Shortlets vs annual rentals in Nigeria: when each makes sense

You're moving to Lagos for a 4-month project. Or relocating from Abuja to Port Harcourt with your family and waiting for your permanent place to become available. Or you're back in the country for a few weeks and need somewhere to stay that isn't a hotel. The question: do you rent a shortlet at ₦25-80k per night, or a regular annual flat at ₦1.8M/year?

The answer isn't automatic. Shortlets and annual rentals solve different problems at different price points, and choosing wrong means either paying 3-5x what you should have, or locking yourself into a lease that doesn't fit your real timeline. This guide covers when each makes sense, the economics, and the specific Nigerian context that shifts the math. For the broader rental process see the pillar how to rent a house in Nigeria.

The price comparison

Let's anchor on Lagos, since that's the biggest shortlet market.

A 2-bed serviced flat in Lekki Phase 1:

• Shortlet: ₦40,000-₦80,000 per night depending on finish. Monthly rate typically ₦800,000-₦1,800,000 (with a 20-40% discount vs nightly).
• Annual rental: ₦1,800,000-₦2,800,000/year for equivalent finish. Implicit monthly cost: ₦150k-₦234k.

At face value, the shortlet costs 5-8x the annual monthly equivalent. But the shortlet includes things the annual doesn't: furniture, utilities, cleaning, internet, cable TV, often a cook or part-time cleaner, 24-hour power, security.

The real comparison for a 3-month stay:

Cost category	Annual rental (3 months)	Shortlet (3 months)
Rent	₦450,000	₦0
Shortlet rate	₦0	₦1,500,000-₦3,000,000
Caution + fees	₦900,000 (refunded later)	₦0
Furniture	₦500,000-₦2,000,000	₦0
Utilities setup	₦50,000-₦150,000	₦0
PHCN + generator	₦75,000	₦0
Cleaning	₦45,000	₦0
Internet + cable	₦60,000	₦0
Total cash out	₦2,080,000-₦3,680,000	₦1,500,000-₦3,000,000
Refundable portion	₦900,000	₦0
Net cost	₦1,180,000-₦2,780,000	₦1,500,000-₦3,000,000

For a 3-month stay, they're often similar in total cost. The shortlet wins on flexibility and zero-setup-hassle. The annual rental wins if you extend beyond 3 months or if you have your own furniture ready.