The demand for shortlet apartments in cities like Lagos, Abuja, and Ibadan is growing fast. Business travelers, tourists, and Nigerians in the diaspora now prefer short stays over hotels. It is cheaper for them, more flexible, and feels more like home.
Starting a shortlet apartment business is one of the smartest ways to make money from real estate. You don’t need to build a hotel or own multiple houses before you start. With the right setup, even a single apartment can generate steady daily income from guests who are willing to pay for comfort, privacy, and convenience.
But here’s the truth most people won’t tell you. Many people jump into the shortlet business because it looks easy, then struggle to get bookings or recover their money. This usually happens because they choose the wrong location, set up the apartment poorly, or don’t understand how the business really works.
In this guide, you will learn how to start a shortlet apartment business in Nigeria step by step.
What is a Shortlet Apartment Business?
A shortlet apartment business is when you rent out a fully furnished house for a short period, usually daily, weekly, or a few months. Instead of tenants staying for a year, guests pay for short stays, just like in a hotel. The difference is that your apartment feels more like a home, with a kitchen, living room, and privacy.
In Nigeria, many people now prefer shortlets over hotels. Travelers, business people, and even couples want comfort and flexibility. They can cook, relax, and enjoy more space at a better price than most hotels.
This business works by preparing an apartment, furnishing it well, and listing it on platforms like Airbnb or Booking.com. Guests book your space, pay per night, and you earn income based on how often your apartment is occupied.
Shortlet is booming in Nigeria because of three main things. First, Nigerians in the diaspora prefer it when they visit. Second, business travel is increasing in cities like Lagos and Abuja. Third, social media has made it easier for people to discover and book short stays quickly.
Is Shortlet Business Profitable in Nigeria?
Yes, shortlet business is profitable in Nigeria if done correctly. In cities like Lagos, a standard one-bedroom shortlet in Lekki can go for ₦40,000 to ₦80,000 per night. If you get just 15–20 bookings in a month, you can generate strong monthly income.
In Abuja, prices are also high, especially in areas like Wuse and Maitama. Ibadan is cheaper, but demand is growing fast due to students, events, and business activities. What matters most is not just the price, but how often your apartment is booked.
Occupancy rate is key. Even if you charge high, you won’t make money if your apartment stays empty. A good shortlet should aim for at least 50–70% monthly occupancy to stay profitable.
Your profit depends on three main things. First is location, as busy areas bring more bookings. Second is furnishing, as clean, modern apartments attract better-paying guests. Third is marketing, because if people don’t see your apartment, they won’t book it.
Steps to Start a Shortlet Apartment Business
Step 1: Choose a Profitable Location
Your location will decide if your shortlet apartment business in Nigeria makes money or not. Focus on high-demand areas like Lekki, Victoria Island, Ikoyi, Abuja, and Ibadan. These places attract business travelers, tourists, and Nigerians from abroad.
A good location is close to airports, offices, restaurants, and nightlife. People don’t want to stay in a place that is hard to find or far from everything. Easy access and security also matter a lot.
Avoid quiet or developing areas with low demand. Cheap rent might look attractive, but no bookings means no income. Always check how many shortlets already exist in that area before deciding.
Step 2: Decide Your Business Model
You don’t need to own a house to start a shortlet apartment business in Nigeria. The most common model is rent-to-rent, where you rent a property and use it for short stays. This requires less capital and is beginner-friendly.
Another option is owning your own apartment. This gives you full control and higher long-term profit, but it requires more money upfront. It is better for people with strong capital.
You can also partner with landlords or manage apartments for owners. In this case, you furnish and manage the space while sharing profit. For beginners, rent-to-rent is usually the easiest way to start and learn the business.
Step 3: Secure the Apartment
Once you choose your model, the next step is to get the apartment. If you are renting, be honest with the landlord that you want to use it for shortlet. Some landlords don’t allow it, so clarity is important from the start.
Negotiate properly. Try to get a good deal on rent, especially if you are paying upfront for one or two years. This will reduce pressure on your profits.
Make sure your agreement clearly states that shortlet use is allowed. Without this, you can face issues later. In Lagos, rent can range from ₦800k to ₦3M yearly depending on the area, so plan your budget well.
