In terms of ROI, which cashflow model is better, rental or shortlet. Our case study is shortlet vs rental in Lagos, we compare certain factors like running cost, break-even period, management etc.

Despite the high rates of shortlet apartments in Lagos, the running cost is pretty high also. However, investors only see the charge per night and don’t calculate the running cost. Therefore, most shortlet in Lagos fail within the first 3 to 18 months.

Unlike rentals, shortlet demand expertise management, because occupants expect premium experience for the high fees they paid. In comparison, when you let out an apartment, most of the utility bills is not on you. Yet, investors are discouraged by the break even period from rental income, which is always 15yrs plus.