Dayo is an automobile dealer living in Lagos, Nigeria. He owns a fully furnished two-bedroom apartment in Victoria Island and is looking for a platform to list the property and make a steady income. He sought the opinion of his friends, and was presented with two options; list it as a short-term apartment on travel accommodation sites like Airbnb or lease long-term and collect rent on a monthly or quarterly schedule on rental marketplaces like Spleet.
Like Dayo, you may wonder what the right fit for your rental property is; a long-term (monthly, quarterly, or annually) or short-term (daily or weekly) lease. Both options offer you the opportunity to earn money on your real estate investment but differ in many ways, including flexibility, rental experience, and property maintenance, amongst other factors.
Spleet is a platform that allows you to rent your apartment and collect payments monthly. It is a good option if you are looking for a stable, long-term income stream. Spleet also handles the administrative tasks associated with renting your apartment, such as collecting rent and managing property maintenance.
In contrast, short-let platforms like Airbnb allow you to rent your apartment short-term, typically for a few days or weeks. It can be a good option if you are looking for flexibility and maximizing your earnings, especially during peak demand periods like holidays. However, short-let rentals can be more time-consuming to manage and require more active involvement, as you will need to handle check-ins and check-outs, clean in between guests, prepare your apartment for each new guest and address any issues that arise during their stay.
To help you decide on the best option for your furnished apartment, we’ll break down the pros and cons of both long-term rentals and short-let rentals.
- Occupancy Rates and Fluctuating Demand: One of the biggest advantages that Spleet has over short-let rentals is the never-ending demand for long-term rentals. Short-let apartments can struggle to attract bookings during off seasons, which means you may go weeks or months without any income. While the popularity of short-let apartments rises during the holiday season, e.g., Detty December, returns are low in the new year when diaspora visitors return to their countries. Spleet has a 98% month-on-month occupancy rate; the oldest member has stayed in a Spleet space for four years. This means her Spleet Host has continuously generated income off their property for four years. Spleet offers tenants-landlord benefits that make attracting more tenants and improving occupancy rates easier. Spleet Hosts have the security of a guaranteed income each month.
Related: 5 reasons why you should use Spleet as a landlord.
- Apartment Administration: Owning a short-let rental is a time-consuming venture that may require you to hire a team for the day-to-day running of the property. You’ll need front desk personnel to manage check-in and check-out of guests and handle any issues during their stay, and a cleaner to clean between guests and prepare for new arrivals. Spleet acts as administrator and caretaker of your apartment. From collecting rent to managing the cleaning, repairs, and other maintenance requests. This can be a major benefit for hosts who do not have the time or resources to manage their rental properties.
- Guest/Tenant Verification: Most short-let platforms either require one form or no form of ID at all and have become a haven for unsavoury characters to hide from the law. Spleet takes a unique approach to guest or tenant verification. Every Spleet member undergoes a thorough identity verification and anti money-laundering check before paying for an apartment. This extra level of scrutiny ensures that only verified, reliable, or trustworthy tenants stay in your apartment, thereby creating a more positive and stress-free environment for you as a host.
Related: 5 reasons to rent your next home on Spleet.
- Facility Management: Higher guest turnover equals a potentially greater possibility of maintenance costs. Short-let apartments will likely sustain more damage and require more maintenance, from stains on walls and furniture to blocked drainages and chipped paint. You must also put away some of your profit to provide kitchenware - pots, dishes, etc. and toiletries- towels, tissues, etc. for your client to use throughout their stay. When you list on Spleet, you spend lower maintenance costs due to lower turnovers which means less time spent on repairs and more money in your pocket. If there are any maintenance requests during your guests’ stay, the Spleet facility management team is on hand to provide support to your guests. From plumbing to cooking gas supply to painting, Spleet will ensure your guests are adequately cared for.
- Damages: Another downside to consider with short-let apartments is the risk of damage to your property. Guests may host parties without the knowledge of their hosts and may accidentally cause damage, which can be expensive to repair. Spleet provides host insurance through a security deposit charged to the tenants. This covers any potential damage at the end of the tenant’s rental period.
- Support: Spleet offers excellent customer service for hosts (landlords) and guests (tenants). Our support team is available 24/7 to answer any questions and resolve any issues.