A shortlet business lets furnished homes by the night or the week, often run by one host with a cleaner. A serviced apartment business runs furnished flats with services included, such as housekeeping and security, and usually needs staff and longer stays. Shortlets are easier to start small. Serviced apartment operators usually run several units and serve business guests.
This guide compares the two models for Nigerian property owners. It looks at the guests, the staff, the pricing, the length of stay and how to run either one online.
What each model is
| Shortlet | Serviced apartment | |
|---|---|---|
| What you let | A whole furnished home | Furnished flats, often in one building |
| Usual stay | A night to a few weeks | A week to several months |
| Services | A clean between guests, extras on request | Housekeeping, security and maintenance, often laundry and a front desk |
| Who runs it | One host, a cleaner and maybe a caretaker | A staff team |
| What you need to start | One furnished flat | Several units, fit-out and staff |
In Nigeria the words overlap. Some homes listed as “serviced” are shortlets with a cleaner, and some shortlets offer services. Guests care about what is included, not the label. What is a serviced apartment? explains how guests see the difference.
The guests each one attracts
Shortlet guests are often:
- couples and friends on a weekend away;
- families visiting relatives, or in town for a wedding or a funeral;
- Nigerians home from abroad for the holidays;
- groups in town for December events or a celebration;
- people who want a whole home rather than a hotel room.
Serviced apartment guests are often:
- staff sent by companies for weeks or months;
- expatriates and families relocating to Lagos, Abuja or Port Harcourt;
- project teams working on a site nearby;
- families between homes, or waiting for repairs to finish.
Business guests want receipts, a desk, strong Wi-Fi and steady power. Leisure guests care about the area, the photos, a pool or a view, and the price for their dates.
Staff and services
This is where the two models differ the most.
A shortlet can run with a small team:
- you, or a manager, handling bookings and guests;
- a cleaner for each turnover;
- a handyman on call for repairs;
- perhaps a caretaker who lives nearby.
A serviced apartment usually needs:
- housekeeping on a schedule, often several times a week;
- security at all hours;
- maintenance staff for power, water and air conditioning;
- a front desk or someone guests can always reach;
- laundry, and someone managing diesel and power.
Services cost money every month, whether the flats are full or not. A shortlet's costs rise and fall more with its bookings. That is the biggest difference in risk.
A middle path: a shortlet with services
You do not have to choose one or the other on day one. Some hosts start with a shortlet and add services as they grow: a mid-stay clean, laundry, breakfast, drinking water or an airport pick-up. Guests pay for what they use.
On Cabans, you can sell stay extras to checked-in guests, such as bottled water, breakfast, toiletries or an airport pick-up. Delivery to the stay is free for the guest, and you bring it. Guests can also ask for “Room service” or a “Cleaner” from their stay page, and you can add extras they used to their bill. How to sell stay extras to your guests shows how, and selling extras to shortlet guests has ideas that sell.
Pricing and length of stay
We do not quote prices here, because they change with the area, the home and the dates. Compare live listings instead: serviced apartments in Lagos, serviced apartments in Abuja, and shortlets in Victoria Island or Lekki.
Shortlet pricing is usually by the night, and it moves with demand:
- higher on weekends, holidays and in December;
- lower on quiet weekdays;
- sometimes a discount for a week or more.
Serviced apartment pricing is steadier:
- a nightly rate, with weekly and monthly rates for longer stays;
- services built into the price;
- sometimes an agreed rate for a company that books often.
Length of stay changes the maths. Long stays mean fewer turnovers and fewer empty nights, but a lower rate per night. Short stays earn more per night, but cost more in cleaning, laundry and gaps.
Whichever you choose, your price must cover:
- power and diesel, and internet;
- cleaning, laundry and supplies;
- service charge, security and estate levies;
- repairs, and replacing furniture over time;
- staff wages, if you have staff;
- platform fees, and your own time.
Shortlet startup costs and is a shortlet profitable? help you do the sums.
How the income behaves
The two models earn in different shapes. A shortlet has high weeks and quiet weeks. Busy dates pay well, but a quiet month can leave the home empty. A serviced apartment with long stays earns more evenly, but at a lower rate per night, and its costs keep running every month.
So ask yourself: can you carry the quiet months? Can you pay staff when a flat is empty? Your answers point you to one model or the other.
Setting up for serviced stays: a checklist
If you lean towards serviced apartments, or want to add services to a shortlet, plan these before your first long-stay guest:
- Furniture that lasts. Long stays wear things out faster. Choose strong sofas, good mattresses and washable covers.
