If you are a Nigerian real estate investor focused on investing in rental property, you will find that at some point you have to decide whether to receive the rent from your apartment buildings or office buildings in small bits or in bulk.

Here's the thing, most landlords or apartment owners in Lagos Nigeria collect two years rent in advance when they get a new tenant for their apartment. And the reason they give is that the two years rent allows them to get bulk money they can use for further investment.

For example, two years rent from a house in a central location may be enough for the real estate owner to do one or all of the following:

Buy another plot of land.
Buy a fairly used car.
Pay for the school fees of his kids.

Also, to do general stuffs he cannot do if he allowed his tenants to pay the house rent quarterly.

A classical example is a 5 bedroom duplex for rent somewhere in Lekki and the rent price is Two Million Naira (N 2,000,000.00) per annum (abeg oh na example I dey give you, even if you carried a gun, it could never be this cheap). The landlord requires two years rent to be paid in advance.

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