Another type of income-generating property is known as serviced apartments. In Africa, this is not an established real estate investment system, but in Europe, America, and other developed countries of the world, this is a money-making machine. However, recent development shows that this type of real estate investment is gradually gaining ground in Africa. Investing in serviced apartments requires that the property be strategically located. After all, location is the primary language in the real estate market. To fully understand this, service apartment simply means an apartment that has basic and common furnishings, basic home amenities, and necessities that are designed for short occupancy. What the property owner, ie the investor, invests here varies from person to person. In some of these apartments, the investor provides other additional amenities such as laundry, car service, kitchen, escort and domestic assistance. Some may also include hairdressing/barbering.
Serviced apartments can be said to be in the same category as hotels. It has no limitations on what should be included in it. It all depends on the strength or taste of the investor. Some people argue that since there are hotels, the services of these apartments are not necessary, but one thing to keep in mind here is that in any business, there is sure to be competition, and once the competition is healthy, it is good for the growth of that business. During these competitions, the main driver most of the time is usually the price, although not always. So what I mean here is that because the services in these apartments are relatively cheap, compared to the same service in a standard hotel, the investor will surely get a good percentage of patronage from tourists and those in Honeymoon. .
There are rare cases where the services of these apartments cost more than those that can be obtained in hotels. This could be the result of several factors. The idea behind serviced apartments is to cater for stays, but it doesn’t always have to be that way. It all depends on what the investor has in mind when investing. The investor must first sit down and find out exactly what he wants or intends to get out of his investment in a particular area, then check whether that particular location is viable for that type of investment or not.
The clients to whom the creation of service apartments is mainly directed are couples on their honeymoon, businessmen and women on a business trip, travelers from one event or another, etc. Therefore, when setting up serviced apartments, you must calculate and conclude that your site falls into any of these categories, and once it does, there are likely to be patrons patronizing your business, and what that means more money is being deposited into your bank account.