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Lagos Tenancy Bill Passed To Fashola For Signing - Politics (2) - Nairaland

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Re: Lagos Tenancy Bill Passed To Fashola For Signing by dollypi(m): 8:06pm On May 30, 2011
The new law is a good development.
In a country where the sachet version of milk out-sells the tined version, even though it's more expensive, one can duly expect that, yes, rents will increase, but more people will/should be able to afford the bi-annual payments.
Re: Lagos Tenancy Bill Passed To Fashola For Signing by Connoisseur(m): 8:10pm On May 30, 2011
Fhemmmy:

There will always be some people that are willing to pay for many months and those will never let the law be effective.


this law would only be effective if government has a stake in the housing sector.
The government does not  regulate the price of land, cement of cement and other building materials, it would result in the scarcity of apartments and the tenants would willingly offer to pay for 2 years in advance.
I'd say some neccessary factors like low cost govenment houses, low mortgage plans should be put in place for the law to have its desires impact, otherwise its more money for the landlords and so much pains for would be tenants
Re: Lagos Tenancy Bill Passed To Fashola For Signing by Fhemmmy: 8:13pm On May 30, 2011
remsky:

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?

You have just said it all . . . . But really good initiative.


Connoisseur:

this law would only be effective if government has a stake in the housing sector.
The government does not  regulate the price of land, cement of cement and other building materials, it would result in the scarcity of apartments and the tenants would willingly offer to pay for 2 years in advance.
I'd say some neccessary factors like low cost govenment houses, low mortgage plans should be put in place for the law to have its desires impact, otherwise its more money for the landlords and so much pains for would be tenants

If they could implement it and enforce it, that will be great, i would love it too
Re: Lagos Tenancy Bill Passed To Fashola For Signing by jerryben12: 8:28pm On May 30, 2011
Landlords will increase rent. one year rent will be for six months.
Re: Lagos Tenancy Bill Passed To Fashola For Signing by ireke(m): 8:53pm On May 30, 2011
It is unfortunate that the law does not make any provision to protect the landlord from delinquent tenants.
for example following lastpage's analysis below
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.
If a landlord takes a loan of 20M naira at a modest interest rate of 18% pa to build a 4 bedroom flat and receives 2M naira per year on this house (which he pays directly to the bank), by the end of the 50 years in your analysis above, his total indebtedness would roughly 30M naira. Don't bother that he is responsible for the maitenance of the building over this period or that he invested in this building not to repay a loan but so that he can get some additional income to feed his family.

but who cares? the landlord is a demonic shylock anyway and he doesn't need to be protected. he probably did not sweat his life away to be able to gather the funds needed to put up the building. in fact he is probably a thief and this is the only way the society can take back from them.
Re: Lagos Tenancy Bill Passed To Fashola For Signing by adefemi1(m): 8:57pm On May 30, 2011
then lagos state govt must be ready to provide more low cost housing estates


1.    how many houses does lasg possess and at what cost
2.    what is the average cost of building a low cost house?
3.    what are the costs of building materials in lagos
4.    is there any regulations towards all these
5.    how much is the cost of tinubu, oniru, otedola, etc estates going for in lagos is it really affordable


a cement costs N2500 in market which the actual cost should be less than N500

this govt is creating more avenue for annual increament by landlords or collecting 3 yrs rent with an option of paying govt 100k out of it the reall truth is that tenant will pay any fine that come from govt whether on short term or on increamental basis.
Re: Lagos Tenancy Bill Passed To Fashola For Signing by Princek12(m): 9:13pm On May 30, 2011
I have a problem with a proviso of this bill--the part that forbids landlords from receiving rent in excess of twelve months from a tenant and forbids tenants from offering to pay more than twelve months rent. Government should only minimally intrude into the private affairs of contracting parties. With that being said, according to this bill, if a tenant wants to willingly pay a landlord more than twelve months rent then both the landlord and the tenant would be in violation of the proposed law. I don't think that it is right. I agree that landlord should not be allowed to demand more than twelve months rent, but making it illegal for a landlord to receive more than 12 months rent  and for a tenant to offer to pay more than twelve months rent has gone a little bit too far for me.

What will be next on the table? A bill limiting the amount of rent a landlord can charge? That would be a travesty, to put it mildly, and a gross intrusion into the free market system of contracting parties. Government should give incentives for landlords who rent at discount rates or who demand less than twelve months rent upfront.
Re: Lagos Tenancy Bill Passed To Fashola For Signing by arogbowei: 9:23pm On May 30, 2011
I quite agree with Lastpage, and Lagbaja, this bill is anti investment, anti entrepreneural spirit, retrogressive and unrealistic. How much is the government selling their so called low cost housing estates or their so called ultra modern markets that lacked basic facility of a modern modern market?

