Lagos State Caps Tenancy Agreement Fees At 10% In New Tenant Protection Law.
Lagos, Nigeria – The Lagos State Government has introduced stringent measures to safeguard tenants’ rights, announcing that tenancy agreement fees must not exceed 10% of the annual rent. This development, part of an updated Lagos State Tenancy Law, aims to curb exploitative practices by landlords and agents, ensuring fair treatment for tenants across the state.
Under the revised law, landlords are barred from demanding more than three months’ rent in advance from existing tenants, with tenants similarly prohibited from paying beyond this limit. Violators face fines of up to ₦100,000 or three months’ imprisonment. Additionally, landlords must issue detailed rent receipts, including the payment date, parties’ names, property location, amount paid, and rental period. Failure to comply incurs a ₦10,000 fine.
The law also clarifies notice periods for tenancy termination in the absence of a written agreement: one week for weekly tenants, one month for monthly tenants, three months for quarterly or half-yearly tenants, and six months for yearly tenants. Landlords can pursue possession through the courts if a monthly tenant falls three months in arrears.
Tenants are granted rights to reasonable privacy, freedom from undue disturbance, exclusive possession of the premises, and access to common areas for lawful purposes. Those who improve properties with written landlord consent may claim compensation upon termination. Unlawful evictions are strictly prohibited, with legal penalties for non-compliance.
The Lagos State Real Estate Regulatory Authority (LASRERA) has been tasked with enforcing these regulations. For instance, on an annual rent of ₦1,000,000, the combined legal and agreement fees must not exceed ₦100,000, with any excess deemed illegal. Tenants facing violations are encouraged to contact LASRERA for support or to lodge complaints.
Disputes can be resolved in the High Court or Magistrates’ Court within the relevant jurisdiction. The Lagos State Government’s reforms signal a robust commitment to protecting tenants and regulating the rental market, fostering a fairer housing landscape for all.