Hello,

I've been searching for a 1 Bedroom Self contained apartment in Lagos within Surulere axis.

As a first step I decided to check the internet to reduce the stress on my part and I found a good deal eventually.
A 1 bedroom apartment with kitchen, etc. Plus parking space in a good location off Randle Road.

Then I called the estate agent and heard the most shocking news.

Rent. 120k per annum
Commission. 50k
Agreement. 50k
Caution fee 10k
Total. 230k

Now my First question is this. Why pay additional 110k for an apartment with 120k rent?

Number 2: Who determines these charges and is there a regulator?

Number 3: is there a fixed percentage to be paid as agency and commission or these guys just fix prices arbitrarily?

I will be glad if someone can enlighten me

mrsage:
Hello,

I've been searching for a 1 Bedroom Self contained apartment in Lagos within Surulere axis.

As a first step I decided to check the internet to reduce the stress on my part and I found a good deal eventually.
A 1 bedroom apartment with kitchen, etc. Plus parking space in a good location off Randle Road.

Then I called the estate agent and heard the most shocking news.

Rent. 120k per annum
Commission. 50k
Agreement. 50k
Caution fee 10k
Total. 230k

Now my First question is this. Why pay additional 110k for an apartment with 120k rent?

Number 2: Who determines these charges and is there a regulator?

Number 3: is there a fixed percentage to be paid as agency and commission or these guys just fix prices arbitrarily?

I will be glad if someone can enlighten me

Commission and agreement should be 10% of the Rent. Caution fee for #10k to me is Ok. Commission goes to the estate agent while sometimes the agreement and Caution goes to the Landlord. So the 50k for commission and agreement is ridiculous.

You're lucky to get it at that price, 120k @Randle. I searched in2014 for a room & parlour on the same road & got 350k.
You're also lucky they ain't insisting on 2yrs.
The way they calculate it is this, they charge 10% of total amount payable for agency fee and 10% for agreement fee which is why many insist on taking 2yrs.
I don't knw why you're charged 50k

Eyop:


Commission and agreement should be 10% of the Rent. Caution fee for #10k to me is Ok. Commission goes to the estate agent while sometimes the agreement and Caution goes to the Landlord. So the 50k for commission and agreement is ridiculous.

Thank you.

segebobo:
You're lucky to get it at that price, 120k @Randle. I searched in2014 for a room & parlour on the same road & got 350k.
You're also lucky they ain't insisting on 2yrs.
The way they calculate it is this, they charge 10% of total amount payable for agency fee and 10% for agreement fee which is why many insist on taking 2yrs.
I don't knw why you're charged 50k

I agree, the rent is reasonable but the charges are absurd