In recent years, Nigeria’s property market has evolved rapidly. Traditional landlords who once relied solely on annual rent now find themselves exploring the lucrative world of shortlets. With increased urban migration, digital booking platforms, and a growing hospitality culture, investors are faced with a critical decision:
Should you lease your property as a short-term rental or stick with the long-term rental model?
This blog explores both strategies and compares them based on key investment metrics so landlords can choose the option that delivers the best Return on Investment (ROI).
What is a Shortlet (Short-Term Rental)?
A shortlet is a furnished apartment rented out for a few days to a few months. It’s popular among:
- Business travelers
- Holidaymakers
- Expatriates
- Nigerians visiting for weddings, burials, or family events
Shortlets are commonly listed on platforms like Airbnb, Booking.com, and local Nigerian alternatives.
What is a Long-Term Rental?
A long-term rental involves leasing a property to a tenant for a period of 6 months to several years. These tenants furnish the space themselves and typically sign formal agreements.
Common tenants include:
- Working professionals
- Families
- Students
- Corporate staff
Comparing Shortlet and Long-Term Rentals: Key Factors to Consider
1. Return on Investment (ROI)
Shortlet:
- Higher daily rates (₦25,000–₦100,000 per night depending on location and furnishing).
- Can outperform long-term rent in areas like Lekki, Gwarinpa, or Peter Odili Road if well-managed.
- However, ROI depends on consistent bookings and competitive pricing.
Long-Term Rental:
- Offers stable, predictable income.
- Easier to calculate annual yield.
- Less susceptible to market shocks or seasonality.
2. Risk Level
Shortlet:
- High guest turnover increases risk of property damage.
- Fluctuating demand can lead to long vacancy periods.
- Inconsistent guests can breach rules or cause disruptions.
Long-Term Rental:
- Lower risk once a reliable tenant is in place.
- Minimal turnover means less wear and tear.
- Eviction can be difficult if tenant defaults, but generally lower day-to-day issues.
3. Operational Cost
Shortlet:
- Requires ongoing investment:
- Regular cleaning
- Utilities (power, internet, water)
- Furnishings and repairs
- You may also need staff or a property manager.
Long-Term Rental:
- Tenants usually pay utility bills.
- Lower maintenance expectations.
- Once let, landlord involvement is minimal.
4. Occupancy Rate
Shortlet:
- High potential during festive seasons, holidays, and conferences.
- Inconsistent during off-peak periods or in less central locations.
- Better performance in cities like Lagos (Lekki, Ikoyi), Abuja (Maitama, Wuse), and Port Harcourt (Peter Odili Road, GRA).
Long-Term Rental:
- More stable occupancy with longer contracts.
- Can experience short vacancy between tenants, but usually easy to fill if priced well and in a good location.
5. Legal and Regulatory Implications in Nigeria
Shortlet:
- Less formal but increasingly regulated.
- Some estates in Lagos and Abuja now restrict or ban shortlets due to noise, insecurity, and misuse.
- No uniform policy, so landlords must research estate or city guidelines.
Long-Term Rental:
- Governed by Nigeria’s tenancy laws.
- Requires written agreements, legal notices for termination, and structured rent collection.
- More clarity and legal protection for both parties.
If you own a property in a high-traffic, tourist-friendly area and don’t mind a more hands-on, hospitality-driven approach, shortlets can generate a higher ROI, if managed well.
But if you prefer low-maintenance, consistent returns with fewer operational headaches, long-term rentals are your best bet.
Before making your choice, evaluate your property’s location, time commitment, and financial expectations. Are you looking for fast cash or long-term stability?
Contact us today [+234 814 900 3508] for a free consultation to help you create a rental strategy that aligns with your investment goals.