So it is now a crime to invest in the property market in Lagos? Na wah o. What is the interest rate on loans from banks, where are the government mortgage institutions that should be giving loans to investors. My advice is let the government direct their energy towards ensuring that all the institutions established to ensure affordable housing for all are functional.
Re: Lagos Tenancy Bill Passed To Fashola For Signing by maclatunji: 9:27pm On May 30, 2011
The Lagos State government is trying to intervene in a market where demand outstrips supply. What is likely to happen is that a black market will be created if this law is strictly enforced (rents will go higher because of the increased risk of litigation and fines to the landlord). Then there will be clauses like[b] the sitting tenant has an option of 1st refusal to renew the agreement at the end of the first year[/b] embedded in the contract signed by both parties. This can be interpreted to mean virtually anything both parties want.

What the State government should focus on more is boosting enterprise and economic development. The market will adjust itself without outside interference. Going by this logic, the state government should start regulating the sale of cars, garri and rice as well.
Re: Lagos Tenancy Bill Passed To Fashola For Signing by damola1: 9:35pm On May 30, 2011
If lagos wishes to control the market prices, let them build and own all the houses in lagos,

All this talk na joke, If you wan leave for house, pay, if not, waka, simple as that, This is Lagos!,
Re: Lagos Tenancy Bill Passed To Fashola For Signing by ireke(m): 9:57pm On May 30, 2011
If I have to collect 6 month's rent, these are clauses that I will likely include in the agreement with a tenant

• I will collect an amount that is equal to 3 month's rent as caution fee, which will be returnable at the expiration of tenancy (Amount returned will depend on factors such as rent owed and cost of avoidable damages to the property)
• Rent for the next 6 months is due on or before the end of business on the first business day of that period.
• Failure to pay rent on the first day of the 6 months will be considered as a breach of the agreement and there will be incremental additional payments (interest/penalty) for as long as the rent is delayed.
• If a tenant does not pay by the end of the first month, he/she (the tenant) will agree that he has terminated his tenancy, in which case he or she will agree to be given another 30 days of grace to look for alternative accommodation.
• If the tenant pays up all the accrued fees within the 30 days of grace, the contact will be reinstated. A tenant can activate this clause only twice in the life of the contract
• At the expiration of the grace period, the landlord will be entitled to enter the rented premises in the presence of a law officer (probably from a law court acting on the terms of this agreement) and a representative of the tenant (if one is available). The purpose will be to remove the properties of the tenant and evict him.
Re: Lagos Tenancy Bill Passed To Fashola For Signing by jmaine: 10:00pm On May 30, 2011
Princek12:

I don't think that it is right. I agree that landlord should not be allowed to demand more than twelve months rent, but making it illegal for a landlord to receive more than 12 months rent  and for a tenant to offer to pay more than twelve months rent has gone a little bit too far for me.


I personnel feel, that if your line should be towed . . the landlords might circumvent  that loop hole to arm twist the tenants to pay the usual existent 2.5 and above years and and that will defeat the intention of the bill in stopping the brazen exploitation of the Lagos State landlords. You might also need to understand that tenants might not want to fight back considering the difficulty in getting accomadation in the state  . . Am even more interested in the agent and agreement fees that intending tenants are forced to pay before your rent money is even considered . . agent and agreement  money is supposed to be 10% or max 15% of the actual rent money . .so how do you reconcile the fact that after paying about N350,000 for an apartment for 2.5 years ( dependent on locality) . . you must meet the demand of an additional N150,000 agent and agreement fees. . .it appears the landlord themselves are even more interested in you paying up the agent and agreement bill than even the actual rent . . .very exploitative practice my bro and the effort of the Lagos Government to intervene is welcome . .
Re: Lagos Tenancy Bill Passed To Fashola For Signing by damola1: 10:00pm On May 30, 2011
ireke:

If I have to collect 6 month's rent, these are clauses that I will likely include in the agreement with a tenant

