2 different people can have similar properties in same location but one will earn 10x more money than the other. What is responsible for the difference in earnings?: Strategy.

Let me start by saying rental income is one of the least-earning real estate strategies in Nigeria.

Although, commercial real estate fetches more money than residential, the strategy you adopt is what matters most.

For instance, SirBright Godwin, a digital creator and real estate investor, rented and fully furnished a few 2-bedroom flats in a few highly secured and luxurious estates in Lagos, Nigeria for 1.5 million Naira each. He sets up in-house service maintenance to make life comfortable for his clients.

His clients book each apartment for 50,000 Naira per night (for vacation), which should run into 10 million Naira for an average of 200 active days, leaving 165 days as possible vacant days (remember 200 active days + 165 possible vacant days = 365 days – makes a year). Though the property is usually fully booked because he invests heavily in paid ads.

The expenses involved include:

* 2 million naira setup funds

* Roughly 300,000 Naira spent per month on ads = 3.6 million Naira for the year

* 60,000 naira spent per month on service maintenance = 720,000 Naira per year

* His total cost = 3.6 million naira + 1.5 million naira + 720,000 = 5.82 million naira per annum.

* Total profit for 200 active days = 4.18 million naira (remember he doubles that amount per property sometimes, because the calculated costs are for the whole year irrespective of the days the property is vacant)

* If he gives out 5 units of 2-bedroom flats for shortlet per annum, his minimum grand profit = 5 X 4.18 million Naira = 20.9 million naira

* The money starts flowing in immediately from the first or second month because he invests heavily on ads.

Vacation rental or short-let is just a strategy that doesn’t even require you buy the property before you start milking from it.

You can just rent a property, put the necessary structure in place and boom, you start smiling to the bank.