Application form
The Agent may require you to complete an application form affixing passport photographs to the form. This is a registration form for record keeping. The fee is about N2,000-N3,000.

Inspection/Transportation costs
Some Agents might require you pay the transport fare to view properties. It is sometimes called Inspection fee. This fee is negotiable so bargain hard.

Agent Commission
This commission is usually paid by the prospective Tenant to the Agent for services rendered once a property has been chosen. The norm is 10% of the Rent fee. Unfortunately, many Agents crazily charge their Commissions over a 2-year period regardless of whether your tenancy lease is for 1 year or 2 years.

Legal Agreement
This is about signing and issuing the Tenancy Agreement and sometimes Payment Receipt. The norm is 10% of the Rent fee. Like Agency Commissions, don’t be surprised to pay this charge for a 2-year period regardless of whether your tenancy lease is for 1 year or 2 years.

Caution/Damages
This is an upfront refundable fee paid as “insurance” against the property. When the Tenant decides to leave the property, an inspection/audit of the apartment is carried out to ensure nothing has been damaged. If there are damages, it is deducted from the Caution fees paid. In Theory, The balance of the remaining fees (if there is leftover) is returned back to the Tenant. In Practice, it is usually difficult or next to impossible to get your Caution fees back.

Case Study
The story of my puzzling but hugely frustrating search for an accommodation is for another post.
I paid over N5,000 for a combination of Application form/Inspection/Transportation costs for the Agent to take me to several properties to view.
After settling for a 2-bedroom flat at Gbagada (Lagos Mainland), the rent was negotiated to N500,000 per annum.
Despite agreeing to 1 year rent, the Commission/Legal Agreement/Caution fees where all charged on a 2-year basis.
Rent = N500,000
Agent Commission: 10% x N500,000 = N50,000 x 2 years = N100,000
Legal Agreement: 10% x N500,000 = N50,000 x 2 years = N100,000
Caution fee: N50,000 x 2 years = N100,000
TOTAL RENT PACKAGE: N500,000 (Rent x 1 year) + N300,000 (Additional charges) = N800,000
Needless to say I “received sense” after seeing the ludicrous extra charges, I eventually paid Rent 2 years to March the extra charges.
UPDATED TOTAL RENT PACKAGE: N1,000,000 (Rent x 2 years) + N300,000 (Additional charges) = N1,300,000.

Source: Naija Villas

Please advise, if i need to leave a shop i rented few months ago and another tenant in the same property wants to rent the shop, do i get the commission and agreement fees that i paid back + the remaining months on my rent?

Will the new tenant pay a fresh agreement/commission fee?

Please advise


@phoenix480