To start a shortlet business in Nigeria, you need a furnished flat you are allowed to let by the night, in an area guests search for. It needs steady power, water and Wi-Fi. Then you set a price for each night, list it where guests look, and run check-ins, cleaning and a refundable caution deposit like a small hotel.
This guide walks through each step in order, from “I have a flat” to your first paid guest. It also names the risks, because a shortlet (or short let) is a real business with real costs.
What a shortlet business really is
A shortlet is a furnished home that guests rent by the night, the week or the month. It is not a yearly let. Nobody pays you a year’s rent up front. Instead, each booking pays for a few nights, and some nights stay empty.
That changes the job. You are no longer just a landlord. You are running a small hospitality business, and the work looks like this:
- Selling nights. Guests have to find you, trust you and pay you, again and again.
- Getting the flat ready. Every stay needs clean linen, a clean flat, power, water and working Wi-Fi.
- Looking after guests. Messages come at odd hours: a lost key, a tripped generator, a late flight.
- Handling money. Night prices, a cleaning fee, a caution deposit and refunds all need clear rules.
The risks are real too. Plan for each one before you spend money:
- Empty nights. Your costs carry on when nobody is staying.
- Damage and noise. A party can break furniture and upset the neighbours in one night.
- Estate and landlord trouble. Some estates and landlords do not allow short stays at all.
- Fake payments. A text message that looks like a bank alert is not money. Check your balance in your bank app before you hand over any key.
Own, lease or manage: three ways to start
There are three common ways into the business. Each needs a different amount of money and trust.
| Way in | What you need | Main risk |
|---|---|---|
| Own | A flat you or your family own, plus furniture and power backup | Wear and tear on your own property |
| Lease | A flat you rent for a year, the landlord’s written permission, and money to furnish it | You pay the yearly rent even if nights stay empty |
| Manage | An owner who trusts you, and a written agreement on who pays what and how income is shared | Disputes over money if the agreement is vague |
Owning is the cheapest start, because there is no rent to cover. Leasing costs the most up front: the rent, the agency and legal fees, then the furniture. Managing needs little money but a lot of trust, so put everything in writing. If you are weighing up your own flat, read can I turn my flat into a shortlet? first. No flat of your own? See starting a shortlet without owning property.
Choosing an area guests actually search
Guests search by area. When people in Nigeria type “shortlet in” into Google, its suggestions start with Ikeja, Lekki, Lagos, Abuja, Yaba and Ibadan. Then come Surulere, Lekki Phase 1, Ajah, Victoria Island, Ikorodu and Ikoyi. That order shows what people look for, not how many bookings each area gets.
Think about who will stay and why they are coming:
- Business visitors want to be near offices and the airport, with fast Wi-Fi and quiet rooms.
- Families visiting relatives often want space, a kitchen and a safe compound.
- People home for December want to be close to where they will spend their evenings.
- Parents and visitors to a university want to be a short trip from the campus.
Before you choose, look at the shortlets already listed nearby. Browse shortlets in Lagos, Ikeja or Abuja and note what they offer and what they charge. For city detail, see starting a shortlet business in Lagos and starting one in Abuja.
Getting the unit ready for guests
Guests judge a shortlet in the first ten minutes. Get these basics right before your first booking:
- Beds. Good mattresses, pillows and at least two sets of linen per bed, so one set is always clean.
- Cool rooms. Air conditioning or strong fans in every bedroom.
- Power. A generator, an inverter with batteries, or solar. Guests will ask how many hours of power they get.
- Water. A reliable supply, such as a borehole or a tank with a pump, and a plan for when it fails.
- Wi-Fi. A router and a data plan that can handle video calls.
- Kitchen basics. A cooker or hob, a fridge, pots, plates, cups and cutlery.
- Safety. Working locks, a fire extinguisher, a smoke alarm and a first-aid kit.
- House rules. Visitors, parties, smoking, noise and check-out time, written down. Start from a house rules template you can copy.
Then take clear, bright photos of every room, the entrance and the view. Photos sell nights more than any description does.
Prices, fees and a caution deposit
There is no single right price. A night costs more in a busy area, in a bigger flat and on busy dates such as December and long weekends. It often costs less per night when a guest stays a week or a month.
Most shortlet bills in Nigeria have up to four parts:
- The night price, multiplied by the number of nights.
- A cleaning fee, charged once per stay, not per night.
- A caution deposit. This is a fixed sum held in case something is damaged. The guest gets it back after check-out, less the cost of any damage you can show.
- A discount for longer stays, if you offer one.
To set your first prices, find five or six similar flats in your area and compare their full bills. Then price your nights so that the nights you expect to sell cover your monthly costs. List those costs first with the shortlet startup cost checklist. A worksheet helps you work out your break-even nights, and a simple shortlet business plan puts your prices, costs and risks on one page. Keep records of every naira in and out. You will need them for tax, and rental income tax in Nigeria explains the basics.
