How You Can Make Your First Million Naira from Short-Term Rentals in Nigeria

The short-term rental market in Nigeria is booming, thanks to an increasing number of business travellers, tourists, and digital nomads looking for comfortable yet affordable accommodation.

Platforms like Airbnb, Booking.com, and private rental sites have made it easier than ever for property owners to list their spaces and generate significant income.

If you’ve ever wondered how to turn your property or even a rented apartment, into a profitable short-term rental business, this guide is for you.

We’ll walk you through everything you need to know to make your first million Naira from short-term rentals in Nigeria.

1. Understanding the Short-Term Rental Market in Nigeria

Before jumping into short-term rentals, it’s important to understand how the market works and why it has become such a lucrative opportunity in Nigeria.

Why Short-Term Rentals Are Profitable

Short-term rentals often generate higher returns than traditional long-term rentals. For example, a one-bedroom apartment in Lagos that rents for ₦800,000 per year could earn double or triple that amount when listed on Airbnb, depending on occupancy rates.

Who Are Your Ideal Guests?

Understanding your target guests will help you tailor your offering. Common guests include:

Tourists looking for affordable stays near major attractions
Business travelers needing short-term accommodation in commercial areas
Remote workers and digital nomads seeking a comfortable workspace
Nigerians in the diaspora returning home for short visits
Event attendees visiting for weddings, conferences, or festivals

Key Platforms to List Your Property

To maximize your income, list your rental property on:

Airbnb (most popular for short stays)
Booking.com (great for international visibility)
Jiji.ng (alternative for direct bookings)
Your website or social media for direct customer engagement

Read This: Why Sustainable Building Materials are Gaining Popularity in Nigeria

2. Choosing the Right Location for Maximum Profitability

Location plays a major role in how much you can earn from short-term rentals. Some areas have higher demand than others.

Best Cities for Short-Term Rentals in Nigeria

Lagos: Ikeja, Victoria Island, Lekki, Ikoyi, Yaba
Abuja: Wuse, Maitama, Gwarimpa, Jabi
Port Harcourt: GRA, Trans Amadi, Peter Odili Road

Factors That Drive Demand

Proximity to business districts, event centres, and tourist attractions
Accessibility to transportation (airport, major roads)
Security and availability of amenities like electricity and water

Case Study: Top-Performing Short-Term Rentals

A two-bedroom apartment in Lekki Phase 1, Lagos, can earn between ₦30,000 – ₦50,000 per night. With just 25 bookings per month, this translates to ₦750,000 – ₦1.25M monthly revenue.

Read This: PPR pipes vs. PVC pipes: Which is better for Nigerian Homes?

3. Setting Up Your Rental Property for Success

To attract guests, your property must stand out. Here’s how:

Furnishing Essentials

Comfortable bed and high-quality bedding
Air conditioning and fans
Reliable internet (unlimited WiFi)
Smart TV with Netflix access
Backup power (generator, inverter, or solar)
Functional kitchen with basic appliances

Creating a Hotel-Like Experience

Provide fresh towels, toiletries, and bottled water
Offer a seamless check-in process (lockbox or keyless entry)
Maintain cleanliness with regular housekeeping

Importance of Professional Photography

Great pictures are key to securing bookings. Hire a professional photographer to showcase your space’s best features.

4. Pricing Strategies to Reach 1 Million Naira Faster

To maximize revenue, you need an effective pricing strategy.

How to Set the Right Price

Research similar listings in your area
Start with competitive pricing to attract initial guests
Adjust rates based on demand, seasonality, and local events

Offer Discounts and Incentives

Lower rates for longer stays (e.g., 10% off for weekly bookings)
Discounts for early bookings and returning guests

See This: The Rising Cost of Building Materials in Nigeria: What Home Buyers Should Know

5. Marketing & Getting More Bookings

Simply listing your property on Airbnb isn’t enough. You need to actively market it.

Optimizing Your Listing for More Visibility

Write a compelling title and description
Use high-quality images
Highlight unique features (e.g., “Lagos Beachfront Apartment with Free Netflix”)

Using Social Media to Attract Guests

Post engaging content on Instagram, Facebook, and WhatsApp
Run targeted ads to reach potential travelers
Collaborate with influencers for promotions

Running Paid Ads for Direct Bookings

Use Facebook and Instagram ads to reach Nigerians in the diaspora
Target business travelers through LinkedIn

6. Managing Bookings, Guest Experience & Reviews

Automate the Booking Process

Use Airbnb’s Instant Booking feature
Integrate a channel manager if listing on multiple platforms

Handling Guest Communications

Respond quickly to inquiries
Provide a detailed guidebook with check-in instructions

The Power of 5-Star Reviews

Positive reviews boost your ranking and attract more guests. Ensure:

Cleanliness and comfort
Prompt responses to guest requests
Small gestures (free snacks, welcome notes)

7. Scaling Up to Hit Your First Million Faster

Once you start making consistent income, scale your business.

Reinvesting Profits into More Properties

Rent or buy additional apartments
Furnish them for short-term rentals
Partner with landlords to manage their properties for a fee

Expanding Beyond Airbnb

Create a direct booking website
Work with travel agencies and corporate clients

Partnering with Local Businesses

Offer discounts for restaurant and spa partnerships
Work with event planners for bulk bookings

8. Challenges to Expect & How to Overcome Them

Security Concerns

Install CCTV cameras (except in private areas)
Screen guests before confirming bookings

Dealing with Bad Guests

Have clear house rules
Charge a security deposit to cover damages

Navigating Local Laws & Tax Obligations

Register your business with CAC if running at scale
Pay relevant taxes (e.g., VAT, income tax)
Stay updated on short-term rental regulations in your city

See This: How Poor Plumbing and Wood Choices Affect Property Resale Value

Conclusion

Earning your first million Naira from short-term rentals in Nigeria is achievable with the right approach. By selecting a profitable location, setting up your property for success, pricing strategically, and marketing effectively, you can generate consistent income and scale your business.

Actionable Next Steps:

Choose a high-demand location and secure a property
Furnish it with guest comfort in mind
List it on multiple platforms and optimize for bookings
Market aggressively using social media and ads

Are you ready to start your short-term rental journey? Let us know in the comments or reach out for a free checklist to get started!