You can start a shortlet business in Nigeria without owning property. There are two main ways: rent a home and let it to guests with the landlord’s written permission, or manage shortlets for owners in return for a fee or a share. Both work only when the permission is in writing and the numbers add up before you spend a naira.
This guide explains both routes, what to agree first, how to check the numbers and the risks to plan for. It is general guidance, not legal or tax advice.
Two ways in: lease or manage
| Rent-to-rent (lease) | Manage for owners | |
|---|---|---|
| How it works | You rent a home, furnish it and let it by the night | The owner provides a furnished home; you run the bookings and the stays |
| Money you put in | High: rent up front, fees, deposit, furniture | Low: your time, a phone and a laptop |
| What you earn | What is left after rent and running costs | A fee or an agreed share of the income |
| Main risk | Empty nights while the rent is still due | The owner ending the arrangement |
| Best for | People with savings and a strong local market | People with time, local knowledge and good contacts |
A careful way in is to manage one or two homes for owners, learn the business, and only later take on a lease. That order limits what you can lose while you learn. If managing appeals, read how to become a shortlet agent.
Choosing the right home
In rent-to-rent, the home you choose decides most of your results. Before you sign, check it against the guests you want.
- Demand nearby. Guests book near offices, the airport, universities, beaches and places people visit. Look at how many shortlets are already listed in the area, and how busy they look.
- Security. A gated estate or a building with security at the gate is easier to let, and easier to protect.
- Power and water. Guests expect both. Check the power supply, the backup options and the water source before you commit.
- Size. Smaller homes are often easier to furnish and to fill on weeknights. Larger homes suit families and groups, but can sit empty for longer.
- The landlord. A landlord who is open to shortlets, and willing to put it in writing, is worth more than a slightly cheaper rent.
- The lease. The longer the lease, the longer you have to earn back what you spend on furnishing.
Written permission first
This is the step people skip, and it is the one that sinks them. A landlord who finds strangers coming and going can end your tenancy, and you lose everything you spent on furnishing.
If you are renting the home
- Read your tenancy agreement. It may not allow subletting, sharing or business use without the landlord’s consent. Our guide to the tenancy agreement in Nigeria explains what to look for.
- Ask openly. Tell the landlord you plan to let the home to short-stay guests. Explain how you will vet guests, protect the home and keep neighbours happy.
- Get it in writing. The letter or clause should name shortlet guests, say how long the permission lasts, and cover any limits, such as the number of guests.
- Check the estate or building rules. Some estates limit short stays, register visitors at the gate or charge extra levies. Ask the estate management before you sign.
If you are managing for an owner
- Agree in writing what you do, what the owner does, and who pays for what.
- Agree your fee or share, when it is paid and how bookings money is split.
- Agree who decides prices, who approves repairs above a set amount, and how either side can end the arrangement.
Paying a lawyer to read the agreement before you sign is usually money well spent, given what is at stake.
The numbers that must work
Before you sign anything, fill in this worksheet for one year. Use real quotes for your area, not guesses.
| Cost | For one year |
|---|---|
| Rent (rent-to-rent only) | ₦________ |
| Agency and legal fees, and the caution deposit you pay the landlord | ₦________ |
| Furniture, appliances, bedding and kitchenware | ₦________ |
| Backup power: inverter, solar or generator, and fuel | ₦________ |
| Electricity, water and internet | ₦________ |
| Cleaning and laundry between stays | ₦________ |
| Toiletries, water and restocking | ₦________ |
| Repairs and replacing broken items | ₦________ |
| Estate levies and service charge | ₦________ |
| Platform commission and your own time | ₦________ |
| Total yearly cost | ₦________ |
Now work out your break-even point:
- Decide a realistic night price by comparing similar homes near you on the short let page.
- Divide your total yearly cost by that night price. The answer is the number of nights you must let each year just to cover your costs.
- Compare it with the 365 nights in a year. If you need most of the year booked to break even, the plan is too tight.
Be honest about busy and quiet months. Demand is often higher in December and around events, and lower in other months. Your plan must survive the quiet months, because the rent does not stop. For more help, see our shortlet startup cost checklist and is a shortlet profitable?
