salsera:

what i think they should do is to stop all this

agency and legal fee - right now even if you pay for one years rent you still pay 10% of the amount for 2 yrs for agency plus 10% of the amount for legal for 2yrs.

someone should please show me the law that justifies this. its daylight robbery

It is a demand and supply situation, cos when you refuse to pay, someone else will pay fast without thinking twice, and that has made all the jargons being done by landlords and their agents to drag on for this long.

me i dey fear how possible is this. well we shall all see to that

@ Salsera someone should please show me the law that justifies this. its daylight robbery

Lagos State Estate Agency Regulatory Authority Law 2007

See section 27
Sub section 11 says
Agency fee(s) shall be as follows:
(a) Letting/Lease - 10% of the total rent Collected on any transaction.

(b) Sales or Purchase of interest  in land and Building where two or more agents are retained by the owner/vendor for the sale, the fee shall be 15% of the Total proceed of sale

subsection 12
"A Licenced Estate Agent shall not prepare any Legal document pertaining to any transaction handled by him; every Tenancy Agrrement must be prepared by a Legal Practitioner and the fees shall not be more than 12.5% of the total consideration"

You have all spoken well but seems to be looking at it from the tenant perspective. Just for clarification i'm also a tenant. Let's take a simple case
I plan to stay in lagos for 4months and pay for one month rent. The rent expires and the landlord can't do anything till another 3 months before evicting me.
The problem with nigerians is that we never want to face the fact. We nigerians would always take advantage of this and that is a typical nigeria for you.

Please note that i'm also a tenant but just trying to look at this from both ends. My landlord is a nice chap and i have seen tenants try to take advantage of him.

Whatever the case is, Government should make sure both parties are protected

kingsmartt:

Am not sure if this was well thought out because looking at it, its like putting the cart before the horse.


2. Credit worthy - There is no way for land lords to know that tenants will pay up monthly. In a country where the legal systems is forever developing, evicting non paying tenants will become a nightmare.

3. Administration of the collection process - The banking system needs to get to a level where landlords / tenants can set up direct debits for monthly collection without the landlords having to come looking three or four times each month before collecting his / her money. And what about landlords who are abroad? Remember there are no trust worthy rent administration companies

'Lessons Learned' are important part of governance.

Anyway, we shall get there eventually.

The above are the big issues I see here. How do I collect my rent monthly from the tenant? If the tenant does not pay, what do I do? If the tenant decides to leave without prior notice, how do I get income until I find another tenant.

Based on whats operating elsewhere;

Before I rent you a house- I will check your creditworthiness-no credit, no rent
I will check your paystubs, get a guarrantor, etc
You will pay a refundable deposit equal to one-month's pay, hence if you default for a month, I use that as my rent, and can send you out!
You sign a yearly contract, and if you leave before the year is up, you have broken the lease agreement , and this will impact your agreement, and you also lose your refundable deposit.
Before you leave, you have to give the landlord one month's notice, so he can start looking for new people to rent!

Building housing is not government's business.Which one is theirs? Looting? We need alternatives to things not only pronouncing policy statements.

Na now wey I don come get my House na im this one come happen?Chei.I wish say dem don do this things back in those days wey we still dey pay rents.I hope it works.It's not stipulating but implementing it.

Man, Fashola is on a roll. If he succeeds, man, he might go down in history perhaps, as the best governor of Lagos state. The man is doing big things for Lagosians. A big applause to him.

E be like say somebody don start to dey do sensible things for Naija o!

1. Advance rent payment even though maybe seen as greediness from the part of the Landlord, it is also a form of security for them.
2. Correct me if I'm wrong but does this not allow for aggressive and indiscriminate price increment from the part of the landlord?
3. This will be a big loss to the Agents for their crazy and mad rip-offs
4. What will be the form of agreement. Monthly by automatic extension or what?
5. By law, is the Landlord/tenant not required to give each other some kind of notice in advance? What if either of the parties decides to get out of the contract assuming you only paid for a month?

Fash's idea is really good but how exactly is this going to be enforced? Perhaps if the general price of houses are brought down then Landlords will not be charging exorbitant prices.

The Government should provide affordable housing to allow room for healthy competition.

Kingssmart, Thank you for that brief analysis.

As it is now, it takes about 15years to get back money spent in buliding a house, the nice thing is that depending on the location the value of the house itself appreciates.

