The world has witnessed an ever increasing adoption in short-let business since the inception of COVID and the acceptance of the remote operating system. A good one, I must say! As this has provided more opportunities for the hotel sector and has supported the adoption of remote operations in the corporate world.
According to Statista, revenue in the Vacation Rentals market is projected to reach $0.47 billion in 2023 and the number of users is expected to amount to 14.01m users by 2027.
Moreso, the short-let business has experienced rapid growth with companies like AirBNB and bookings.com as listing platforms for short-let rental properties. However the competition gets tougher and tougher with the growing market which has begged the question, how do I stand out? And the answer is simply marketing!
With few right marketing strategies in place, you can scale above competition in short-let business by pushing it in the face of your audience strongly why your short-let should be their choice.
You can promote your short let business without breaking a bank, keep reading as I walk you through how to market a short-let effectively.
But before then, let’s talk about what short-let business entails and how to start a short-let business in Nigeria.
Ready? Let’s go!
WHAT IS A SHORT-LET BUSINESS?
A short-let business involves the simple process of renting out short let apartments for short periods for the purpose of generating income. And a short-let apartment otherwise known as short-term or vacation rental is that furnished property that is rented for short periods of time.
BENEFITS OF A SHORT-LET APARTMENT BUSINESS
Benefits of owning a rental property, particularly a short-let apartment, are abundant. Here are the main ones:
High Income Potential
The primary advantage is the potential for a substantial income stream directly from renters. Depending on the season and location, a well-managed three-bedroom duplex can earn the owner an impressive daily income, sometimes reaching as high as N150,000.
Property Value Growth
Another significant benefit comes from the appreciation of the property’s value over time. Changes in demand and the overall market can lead to substantial increases in property value, even without any significant modifications to the property itself.
Investing in “sweat equity” by making modest improvements to the property, such as repainting, basic landscaping, or interior refinishing, can increase the property’s value and allow for higher rental charges. This increased value is not only beneficial for rental income but also positions the property favorably for potential future sales.
Short-term let properties offer flexibility in tenancy, giving owners the ability to control the duration of stays for occupants, thereby managing income and occupancy efficiently.
Consistent Cash Flow
One of the key advantages of short-let apartment is the steady cash flow they can provide. In popular business and leisure destinations, these properties tend to attract regular guests, as people prefer the privacy and space they offer compared to hotel rooms.
Additionally, short-let apartments tend to appreciate in value relatively quickly, allowing for faster capital growth and increased turnover for investors.
Here are the key benefits why your business is lucrative and a better choice to individuals who want to stay away from home for short periods.
Renting a serviced apartment, especially with two or more bedrooms, proves to be more economical compared to staying in a mid-range hotel room. With dedicated parking spaces provided, you can avoid London’s parking charges and potential fines.
Food and Kitchen Facilities
Serviced apartments come with fully equipped kitchens, allowing you to prepare your own meals and save on dining out expenses. You have the flexibility to cook as you wish, promoting healthier eating habits. Enjoy your meals at the dining table or on the sofa while watching TV, offering a better dining experience than limited restaurant options or room service.
Privacy and Shared Space
Unlike hotel rooms, serviced apartments provide a common area for socializing while also offering separate bedrooms for personal retreats. You can enjoy your privacy and escape to your own space whenever needed.
For families with young children, renting two hotel rooms or a family room may not be ideal for extended stays. Serviced apartments offer the convenience of staying together in one apartment while providing separate bedrooms for parents and children. This arrangement allows you to monitor your kids while granting them more space to play and rest.
If your trip extends beyond a week, the comforts of home become missed. Serviced apartments offer a “home away from home” experience, providing amenities like a fully equipped kitchen and laundry facilities. Feeling at home in your accommodation contributes to a relaxed and settled stay. Moreover, if you’re on a business trip, your family can visit without incurring additional charges.
HOW DO YOU MARKET A SHORT LET?
Using technology and artificial intelligence to improve efficiency is crucial in today’s world. Just like the short-let rental market has already harnessed technology’s benefits, your business should also embrace it to stay competitive.
Cater To The Millennials
Catering to millennials is essential as they dominate the short-let rental market. Millennials are willing to spend generously on travel experiences but seek affordability and exceptional customer service. Quick and personalized communication is a must to satisfy their demands. They crave unique experiences, so offering novel activities and local perks can make your property stand out.
Showcase Your Short-let Apartment Listings
Create an inviting online home (website) for potential guests. Employ the services of a professional photo studio to capture stunning photos and videos that highlight the best features of your property. Additionally, hire a skilled copywriter to craft engaging and welcoming website text. Ensure easy navigation between listings for a seamless user experience.
Your website should start with a persuasive landing page that includes testimonials, reviews, featured listings, and contact details. This will serve as the homepage for your promotional activities, capturing the attention of potential guests.
Invest In Search Engine Optimization
To improve your website’s visibility on search engines, employ SEO strategies from the beginning. Incorporate relevant keywords into your website content, meta titles, descriptions, and URLs. For example, if you offer short-let apartments in Lekki or Ikeja, optimize with keywords like “short let apartment for rent in Lekki/Ikeja” to attract potential guests searching for such accommodations.
Use Google My Business
Take advantage of free online directories like Google My Business (GMB), as well as other classified and property sites. Google My Business (GMB) is a crucial directory to showcase your properties. Additionally, consider platforms like Jiji, Olist, Property Pro NG, and Nigerian Property Center. Listing your apartments in these directories can generate free traffic and enhance your SEO ranking. Leverage your GMB account to gather 5-star reviews and testimonials from past guests, emphasizing the use of your targeted keywords. Optimizing listings on major platforms like Airbnb will also go a long way as this is already a saturated short-term rental market. And put focus on positive reviews, quick responses, and attractive listing titles to boost search rankings and attract more guests.
Networking is crucial for your short-let business. Collaborate with various service providers and let them know about your property. They may refer potential guests to you, and in return, you can offer assistance to promote their services.
Strong Social Media Presence
Build a strong presence on social media to expand your audience. Create content that entertains and engages your target audience, while also showcasing your listings. Encourage sharing and offer special discounts for social media followers. Partner with influencers to reach a wider audience and gain exposure for your website and listings.
Invest In Paid Advertisment
If you want immediate bookings, consider investing in paid online ads. Platforms like Facebook and Google allow you to target specific demographics, locations, and interests to reach potential guests. Paid ads offer measurable results, enabling you to adjust and refine your strategies based on performance.
FREQUENTLY ASKED QUESTION
How much do you need to start hosting Airbnb for your short-let business?
Getting started as an Airbnb host requires no upfront costs. Listing your space on the platform is entirely free. Airbnb only charges a service fee when you have a confirmed reservation. This fee, usually around 3% of the booking subtotal, supports the expenses associated with operating Airbnb, including round-the-clock customer support, Host protections, and other essential services.
How does Airbnb work for short-let business?
Airbnb functions as a digital platform that links individuals interested in renting out their properties with those seeking accommodations in particular areas. It provides an accessible and straightforward avenue for property owners to generate additional income from their assets, making the process relatively hassle-free.
You can be successful in your short-let business with the right marketing strategies. The digital world has simply made this possible irrespective of the products/service. In summary, create an appealing website, optimize it for SEO, leverage free online directories, network with industry partners, build an audience on social media, and consider using paid online ads for faster results. These strategies will help you attract more guests and drive profitability.