A shortlet business in Lagos works best in an area guests already search, in a flat you have written permission to let by the night. You also need a plan for power, water and security. Lagos places fill Google’s shortlet suggestions more than any other city’s, but Lagos also has high costs and a lot of competition. The area you pick decides most of your results.
This guide covers the Lagos-only decisions. For the full start-up path, from choosing a flat to your first guest, read how to start a shortlet business in Nigeria.
Why Lagos, and why it is hard
Google suggests more shortlet (or short let) searches for Lagos places than for anywhere else in the country. Business visitors, families, people home from abroad and event guests all need somewhere to stay for a few nights. That is the opportunity.
The hard parts are just as real:
- Competition. Popular areas already have many shortlets, so yours must be clean, clear and well priced.
- Traffic. Guests pick areas close to their plans. A great flat in the wrong place stays empty.
- Power and water. Guests expect steady power and running water, and both cost money to provide.
- Rules. Estates, landlords and the state can all have a say in short stays.
- Rainy season. Some parts of Lagos flood after heavy rain. Ask neighbours before you commit to a street.
Where guests search for shortlets in Lagos
When people in Nigeria type “shortlet in” into Google, the Lagos places it suggests, in its own order, are: Ikeja, Lekki, Yaba, Surulere, Lekki Phase 1, Ajah, Victoria Island, Ikorodu, Ikoyi, Ikeja GRA and Magodo Phase 2. That shows search interest, not bookings, but it is a good place to start.
| Area | Guests it often suits | What they tend to want |
|---|---|---|
| Ikeja | Business visitors, travellers using the airport, families | Quick airport trips, quiet rooms, parking |
| Lekki and Lekki Phase 1 | Leisure guests, groups, people home for the holidays | Space, a pool or a nice view, closeness to restaurants and the beach |
| Yaba | Visitors to the universities and tech offices, budget guests | Good value, fast Wi-Fi, short trips |
| Surulere | Families, event guests, budget guests | Value, space and a central Mainland base |
| Victoria Island and Ikoyi | Business and premium guests | Top security, steady power, a short trip to offices |
| Ajah | Longer stays and guests on a budget along the Island | More space for the money |
Open each area page and study the shortlets already listed: their size, their photos and their prices. That is your competition.
Island or Mainland: matching the unit to the guest
Lagos is often split into the Island (Victoria Island, Ikoyi, Lekki and Ajah) and the Mainland (Ikeja, Yaba, Surulere, Gbagada and more). The bridges between them can take hours at busy times, so guests rarely want to cross twice a day.
- An Island flat suits guests whose offices, parties or beach days are on the Island. It can charge more, but it costs more to rent and run.
- A Mainland flat suits airport stays, family visits and guests who want value. It usually charges less per night but can fill more weeknights.
Then match the unit. A studio or one-bedroom suits solo business guests. A two or three-bedroom suits families and groups. A duplex suits big groups, but also attracts party requests, so your house rules must be firm.
Estate rules, landlords and permission
Many Lagos homes sit inside estates run by residents’ associations. Their rules can cover visitors, gate passes, parking, noise, security levies and whether short stays are allowed at all. Rules differ from estate to estate, so ask yours directly.
- If you own the flat, ask the estate or building management in writing whether short stays are allowed, and on what terms.
- If you rent the flat, read your tenancy agreement. Many forbid subletting without the landlord’s written consent. Get that consent before you list.
- Agree the gate process. Decide how guests get past security, and whether the gate needs their name.
- Talk to neighbours. A friendly word and your phone number stop small problems becoming complaints.
State rules on short-stay lets and hotel-style taxes can change. Before you start, ask the Lagos State Internal Revenue Service and the state tourism ministry what applies to you. This guide is not legal or tax advice.
Costs that are special to Lagos
Budget for these before you set a single price. They are the costs new hosts most often underestimate:
- Power. Grid bills, plus generator fuel and servicing, or an inverter and solar set-up.
- Water. A borehole or tank, a pump, and treatment so the water is clean.
- Estate charges. Service charges and security levies, often paid yearly.
- Internet. A router and a data plan strong enough for video calls.
