Short-lets have become one of the most popular property investments in Lagos. Apartments in Lekki, Victoria Island, Ikoyi and Ikeja earn nightly rates from business travellers, diaspora visitors and weekend guests.
But the rules are tightening. In February 2026, short-let activity was banned in Banana Island over security concerns, and other estates are watching closely. Investors who skip the legal groundwork risk estate sanctions, disputes with landlords, and liability for what guests do.
This guide sets out the legal requirements and agreements every short-let operator in Lagos needs.
- Check that you are allowed to short-let
Before listing, confirm that short-letting is permitted:
If you rent the apartment, read your tenancy agreement. Most prohibit subletting without the landlord’s written consent. Short-letting without it can lead to termination.
If you own the apartment, check your deed, the estate’s rules and the residents’ association’s by-laws. Some estates ban or restrict short-lets, or require guest registration.
If you bought off-plan, check the development’s covenants. Some restrict commercial use.
2. Structure the business properly
Running short-lets is a business. Consider:
registering a business name or company with the Corporate Affairs Commission;
opening a business account for bookings;
understanding your tax position, since rental income is taxable; and
registering with LASRERA if you manage short-lets for other owners, since property management and agency in Lagos require registration.
3. The agreements you need
Agreement
Why you need it
Landlord consent or lease variation
Written permission to short-let, if you rent the property
Guest terms and house rules
Check-in and check-out, maximum guests, no parties, smoking, noise, damage
Booking, payment and refund policy
Deposits, cancellations, refunds and security deposits
Property management agreement
If a manager runs the apartment for you: fees, duties, reporting and termination
Cleaning and service contracts
Standards, timing and responsibility for guests’ property
Co-investor or partnership agreement
If several people own or fund the short-let
Your guest terms should be accepted before every stay, for example through a checkbox at booking or a signed form at check-in.
4. Guest data and security
Many operators collect copies of guests’ IDs for security. That is personal data under the Nigeria Data Protection Act 2023. You should:
tell guests why you collect it and how long you keep it;
store it securely, and limit who can access it;
delete it when it is no longer needed; and
disclose any CCTV, and never place cameras in private areas such as bedrooms or bathrooms.
5. Liability and insurance
You may be liable if a guest is injured in the apartment, or if a guest damages neighbours’ property. Protect yourself with:
property insurance that covers short-let use;
clear house rules and a security deposit; and
regular safety checks, including gas, electrics, fire extinguishers and smoke alarms.
Red flags
Listing a rented apartment without the landlord’s written consent.
No written guest terms.
Collecting guest IDs with no data protection policy.
Ignoring estate rules on guest registration or parties.
Frequently asked questions
Is short-letting legal in Lagos? There is no general ban, but individual estates and landlords can restrict it. Banana Island banned short-lets in 2026. Check your lease and estate rules.
Can I short-let an apartment I am renting? Only with the landlord’s written consent, if your tenancy agreement restricts subletting, as most do.
Do I need to register my short-let business? Registering a business name or company is advisable. If you manage properties for others, you should register with LASRERA.
Can I keep copies of guests’ IDs? Yes, but you must comply with the Nigeria Data Protection Act: tell guests why, keep it secure and delete it when no longer needed.
What agreements does a short-let business need? At minimum, guest terms and house rules, a booking and refund policy, and a management agreement if someone else runs the apartment.
About Cardinal Counsel
Cardinal Counsel (Barristers & Solicitors) is a Lagos-based law firm advising individuals, families and businesses, at home and abroad, on property transactions, tenancy matters, commercial agreements, data protection and dispute resolution. The firm prepares short-let guest terms, management agreements and co-investor agreements, and advises on compliance.
This article is for general information only and does not constitute legal advice. To set up or review your short-let business, contact Cardinal Counsel at Suite D14, Adeniran Ogunsanya Mall, Surulere, Lagos, or email info@cardinalcounsel.co.