Landlords in Lagos are facing a dilemma: stick to the traditional annual rent, or dive into the lucrative but demanding world of shortlets?
The Case for Annual Rent
Annual rent is passive and predictable. You get a lump sum upfront, and you don't have to worry about cleaning, marketing, or daily maintenance. The downside? The overall income is lower, and you face inflation risks over a multi-year lease.
The Case for Shortlets
Shortlets can generate 2 to 3 times the income of annual rent. You also have the flexibility to use the property yourself when it's vacant. The downside? It is an active business. You must furnish it luxuriously, pay for daily power, and manage hospitality staff.
The Verdict
If you have the time (or a good management company), shortlets win on sheer profitability. If you want a hands-off investment, stick to annual rent. Either way, owning a 2-bedroom or 3-bedroom unit in an estate like Oasis Court guarantees strong demand for both.
