Addressing Lagos’ Rental Crisis is a pressing concern for many residents. The rental landscape in Lagos has long been a source of contention, with tenants frequently facing exorbitant fees imposed by landlords and agents. These charges often include agency fees, legal fees, caution fees and non-refundable deposits, which can cumulatively surpass the actual rent, placing a considerable financial strain on residents. On the other hand, Enugu State has recently taken bold steps to address similar issues through legislative reforms, offering a potential blueprint for Lagos to consider.
Enugu State’s Legislative Intervention
On February 25th, 2025, the Enugu State House of Assembly introduced a bill aimed at amending the existing Landlord and Tenant Law, CAP. 101, Laws of Enugu State, 2024. This proposed legislation seeks to regulate the fees payable to rental agents and lawyers, capping both at a maximum of 10% of the annual rent. Additionally, the bill aims to abolish the practice of collecting “caution fees,” which are often demanded by landlords but seldom refunded to tenants upon the termination of the lease. Violations of these provisions could result in fines up to N500,000 or imprisonment for up to six months, or both.
The Situation in Lagos
In Lagos, the rental process is often marred by inconsistent and inflated charges. While the Lagos State Estate Agency Regulatory Authority (LASRERA) stipulates that agency fees for letting should not exceed 10% of the total rent, there is no explicit legal framework governing legal fees or other ancillary charges. This regulatory gap has led to scenarios where tenants are made to pay agency fees ranging from 5% to 20%, legal fees of about 10% or more , and additional charges such as “agreement fees” and “caution deposits,” which cumulatively can amount to a sizeable financial burden on the residents of Lagos state.
Legal Framework and the Need for Reform
The primary legislation governing tenancy agreements in Lagos is the Tenancy Law of Lagos State, 2011. However this law doesn’t apply to certain places in Lagos State, Apapa, Victoria Island, Ikeja G.R,A, Ikoyi and this law does not provide specific guidelines on the permissible percentages for agency or legal fees, nor does it address the issue of non-refundable deposits. The absence of clear legal provisions has allowed for aabysmal charges, often to the detriment of Lagosians.
The question now is: Should Lagos follow Enugu’s model and establish a structured rent policy?
-
Limiting Advance Rent Payments
The government should strictly enforce the Lagos Tenancy Law, ensuring that landlords do not demand more than one year’s rent upfront. This should also apply to commercial properties, as businesses also suffer from excessive advance rent demands.
-
Standardizing Agency Fees
A clear legal framework should be established, capping agency fees at 10% or less and prohibiting arbitrary add-ons. This would prevent agents from overcharging tenants, which is a common exploitative practice.
-
Establishing a Rent Tribunal
Although the Lagos Tenancy Law allows rent disputes to go to court, the legal process is slow and expensive. A dedicated Rent Tribunal should be created to handle disputes within 30-60 days, preventing landlords from using intimidation and illegal evictions.
-
Rent-to-Own Housing Schemes
The government should expand affordable housing schemes, allowing residents to pay for homes gradually rather than renting indefinitely. This could reduce pressure on the rental market.
The Lagos Tenancy Law 2011
This law provides some level of protection, including:
-
Section 4: Prohibits landlords from demanding more than one year’s rent in advance for tenants of certain categories of residential properties.
-
Section 13: Requires landlords to issue a six-month eviction notice before removing a tenant (except for rent defaulters).
-
Section 37: Mandates that any dispute between landlords and tenants should be resolved in the Rent Tribunal or court rather than through forceful evictions.
-
Lagos is long overdue for a rent reform policy
A Call for Policy Action
Lagos is long overdue for a rent reform policy. With increasing rental prices, arbitrary and abysmal fees, and lack of enforcement of tenancy laws, tenants remain extremely vulnerable. Enugu has set a precedent, proving that government intervention can restore balance to the rental market.
If Lagos adopts a similar model, tenants will have better security, affordability will improve, and the rental sector will become more structured and less exploitative. The time for reform is now.
