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I started this shortlet business from scratch. A few years back, I was barely making ends meet. Bills piled up, and dreams felt like a luxury I couldn’t afford. Then one day, while helping a friend look for a place to stay in Lagos for a few nights, an idea hit me. I thought, “What if I rented out a small place myself?” The shortlet business was buzzing, but I had no capital and very little knowledge of how to even start.

I was determined, though. I scraped together every naira I could find and managed to put down a deposit on a modest one-bedroom flat in a neighborhood that was cheap but safe. I didn’t even have extra money for furniture, so I sourced second-hand items that I could find and took time to make it feel welcoming. With just that, I listed the property on Airbnb. At first, bookings were rare. When a guest finally stayed, they left a glowing review. That review was my first push forward.

As months went by, I saved every bit of profit and slowly upgraded the apartment, adding better amenities and improving the look. My reputation began to grow. Guests appreciated my humble yet cozy spot, and referrals came in. Soon enough, I had enough savings to rent a second apartment, then a third. I invested back into the business every step of the way, improving quality and expanding cautiously.

Now, looking back, I manage a range of properties in high-demand locations, each tailored to offer comfort and convenience. I went from barely paying bills to being a self-made millionaire in a business I had no idea would change my life. It wasn’t just about profits, though; it was the pride of building something from scratch. My journey isn’t just about money—it’s about proof that, with persistence and the willingness to start small, anyone can turn a dream into reality.

Navigating Nigeria’s real estate market has become a path many people are exploring, especially with the rise of short-term rental opportunities known as shortlets. The shortlet industry has quickly become a lucrative avenue for generating income, providing short-term accommodation solutions for tourists, business travelers, and even locals looking for temporary stays. This article breaks down the essentials, offering practical steps and strategies to help you enter and profit from Nigeria’s shortlet market.

Understanding the Shortlet Market in Nigeria

Shortlets refer to short-term rental properties available for daily, weekly, or monthly stays, making them a flexible option for guests who want an alternative to hotels. Nigeria’s increasing tourism, business activities, and demand for flexible housing solutions make shortlets a growing market in cities like Lagos, Abuja, and Port Harcourt. Shortlets combine the privacy and convenience of a personal home with the flexibility of hotel stays, drawing in a variety of guests.

Is Shortlets Business Profitable in Nigeria?

The profitability of shortlets is largely driven by a growing demand from tourists, expats, and locals needing temporary accommodations. Shortlets can yield higher returns than long-term rentals as landlords can adjust prices based on demand, peak seasons, and specific events like festivals or conferences. The ability to charge a premium on weekends and holidays can significantly increase the property’s revenue potential.

Helpful Steps to Set Up Your Shortlet Business as a Beginner

Starting a shortlet business requires careful planning. This involves selecting the right property, furnishing it, setting competitive rates, and marketing it effectively. Here’s how to set up each part.

1. Choose the Right Property Location

Location is crucial in the shortlet business. Properties located in busy commercial areas, tourist-friendly neighborhoods, or high-demand cities have a higher chance of attracting guests. In Nigeria, neighborhoods like Lekki, Victoria Island in Lagos, and Maitama in Abuja are popular choices due to their accessibility, amenities, and security.

2. Furnish and Style the Property You want to use for Your Shortlet Business

Your property’s appeal lies in its comfort, aesthetic, and functionality. Invest in quality furniture, appliances, and decor that make your shortlet inviting and homely. Some essentials include:

• Comfortable beds: Prioritize comfort; beds should have high-quality mattresses and pillows.
• Fully equipped kitchen: Include basic cooking equipment and utensils.
• Reliable internet connection: Fast and reliable Wi-Fi is essential for most guests.
• Stylish decor: Invest in decor that makes the property stand out and look welcoming. Neutral colors and minimalistic designs work well in most cases.

3. Set Up the Right Price for Maximum Profit

Effective pricing requires researching the average rates of similar properties in your area. Here are some strategies:

• Dynamic pricing: Adjust prices according to demand. During peak tourist seasons or events, increase rates to match the higher demand.
• Discounted long stays: Offer lower rates for weekly or monthly stays to attract guests staying longer.
• Promotions: Consider special offers or discounts for early bookings, weekdays, or repeat customers.

4. List Your Property on Different Shortlet Platforms

Platforms like Airbnb, Booking.com, and Nigeria’s own shortlet-focused websites are ideal listing your property. When creating your listing:

• Use quality photos: High-resolution images showcasing the property’s rooms, amenities, and unique features can attract potential guests.
• Highlight key amenities: Mention features like free Wi-Fi, air conditioning, and proximity to local attractions.
• Provide accurate descriptions: Detail what makes your property unique and set clear expectations for guests.

