That law has been long overdue but better late than never right?

We had similar laws in the past that were not implemented. This is just playing to the gallery. Who will enforce it?

Two tins, passing a law or a bill is not the issue, but implimentation has has been a bone in our throat. Also, i think it wil jack up rent amount. This is becos our legislature do not analyze bills properly.

Story story oo. Rent edict passed by Marwa in 97 stating similar thing had no effect to date. Money laudering act thats says no one should carry cash excess of 500K exist for more than 3 years. Implementatn is the challenge

Its effect will be more if there's awareness.
Moreso i feel lawyers may make a lot of moey from this and smart lawyersd can start sensitizing the people.
They have the most to gain from this.

Government should be serious in implementing good laws.

Law implementation is always easy when there is no election in near future.

Good news. I hope the bill also applies to guest house, and hotel owners.

The intention of the bill is great. Hope this does not lead  to reduced suppy of rental housing inventory and ultimately increased rent.

The real issue is that the intrest rate are still too high and not easily accessible.

It good to pass a reasonable bill but senseless to do so without finding the root cause of the situation.

You might have noticed that Landlords in Lekki down to Ajah axis are asking for just one years rent
Whats the reason?? Supply outstrips Demand & if the trend continues, they will begi to take 6 months &
might eventually lead to allowing people live in your unoccupied buildings free of charge.

No law brought that about but the age long economic law of demand and supply.

Watch out for hotels rate crash too becos soon, it will be cheaper to stay in a hotel on the Island than rent

Eko Ile,

Does that mean Tejuosho market and all other markets currently under construction/concession for the state Government will be available for 6-1yr rent?

It means you will not be able to get a flat if the landlord feels you may not pay your rent

cvibe:

Eko Ile,

Does that mean Tejuosho market and all other markets currently under construction/concession for the state Government will be available for 6-1yr rent?

Take your lazy a/s/s/ to the Market Management's website to find out, they have a functioning website.

Lazy people,

It is unfortunate how educated people on this platform rants and expect govt to do everything for them without taking responsibility on their part. My concern is let the law be signed to law then if u are a tenant and a crazy demand is made on you, then enforce it by going to court. So many educated illiterates are in Nigeria though they think they know but their action depict them as someone who has not gone to school. Some pay money to landlord and fraudulent agents without evidence, packed into a house without appropriate contract, make business decisions like they are people without sense. Their excuse is competition and out of their own frustration, blame govt. What else can govt do better than passing such laws as this.

I recount my experience. I entered into a 2 year contract with Diya Fatimilehin for a 3brm flat for 2 years at 350k per annum. I paid a total of 875k for the 2 years as a new tenant for 2 years (10% legal, 10% agreement and 5% caution). The building is a new 4 flats (3 bedroom each). 6months to the end of the two years, Diya Fatimilehin wrote through their legal dept that the Landlord has increased the price to 600k per annum per flats. To my utmost disappointment, 2 of my co-tenants (a manager in UAC and an HR executive in African Petroleum who are older Mid forties) are running here and there and proposing to beg the Agent to a salary of 450k per annum. It took mysef and the another tenant (a lady banker) to insist that will not happen.

Without the help of a lawyer, a single carefully worded correspondence to their legal team insisting that we will not pay any increment ( and stated our reasons) was followed by an appeal to pay 450k house rent which we rejected in our response to them. We offer that we were ready to go to court and sort it out. The Marketing team came to our house and we sat down on negotiation table and after much considerations shifted ground to 370k per annum for peace to reign which was locked up in an agreement in principle that subsequent increase will be discussed as should be the practise in property market business. The so called HR executive and UAC manager were following us and the duo had more than 7 years experience compare to mysef and the other lady who are just 3rd level officer in a commercial bank. I am excited and if this law is passed into law, God knows I will pay 6months rent and no more.

My advice, Nigerians, apply your brain. Dont allow anyone to treat you with disdain. Show that you have gone to school and insist on fighting a little bit. Lawless country is because we have bunch of lawless followers who will do nothing to change the status quo.

Kudos to Lagos House of Assembly. Fashola please sign this to law.

Playing to the gallery

this is another plus coming from the lagos state goverment, i jst hope they can effectively impliment this laws. I ve this feeling that lagos landlords will increase their rents to high heavens. Uncle fash, pls send a bill to the state house of assembly to fix the rents too depending on d location were these houses are situated. Jst my candid opinion though.

where is lawyer o,

implementation is key

Eko Ile:


Take your lazy a/s/s/ to the Market Management's website to find out, they have a functioning website.

Lazy people,

. now thats whats up. google is your friend

better late than never

This law is "good" but l am cautiously optimistic!
We are gradually moving to that point as obtained in other climes, where you only pay one month house rent and another one month deposit, to rent a house. Two months in all.

As per implementation, everything is a question of WILL! Does the government have the political will to enforce the law?