Ready to be found? List your short let on Cabans with clear photos, the night price and your house rules.
Getting your first bookings and payments
Your first guests will probably come from people who already know you. After that, you need to be where guests search:
- Property sites where people look for a shortlet in a named area.
- WhatsApp groups and your status, used politely and within each group’s rules.
- Instagram posts and short videos that show every room.
- Word of mouth from happy guests, colleagues and event planners.
Our guide on how to advertise a shortlet apartment covers each channel in detail. Whatever the channel, protect your money:
- Put the full price, the caution deposit and your cancellation terms in writing before the guest pays.
- Confirm every payment in your bank app, never from a text message or a screenshot.
- Give a receipt for every payment, including the caution deposit.
- Agree how the keys will be handed over, and who meets the guest.
On Cabans, you can now take bookings online. Tick “Take bookings online” on your Short Let listing. Guests then pick their dates on your calendar, see the full price and pay securely online through Paystack. You choose whether paid bookings are confirmed straight away (“Instant book”) or whether you accept each request yourself. You also choose how long before check-in guests can cancel for a full refund.
The money side is simple. Cabans charges hosts a 5% commission. The guest pays Paystack’s payment fee when they pay, so it does not come out of your earnings. You are paid within 7 days after the guest’s stay, and sooner if the guest approves the payment after their trip.
See how taking shortlet bookings online works, then follow how to make your short let bookable online step by step. The free Host Academy starts with how a booking works, start to finish.
Running it week to week
A shortlet runs on routine. A simple weekly rhythm keeps guests happy and costs under control. For a day-by-day picture, see what a shortlet host does in a week.
- Keep one calendar. Block the dates you or your family use, and never take two bookings for the same night.
- Clean to a checklist. The same list every time: linen, bathroom, kitchen, floors, bins, and a final walk-through.
- Restock. Toilet roll, soap, drinking water, gas and bulbs.
- Log power and fuel. Note generator hours and fuel bought, so you know what each night really costs.
- Fix things fast. A dripping tap or a dead socket becomes a bad stay if it waits.
- Check the money monthly. Add up the nights sold, the income and the costs. Change your prices if the numbers do not work.
If a yearly let starts to look better for your flat, that is a fair outcome. Compare the two honestly with short let vs long-term rental. When you are ready to start, put your shortlet on Cabans and see what similar homes near you look like on the shortlet page.
Frequently asked questions
How much money do I need to start a shortlet business in Nigeria?
It depends on how you start. If you already own a furnished flat, you mainly need power backup, linen, Wi-Fi and good photos. If you lease a flat to let out, you also need the yearly rent up front, the agency and legal fees, and the cost of furnishing it. Write every item on a list and price it where you live before you commit.
Is a shortlet business profitable in Nigeria?
It can be, but only if enough nights are booked at the right price. A shortlet earns per night, so empty nights cost you money while power, cleaning and Wi-Fi still need paying. Work out how many nights a month you need to cover your costs, and compare that with a yearly let of the same flat.
Can I start a shortlet business without owning a property?
Yes. Some people lease a flat and let it out by the night, and some manage flats for owners. Either way you need the owner’s written permission first, because many tenancy agreements do not allow subletting without it.
Do I need to register a shortlet business?
If you trade under a business name, that name is registered with the Corporate Affairs Commission (CAC). Rules on short-stay lets and hotel-style taxes are set by each state and can change, so ask your state’s revenue service or tourism ministry before you start. This guide is not legal or tax advice.
How do I get my first shortlet guests?
Start with people who already trust you: friends, family, colleagues and your church or mosque groups. Then list the flat on property sites where guests search, post clear photos on WhatsApp and Instagram, and reply to every enquiry quickly.
Should I ask shortlet guests for a caution deposit?
Many hosts do. A caution deposit is a fixed sum the guest pays with the booking and gets back after check-out, less the cost of any damage you can show. Say the amount and the rules in writing before the guest pays, and return it promptly when the flat is fine.
How do I get paid for shortlet bookings on Cabans?
Guests pay online through Paystack when they book. Cabans charges hosts a 5% commission, and the guest pays Paystack’s payment fee, so that fee does not come out of your earnings. You are paid within 7 days after the guest’s stay, and sooner if the guest approves the payment after their trip.
Related guides
Shortlet business in Lagos · Shortlet business in Abuja · Turning your flat into a shortlet · Registering a shortlet business in Nigeria · Advertising a shortlet · How to list a short let · Short let vs long-term rental · A room-by-room furnishing checklist · Shortlet or serviced apartment business? · 12 mistakes new shortlet hosts make · Shortlet business name ideas
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