5. Manage Guest Experience by Provide a Lasting Impression

Providing a memorable guest experience is essential to securing repeat bookings and positive reviews, which can increase the property’s visibility and credibility. Here’s how to ensure a great guest experience:

• Timely communication: Respond promptly to guest inquiries and offer clear instructions for check-in and check-out.
• Cleanliness: Ensure the property is thoroughly cleaned before each new guest arrives.
• Personal touches: Adding small welcome gifts, like bottled water or snacks, can create a positive impression.

6. Handle Security and Legal Considerations

Security is paramount in Nigeria’s shortlet business. Ensure the property has a secure lock system, security cameras (if necessary), and maybe even a security guard if the area demands it. Additionally:

• Tenant screening: Screening guests can help avoid security issues. Reputable platforms like Airbnb offer identity verification features.
• Legal documentation: Comply with local regulations and ensure you have the necessary documentation. This includes registering your shortlet business if required by your city or state authorities.

7. Set Up a Maintenance Plan for your Shortlet Property

A well-maintained property is key to sustaining income from shortlets. Establish a reliable maintenance plan to handle any issues swiftly:

• Regular inspections: Schedule monthly inspections to check for wear and tear on furniture, fixtures, and appliances.
• Quick repairs: Respond quickly to any guest complaints or reported issues. Collaborate with reliable repair services or keep a list of trusted maintenance personnel for quick response.

8. Market Your Shortlet Business Online

To attract consistent bookings, effective marketing is essential. Below are strategies to consider:

• Leverage social media: Create social media pages for your shortlet business and post images, promotions, and guest reviews. Platforms like Instagram and Facebook are excellent for showcasing your property visually.
• Collaborate with influencers: Partner with local influencers or travel bloggers to promote your property. This can be especially effective in attracting more guests.
• Build a website: A simple website with photos, descriptions, and booking details can give your property a more professional presence.

9. Optimize Your Property Listing for SEO

Search Engine Optimization (SEO) isn’t just for websites alone, it’s also vital for online listings on platforms like Airbnb. Use keywords that guests frequently search for, like “shortlet in Lekki” or “affordable Abuja shortlet.” Descriptions that incorporate relevant keywords can increase your listing’s visibility on search engines and within shortlet platforms.

10. Practice Seasonal Pricing and Promotion Tactics

Implement seasonal pricing strategies to take advantage of peak travel periods. Offer promotions during low seasons or for early bookings to keep bookings steady year-round.

11. Manage the Financial Record of your Shortlet Business by Investing on Accounting Software

Most shortlet platforms handle payments, but if you’re accepting direct bookings, ensure secure payment methods. Create a detailed financial record to track income, expenses, and profits. Investing in accounting software can help manage finances and optimize tax deductions.

Helpful Ways to Address Challenges in the Shortlet Market Business

Running a shortlet business isn’t without challenges. Common issues include dealing with difficult guests, managing property maintenance, and handling fluctuating demand. Here’s how to tackle some of these:

• Difficult guests: Establish clear house rules in your listing and ensure guests agree to them before booking.
• Fluctuating demand: Diversify your marketing to reach more potential guests and consider lowering prices during off-seasons.
• Property damage: Use a security deposit to cover potential damages. Platforms like Airbnb also offer host protection insurance for such cases.

Helpful Tips to Scale Up Your Shortlet Business as a Beginner

Once you’ve successfully managed a single property, consider expanding by adding more properties. You can diversify locations to attract different types of guests, or scale up within the same area if demand is high. Building a network of trusted cleaners, maintenance staff, and even property managers can help support this growth.

How do I Analyze and Improve My Shortlet Business as a Beginner?

Regularly analyze your business’s performance to identify areas for improvement. Use metrics like occupancy rates, guest reviews, and financial performance. This analysis will help you refine pricing, improve guest experiences, and maximize profitability.

Benefits of Running a Shortlet Business in Nigeria

The shortlet business offers flexibility and potentially high returns, especially in demand-heavy cities. It’s an opportunity to diversify income streams, attract both local and international guests, and provide a unique, personalized accommodation option.

Frequently Asked Questions (FAQs)

Here are answers to frequently asked questions on making money with Shortlets Business in Nigeria.

What type of properties work best for shortlet rentals in Nigeria?

In Nigeria, certain types of properties perform better in the shortlet market, depending on location and target clientele. Apartments and serviced apartments in urban areas like Lagos, Abuja, and Port Harcourt are particularly popular because of their convenience, security, and modern amenities. Luxury villas or houses with pools also attract high demand, especially for guests seeking privacy and comfort. For properties outside major cities, houses close to tourist attractions or business hubs often do well. It’s best to research local demand to see which property type is favored in the desired area.