- Cleaning and laundry. A cleaner you trust, and linen washed and dried between every stay.
- Waste collection. The bill for refuse collection where you live.
- Transport for staff. Your cleaner or caretaker has to cross the same traffic as your guests.
- Repairs. Air conditioners, pumps and generators work hard. Keep money aside for them.
Add up these monthly costs and divide by your night price. The answer is how many nights you must sell each month just to break even. If you are leasing, add a twelfth of the yearly rent to your monthly costs.
Ready to test the market? List your Lagos short let on Cabans and see how guests respond.
Pricing for December and busy weekends
Lagos has clear busy times. December is the biggest, when people come home for the holidays, weddings and events. Long weekends, public holidays and big events also fill flats fast.
- Set higher prices for busy dates, and set them early, before guests start booking.
- Consider a minimum stay for the busiest weeks, so one-night bookings do not block longer ones.
- Offer longer-stay discounts in quieter months to fill weeknights.
- Think about who books when. Business guests fill weeknights in Ikeja and Victoria Island. Leisure guests fill weekends in Lekki.
- Do not overprice. An empty night earns nothing. Check what similar flats charge for the same dates.
It also helps to know what guests are told. Share our guide Detty December in Lagos: plan your stay early with guests who ask about December.
On Cabans you can set a different price for any date, or a price for a whole period. See how to set night prices for busy days and seasons.
Taking bookings and payments
Lagos hosts deal with more fake payments and last-minute changes than most. Protect every booking:
- Send the full price, caution deposit and cancellation terms in writing before the guest pays.
- Check every payment in your bank app. A text alert or a screenshot is not proof of money.
- Give a receipt for every payment, including the caution deposit.
- Hand over keys only once the money is in your account.
- Keep the house rules in the flat, and send them before arrival too.
On Cabans, you can now take bookings online. Tick “Take bookings online” on your Short Let listing. Guests pick their dates on your calendar, see the full price and pay securely online through Paystack. You choose whether bookings are confirmed straight away or you accept each one. See how taking shortlet bookings online works.
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. The free Host Academy walks you through every step, from the first request to the caution deposit.
When you are ready, put your Lagos shortlet on Cabans, and keep an eye on the Lagos shortlet listings to see how yours compares.
Frequently asked questions
Is a shortlet business profitable in Lagos?
It can be. Google suggests more shortlet searches for Lagos places than for any other Nigerian city, which points to strong interest. But costs are high too: rent, service charges, power, cleaning and Wi-Fi. Work out how many nights a month you must sell to cover them before you sign or buy anything.
Which area in Lagos is best for a shortlet business?
The best area is one where guests already search and where you can get permission to run short stays. Google’s suggestions for “shortlet in” start with Ikeja, Lekki, Yaba and Surulere, then Lekki Phase 1, Ajah, Victoria Island, Ikorodu and Ikoyi. Match the area to the guest you want.
Do I need my estate’s permission to run a shortlet in Lagos?
Ask before you start. Many Lagos estates have residents’ associations with rules on visitors, security, parking and noise, and some do not allow short stays. Get the answer in writing, along with your landlord’s written consent if you rent the flat.
Do I need to register a shortlet with the Lagos State Government?
Rules on short-stay lets and hotel-style taxes are set by the state and can change. Before you start, ask the Lagos State Internal Revenue Service and the state tourism ministry what applies to you. This guide is not legal or tax advice.
How much should I charge per night for a shortlet in Lagos?
Look at five or six similar flats in the same area and compare their full bills: night price, cleaning fee and caution deposit. Then set a price that covers your monthly costs from the nights you expect to sell, with higher prices for busy dates.
How do I keep a Lagos shortlet busy outside December?
Aim at guests who travel all year. Business visitors fill weeknights near offices and the airport, and families visit for weddings, burials and school events. A discount for stays of a week or more also helps to fill quiet months.
What does Cabans charge Lagos hosts for a booking?
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.
Related guides
How to start a shortlet business in Nigeria · Turning your flat into a shortlet · Advertising a shortlet · Best areas for a shortlet in Lagos · Short let vs long-term rental
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