In recent years, the Nigerian real estate landscape has undergone a quiet revolution—one led not by high-rise developers or mega estates, but by a wave of short-term rental properties, popularly known as “shortlets.” These furnished apartments, rented for days or weeks at a time, have become increasingly popular among travelers, business professionals, and even residents seeking a temporary home. But as the trend grows, one question lingers: is the shortlet industry merely a modern side hustle, or does it have the potential to be a sustainable, long-term business?
A New Face of Real Estate
The appeal of shortlets lies in their flexibility. Unlike traditional rentals bound by year-long leases, shortlets offer nightly or weekly stays—ideal for Nigeria’s growing population of mobile professionals, digital nomads, and domestic tourists. Platforms like Airbnb, Booking.com, and local alternatives have made it easier than ever for landlords to connect with guests, and cities like Lagos, Abuja, and Port Harcourt have emerged as hotbeds for this fast-growing market.
For many Nigerians, particularly the younger demographic, investing in a shortlet apartment began as a side hustle—a way to earn passive income while maintaining a full-time job. The promise of high returns with minimal oversight was attractive, especially when compared to the traditional landlord-tenant model that often came with issues like delayed payments, defaulting tenants, or lengthy eviction processes.
The Economics: Risk vs Reward
Financially, shortlets have proven lucrative. In high-demand areas like Lekki, Victoria Island, and Maitama, landlords can earn two to three times more than they would from a long-term lease. With nightly rates ranging from ₦30,000 to ₦100,000 or more, savvy investors quickly realized the potential for exponential returns.
Moreover, the model offers upfront payments, reduced risk of tenant default, and the ability to adjust pricing based on market demand. This dynamic revenue structure gives property owners greater control and adaptability—key elements in any sustainable business.
But with these rewards come risks. Shortlet operators face high operational costs, including utilities, frequent maintenance, cleaning, and management fees. There’s also the challenge of sustaining high occupancy rates amidst growing competition and fluctuating demand. In saturated markets, even a few weeks of vacancy can erode profit margins.
Regulatory and Social Hurdles
As the industry grows, so do concerns. Several residential communities have pushed back against the influx of shortlet units, citing security concerns, noise disturbances, and a loss of communal integrity. At the policy level, there’s an increasing push for regulation. Without clear frameworks, many shortlet operators navigate a grey area—caught between hospitality laws and residential zoning rules.
To thrive in this evolving environment, shortlet entrepreneurs must adopt more professional practices: proper guest vetting, transparent pricing, exceptional service, and legal compliance. These shifts indicate that what once was a casual hustle is maturing into a structured, business-like ecosystem.
More Than a Trend
The rise of shortlets in Nigeria is more than just a trend—it reflects broader economic, technological, and cultural shifts. As urbanization accelerates and digital connectivity grows, the demand for flexible, quality housing solutions will only intensify. Furthermore, with Nigeria’s tourism and diaspora travel steadily increasing, shortlets offer an attractive alternative to hotels, often combining affordability with comfort.
For individuals willing to treat shortlets as a real business—with a strategy, brand, and long-term vision—this sector offers genuine opportunities. It’s not just about having a spare room or extra flat; it’s about understanding hospitality, leveraging data, and delivering consistently excellent guest experiences.
Conclusion
So, is the shortlet industry in Nigeria just a side hustle or a sustainable business? The answer lies somewhere in between—but leaning strongly toward sustainability. What began as a gig for extra cash is rapidly transforming into a viable economic pillar for many Nigerians. With the right infrastructure, ethical standards, and regulatory support, shortlets could become not just a stopgap housing option, but a foundational part of Nigeria’s real estate future.
In the end, the key will be vision. Those who see beyond the quick profits and commit to building structured, scalable operations will lead the next chapter of Nigeria’s property evolution—one night at a time.