Preventing Lanlords from collecting lump sum rent in a place like Lagos will lead to increased rent as many potential commercial lanldords will either build and demand high monthly payment or find something better/more rewarding to do with their money, so where does that leave us?

well fashola has tried for me sha in the area of transportation and if he solves this housing issue GWAD!!!!!! i am okay,

Nice one but can it be enforced?
Any alternative from the Government?
What about Government's obstacles at oweing a land-so many charges?
Since there are not enough houses for people who need it,I hope it will not be like what
happens at bus-stops when drivers suddenly increase their fare albitrarily and some passengers refuse to pay
and go down;then others who feel they have more money or important places to go jump in knowing
that the price is not right.

Advance rent banned in Lagos. Hmmm, not bad but suggest a standard of maximum 1yr should be set. Nothing more.

good riddance 2 bad rubbish >>>> nothing more to say

@@ Nezan

sorry eehhn !!!!! try finding a good place in Kaduna & commute
from there 2 Abuja 2 work >>> some guys i know do it

let see what will happen to our landlord? because landlord as intension to  kill  tenant physically nigeria, and most of the landlord are big man who as power and influence in govt,let see what will happen to decision of mr fasola in lagos .because the decision is good for citizen

there is no development initiative that wont have its challenges in terms of implementation, but we must give it to Fashola he seems to know about the business of governance more than any politician in Nigeria right now. At least he is doing everything within his power to move Lagos forward. the guy is a breath of fresh air, if only the useless central government that have abrogated all the powers to themselves can be half as proactive as Fashola we would have gotten very far. A lot of political will will go a long way

When you allow criminal acts to go on for too long, it becomes like a norm to the people.
That is the case of this advance rent. Why shouldn't I be able to rent a house for just two months?

The criminal act had been allowed for too long and various generations have come to grow to meet
the nonsense. Now it seems normal and people are even finding argument for it on nairaland

Call a spade a spade. Its another sensible one from Gov. Fashola, the God sent for Lagosians

True talk!

^
I
I
yeah!

my worry is this 'what is the right of the monthly paying tenant? can he be evicted without notice? cos with advance rent, the landlord has to give 6months notice for eviction.

angel101:

my worry is this 'what is the right of the monthly paying tenant? can he be evicted without notice? cos with advance rent, the landlord has to give 6months notice for eviction.

Our Laws provide the following length of QUIT NOTICES to different kinds Tenancy

Monthly - One Month (30 Days)
Yearly - Six Months
Quarterly - Usually 3 Months Notice.

After the expiration of the Quit Notice, the Tenant is entitled to 7 days Notice. (Owners Intention to Recover Possession)

Will this apply to commerial tenants too? Like renting office spaces and warehouses?

as others have said here, we have had numerous policy statements on housing over the yrs,the problem is not the law but the implementation thereof,
how wil the govt enforce the law and bring offenders to book considering the peculiar nature of lagos state and indeed, the whole of nigeria,

also, how wil the law ensure that the landlord is not shortchanged cos while it is true that the tenant is often the underdog, landlords too have bn serious;ly conned by dubious tenants,

Your Nigerian nationalism is too much for here.

Is it becos the teachers used to drum Nigerian anthem in yur head for 12 years.

O da ti won ba dekun gbogbo ki won maa sanwo odun meji nijo kan yen.

Awon eyan shi sin owo nile Odua

So, its all about the Landlord being greedy, right?
Forgive me but instead of jumping up, lets ask a few basic questions on this issue:

1. What or how did the issue of "advance rent" come to be?
2. Why do Landlords prefer advance rent, compared to monthly rent (once taken, the price is set for the period!)
3. What are the cost input into owning  house viz-a-viz the Return-On-Investment (ROI) on such property?
4. What would happen to the "Tenant looking for a house to rent" if another "venture" provides better ROI and less risk, than building for rent, for the housing investor?

As someone who bears the brunt on both sides, (l live in a rented apartment but own a house where l collect rent in another part of the city) l feel the govt announcement is nothing short of "show-boating", or playing to the gallery at best. HOW?
Recently and as always been the case, Lagos state Govt "revised upwards", its charges on all forms of land ownership (from Survey, to C-of-O, to Deed of Assignment, building plan charges, Stamp Duty, e.t.c). If the govt can arbitrarily fix its own price (income), what makes it think it can also fix the "rent-income" of those who bear the brunt of their lack of foresight in governance?
Between 2007 and today, price of building inputs like Cement, Sand, Iron rods, Labour, Planks, Nails, e.t.c, have more than quadrupled in price, under the same govt without any solution.

