Another type of income generating property is known as serviced apartments. In Africa, this is not an established system of property investment, but in Europe, America and other developed countries of the world, this is a money spinner. However, recent development shows that this type of property investment is gradually gaining ground in Africa. Investment in serviced apartments requires that the property must be strategically located. After all, location is the principal language in the property market. In order to fully understand this, service apartment simply means an apartment that has basic and common furniture, basic household amenities and needs which are designed for a short occupancy. What the property owner i.e the investor invests here varies from person to person. In some of these apartments, the investor provides other additional amenities like laundry, car services, cooking, escort and domestic assistance. Some may equally include hair dressing/ barbing salon.
Serviced apartments can be said to be in the same category with 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 that since there are hotels, that the services of these apartments are not necessary, but one thing to note here, is that in any business, there is bound to be competitions, and once the competitions are healthy, it is good for the growth of that business. During these competitions, the main driving force most of the times is usually price, though not always. So, what I am driving at here is that because the services in these apartments are relatively cheap, compared to the same service in a standard hotel, the investor is sure to get a nice percentage of patronage from the holiday makers and those on honey moon.
There are exceptional cases where services in these apartments’ costs higher than what are obtainable in hotels. This could be as a result of several factors. The idea behind serviced apartments is to cater for stays, but that does not always have to be the case. It all depends on what the investor have in mind while investing. The investor need to sit down first, and figure out exactly what he wants or intends to gain from his investment in a particular area, then check whether that particular location is viable for that type of investment or not.
Customers that are mostly targeted in setting up service apartments are couples on honeymoon, businessmen and women on business trips, travelers for one event or the other, etc. So in setting up serviced apartments, it must be calculated and arrived at the conclusion that the site falls under any of these categories, and once it is so, there is bound to be customers patronizing your business, and what that means is more money being deposited into your bank account.