With the emergence of technology and its contributions to the ease of doing business, a myriad of investments across industries have taken on the burden of leveraging technology offerings to advance their businesses. Nigeria ranks very high among the list of countries where entrepreneurs and established businesses fuel their trade through the use of technology.
While internet penetration is currently growing rapidly with over 104.4 million internet users in Nigeria in January 2021, an increase of 19 million (+ 22%) between 2020 and 2021, the level of penetration in Nigeria was 50.0% in January. 2021. The currently available industry players needed a boost to exploit the opportunities to provide services to different end users.
Technological advances and the increase in the number of Internet users have played a big role in the players in the vacation rental sector, of which Digital Landlord is a major player. The company recently adopted the use of artificial intelligence to drive the rentals of its vacation rental apartments where it has seen a sharp increase in the number of requests since its launch.
Commenting on the move, the company’s founder / CEO, Mr. Keji Giwa, revealed that his company has invested heavily in improving the customer experience across all Shortlethomes digital platforms “by taking advantage of AI chatbots to automate responses, creating a virtual agent to take reservations and handle 24/7 customer service issues. “
According to him; “This will maintain an instant response time and 100% response rate without the need for a human agent, except for escalating 2nd or 3rd line sales or customer service issues while doing the place for a personalized and fully personalized native IOS and Android Application by the end of the year 2022. “
He further noted that with the help of technology; âWe aim to increase our short rental portfolio to accommodate the 98% more booking opportunities that the company was unable to achieve in 2020 due to its limited number of properties. , the company took bookings from just 500 customers out of its 25,200 booking requests in one year due to a limited number of properties, representing only 1.98% of total booking requests in one year. “
With more investment opportunities becoming available to investors in the real estate and short-term homes industry, Keji Giwa predicted that by 2020 investors in his business through the Digital Landlords program would receive net income. 17% short term rental on all properties. He argued that these investors should experience the same in 2021.
âIn 2020, all existing digital landlords received 17% short-term net rental income on all of their properties and are expected to experience the same in 2021. Compare that to local rental income rates of around 3% to 4%. % in Nigeria, that’s a whopping 425% to 566% difference in margins. Digital homeowners can expect to recoup their ROI in just 5.8 years compared to 20 years for local rental income, then make year-over-year profits after each consecutive year.
âThese market dynamics suggest a less competitive and untapped market gap and therefore more attractive investments in increasing Shortlethomes short-term rental apartments in Lekki, Victoria Island, Osapa London, Oniru, Ikoyi and Ikate. increase its short-term rental portfolio to accommodate the 98% additional booking opportunities that the company was unable to achieve in 2020 due to its limited number of properties. “
For Keji Giwa, the acquisition of another 100 apartments for rent in Lagos, in particular around the Lekki Phase 1 and Victoria Island / Ikoyi axis, without leaving aside the potential opportunities in Abuja, should help to meet the demand always growing of our homes, giving Digital Landlords investors a good return on their investments for the next five years.