Short Letting: What It Is, Types, and Its Significance in Real Estate
Short Letting: What It Is, Types, and Its Significance in Real Estate
Short letting has become an increasingly important part of the modern real-estate and accommodation market. Unlike traditional tenancy arrangements that may last for months or years, short lets allow people to occupy a furnished property for a relatively short period—often a few nights, weeks, or several months.
For property owners, short letting can create an additional income opportunity. For travellers, business professionals, families and temporary residents, it provides flexibility without the long-term commitment of a conventional tenancy.
1. What Is Short Letting?
Short letting is the practice of renting out a property or furnished accommodation for a relatively short period, rather than under a conventional long-term tenancy.
A short-let property may be rented for:
One night
A weekend
Several days
One or two weeks
A month
Several months
The exact duration depends on the property owner, operator, local regulations and the terms of the agreement.
Short-let properties are commonly fully or partly furnished and may include facilities such as:
Bed and furniture
Kitchen
Television
Wi-Fi
Air conditioning
Generator or alternative power supply
Security
Cleaning services
Parking
Laundry facilities
The tenant or guest normally pays according to the agreed period of occupation.
Simple example
Someone travelling to Lagos for five days may prefer to rent a furnished apartment for those five days instead of signing a one-year tenancy agreement.
That is a typical short-let arrangement.
2. Short Let vs Traditional Rental
The major difference is usually the length and nature of occupation.
| Short Let | Traditional Rental |
|---|---|
| Usually short-term | Usually medium- or long-term |
| Often furnished | May be unfurnished or furnished |
| Daily, weekly or monthly pricing may apply | Rent is commonly structured for a longer tenancy |
| Suitable for temporary stays | Suitable for longer-term residence |
| Often includes utilities/services | Utilities may be paid separately |
| Greater flexibility | Greater long-term stability |
The exact distinction depends on the property, agreement and applicable local rules.
3. Types of Short Lets
Short letting can take several forms.
A. Daily Short Let
A property is rented for a short period, commonly one or several nights.
This can be useful for:
Tourists;
Visitors;
People attending events;
Individuals on short business trips;
People needing temporary accommodation.
For example, a furnished apartment may be rented for three nights.
B. Weekend Short Let
This arrangement is designed around short weekend stays.
It can appeal to people looking for:
Weekend accommodation;
Leisure trips;
Family visits;
Events;
Celebrations;
Short breaks.
C. Weekly Short Let
The property is rented for approximately one week or another agreed short period.
Weekly arrangements may be useful for:
Business travellers;
Families visiting another city;
Temporary workers;
People relocating;
Visitors attending extended events.
D. Monthly Short Let
A monthly short let allows someone to stay for approximately one month without entering into a conventional long-term tenancy.
It may be suitable for:
Relocation;
Temporary work assignments;
Students;
Project workers;
Medical or family-related travel;
People waiting for permanent accommodation.
E. Serviced Apartment
A serviced apartment combines residential accommodation with hotel-like services.
Depending on the property, services may include:
Housekeeping;
Wi-Fi;
Security;
Laundry;
Concierge services;
Utilities;
Reception;
Maintenance.
Serviced apartments can therefore provide an alternative to conventional hotels for certain travellers.
F. Executive Short Let
Executive short lets are typically designed for professionals, executives and corporate visitors.
They may offer:
High-quality furniture;
Reliable internet;
Dedicated workspace;
Modern kitchen;
Security;
Power backup;
Cleaning;
Convenient locations.
They are particularly useful for people who need temporary accommodation while working away from their permanent residence.
G. Vacation or Holiday Short Let
These properties are designed primarily for leisure stays.
They may include:
Apartments;
Villas;
Holiday homes;
Beach properties;
Resort-style accommodation.
The emphasis is generally on comfort, convenience and recreational use.
H. Corporate Short Let
Companies may rent furnished accommodation for employees, consultants, contractors or executives who need temporary accommodation.
For example, a company may require an apartment for an employee who will spend two months working on a project in another city.
4. Why Is Short Letting Important?
Short letting has significance for both property owners and occupants.
For Property Owners
1. Potential Income Opportunity
A property owner can use short letting as an alternative way of generating rental income.
Depending on demand, location, occupancy and operating costs, short-let accommodation may produce different revenue patterns from conventional long-term rentals.
However, higher potential revenue does not mean guaranteed profit.
2. Flexibility
Short letting allows owners to adjust availability according to their circumstances.
An owner may decide to:
Rent the property during certain periods;
Reserve it for personal use at other times;
Change pricing according to demand;
Temporarily stop accepting bookings.
The actual flexibility depends on the property's operating arrangements and applicable regulations.
3. Access to Different Customer Groups
Short-let properties can attract:
Tourists;
Business travellers;
Corporate clients;
Families;
Relocating professionals;
Event attendees;
Temporary residents.
This gives property owners access to a broader accommodation market.
5. Importance to Tenants and Guests
1. Flexibility
A major advantage of short letting is that occupants do not necessarily need to commit to a conventional long-term tenancy.
Someone who needs accommodation for two weeks may not want a one-year rental commitment.
2. Furnished Accommodation
Many short-let properties come furnished.
This can save temporary occupants from purchasing or transporting:
Beds;
Sofas;
Tables;
Kitchen equipment;
Television;
Other household items.
3. Convenience
Short-let accommodation may combine accommodation with services such as:
Wi-Fi;
Cleaning;
Utilities;
Security;
Maintenance.
This can make temporary accommodation more convenient.
4. Suitable for Relocation
People moving to a new city can use a short let while searching for permanent accommodation.
