{"id":3331,"date":"2024-03-22T08:09:37","date_gmt":"2024-03-22T08:09:37","guid":{"rendered":"https:\/\/regentre.co\/?p=3331"},"modified":"2024-03-22T09:12:09","modified_gmt":"2024-03-22T09:12:09","slug":"are-airbnbs-valuable","status":"publish","type":"post","link":"https:\/\/regentre.co\/are-airbnbs-valuable\/","title":{"rendered":"Unlocking the Value of Shortlet Rentals: Exploring Their Impact and Benefits"},"content":{"rendered":"

The practice of rental arbitrage, otherwise known as Short-let Rentals involves renting and subletting apartment units on a daily or short term basis. Commonly referred to as short lets, this type of residential real estate investment has garnered unprecedented attention in terms of growth. Apartments offerings include a variety of options, ranging from self contained to bedroom flats, bungalows, detached and semi detached duplexes. Depending on location, property type and season, Short-let rentals can generate upwards of a 100% ROI. According to The Guardian, \u201cthe global short-let rental market size is valued at $99.38 billion as of 2021, which is expected to grow at a Compound Yearly Growth Rate (CAGR) of 11.1 per cent till 2030.\u201d\u00a0<\/span><\/p>\n

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A survey carried out by the Financial Derivatives Company (FDC) proved that pricing of residential real estate went up by 10% between the last quarter of 2020 and second quarter of 2021. With Lagos being one of the fastest growing markets, the surge in demand for short lets resulted in a rent spike in certain target areas within the Island axis; Ikoyi, Victoria Island and Lekki specifically, as well as in Ikeja. In similar vein, following\u00a0 the Lagos Short Let Report by Estateintel, the Lagos short let market has grown by 263% over the past three years, with the aforementioned locations emerging as the majorly demanded short-let hubs.\u00a0 Lekki Phase 1 has specifically performed outstandingly at an 80% occupancy rate, compared to Ikoyi and Victoria Island at\u00a0 60% and 70%, respectively.<\/span><\/p>\n

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With a significant impact on the residential real estate market, Short-let Rentals have shown a steady growth rate of annual guests numbering 572,000 to 1.2 million, with active listing from 62,000 to 100,000 within a year. One of the poignant factors that are contributive to the growth in demand of Short lets remains the\u00a0 COVID 19 Pandemic of 2020, which prompted a lockdown that negatively affected the activities of hotels. Other contributing factors include accessibility to occupants and a high income opportunity for investors. A major appeal to occupants include the provision of comfort and relaxation, tasteful furnishings and aesthetically appealing luxury accomodations, steady electricity and a serene environment.<\/span><\/p>\n

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Whilst Short-lets are a fast paced trend that have become embraced by a vast majority of the global populace, it is not without challenges. Operators are often posed with maintenance issues, provision of high end security, steady power supply and keeping up with trendy interiors within their facilities. In order to provide impeccable customer service, it is essential to ensure the quality maintenance of your Short-let.\u00a0<\/span><\/p>\n

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Here are a few tips that can ensure the maintenance of Short-let Rentals:\u00a0<\/span><\/p>\n

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