.

You go round the environment, ask questions from agents and people within the neighbourhood. Ask the experts too.

Also find out if government has plans for the environment in terms of infrastructure, roads etc. That's how decisions are made in real estate.

If necessary go with an expert, before purchase you will get all the answers you need.

I also discovered that some developers use sub standard building materials. The solution is to find a building expert to carry out visual and other relevant inspection of the property.

Also ask the developer a lot of questions before you make payment. Find out the plans for maintainance of facilities within the building.


Also make sure your apartment is in a good spot within the building. I usually recommend ground floor ot 1st floor. I dont like to stress my clients.

If everything checks out, proceed.

I want to take a break for the next few days, all I want to do is answer questions.

Lets share ideas too.

Drop your questions and comments.

nnamdiosu:
Hello bro, contact me to set up a shortlet management application for your business. Customers can book apartments and make payments online, check in and out etc.

Send me a pm and we can discuss.
Cheers

Will keep in touch.

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?

The lease amount is far more than 500k

Kindly check my previous post for the price guide.

Picture after furnishing

Drfinn:
Mrsage, thanks so much for this information.
This is really an eye opener into the world of real estate investment.
Hopefully, I will continue to follow your insightful post, and do further research as you encouraged before venturing into it.
I understand that charges are based on location. Could give some information on pricing? Thanks.

Long Lease Price Guide as at Today



*LEASE AND INVESTMENT*
*(Yaba,Pedro,Ladilak, Bariga,Charley boy, Obanikoro, and Gbagada)*


� 2 bed lease @ Charley boy Gbagada 10m (15years lease) pay and occupy.

�3 bedroom @ sholuyi Gbagada 10m (15yrs lease) pay and pack in

�Two bedroom duplex for lease at Gbagada 13m now to 15years lease 85% complete



�Two bedroom at ilaje 10m. 15years lease pay and park

� Tastefully finished Two bedroom upstair 13m for 17years (neg)

�Miniflat at obanikoro 5m for 15year lease
pay and park pay and pack

�Miniflat with two toilets and water heater, Pedro 6m for 21yr lease, pay and pack


�Miniflat 5m for 17 years new garage Gbagada pay and pack

�Miniflat 5m for 15year Charley boy Gbagada 95% complete

�Miniflat at Ebutte Metta Yaba 5m for 15 year pay and earn.

�Miniflat duplex at Ebutte Metta 7m for 15 years pay and earn
�Miniflat at Gbagada 4.5m at Gbagada to 18yrs pay and park in


�Miniflat at bariga 5m for 15year 95% complete

�Miniflat 5m for 15years abule ijesha yaba 90% complete

�Miniflat at 4.5m for 18year shomolu pay and pack


�Miniflat 4m for 15years bajulaye. 90% complete

�Miniflat 5.5m for 15yre ojuelegba pay and pack in.

�Miniflat 7m at surulere pay and pack in.

�Miniflat 4.5m for 15year ilaje 92%

�Miniflat 5m for 15 year Ebutte Metta pay and earn

�Miniflat 4.5m for 15 year ladilak pedro pay and earn

�Roomself 2.5m for 15 years Pedro ladilak pay and earn

�Roomself 1.8m for 15 years (2 units available , pay and earn)

�Roomself 1.5m for 15 years (3 units left) 90% complete

�Roomself at fola agoro 4m for 15 years pay and earn

�Roomself 4m for 21 years with water heater pay and earn

�Roomself 2.5m for 15 years Charley boy 90% complete

�Roomself 2.5m for 17years at new garage Gbagada pay and earn

�Roomself 2.5m for 15 years Gbagada pay and earn

�Roomself 2.3m for 15 years at bajulaye and ilaje pay and earn 99%

�Roomself 2.5m at 15year abule ijesha 95%
And lot more...

Okay

To be continued by 7pm tomorrow

mrjojo:
How reliable are solar system for say, security light, doors, cctv. Because most people I know with solar panels on there roofs still have generators.

Thank for thread, following

Solar has been around for ages. Just go for the best and you will be fine. Yes you can still buy and keep your generator.

gasparpisciotta:
Tune to Arise news on DSTV channel 416.

What is her electoral value if I may ask?

As a neutral political observer. I feel Funke is not the right choice.

She is a novice in politics without any form of experience or political network. In the game of politics she brings nothing to the table.

We should remember that APC is very popular and already established in Lagos.

PDP is expect to present a rock solid team in order to defeat APC

MarianaTrench:
Piggyvest that may collapse at anytime without warning.

Most if these small fintechs have very poor corporate governance

OP better fix your money in a traditional bank if you know what's good for you

Banks collapse too.

Piggyvest has a microfinance banking licence.

You think Nigerian banks have better corporate governance?

You will be shocked if you know what goes on in Nigerian banks.

Deprofessional:
Please potential businesses one can start with the above amount.

Not anything online or cryptocurrency or forex.

Set up a short let apartment business.

Take a long lease on a mini flat on the mainland in Lagos (15yr lease minimum).

Furnish it to taste, install solar electricity and you are good to go.


The business guarantees regularl cash flow and it's
financially rewarding

Check my thread about my short let journey.


https://www.nairaland.com/7185753/journey-into-short-let-apartment