*Do our policemen, who will be the first point of contact (when gra-gra begins to push-push  ), have the enlightenment/awareness and the will to do that which is right before the law?
What happens when Landlord give Policeman "Egunje"?

*What happens when the "government prosecutor or even the Judge" collects bribe and refuse to give effect to a tenants right?
*What happens when Lawyer (l just seen it happen at a mediation center!)  connives with your Landlord, against you?

Having said that, let us be very clear about certain things: You cannot dictate the price of a product you dont control or own
The most basic law of Economics: Demand & Supply, will always be the most important dictator of Price!
As long as we have very acute shortage in the supply (availability) of rentable houses, even a price-control act will just drive the "house-rent business" underground and it will become a Mafia thing and our yeye Police are not sharp enough to bust such Mafioso!
I also hopes the law pays attention to areas like "ejection/determination of tenancy", right to extend "a sitting tenancy", Conditions for forfeiture of tenancy, damage to property by a tenant, No use of residential property for "any form" of business/Trade, No Animals/Livestock, No over-crowding, No Sub-letting, No modification without Landlords written consent, Surety/Guarantor for every Tenant, Payment by direct Debit and consequences if it fails e.t.c

And it will also mean that Traders/Artisans/Most self employed or people without a Guaranteed source of income, WILL NOT GET HOUSE TO RENT!

BTW: What will Fashola do, to those his "low cost housing Units" that cost an ARM and a LEG?
Should the government NOT FIRST, tackle the pricing and supply of building products like Cement, Plank, Sand, Transportation, Labour Cost, Nails, Roofing Sheet, e.t.c, before trying to legislate on the Cost of the house itself?

A time will come when no one will see any advert for house rent yet, people will be moving-in and moving-out! All will become "Underground"! When that happens, even the cost of rent will escalate further and aint nothing anyone can do about it!

Highly welcome. I hope the law enforcement will follow this through.

Can anyone pls paste a link to a content copy of the Bill so that we can go through?

i think the fine to be paid by defaultee is too small. just 100k?

nice, i love this bill

The law is draconian and cannot stand the test of time. Dont be shocked when rent rates goes as high as 100% of what is currently being charged, this is because the landlords have to cover their recurrent and investment costs in good time.

A typical 4 units of 3 bedroom flat costs about N20m to build, this is not inclusive of the cost of Land. The cost of land varies from location to location. No bank is willing to give any long term Mortgage facility. If the Landlord used short term funds to finance the building at a conservative rate of 20% per annum, he will be paying an annual loan financing of N4m. Assume he calculates a return on investment at 5%. That is an additional N1m. This means that each tenants in the 4 flats must pay a minimum of N1.25m per annum to the landlord to cover his cost and make a meager profit of N1m. Dont also forget that inflation rate is double digit. Yet rent are not increased annually at the inflation rate.

Most Landlord tries to cover this cost by asking for a 2 year rent (still running at a loss). If they have to collect only 1 year rent in advance, it then means that they must increase the rent rates by as much as 100% or more to cover their recurrent costs and still make profit.

Most landlords are making losses on their investments because most still charge as low as N500k per annum or less on 3 bedroom flats. Compare rent rates internationally, then you will know that Nigeria still pays one of the lowest. So, dont blame Landlords for charging 2 years upfront. Blame the government

is it 6months or 1year that is permitted now?i need someone to kindly clarify. thanks

a good initiative by the lagos state government,

I hope the law will peg the amount to be paid if not this very law will bring more money into the pocket of the Landlords. How?

A flat going for N300,000/year will now be N300,000/six monthly. So how do will control that?

@lagbaja.

Most Landlord tries to cover this cost by asking for a 2 year rent (still running at a loss). If they have to collect only 1 year rent in advance, it then means that they must increase the rent rates by as much as 100% or more to cover their recurrent costs and still make profit.

Most landlords are making losses on their investments because most still charge as low as N500k per annum or less.

How would you or why wont you factor-in the fact that a building appreciates in value, annually and lasts an average of 50yrs. If we do the maths of #500,000 x 4flats, x 50yrs = #100,000,000:00.
Do you still think the Landlord is making a loss or thy just want to recoup all their investments in the shortest possible time (like 5yrs!)?

Cheers.

lastpage:

@lagbaja.
How would you or why wont you factor-in the fact that a building appreciates in value, annually and lasts an average of 50yrs. If we do the maths of #500,000 x 4flats, x 50yrs = #100,000,000:00.
Do you still think the Landlord is making a loss or thy just want to recoup all their investments in the shortest possible time (like 5yrs!)?

Cheers.

The argument that a building appreciates is true, but not in Nigeria. Inflation rate is as high as 11% year-on-year, and the rate of rent increases is lower than inflation rate. So the landlord is not benefitting from the appreciation on his asset. it is also not possible for a landlord to recoup his investment in 5 years, not even in 20 years because the typical Return on invest is as low as 3%. A landlord is an investor, he is not providing a humanitarina service. he could choose to invest his money in other forms.