Shortlet vs Long-Term Rental in Nigeria: Which Offers Better ROI for Property Investors?
By Lucky Ajayi
Published: 12/24/2025
Estimated Reading Time: 3 minutes
Introduction
Shortlet vs Long-Term Rental in Nigeria is now a key discussion among property investors as Nigeria’s real estate market continues to evolve. Landlords who once depended solely on annual rent are now exploring short-term rental options driven by urban migration, digital booking platforms, and a growing hospitality culture.
With more Nigerians traveling for business, events, and leisure, investors face a crucial question. Should you operate your property as a shortlet or stick with the long-term rental model?
This article breaks down both strategies and compares them using key investment metrics to help you determine which option delivers better return on investment.
Before We Begin: Quick Overview
| Section | What You’ll Learn |
|---|---|
| Nigeria’s Rental Market Overview | Why shortlets and long-term rentals are gaining traction |
| What Is a Shortlet? | How short-term rentals work and who they serve |
| What Is a Long-Term Rental? | How traditional rentals generate steady income |
| ROI Comparison | Which model offers stronger financial returns |
| Risk Levels | The risks involved in each rental strategy |
| Operational Costs | Ongoing expenses landlords must consider |
| Occupancy Rates | How location and seasonality affect demand |
| Legal Considerations | Regulatory issues landlords should know |
| Final Verdict | How to choose the best rental model for your goals |
What Is a Shortlet (Short-Term Rental)?
A shortlet is a fully furnished apartment rented out for a few days to several months. It is popular among business travelers, expatriates, holidaymakers, and Nigerians visiting for weddings, burials, or family events.
Most shortlets are listed on platforms like Airbnb, Booking.com, and local Nigerian booking platforms. This rental model operates similarly to hospitality services and requires frequent guest turnover.
What Is a Long-Term Rental?
A long-term rental involves leasing a property to a tenant for six months or more, often extending to several years. Tenants typically furnish the property themselves and sign formal lease agreements.
Common tenants include working professionals, families, students, and corporate staff. This model offers predictability and requires less day-to-day involvement from landlords.
Shortlet vs Long-Term Rental in Nigeria: Key Differences
When comparing shortlet vs long-term rental in Nigeria, investors must balance higher short-term income potential against stability and predictability.
1. Return on Investment (ROI)
Shortlets
Shortlets generate higher daily income, ranging from ₦25,000 to over ₦100,000 per night depending on location, furnishing, and management quality. In areas like Lekki, Gwarinpa, and Peter Odili Road, well-managed shortlets can outperform annual rent. However, income depends heavily on occupancy and pricing strategy.
Long-Term Rentals
Long-term rentals provide stable and predictable income. Annual yields are easier to calculate, and income is less affected by seasonal demand or market volatility.
2. Risk Level
Shortlets
Frequent guest turnover increases the risk of property damage and rule violations. Demand can fluctuate, leading to vacant periods and income instability.
Long-Term Rentals
Once a reliable tenant is secured, risk levels are lower. Wear and tear is minimal, although eviction processes can be lengthy if tenants default.
3. Operational Costs
Shortlets
Shortlets require continuous spending on cleaning, utilities, internet, repairs, furnishings, and sometimes staff or property managers.
Long-Term Rentals
Tenants usually pay utility bills. Maintenance costs are lower, and landlord involvement is minimal once the property is leased.
4. Occupancy Rate
Shortlets
Occupancy is typically high during festive seasons, conferences, and holidays. Demand may drop during off-peak periods or in less central locations. Performance is strongest in cities like Lagos, Abuja, and Port Harcourt.
Long-Term Rentals
Long-term rentals offer consistent occupancy through extended lease periods. Vacancies are usually short if the property is well-priced and well-located.
5. Legal and Regulatory Implications in Nigeria
Nigeria’s tenancy regulations are guided by state-level tenancy laws, particularly in Lagos and Abuja.
Shortlets
Short-term rentals operate with fewer formalities but are becoming more regulated. Some estates in Lagos and Abuja restrict or ban shortlets due to security and noise concerns. Landlords must verify estate rules before operating.
Long-Term Rentals
Long-term rentals are governed by Nigeria’s tenancy laws. Written agreements, proper notices, and structured rent collection provide legal clarity and protection.
Final Thoughts on Shortlet vs Long-Term Rental in Nigeria
Shortlet vs long-term rental in Nigeria ultimately depends on your investment goals, risk tolerance, and level of involvement.
Long-term rentals are better suited for investors seeking steady income, minimal involvement, and long-term stability.
Platforms like Airbnb and Booking.com have significantly influenced the growth of short-term rentals in Nigeria.
Before choosing, assess your property’s location, your time availability, and your financial goals. Are you aiming for fast cash flow or consistent long-term returns?
📞 Contact Tabansi Consulting at +234 808 4006 284 for consultation. We help property owners develop rental strategies that maximize value and reduce risk.