UGANDA, Kampala | Real Muloodi News | In Part 1 of this series, we shared the story of Real Muloodi Nathan Amaral, an incredibly successful real estate entrepreneur, and founder of Fearless Millionaire.
Nathan shared how he built his short term rentals business in Uganda. Nathan explained that the beauty of his investment model is that one can get into the business with “no money out of their own pocket,” by focusing on sub-leasing.
In this next installment, we take a look at Nathan’s most valuable tips for anyone looking to build a short term rentals business in Uganda:
1. Invest in Suitable Properties
According to Nathan, the most important aspect to consider when looking for a property to rent out for short term is the location. However, he warns finding the right property in the right location is more complicated than it looks.
Nathan therefore recommends to take the time to do thorough research. Investigate which areas provide the highest yields. Make sure that all the necessary amenities will be within reach for your potential tenants – restaurants, shopping, easy access to main roads, etc.
Secondly, ensure you are investing in the type of property that is in high demand. Nathan says that one bedroom, one bathroom short-term rental properties are in high demand in Kampala.
He warns do not acquire any properties just because they are cheap, be patient and do enough research.
2. Take Good Quality Pictures
Make sure that the photos of the property that you will share are of excellent quality. Since many tenants book online (through Airbnb, booking.com, or Expedia), invest in getting the best quality photos that you possibly can so that your listings stand out.
3. Have a Dynamic Price Strategy
Many factors affect short-term rental rates. For this reason, you cannot have the same price throughout the year. As you set the listing price, consider the timing, local supply, demand, the clientele you are marketing to, and so much more.
For example, Nathan says that Covid and lockdowns has had a big impact on his short term rentals business. For this reason, he has pivoted some of his properties into long-term rentals. While the pricing model for long-term rentals is not as lucrative, he has had to be dynamic and nimble in response to demand.
4. Have a Marketing Strategy
It is a lot harder to find tenants in the off-season, so you need a lot of creativity to market your listing, so you continue getting booked.
Always highlight what makes your property standout than any other competing properties; it might be the location, the amenities you provide, or lower prices.
If you rely on online platforms to bring in bookings, ensure your listing ranks high by using wonderful photos, an accurate description, having enough reviews from previous tenants, and a good rating.
5. Maintain your Property
As a smart investor, you shouldn’t let any tenant down; always ensure your property is in top-notch condition. Keep the space clean, provide clean linens, provide enough spare linens, and ensure all the appliances you are providing are functioning.
The best way to ensure everything is in great shape is to create a schedule. If you are outsourcing cleaning and maintenance, ensure they share your schedule.
6. Be a Great Host
Provide great customer service to your tenants. Go above and beyond – offer services like airport pick-up and drop-off, and check-in and out assistance.
Answer questions that meet your tenant’s needs promptly. Excellent customer service will encourage your guests to leave positive reviews, which results in more bookings.
Nathan explains he provides a giant bed if the tenant has guests and other necessities like towels, extra curtains, bedding, a fan, an iron, and an ironing board in his rental. He told his customers to “treat it like a hotel.”
When you are managing fewer properties, providing a memorable experience is easier. However, even when your business grows and you have more properties, you must provide superior customer service to remain competitive. This is where having a team can help.
Nathan says that the short-term rental business requires a lot of planning and effort, especially in the beginning stages. He says it can be hard to do it on your own, so he recommends to build a team you can trust and rely on so that you can grow faster.
READ MORE LIKE THIS: