Short-Let vs Traditional Rental: Which Gives Better Returns in Lagos?

The Lagos property market is evolving—and so are the ways investors generate income from real estate. If you’re a property owner or potential investor wondering whether to choose short-let or traditional rental, this guide breaks down the pros, cons, and returns of both options in the unique Lagos market.

1. Income Potential

🔹 Short-Let Apartments

Short-lets (typically 1–30-day bookings on platforms like Airbnb) can generate 2x to 3x more revenue per month than long-term rentals. A one-bedroom apartment in Lekki Phase 1, for example, can command ₦60,000 – ₦100,000 per night, translating to up to ₦2.5 million monthly at high occupancy rates.

🔹 Traditional Rentals

Long-term leases in the same area may yield ₦2 – ₦4 million annually, paid upfront. While this provides stability, the monthly income equivalent is far lower—around ₦160,000 to ₦330,000/month.

🏆 Winner: Short-Let

In high-demand areas, short-lets clearly outperform traditional rentals in raw income potential.

 

2. Tenant Types & Risk

🔹 Short-Let Tenants

Guests are often business travelers, tourists, digital nomads, or professionals attending events. The tenant turnover is high, but with good screening and property management, risks can be mitigated. Reviews on Airbnb also encourage better behavior from guests.

🔹 Traditional Rental Tenants

You typically lease to families or working professionals for 1–2 years. While this reduces tenant turnover, the risks can include late payments, property wear, and costly eviction processes in Nigeria’s landlord-tenant legal system.

🏆 Winner: Tie

Short-lets have higher turnover but offer better control. Long-term leases provide predictability but may involve tenancy disputes.

 

3. Flexibility and Control

🔹 Short-Let

You control pricing, availability, and occupancy. If property values rise, or you want to sell, you can take your listing offline quickly. You also have flexibility to use the space for personal reasons.

🔹 Traditional Rental

Once you sign a 1–2 year lease, your property is locked in. Rent reviews are less frequent, and you cannot repossess the property at will without legal implications.

🏆 Winner: Short-Let

Short-lets provide more operational and strategic flexibility.

 

4. Operational Costs

🔹 Short-Let

You’ll need to furnish and maintain the apartment at a higher standard. Costs include housekeeping, guest services, utility bills, and platform fees. However, these are passed onto the guest via premium nightly rates.

🔹 Traditional Rental

Most tenants cover utility bills. Furnishing is optional. Maintenance obligations are typically fewer unless the lease states otherwise.

🏆 Winner: Traditional Rental

Short-lets require more capital and consistent operational attention.

 

5. Market Trends in Lagos

Short-lets are on the rise, especially in Lekki, Ikoyi, Victoria Island, Ikeja GRA, and Yaba. Lagos sees high inflow of corporate guests, digital professionals, and event visitors who prefer Airbnb-style setups over hotels.

Traditional rentals are becoming harder to increase in price due to inflation, tenant negotiation power, and regulatory pressures.

 

Conclusion: Which Should You Choose?

 

Criteria                                                   Short-Let                                            Traditional Rental

Income Potential                                   ⭐⭐⭐⭐ ⭐                                              ⭐⭐

Flexibility                                               ⭐⭐⭐⭐⭐                                                ⭐⭐

Tenant Risk                                           ⭐⭐⭐                                                           ⭐⭐⭐

Operational Demand                           ⭐⭐                                                                ⭐⭐⭐⭐

Return on Investment                        ⭐⭐⭐⭐                                                      ⭐⭐

 

If you’re seeking higher returns, dynamic pricing, and control, short-let is the way to go—especially with a professional property management partner like Zuzlon Properties Limited.

If you prefer hands-off investing with consistent annual income and minimal involvement, traditional leasing might suit you better.

At Zuzlon Properties, we help investors like you acquire the right property, furnish it beautifully, list it strategically, and manage it profitably on platforms like Airbnb.

📩 Ready to start earning more from your property? Let’s help you turn it into a short-let success.

📞 Contact us today! 0912 580 4472; 0814 798 5930

🌐 https://zuzlonproperties.com

📩 enquiry@zuzlonproperties.com or DM us

Zuzlon Properties Limited

Transforming Spaces, Creating Value