People saved to building houses. Others took bank loans at cut-throat interest rates (the govt considers that as "free market" and did nothing to stem that tide) to build house. Like any business venture, its a question of ROI and how long it takes to recoup your investment. Going by the swampy nature of Lagos and environs (except for some lucky ones whose house are on highland, clay soil), depreciation, wear and tear will probably eat a fat chunk of any rent you make.

In a country where "Credit Vetting" is virtually non-existent, how can a Landlord ensure the 'safety and continuum' of his stream of income, assuming he depends on same for livelihood and loan repayment?.

What if Tenants pack-into (assuming that its just one month down-payment) House A, owe three months and pack-out, only to check-into House B and repeat the same process over and over again? Where does that leave Landlords and their investment?
How many Nigerians have a "steady job" with steady income streams (if the threat of retrenchment is not looming already!) to give the landlord a comfortable rest of mind, that the next house payment will come when due? Even now, once the two years advance rent is up, to collect the next monthly rent that follow is by-fire-by-force
As a Tenant, l live in a house where "planning for cross ventilation" is zero. I pay for all repairs to my apartment, but the Landlord is about due to come for another one year's rent (and his percentage, yearly increase!). Assuming l refuse to pay and insist on monthly payment, what are my options?

The landlord will probably let me accumulate 3months debt and send me packing.
What will or can the govt do for me since they are the one that suggested the monthly payment? Is there a govt house l can rent to cover my exposure?
This is the crux of the matter.

In a Capitalist environment and dog-eat-dog culture like ours, "He who pays the piper dictates the tune".
I would have been happier and ready to call the bluff of my landlord (and wish my tenants do same to me) if,

1. The Govt has rows upon rows of lettable housing units (single and double rooms apartments) that l could pay a month rent and move into. Ordinarily, the forces of demand and supply would push down the price of rentage if there are readily available and affordable houses.
Instead, the same hypocritical govt builds "low-cost" houses and sells at 7million naira!
Which teacher, Civil Servant,Clerk or Nurse can afford that? Of course, they sell it to themselves (as El Rufai has demonstrated in Abuja) and share it among those who have stolen govt money. So, the govt should allow 'charity to begin at home', we all prefer to rent a room at #200 and pay monthly but when even the govt can not provide such, it should stop playing 'mind-games' with the people.
2. There are vast deposits of cement in Nigeria, even at Ewekoro and Nkalagu. There is a vast army of unemployed people who are ready to work in the construction industry. There is good vegetation to provide Planks for building.
The question is "what is our business with importing Cement" and other building materials, knowing that with our currency exchange rate and the fluctuation thereabout, the price of building materials, which also dictates how much it would be let out, will keep going up?
Why cant the govt first ensure that building materials are cheap, available and abundant. If l can buy Cement at #200/bag today, as against the #2000 l bought last month, would it not be reasonable to enforce that l reduce my rentage by 60% or more? If the govt really wants houses to be cheap, why is 'Lands and Housing Ministry' at Alausa increasing all manner of charges like poor people are never expected to build a house in Lagos? Or is it one rule for one landlord (Govt) and another rule for the other landlord (private)?

Is it not because the govt has failed in its primary responsibility (Shelter, food, employment) that is making the shylock landlords to step-in? Why would l rent a private 3-bed flat for #250,000/year if and when l can rent from the government at #1,500 every month? You just cant control what you dont own!

Due to acute shortage of houses coupled with the spiraling cost of building materials and the greediness of Nigerian Landlords (and that includes the govt of the day!), Tenants are left at the mercy of the "landlords", be it private or "govt landlord". In other countries, govt builds houses for the poor and rent it out at controlled prices without "advance rent". Why not do that first?

But more importantly, how many of "we tenants" have held the govt accountable to building "truely low-cost" houses for us? We praise Fashola for beautifying Lagos, for building roads, e.t.c, good as those things are, are those things more important than the "first NEED" of all humans - Shelter?

What about the cost of basic food like Rice and Gari or Yam? In 1998, a bag of rice was #1,500. In 2007 it was 4,500 and today its about #11,000.  Now, if l invest my life income into building a house (others bought cars, others went into farming while others married extra wives, each can do as he feels) hoping to live on it when l retire,  how on earth can l "remain faithful" in an economy that basic staple food rises by over 1000% in less than 10yrs (when we are not in Zimbabwe!), and we have a govt that collects taxes and Revenue allocation from "free crude oil"?
Simple logic of 'trade-by-Barter' demands that "you use what you have, to get what you need", its the market forces that determines the "exchange rate" of such barter trade, not some govt fiat.