- A work corner. A real desk, a good chair and a socket close by.
- Power you can promise. Know how many hours your generator, inverter or solar can cover, and say it honestly.
- Internet with a backup. A main connection, plus a second option when it drops.
- Water you trust. A clean tank, a working pump and, if needed, treatment for drinking water.
- A housekeeping schedule. Which days you clean, change linen and take out rubbish.
- Written procedures. Simple steps for check-in, cleaning, repairs and emergencies, so any staff member can follow them.
- Invoices and receipts. Companies need them to pay you and to claim the cost.
Most of this helps a shortlet too. Guests notice when a home is run well, and they come back.
Which suits you?
A shortlet may suit you if:
- you have one or two flats;
- you can manage guests yourself, or with one helper;
- your home is in an area people visit for leisure;
- you want to use the home yourself sometimes.
A serviced apartment business may suit you if:
- you own or lease several units in one building;
- you can pay for staff and a proper fit-out;
- you are in a business district, such as Victoria Island, Ikoyi, Wuse 2 or Maitama;
- you want company clients who book for months.
Not sure yet? Run one flat as a shortlet for a few months and keep careful records of every booking and cost. You will learn which guests your area attracts before you spend on staff.
Some operators start as a shortlet and grow into serviced apartments. How to start a shortlet business covers the first steps, and management company or manage it yourself? helps once you grow.
Running either online
Guests of both kinds expect to see real dates and a clear price, and to pay without sending money to a stranger's account. The more of this you can offer, the more guests trust you.
Whatever you run, keep these online:
- a calendar that is always up to date;
- prices that change for busy and quiet dates;
- clear house rules and arrival steps;
- a record of every guest, payment and problem.
Trust matters as much as tools. Use real photos taken in daylight. Describe the power, water and internet honestly. Answer messages quickly, and keep your promises on cleaning and services. A serviced apartment that promises daily cleaning and misses a day can lose a company client.
On Cabans, you can run either model with the same tools:
- a calendar with price windows and special day prices;
- longer-stay discounts in up to 3 tiers, or a free nights offer, for weekly and monthly guests;
- stays of up to 731 nights, if you allow them;
- instant book, or accept each paid request yourself;
- your own free-cancellation cut-off, fixed caution deposit and cleaning fee;
- house rules, door code and Wi-Fi, shown to guests at the right time;
- team roles, so staff can answer requests and check guests in;
- company bookings, marked “Booked by a business”.
Cabans charges hosts a 5% commission on each booking. Guests pay online through Paystack, and Paystack's payment fee is paid by the guest, shown before they pay. You are paid within 7 days after the guest's stay, and sooner when the guest approves the payment after their trip.
The free Host Academy teaches it all in 12 short lessons. Hosting business guests? Read hosting business travellers.
Ready to start? Take bookings online for your shortlet or serviced apartments, or list your property first.
Frequently asked questions
What is the difference between a shortlet and a serviced apartment business?
A shortlet business lets furnished homes by the night or week, often run by one host with a cleaner. A serviced apartment business runs furnished flats with services included, such as housekeeping and security, usually with staff and for longer stays.
Which is more profitable, a shortlet or a serviced apartment?
It depends on your location, your costs and how full you keep the homes. Serviced apartments carry steady monthly costs for staff and services. Shortlets earn more on busy nights but have more empty gaps. Work out both with your own figures.
How many units do I need for a serviced apartment business?
There is no fixed number. Services such as round-the-clock security and a front desk make more sense spread over several flats in one building. With one flat, a shortlet with paid extras is usually simpler.
Who stays in serviced apartments in Nigeria?
Often longer-stay guests: staff sent by companies, people relocating, project teams and families between homes. They want a furnished home with the running handled for them.
Can I run a shortlet like a serviced apartment?
Yes. Add cleaning on a schedule, laundry and extras such as breakfast or drinking water. Price them into the stay, or sell them separately.
Do I need to register a shortlet or serviced apartment business?
Rules on registration and tax differ by state and change over time. Check with your state’s authorities and a professional adviser before you grow. This is not legal or tax advice.
How are hosts paid on Cabans?
Cabans charges hosts a 5% commission on each booking. Guests pay online through Paystack and pay Paystack’s fee themselves. You are paid within 7 days after the guest’s stay, and sooner when the guest approves the payment after their trip.
Related guides
Start a shortlet business · What is a serviced apartment? · Is a shortlet profitable? · Shortlet business plan · Management company or self-manage · Startup costs · Registering a shortlet business · Hosting business travellers
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