ARE SHORT-LETS MORE PROFITABLE THAN LONG-TERM RENTALS?

In the dynamic world of Real Estate investing, many property owners and investors continuously seek opportunities to maximize returns on their properties. One ongoing debate that has continued to rock the industry revolves around comparing traditional long-term renting with the surging trend of short-term rentals, especially in high-brow areas like Lekki, Ikoyi, and Ikeja GRA. 

Thank you for reading this post, don't forget to subscribe!

If you own a property and are considering whether to lease it for a long term or let it out for a short term, this blog post will provide you with the information you need to make an informed decision. 

Keep reading… 

LONG-TERM RENTING VS. SHORT-TERM RENTALS: THE PROS AND CONS 

POTENTIAL FOR PROFITS 

Steady Income vs. Seasonal Peaks: 

Given that Real Estate investing is primarily about making profits, the foremost consideration when deciding between long-term leasing or short-term letting your home is the potential for profits. 

Generally speaking, long-term renting means that you are guaranteed to enjoy stable and predictable annual rental payments. For instance, if your fee is set at N5M, you can expect to receive that amount every year without fail. 

 On the other hand, if you choose to short-let your home, while you can’t guarantee when your next customer will come in, you have a higher potential to capitalize on demand fluctuations and earn even more during peak seasons.  

 

RENTAL PROPERTY MANAGEMENT 

Less Involvement vs. Active Management: 

To be honest, Long-term rentals are generally much easier to manage than short-term rentals. This is primarily due to the lower tenant turnover associated with long-term rentals. Long-term tenants usually take on the responsibility for the daily upkeep and maintenance of their homes for as long as they are there. 

Short-term rentals, on the other hand, require an active involvement in the management of the property. Unlike Long-term leases where you simply hand over your property to tenants and hope they take care of it, short-let allows you to personally maintain your property according to your preferences.  

TIME AND LOCATION 

One advantageous aspect of the long-term rental market is the consistently high demand for homes throughout the year. These rentals offer greater stability and are less susceptible to seasonal fluctuations. Regardless of location or time of year, there are always people who are looking to rent a property for the long term.  

But for shortlet apartments, the market is heavily influenced by both location and time of year. While they may only be occupied for a few days annually, it still has the potential to generate a high income during that period. For instance, properties near football stadiums would naturally command exceptional returns during major football games. 

WHAT YOU SHOULD CONSIDER  

Whether you choose to invest in short-term or long-term rentals, it’s crucial to maintain awareness and adaptability. Remember that successful Real Estate investment thrives on actively understanding your property’s potential and the ever-evolving market. 

Before making a final decision on the type of rental property you want to invest in, ensure that you do your research. Assess the demand for both rental types within your local market and consider how much you are willing to commit to this investment to avoid severe losses.  

Regardless of your choice, owning a home with Foreshore Waters positions you to earn millions in profit from properties in Banana Island, Osborne, Ikoyi, and Ikeja GRA. 

Share this post