How can I calculate the potential income from a shortlet property?

Calculating potential income for a shortlet starts by estimating occupancy rates and daily rates in your location. Start with an average daily rate based on nearby shortlet listings and adjust for amenities and location quality. Then, estimate the average occupancy rate, which might range from 50% to 90%, depending on location and season. Multiply the daily rate by the estimated number of booked days per month to get a rough monthly income. Don’t forget to subtract recurring expenses like cleaning, utilities, and platform fees to find your net profit potential.

What are the best ways to advertise a shortlet in Nigeria?

To maximize visibility, list your shortlet property on popular booking platforms such as Airbnb, Booking.com, and Jumia Travel. Social media platforms like Instagram and Facebook also offer great advertising potential, especially with targeted ads to reach potential clients. For local audiences, consider advertising on Nigerian property websites and forums that cater to travelers and short-term renters. Word of mouth, partnerships with local event organizers, and good reviews are also excellent ways to boost visibility and credibility.

Is it better to manage shortlets independently or hire a management company?

This depends on your availability, experience, and the property location. Self-management can save costs, allowing you to handle bookings, cleaning, and maintenance. This route is best if you’re nearby and able to manage day-to-day operations. A management company, on the other hand, offers convenience, experience, and often better resources for handling guest relations, maintenance, and marketing, though it comes at a higher cost. If the shortlet is a side business or located far from where you live, hiring a management company might be the best choice to ensure smooth operations.

What legal requirements should I be aware of when running a shortlet business?

Operating a shortlet in Nigeria may require specific legal permissions, depending on the area. Some residential areas restrict short-term rentals, so check local zoning laws. You may also need a business license, tax identification, and compliance with tourism regulations. In some cases, landlords or homeowners’ associations have rules about shortlets. Additionally, paying taxes on shortlet income is important to avoid legal issues. Consulting a local legal expert can ensure all requirements are met and help you avoid penalties.

How can I stand out in the Nigerian shortlet market?

To stand out, focus on providing a unique guest experience and competitive amenities. Offering fast Wi-Fi, Netflix subscriptions, complimentary snacks, and essentials like toiletries adds value for guests. Beautiful interior design, themed decor, and quality photographs can also make a difference in attracting bookings. Consider offering add-ons like airport pick-up services, housekeeping, or discounted rates for longer stays. Above all, maintaining a spotless, welcoming property and excellent customer service will earn you good reviews, which are essential for building reputation and attracting more bookings.

What are some common challenges in running shortlets in Nigeria?

Running a shortlet business in Nigeria comes with challenges like fluctuating occupancy rates, competition, and maintenance issues. Power supply can be an issue in some areas, so having a generator or inverter is often necessary. Seasonal demand can impact bookings, with lower occupancy rates outside peak holiday seasons or in off-tourist areas. Managing repairs and wear-and-tear from frequent guest turnover is another challenge. Lastly, some hosts face issues with difficult guests, requiring strong policies and good communication to maintain smooth operations.

How can I protect my shortlet property from damages by guests?

Protecting your property from potential damage is essential. Requesting a security deposit before check-in can cover minor damages, and setting clear house rules helps prevent misuse of property. You can also invest in shortlet insurance to cover more significant damages or accidents. Regular property checks between bookings help you spot and address issues before new guests arrive. Also, consider installing security features like cameras at the entrance or smart locks for added security and peace of mind.

Are there peak seasons for shortlet bookings in Nigeria?

Yes, Nigeria has peak seasons where shortlet bookings increase significantly, often during major holidays, festivals, and events. December holidays are especially busy, with an influx of people visiting family or attending year-end events. Easter, long weekends, and popular festival seasons also see higher demand. The business travel season, which depends on industry-specific events, also impacts demand, particularly in cities like Lagos and Abuja. By adjusting rates or offering promotions during peak and off-peak seasons, you can manage occupancy and optimize revenue throughout the year.

Closing Thoughts

Starting a shortlet business in Nigeria offers an exciting and profitable venture, but it also requires time, investment, and dedication. From property selection to guest management, there are many factors to consider. With the right strategy, attention to detail, and a commitment to quality, you can create a profitable shortlet business that meets the needs of travelers and locals alike, while achieving your own financial goals.

Building a successful shortlet business involves thoughtful planning and execution, but the rewards can be well worth the effort. If you’re ready to enter the market, take these steps, stay consistent, and you’ll likely see positive returns on your investment.