For example:
A family relocating from Abuja to Lagos could stay in a short-let apartment for one month while searching for a permanent home.
6. Short Letting and Real Estate Investment
Short letting can form part of a property's investment strategy.
An investor may acquire or furnish a property with the intention of operating it as short-term accommodation.
However, investors should consider more than the advertised daily rate.
Important factors include:
Purchase cost;
Furnishing costs;
Location;
Occupancy rate;
Cleaning costs;
Maintenance;
Security;
Utilities;
Management fees;
Platform or marketing fees;
Taxes and applicable charges;
Local rules and restrictions;
Insurance;
Periods of low demand.
Example
Suppose an apartment is advertised at ₦100,000 per night.
It would be incorrect to assume that:
₦100,000 × 30 days = ₦3,000,000 guaranteed monthly income.
The property may not be occupied every night, and operating expenses must also be considered.
This is why occupancy and net income are more meaningful investment considerations than the advertised nightly rate alone.
7. Short Letting in Nigeria
Short-let accommodation is visible in many Nigerian cities, particularly locations with significant business, tourism, entertainment and corporate activity.
Examples include areas of:
Lagos;
Abuja;
Port Harcourt;
Ibadan;
Enugu;
Kano;
Uyo;
Other major cities.
Demand can be influenced by:
Business activity;
Tourism;
Conferences;
Weddings and events;
Entertainment;
Diaspora visits;
Relocation;
Corporate assignments.
However, short-let operators should check the current rules applicable to their particular location, property and building before operating.
Some estates, developments, landlords, local authorities or building management arrangements may impose restrictions or requirements.
8. What Makes a Good Short-Let Property?
A successful short-let property often depends on more than the building itself.
Important considerations include:
Location
Guests generally value convenient access to:
Business districts;
Airports;
Shopping;
Restaurants;
Entertainment;
Hospitals;
Major roads;
Event centres.
Comfort
Important features can include:
Comfortable beds;
Clean bathrooms;
Functional kitchen;
Good ventilation;
Air conditioning;
Reliable water supply.
Connectivity
Fast and reliable internet can be particularly important for business travellers and remote workers.
Security
Guests often consider the security of the building and surrounding neighbourhood before booking.
Power and Utilities
In locations where electricity reliability is an issue, alternative power arrangements can be an important consideration.
Cleanliness
Cleanliness is one of the fundamental requirements of short-term accommodation.
9. Challenges of Short Letting
Short letting can also involve significant responsibilities.
Property owners may need to manage:
Frequent guest turnover;
Cleaning;
Repairs;
Maintenance;
Booking management;
Customer complaints;
Security;
Utilities;
Marketing;
Guest verification;
Property damage;
Periods of low occupancy.
Therefore, short letting should not be viewed simply as "collecting daily rent."
It is often an active accommodation-management business.
10. Short Let Management
An owner can manage the property personally or appoint a short-let management company or property manager.
A manager may handle:
Guest communication;
Booking;
Check-in;
Check-out;
Cleaning;
Maintenance;
Pricing;
Marketing;
Guest support.
Professional management can reduce the owner's workload, although management fees and other costs must be considered.
11. Short Letting vs Hotel Accommodation
Short lets and hotels can serve similar customers, but their structures are different.
A hotel typically operates with:
Standardized rooms;
Reception services;
Hotel management;
Daily housekeeping;
Hotel-specific facilities.
A short-let apartment may provide:
A full apartment;
Kitchen;
Living room;
Greater residential privacy;
More space;
Longer temporary stays.
The better option depends on the guest's needs, budget, duration and preferred facilities.
12. Things to Check Before Booking a Short Let
Before paying for a short-let property, prospective guests should confirm:
Exact location;
Total price;
Number of nights;
Check-in and check-out times;
Security arrangements;
Power supply;
Water supply;
Internet availability;
Cleaning arrangements;
Cancellation policy;
Refund policy;
Guest rules;
Parking availability;
Additional charges;
Identity and legitimacy of the property operator.
Avoid sending money based solely on an attractive photograph or social-media advertisement.
13. Things Property Owners Should Consider
Owners considering short letting should evaluate:
Whether short letting is permitted;
Building or estate rules;
Applicable local requirements;
Insurance;
Security;
Maintenance;
Cleaning;
Guest management;
Pricing;
Occupancy;
Operating expenses;
Tax obligations where applicable.
A property that looks profitable on paper may produce a different result after all operating costs are considered.
14. Short Letting as Part of ABN Real Estate Services
For AB Narinorhs Properties & Promotions, short letting can complement traditional real-estate services by connecting customers with temporary accommodation while also creating opportunities for property owners and investors.
Olawunmi can assist prospective customers by understanding requirements such as:
"I need a furnished apartment in Lagos for two weeks."
Olawunmi can then collect useful requirements such as:
Location;
Budget;
Number of occupants;
Preferred property type;
Duration;
Required facilities.
Where verified property information is available, the enquiry can then be directed toward suitable available options or an ABN human representative for confirmation.
15. Final Thoughts
Short letting provides a flexible approach to accommodation and property management.
For guests, it can provide flexibility, convenience and furnished accommodation without a long-term commitment.
For property owners, it can provide another potential income model and access to temporary accommodation demand, but it also requires active management and careful attention to operating costs and applicable rules.
The key principle is simple:
Short letting is not just about renting a property for a few days. It is about providing a complete temporary accommodation experience.
For both investors and guests, the most important steps are verification, proper planning, clear agreements and realistic expectations.
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