Step 4: Furnish and Set Up the Apartment
Your setup is what attracts guests and determines your pricing. Focus on essentials like a comfortable bed, air conditioning, steady power (inverter or generator), fast WiFi, and a smart TV. Clean and simple always works better than overcrowded design.
Your apartment should look good in pictures. Use bright lighting, neutral colours, and neat arrangement. Guests often decide based on photos, so presentation is everything.
Furnishing costs in Nigeria can range from ₦800k to ₦2.5M depending on quality and size. Don’t overspend on luxury items at the start. Focus on comfort, cleanliness, and reliability first.
Step 5: Handle Legal and Business Requirements
To run your shortlet apartment business in Nigeria properly, you should register your business with Corporate Affairs Commission. It is not compulsory, but it makes your business look serious and helps with trust.
You should also understand basic tax rules. As your income grows, you may need to pay taxes, especially if you run multiple apartments. It’s better to stay compliant from the beginning.
If your apartment is in an estate, check their rules. Some estates restrict shortlet operations due to security concerns. Always inform the management and follow their guidelines to avoid problems.
Step 6: Price Your Apartment Correctly
Pricing is how you control your profit in a shortlet apartment business in Nigeria. Start by checking similar apartments in your area on Airbnb and Booking.com. Look at their prices, design, and reviews before setting yours.
If your apartment looks better, you can charge higher. If it is average, stay within the market range to attract bookings. Avoid overpricing, especially when you are new and have no reviews yet.
Use flexible pricing. Increase your rates during weekends, holidays, and festive periods when demand is high. Reduce prices slightly during slow periods to keep your apartment booked and cash flowing.
Step 7: List Your Apartment on Booking Platforms
To get bookings, your apartment must be visible online. List your property on platforms like Airbnb, Booking.com, and even local platforms like Jiji. You can also use WhatsApp to promote directly.
Your listing must be clear and attractive. Write a simple description that explains what guests will enjoy, including location, comfort, and key features. Avoid long stories, focus on benefits.
Photos are very important. Use bright, clean, and professional pictures. A well-lit apartment with good angles can increase your bookings without changing anything else.
Step 8: Market Your Shortlet Business
Listing alone is not enough. You need to actively market your shortlet apartment business in Nigeria. Use platforms like Instagram and TikTok to post videos and pictures of your apartment.
Short videos showing your space, lighting, and comfort attract attention fast. People want to see what they are paying for before they book. Consistency is key here.
You can also work with influencers or agents who already have an audience. Offer them a free stay or commission for referrals. This can bring you steady bookings without running ads.
Step 9: Manage Guests and Operations
Good management keeps your business running smoothly. Make your check-in process simple. You can use a caretaker or give clear instructions for self check-in.
Cleanliness is very important. After every guest leaves, the apartment must be cleaned properly. Fresh bedsheets, clean bathrooms, and a neat space will lead to good reviews.
Handle issues quickly. If a guest complains or damages something, respond calmly and fix the problem fast. Your reputation depends on how you treat people, not just your apartment.
Step 10: Scale Your Shortlet Business
Once your first apartment is doing well, the next step is to grow. You can add more apartments in the same area or different locations. This increases your income and spreads your risk.
As you grow, you will need help. You can hire cleaners, a manager, or outsource operations. This allows you to focus on expanding instead of handling everything yourself.
Build a brand, not just a single apartment. Give your business a name, create a strong online presence, and maintain quality across all your units. This is how you stand out in a competitive market.
Conclusion
Booking platforms like Airbnb rank apartments based on performance, not just looks. Listings with faster response times, consistent bookings, and strong reviews are pushed to the top. This means your speed, guest communication, and consistency can directly affect your visibility and income.
Another key shift is guest behavior. Most guests now check reviews before they check price. A well-managed apartment with 4.8 stars can charge more than a more luxurious one with poor feedback. In simple terms, your reputation is now your biggest asset, and it compounds over time like interest.
Power, internet, and security are also silent deal-breakers in Nigeria. Data shows that poor electricity and weak WiFi are among the top reasons for bad reviews. If your apartment solves these three problems better than others, you already have a strong competitive advantage.
Finally, think beyond one apartment. The real money is not in owning a single unit but in building a system that can run multiple apartments without you being present. That is how you move from side income to a real business.
