Short-let apartments are rapidly gaining ground in Lagos as landlords and property investors increasingly move away from traditional long-term rentals.
This trend is emerging amid tight housing supply in the residential lease market and growing concerns around rental risks.
Findings from Nairametrics interviews with operators across the state show that higher returns, reduced tenant risk, and strong demand—particularly from Nigerians in the diaspora—are driving the shift.
The growing presence of short-let units across multiple neighborhoods, along with developers introducing luxury options, highlights the rapid expansion and competitiveness of this emerging market.
What they are saying
Speaking with Nairametrics, Founder of Theglams Realtor & Charoite Stones Limited, Lateef Mobolaji, said short-let apartments have consistently outperformed conventional long-term residential leases.
- He highlighted the Ikate area, where two-bedroom units offer significantly higher income potential through short-term bookings, even at moderate occupancy.
- He noted that operators often spend millions to furnish and equip their properties, ensuring they remain attractive to clients.
“Even with 50% occupancy, short-let units outperform conventional rentals. By the end of the first year, operators who record at least 50% occupancy can recover their initial investment and start making profits throughout the second year,” Mobolaji explained.
Chief Operating Officer of Deity Homes Int’l Limited, Moyosore Badejo, echoed similar views, emphasizing that short-let apartments provide higher, more predictable returns than conventional leases while giving owners control over the property’s condition.
“For a two-bedroom property in Ikeja GRA that goes for N6 million per year as residential rent, I can make N500,000 in just five days of bookings a week at N100,000 per day. With around 70% occupancy, such a short-let unit can generate about N18 million annually, or roughly three times the income of residential rent,” he said.
Other reasons landlords and investors prefer short-let
Badejo explained that short-let units reduce the risks associated with long-term tenants. He noted that some of his properties were previously leased conventionally, but tenants often struggled to renew after the first year, sometimes paying in installments or delays—a problem that does not occur with short-term rentals.
- He added that permanent occupancy in conventional residential leases also places more load on the property, resulting in higher repair and maintenance costs when tenants eventually move out.
- Other factors are driving landlords and investors toward short-let apartments. Michael Obot, who manages two four-bedroom duplexes in Ikeja for a property owner, told Nairametrics that the units were originally purchased for personal use, but the owner could not occupy them.
“Keeping the apartments idle or putting them on long-term lease wasn’t practical. Short-term rentals allowed the units to generate income while still giving the owner the flexibility to move in whenever needed,” he said.
Converting the units into short-term rentals allowed them to generate income while remaining available for personal use.
- Badejo further noted that some of his short-let properties were once leased conventionally, but tenants often struggled to renew after the first year. When renewals occurred, they were sometimes partial or delayed, an issue not present with short-stay arrangements.
- He added that permanent occupancy in conventional leases increases wear and tear, leading to higher repair and maintenance costs when tenants move out and the property needs to be prepared for the next occupant.
Challenges of an expanding short-let market
While short-let apartments offer attractive returns, operators highlighted challenges arising from the rapid growth of the sector.
Mobolaji explained that many Nigerians in the diaspora, who previously stayed in short-let units during visits, are now building and listing their own properties for short-let.
Some of these units were occupied by the owners during the festive period of 2025, particularly in December and New Year, adding more supply to an already growing market.
He also noted that landlords are increasingly giving tenants quit notices to either rent their apartments to short-let operators or manage the short-let business themselves.
“The growing appeal of short-let operations has contributed to rising rent prices, particularly in high-demand areas such as Lekki,” Mobolaji said.
The influx of new units has created abundant options for clients, intensifying competition among short-let operators.
As a result, operators now face pressure to maintain high-quality interiors, furnishings, and professional management to attract bookings and remain profitable.
Staying competitive in a crowded market
As the short-let sector grows, operators and developers are adopting strategies to maintain profitability and attract clients.
To encourage repeat bookings, operators focus on offering experiences that clients’ own homes cannot provide, including premium features, entertainment options, seamless operations, secure locations, and an inviting ambience.
Developers are also pivoting to luxury offerings to stand out in a market where basic units have become the norm.
Temidayo Oleyede, CEO of Edala Development, told Nairametrics that in Lagos, where most short-let units are standard, luxury and professionally managed apartments are necessary to differentiate properties.
“Luxury and professionally managed units are necessary to stand out in a market where basic apartments are standard. Investors are seeking well-managed short-let units because they offer predictable returns that outperform traditional residential rentals,” he noted.
Edala’s ongoing Yaba project, for example, is being developed as a luxury property with a rooftop pool and enhanced amenities aimed at high-end clientele.
Since 2025, competition has prompted some operators to shift toward renting fully furnished apartments for conventional residential leases. Furnished units generate higher income than empty apartments, and because the furnishings are carefully selected for each property, removing or selling them is often impractical.
Offering ready-to-use, well-equipped homes allows landlords and operators to maximize income while meeting tenants’ demand for convenience and quality.
What you should know
The growing shift toward short-let apartments is taking place at a time when Lagos is already facing constrained supply in the residential lease market.
While operators said diaspora-driven demand continued to support short-let bookings, experiences during the 2025 Detty December season were mixed.
Several operators noted that the festive period was tougher than in previous years, largely due to a surge in new short-let apartments that spread demand across more units.
They added that bookings dropped sharply after the first week of January 2026, unlike earlier periods when strong demand often extended into February, with fewer guests opting for extended stays.
