A short-let apartment is a fully furnished luxury apartment that is rented for a short period, usually for months or weeks. Short-let apartments have been considered a quick way to get rich by some investors. Unfortunately, not everyone knows about this.
Short-let luxury apartments can be:
- Detached or semi-detached apartments
- Studio apartments
Short-let apartments, which are now alternatives to hotel accommodation, have become a go-to accommodation choice most especially for travellers, tourists, and visitors in Nigeria. The accommodation can be for short/long stays, leisure, or business. Because of its newness and lack of information, some investors are not aware of the benefit and profit they stand to gain when they invest in short-let apartments.
Why are short-let apartments profitable for investment?
Increase in property value
People have stopped leaving their property vacant in recent times without getting any profits from it. Instead, they rather rent it out to make an extra income from it. It is increasingly becoming common for people to go for a short-let apartment than settle for a hotel because of the comfort and the feeling of home away from home they tend to get. Unlike a hotel where you are left with few home appliances like a fridge, kettle, and TV, a short-let apartment is made to match the standard of a home, that’s why you can get full kitchen appliances and items in a well-furnished living room. Short-let apartments come with tasteful décor and freedom. However, before you invest in a short-let apartment, make sure that the location is favourable.
Increase income potential
Short-let apartments can also serve the benefit of a permanent and direct income stream. This is because the amount you make weekly or monthly can become unlimited, especially if you don’t run out of customers. Remember, this can only be achievable in places with high foot traffic.
Investors can also leverage short-let properties as collateral when securing loans from banks for investment or business purposes.
Flexibility in extending rent by tenants
Many business people who travel out of their state can extend the duration of their stay when business meetings are being postponed, thereby generating more income. Some people even decide to leave their homes for a while and check into a short-let apartment; it’s a getaway for a lot of people who want to relieve themselves of work stress and want to stay in an environment different from home.
When compared to hotel accommodation, short-let apartments are found to be more flexible reducing the stress of check-ins and outs, or being confined to a particular room.
Subject to increase rent charges
Making a short-let investment more sophisticated by repainting, adding new technology, refining the interior finishing, and adding innovations, and features can as well increase cash flow because when all that is done, rental charges can be increased.
Short-let luxury apartments are now in high demand, and as a real estate investor, it’s important to leverage this. Don’t forget to do your due diligence before venturing into this.