- Shortlets earn more per night but cost more to run and sit empty some days.
- Power, cleaning and platform fees are the costs owners forget.
- If the numbers only work in your best month, the deal is risky.
The Short Answer
A shortlet earns more per night than a long-term rental, but it also costs more to run and sits empty some days. It can work well in areas with steady demand from business travellers, tourists and visiting families. It works badly when the owner estimates income using only the best nights. Work out your real numbers first.
How Shortlets Make Money
You furnish an apartment and rent it by the night or week through booking platforms, direct bookings and referrals. Income depends on three things: the nightly rate, how many nights you actually fill (occupancy), and how well you manage reviews and repeat guests.
The Costs Owners Forget
Beyond rent or mortgage, budget for furnishing and replacing items, cleaning and laundry after every stay, electricity and internet, water, generator fuel or inverter backup, security, repairs, management fees and platform commissions. Add a reserve for months with low bookings. In Nigeria, power and cleaning are often the biggest running costs, so price them honestly.
A Simple Profit Estimate
Use this formula: nightly rate × nights booked per month = gross income. Subtract platform fees, cleaning, utilities, management and repairs to reach net income. Then divide your total startup cost by monthly net income to estimate payback time.
Test it with three cases: a weak month, an average month and a strong month. If the numbers only work at the strong case, the investment is risky. Use real prices from similar listings in the same area, not guesses.
Choosing the Location and Setup
Location decides everything. Look for easy access to business districts, airports, restaurants and beaches, and reliable security and road access. Guests value clean linen, strong Wi-Fi, steady power, hot water and clear photos more than luxury finishes. Check estate rules and local regulations too, because some buildings restrict short stays.
Managing It Well
Fast replies, a clear check-in process and consistent cleaning drive reviews, and reviews drive bookings. If you cannot manage it daily, hire a reputable property manager and agree fees and responsibilities in writing.
Action Checklist
- Research nightly rates and occupancy of similar listings nearby
- List every monthly cost, including power, cleaning and platform fees
- Run weak, average and strong month estimates
- Calculate payback time from your startup cost
- Confirm building, estate and local rules allow short stays
- Set up a cleaning, check-in and maintenance routine
- Agree manager fees and duties in writing if you hire one