One more test: can the lease pay back your furnishing costs before it ends? If you spend heavily on a flat with only a year left on the lease, you may never earn it back.
Risks to plan for
- The landlord changes their mind. Written permission helps, but a lease still ends. Ask for a longer lease and agreed renewal terms.
- Rent goes up at renewal. Build a rise into your plan, and walk away if the numbers stop working.
- Neighbours complain. Noise and too many visitors are common causes of complaints. Clear house rules and a firm guest limit help. See our shortlet house rules template.
- Damage. Take a caution deposit from guests, photograph the home before and after each stay, and fix things quickly.
- Quiet months. Keep a cash reserve that covers several months of rent and running costs.
- Power and water costs rise. Diesel and electricity prices change. Review your night price when they do.
- Your reputation. One bad stay can cost you future guests. Keep standards high from the first booking.
Running it as a proper business
Treat your shortlet as a business from day one. It protects you, and it makes landlords and owners trust you with more homes.
- Register a business name with the Corporate Affairs Commission (CAC), and open a separate bank account for it.
- Keep every receipt and a simple record of income and costs each month.
- Use written agreements with landlords, owners, cleaners and guests. Our shortlet guest agreement guide helps.
- Build a small, reliable team: a cleaner, a handyman and someone who can meet guests.
- Set a cleaning standard and check it. See the shortlet cleaning checklist.
- Ask about insurance for the contents and for damage. Speak to an insurer about what they will cover for short stays.
- Get tax advice. Income from shortlets can be taxable. A tax adviser can tell you what applies to you.
For the full picture, read our pillar guide: how to start a shortlet business in Nigeria.
Taking bookings on Cabans
Once your home is ready, you can take bookings online on Cabans. Guests pick their dates, see the full price with your cleaning fee and caution deposit, and pay online through Paystack. Paystack’s processing fee is paid by the guest, and they see it before they pay.
Cabans charges you a 5% commission. You are paid within 7 days after the guest’s stay, and sooner when the guest approves the payment after their trip. If you manage for owners, you can add team members to your store and give each the access they need. See how to make your short let bookable online, and learn the whole process in the free Host Academy.
Your first steps
- Decide your route: rent-to-rent or managing for owners.
- Fill in the worksheet with real numbers for your area.
- Get written permission from the landlord or a written agreement with the owner.
- Furnish and equip the home, and test the power, water and Wi-Fi.
- Write your house rules, arrival steps and cleaning checklist.
- List the home and set your prices.
When you are ready, list your short let on Cabans and take bookings online. To see what guests expect in your city, browse homes in Lagos or Abuja.
Frequently asked questions
Can I start a shortlet business without owning property?
Yes. The two common ways are to rent a flat and let it as a shortlet with the landlord’s written permission, or to manage shortlets for owners in return for a fee or a share of the income.
What is rent-to-rent for shortlets?
You rent a home on a normal lease, furnish it, and let it to guests by the night. You keep what is left after the rent and running costs. It only works with the landlord’s written permission and numbers that add up.
Do I need my landlord’s permission to run a shortlet?
Yes. Your tenancy agreement may not allow subletting or business use without the landlord’s consent. Get clear written permission that names shortlet guests before you spend anything. This is not legal advice; ask a lawyer to read your agreement.
How much money do I need to start?
It depends on the rent, the area and how you furnish. Budget for rent paid up front, agency and legal fees, a caution deposit, furniture, appliances, backup power and a cash reserve for quiet months. Work it out with our startup cost checklist.
Is managing shortlets for owners less risky?
Usually, because you do not pay the rent or furnish the home. You earn less from each booking, and you depend on the owner keeping the arrangement. A clear written agreement protects both of you.
What happens if my landlord does not renew the lease?
You lose the home and must move your furniture. Plan for it: ask for a longer lease, agree renewal terms in writing, and do not spend more on furnishing than the lease can pay back.
Related guides
How to start a shortlet business · How to become a shortlet agent · Shortlet startup cost checklist · Can I turn my flat into a shortlet? · Tenancy agreement in Nigeria
Take the next step
Keep your research practical: search for property in Lagos, compare live options for flat for rent in Lagos, or list your property on Cabans to reach active buyers and renters.
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