Everyone definitely wants to travel for summer holidays or just a simple vacation to visit historical places in the world. A country like Nigeria can be referred to as a tourist attraction center with a rich cultural heritage. There are many historical places in the country that give tourists unique and authentic experiences.
The growing tourist industry also opens an opportunity in real estate for more short lease and rental property investment. In this blog post, we highlight the benefits of vacation rental property and factors to consider for its investment.
What Is Vacation Rental Property?
These are apartments used for short stay accommodation by tourists and travelers, it is commonly referred to as Airbnb. Examples of vacation rental property include hotels, houseboats, beach houses, etc. As more travelers discover the tourism value available in Nigeria, there is a need for more standard vacation rentals.
Popular tourist destinations in Nigeria known for their historical events like Lagos, Abuja, Calabar among others have witnessed significant increase in their tourism industry.
Factors to Consider When Investing in Vacation Rental Property
- Property Location: The location of the vacation rental property must be in areas with valuable tourist attractions. You should ensure that there are no regulations that prevent tourists from accessing the historical places in such a location. For instance, in Osun state, Nigeria, it is believed strangers are not allowed into some historical centers for divinity purposes. The tourists are only permitted to observe at a safe distance.
- Property Type: As stated earlier, there are various types of rental vacation property including beach houses, hotels and so on. These rentals appeal differently to tourists based on the vacation mode. Some tourists would prefer to stay in serviced apartments while some might prefer regular hotels with service attendants. You should determine what your investment budget is as well as your target market.
- Legal And Regulatory Framework: To get the best value on your vacation rental investment, you must understand the laws and regulations of the industry. Get the necessary permit and license to commence your operation so as to avoid any legal implications.
- Property Management: This is a very important factor that every rental property investor must put in place. Unless you have the right knowledge and experience to manage your vacation rentals, then you should hire a professional manager. A professional manager will create the necessary operation plan to implement, this way, you get to maximize your investment returns.
- Branding and Marketing: The only way to get returns on your investment is to have people patronizing your vacation rentals. And the only way to get tourists to patronize you, is to create an awareness of your business existence. Develop a strong marketing strategy to build your online presence, you can use listing platforms and booking websites, etc.
Benefits of Vacation Rental Property.
- Financial benefits; which include rental returns on the property, property appreciation value, tax deductions and so on.
- Lifestyle benefits; the property can be used for the owner’s personal vacation, the income can also fund their lifestyle.
- Investment portfolio diversification; vacation rentals can serve as an edge against other financial investment making it an endless appreciative investment.
Risk Associated with Vacation Rental Investment
- Economic Issue: Policies and regulations from the government can restrict the entry of tourists into the country or certain locations.
- Security: Most tourists are always concerned about the security of the tour location. As an investor, you should ensure that your vacation rentals are in safe locations.
- Infrastructure Availability: Some tourism centers lack access to modern facilities which might limit the flow of tourists to such locations.
Conclusion
Although vacation rentals can be a profitable investment, it’s essential to have a thorough understanding of the market to maximize returns. Look for a property in a desirable location with the right vacation ambience.
At Novarick Homes and Properties Limited, we offer a range of properties in prime locations, ideal for vacation rental investments. Check out the Ridgewood Lagos, a serviced estate located in Ketu-Epe. The property features Alafia Resort and Spa, the first ever wellness resort in Nigeria. Its serene atmosphere and luxurious amenities provide the perfect ambiance to attract tourists. Visit our website today to view this property and start your vacation rentals investment.