In Summary, "bad" as it may sound, the govt can not successfully control house rent in any form until it has done its own part of 'taming those forces' that control the demand and supply of housing units. If it uses the fiat of legislation, like the days of "prohibition", it would simply drive the process of house rent underground and its the common man that would even come-off worse in such cases (since those with heavy and ready cash will simply rent "under the table"  )
Let the govt look into ways of bringing down the cost of building materials and associated costs, let the govt reduce the cost of land ownership, let the govt provide "true" mortgage facilities that the common man can access (as against the private bank driven types with their huge interest and security), let the govt for once build its own affordable housing schemes, 25-storey, 2-3 bed apartments, all over Lagos so that we can shun the Shylock landlords, let them provide stable electricity that would in-turn create jobs and revive industries, let them set-up massive agricultural plantations that would make food cheaper, by then, the "natural laws" of Economics would set-in and the greedy landlords can go jump into the Lagoon.

Remember that "0-9-0 phone handset" use to cost a ton of money some years back but now, due to "availability and competition", any seller can over-price his own wares and we would not need a govt legislation to drive such seller out of the market, so too it can be, for house rent.
Cheers and may God save us from our obvious exploiters (Jewish Landlords) and the not so obvious one (the Govt of the day!)

Advanced house rents banned in Lagos? Pls o, when will this take effect?

listen we nigerians are always against changte, especially when this change affects a selected few in a negative way.
the idea of advanced rent has been an issue the lagos state govt has been looking into for a very long time,
and i think this is a welcome development.

maybe we dont seem to realise this fact, that alot of our youths have remained in thier family houses
simple because he cant not afford to take a place of his own due to the cost of rentint even a single room.

i can understand the fear of the landlord and about tenants running off with thier money,
but stric measures will e put in place as to how payments shud be made.
moreso u dont pay for just a single month, but rather an advance incase of sudden relocation.

i think the idea is right and timely, just shd be modified simple.

its really a good idea,but dont we seem to realise that this is an oppotunity for us to invest into real estate by acquiring landed property on installment basis, probably by the time the landlord wants to brag then u tell him you have your building.
this calls for us to see every reason to invest into real estate.


Good luck to tenants, landlords, you need an association

Eko o ni baje oooooooooooooooooooooo, infact o baje ti.

One thing that we need to do more often in Nigeria is to avoid trying to reinvent the wheel. There are many better advanced Nations that have had to deal with these issues. They also had to address the issue of fairness to all parties involved. Such is the case of the United States. There are usually 2 separate lines of law dealing with issues of residential or commercial properties. In the case of Residential properties, here is a typical scenario:

1. An application fee of $25.00- $30.00 for a credit check on the individual to determine their credit risk.

2. A deposit amounting to 1/2 to 2 months lease which is refundable upon vacation of the premises and leaving it in a habitable condition.

3. A lease is signed specifying the time of lease which is standard 1 year renewable and could range between 6 months to 2 years. Some counties may restrict a lease to be only binding for a year renewable. There is usually a discount rate for a one-year lease.

4. Leases are standardized and usually guided by State law. Any lease instituted by a Landlord that violates the guidelines/spirit of the law shall be null and void and could attract a penalty or criminal proceedings against a Landlord.

5. There are magistrate courts available to address issues between Landlords and Tenants that tend to dispose of the issue within a month. Upon judgement, monies left unpaid by the tenant shall be taken out of the security deposit paid upon signing of lease. Any extra amounts shall be legally binding amongst parties and collection actions can be instituted after a goodwill time frame has expired. Further judgements for the collection efforts can also be initiated.

6. In the case of a dispossession based on failure to pay rent, this can be entered into the Tenants credit records if payments are not made timely after court judgement.

7. No extra costs are necessary when a standard residential lease is signed between a Landlord and a Tenant. Lawyers are usually not involved in this process, but in the case of an Agent finding or referring a Tenant, then the Landlord pays the agent according to whatever advertized agreements.

If these issues raised above are addressed by the Lagos State Government, then a fair and enabling environment will have been created for tenants. The cost factors of residential rentals should not be agonizing to potential tenants. In the United States, parents can legally kick their kids out at the age of 18. This is partly why it is important for any community to have an enabling environment for young people to gain their independence. Nigeria should seek a similar procedure to help develop it's young people into productive citizens.

In the case of commercial properties, since people in business are supposed to be savvy and aware, there are no protections in rental. Legal agreements are entered into by entities or people and are interpreted by a court of law based on the contents of the binding agreement. It will be pertinent on all parties to seek legal counsel accordingly.

Ok, so i guess University students who rent private hostels off-campus will be paying monthly not per session?? I d like 2 see students pull that off