By AGENTS & CARETAKERS
The operations of the housing agents and caretakers in Lagos calls for urgent attention, as their conduct has caused enough damage in the area of property lease and rent. It has been argued that 70 to 80 percent increase in property renting and leasing in Lagos is as a result of greed by the so-called estate agents and caretakers.
These agents/caretakers have become so powerful that they now dictate for the landlord. They influence and entice the landlord with money on behalf of their client in order for them to get their desirable home
For instance, in the Gbagada area of Lagos, the average rent for a self-contained room is between 1 million to 1.2 million naira. Similarly, in the Somolu area, self-contained rooms are priced in the same range. A room-and-parlor self-contained apartment typically costs between 1.8 million to 2.4 million naira on average. The frustrating aspect is that these amounts represent only the basic yearly rent. Agents or caretakers often collect a commission of about 300,000 naira, and they will also request additional fees such as caution fees and agreements. These additional costs can accumulate into millions of naira in most cases, complicating an already difficult situation. This issue is not isolated to a single area in Lagos; it is prevalent throughout the entire city. Areas like Abule Egba, Iyana Ipaja, and Agege, which were once affordable for many, have seen significant rent increases as more residents move in search of cheaper housing.
The same story unfolds in Isolo, Ikotun, Ejigbo, and Mile 2. In some places, it has become necessary to bribe agents to secure a decent apartment due to the limited availability of rentals, making the housing market feel like an auction for those in need.
In response to this situation, the Lagos State government has proposed a new law aimed at reducing agency fees to a maximum of 5% of the annual rent, down from the current rates of 10% to 30% that are commonly charged. The Lagos State House of Assembly introduced this bill to alleviate the financial burden of housing for renters and to address widespread complaints about excessive agency fees. If passed, the bill would impose penalties on agents who charge more than 5%, including fines, imprisonment, and mandatory refunds of any excess charges paid by tenants.
The proposed law aims to set a maximum agency fee for property rentals at 5% of the annual rent, with penalties for non-compliance. Agents who violate this law may face fines of up to N1 million, imprisonment for up to two years, and orders to refund any overcharged fees to tenants.
Addressing Housing Costs:The legislation aims to provide relief to residents struggling with high rent costs and the significant financial strain imposed by the traditional annual rent model.
Broader Regulatory Efforts: This bill is part of a larger initiative by the Lagos State government, through the Lagos State Real Estate Regulatory Authority (LASRERA), to regulate real estate transactions and promote fair practices.
In a separate proposal awaiting approval from the Lagos State Assembly, there are broader measures that will impact both landlords and property agents.
Advance Rent Restrictions: Landlords are prohibited from demanding more than three (3) months’ rent in advance from current tenants. Similarly, tenants are not allowed to pay more than three months’ rent upfront. Violations of this rule can result in fines up to N100,000 or imprisonment for up to three months.
Mandatory Rent Receipts: Landlords must provide tenants with rent payment receipts that detail the payment date, the names of both parties, the property location, the amount paid, and the rental period covered. Failure to issue a receipt may lead to a fine of N10,000.
Tenancy Agreement Fee Cap: The Lagos State Government has reaffirmed that tenancy agreement fees should not exceed 10% of the annual rent. Landlords and agents who charge above this limit will be in violation of the law.
Notice Periods for Termination:In the absence of a written agreement, the law stipulates the following notice periods: one week’s notice for a weekly tenant; one month’s notice for a monthly tenant; three months’ notice for a quarterly or half-yearly tenant; and six months’ notice for a yearly tenant. If a monthly tenant is in arrears for three months, the landlord may seek possession through the courts.
Dispute Resolution:Tenancy disputes can be addressed in either the High Court or Magistrates’ Court within the relevant jurisdiction.
Prohibition of Unlawful Evictions:Landlords are prohibited from evicting tenants without following the due legal process. Self-help evictions are not allowed and may result in legal penalties.
Speaker of the House Mudashiru Obasa recently commented on this during a one-day public hearing on the bill. He was represented by lawmaker Stephen Ogundipe, who noted that Section 3(4) of the proposed legislation makes it an offense for any property agent to charge more than five percent of a year’s rent.
According to him, violators will face strict penalties, including a refund of excess charges, up to two years in prison, or a fine of N1 million.
Obasa also highlighted the growing housing crisis in Lagos, indicating that the state’s housing deficit has increased by 15 percent in less than a decade—from 2.95 million units in 2016 to 3.4 million units in 2025. He revealed that over 70 percent of residents live in rented accommodations, with many spending 40 to 60 percent of their income on rent.
He explained that the proposed law aims to create a clear framework for tenancy agreements, rent payment structures, property maintenance obligations, and the lawful recovery of premises.
Committee Chairman on Housing, Olusegun Ege, stated that the draft bill consists of four parts and 45 clauses, addressing the rights and responsibilities of landlords and tenants, rent payment rules, and formal dispute resolution processes. He added that the legislation outlines proper eviction procedures to protect tenants from arbitrary displacement, which he described as essential for household and business stability.
–Isaac Abimbade
08155107955
