SHOULD YOU THINK ABOUT INVESTING IN SHORT-TERM RENTALS

The short answer is cash flow. Depending on the type and location, a property can generate upwards of 3 to 5 times more cash flow as an STR than a traditional long-term rental (LTR).

• STR is furnished, it will have everything a guest need to live on the property as if in their own home for a few days to a week. Beds, bed sheets, TV, couch, towels, etc. while LTR may or may not be furnished.
• Utilities: paid by the property owner while in the LTRs utilities are paid by tenants.
• Housekeeping: cleaning services available while in the LTRs N/A
• Success drive: reviews from previous guests while in the LTRs N/A

STR investing, if done correctly, can allow you to scale your portfolio exponentially more quickly than investing in LTRs alone. The heavy cash flow lets you accumulate down payments for your next investments faster without resorting to private lending or long savings periods.

Tanzania’s tourism sector is seeing a rebound after the Covid-19 pandemic and the aspirations for its continued growth are high. It is projected by 2025, the country hopes to reach 6 billion USD in tourism revenue, which is approximate 5 million tourists annually.

The WEF report Tanzania and South Africa are obvious leaders within SSA in terms of ranking of natural resources.

By 2021 the total number of visitors to the national parks in Tanzania increased to about 326,000. The Arusha and Lake zones registered the highest number of visitors about 177,500 and 106,250 respectively.

The tourism sector contributes about 17.5% of the GDP as well as about 25% of forex earnings to our country.

With no precise research data. A tourist in Tanzania is likely to spend more on food, transportation, and accommodation.

The high peak (dry) season is June to October: the tourists are likely to encounter the least amount of rain, are expected to encounter more crowds and the price is higher. It is the time (June-July) wildebeest migration is super-popular. Low (wet) season. April-May Nov-Jan. These months will be the best time to plan your trip to Tanzania if you are looking to save money on accommodations.

Mostly quality, mid-range accommodations may cost around $50-70 a night. A high-end stay may be between $100- 200 a night depending on the location and amenities. In Arusha and Moshi hotels may cost a range of $38 to 55 a night.

This is the strategy that can get you from zero to 30 doors-six STRs and 24 LTRs in five years. This business can also get you out of your employment job in a short period of time. If other people achieve financial independence, you can too.

STR investing, if done correctly, can allow you to scale your portfolio exponentially more quickly than investing in LTRs alone