When investing in Ghanaian Property Airbnb can be seen as a lucrative option for property returns. In theory this may apply but in practice there are a number of challenges.
Prior to the launch of Kuro our founder had established a short term rental management company “Home Chaperone”. Home Chaperone have experience in hosting properties in Accra, Manchester and London and understand the unique demands of short let management in each region. What has clear from the beginning was that the operations of the west were vastly different from the requirements of Africa.
Landlords have been used to upfront rents being paid for anywhere from 6months to 2 years and are often in most cases have already paid out right for the property in question. As a result the usual price pressures on landlords using debt to finance investments simply do not apply, keeping prices high. The concept of being paid monthly or after someone stays for a short period is alien to traditional landlords in Ghana.
With no debt obligation and full investment tied in the property some landlords are often prepared to wait for the most money possible in a lump sum. However this is beginning to change as many landlords are faced with long void periods as their property price points are too high to attract long term tenants and the market is flooded with similar options with improved amenities as a key selling point.
There are some methods you can use to increase your occupancy rate. Below is a case study that articulates how Home Chaperone helped achieve above market rate occupancy.
- Location, Location, Location
In order to achieve high occupancy rates it is important to source property in an optimum location, typical hotspots include East Legon, Adjiringanor, Cantoments, Labone and Osu. This is mainly due their proximity to the main attractions in Accra; namely Oxford Street, Bars and Restaurants. Properties in this area unsurprisingly come at a premium check out blog post xxx for more details. Affordable alternatives have become increasingly important especially the traffic issues in Accra.
