How Much Does It Cost to Set Up a Short-Let Apartment in Lagos?

The short-let rental market in Lagos is booming, driven by business travelers, digital nomads, expatriates, and tourists seeking stylish, flexible accommodation. As demand continues to soar, savvy investors are exploring the potential of short-let properties for steady income and strong ROI.

But how much does it really cost to launch a profitable short-let apartment in Lagos? Let’s break it down into two major categories: Capital Expenditure (CapEx) and Operational Expenditure (OpEx).

*Capital Expenditure (CapEx) or one time initial cost*

Item	Cost Estimate
Property Acquisition	₦150 million – ₦350 million per unit, depending on location and property type.
Interior Design & Furnishing	₦5 million – ₦15 million, influenced by luxury preferences.
Electronics & Appliances	₦2 million – ₦7 million, depending on brand and quality.
Legal & Agency Fees	₦7.5 million – ₦17.5 million, covering title verification and commissions.
Renovation & Fit-Out	₦2 million – ₦10 million, based on required upgrades.
Photography & Listing Prep	₦200,000 – ₦1 million for professional marketing.

 

*Operational Expenditure (OpEx)*

Item	Monthly Cost Estimate
Housekeeping & Laundry	₦200,000 – ₦500,000 per month.
Maintenance	₦100,000 – ₦400,000 per month.
Utility Bills	₦250,000 – ₦700,000 per month, largely due to high electricity costs.
Platform Commissions	3%–15% per booking.
Replenishments	₦50,000 – ₦200,000 per month.
Security & Concierge (Optional)	₦100,000 – ₦500,000 per month.
Taxes & Rates	N1million per annum
Management Fee (If Outsourced)	10%–25% of monthly revenue.

 

What Should Investors Expect?

✅ High Returns: Well-managed short-let units in hot zones like Lekki Phase 1 or Victoria Island can earn gross income of up to ₦2,500,000+ monthly for a 1-bedroom apartment for high occupancy rates.

✅ Occupancy Rate: Lagos short-let apartments average 60%–85% occupancy when properly marketed and located.

✅ Flexibility: You can block dates for personal use or shift between short-let and long-term rental depending on market trends.

Pro Tip for Investors

Partnering with a reputable short-let management company like Zuzlon Properties Limited ensures end-to-end support — from property procurement and furnishing to Airbnb listing and guest services. We help you minimize risks and maximize rental income.

Are you ready to invest in Lagos’ short-let goldmine?

Contact us at Zuzlon Properties Limited for curated property sourcing, professional setup, and seamless short-let management.

📞 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