A serviced or service apartment is a fully furnished apartment, available for both short-term and long-term stays, providing amenities for daily use, housekeeping and a range of other services, all included within the rental price.
How different is a service apartment from a hotel? There is a difference between them, actually more than a difference and the answer can be found by following this link https://bizwatchnigeria.ng/top-7-service-apartments-to-rent-in-lagos/. BizWatch Nigeria had published 2 articles earlier this month on service apartments.
Service apartments are a profitable business in Nigeria, especially in Lagos State, apartments are on a high demand. THe ones at popular places bring in more money.
Here is all that you need to start a service apartment business in Nigeria.
Location
In service apartment business, the location matters a lot and it is preferred that the house should be in prime location, in high class area, if not at least on a model road, with easy accessibility to main roads and other amenities. Having other service apartments in the area can boost the competitiveness. If your property is located close to corporate offices and hub, it is a good opportunity for you.
Approval
If you plan is to build an apartment, you would need a building permit from the government and if you are buying a building or apartment, you might need approval from the community and real estate association.
Ammenties and side attraction
The apartment or building should be furnished with amattresses, wardrobes, fitted kitchen, air conditioners, refrigerator, washing machine and television with cable connection, chairs, kitchen utensils, wardobes, washing machine, towels, and other bathroom needs. A wi-fi connection is also important. A cook, laundry facilities, pick up and drop-off especially for clients that might want to travel or for foreign and local clients that require chauffeuring, car parking, swimming pool, gym and club house can be provided at extra cost.
A cook, laundry facilities, pick up and drop, round-the-clock chauffeur, car parking, swimming pool, gym and club house can be provided at extra cost.
Security
Setting up your busines in a safe environment is important as well as having a security is must at a service apartment. This is first and foremost any customer will be looking for. A security guard should be available on duty for 24hrs, CCTV cameras can be placed at appropriate places, Log book has to maintained to track entry and exits from service apartment. To avoid unnecesary costs and sad stories, protect your property. Have a good comprehensive insurance coverage against burglary, act of god and fire.
Cost
How much do you think is appropriate for the apartment or building? Look at the surroundings, your amenties and sde attraction, how much you spent, your staff’s salary, third-party costs, insurance, cleaning fees and others then decide how much you want to charge. Make sure that the price fits the location.
Marketing
How do youplan on publicising your business? Do you want to partner with real estate agents? It is importsnt tht you select a medium to traget your clients and attract them. Use the right words, pictures and right words to market your business.
Understand the market
To break even, you need to understand the market, understand how the real estate works, understand how service apartment works and all you need to maintain the apartment. Check out other apartments, speak to people and do a thorough research.