• I will collect an amount that is equal to 3 month's rent as caution fee, which will be returnable at the expiration of tenancy (Amount returned will depend on factors such as rent owed and cost of avoidable damages to the property)
• Rent for the next 6 months is due on or before the end of business on the first business day of that period.
• Failure to pay rent on the first day of the 6 months will be considered as a breach of the agreement and there will be incremental additional payments (interest/penalty) for as long as the rent is delayed.
• If a tenant does not pay by the end of the first month, he/she (the tenant) will agree that he has terminated his tenancy, in which case he or she will agree to be given another 30 days of grace to look for alternative accommodation.
• If the tenant pays up all the accrued fees within the 30 days of grace, the contact will be reinstated. A tenant can activate this clause only twice in the life of the contract
• At the expiration of the grace period, the landlord will be entitled to enter the rented premises in the presence of a law officer (probably from a law court acting on the terms of this agreement) and a representative of the tenant (if one is available). The purpose will be to remove the properties of the tenant and evict him.


hmmm, una don start,
Re: Lagos Tenancy Bill Passed To Fashola For Signing by hackney(m): 10:12pm On May 30, 2011
Lagos is the most forward thinking state in that country.
Kudos for effort at least.
Re: Lagos Tenancy Bill Passed To Fashola For Signing by maclatunji: 10:16pm On May 30, 2011
ireke:

If I have to collect 6 month's rent, these are clauses that I will likely include in the agreement with a tenant

• I will collect an amount that is equal to 3 month's rent as caution fee, which will be returnable at the expiration of tenancy (Amount returned will depend on factors such as rent owed and cost of avoidable damages to the property)
• Rent for the next 6 months is due on or before the end of business on the first business day of that period.
• Failure to pay rent on the first day of the 6 months will be considered as a breach of the agreement and there will be incremental additional payments (interest/penalty) for as long as the rent is delayed.
• If a tenant does not pay by the end of the first month, he/she (the tenant) will agree that he has terminated his tenancy, in which case he or she will agree to be given another 30 days of grace to look for alternative accommodation.
• If the tenant pays up all the accrued fees within the 30 days of grace, the contact will be reinstated. A tenant can activate this clause only twice in the life of the contract
• At the expiration of the grace period, the landlord will be entitled to enter the rented premises in the presence of a law officer (probably from a law court acting on the terms of this agreement) and a representative of the tenant (if one is available). The purpose will be to remove the properties of the tenant and evict him.


You are one heck of a person.
Re: Lagos Tenancy Bill Passed To Fashola For Signing by Limaoscar: 10:18pm On May 30, 2011
i think the fine to be paid by defaultee is too small. just 100k?




Can't agree any more with you on this. Hope this bill is successfully implemented. After Lagos, Abuja and PortHarcourt should follow suit.
Re: Lagos Tenancy Bill Passed To Fashola For Signing by yabadabado: 10:22pm On May 30, 2011
in an environment where the housing market has less  supplier against those that demand it housing,  this is surely a huge joke.
again a government that can provide enough housing stock for it population dey fumbled and want to dictates pricing. they are living in  a JONZING world.
Re: Lagos Tenancy Bill Passed To Fashola For Signing by Princek12(m): 10:40pm On May 30, 2011
jmaine:

I personnel feel, that if your line should be towed . . the landlords might circumvent  that loop hole to arm twist the tenants to pay the usual existent 2.5 and above years and and that will defeat the intention of the bill in stopping the brazen exploitation of the Lagos State landlords. You might also need to understand that tenants might not want to fight back considering the difficulty in getting accomadation in the state  . . Am even more interested in the agent and agreement fees that intending tenants are forced to pay before your rent money is even considered . . agent and agreement  money is supposed to be 10% or max 15% of the actual rent money . .so how do you reconcile the fact that after paying about N350,000 for an apartment for 2.5 years ( dependent on locality) . . you must meet the demand of an additional N150,000 agent and agreement fees. . .it appears the landlord themselves are even more interested in you paying up the agent and agreement bill than even the actual rent . . .very exploitative practice my bro and the effort of the Lagos Government to intervene is welcome . .

I understand that the proviso making it illegal for prospective tenants to offer more than one year's rent was drafted in order to prevent a landlord from circumventing the purpose of the bill by indirectly forcing a tenant to pay more than six months rent. However, in a free society where parties are presumably free to contract, you have to be willing to sacrifice for freedom. A govt. department in which injured tenants can complain, followed by the prosecution of landlords held in violation of the law is key. That is to say, if a qualifying tenant who offers the minimum amount of rent money is denied accommodation because a landlord is trying to squeeze more money out of that tenant, then that tenant should call the government agency and appropriate action should be taken.

To restrict or to otherwise make punishable by imprisonment an act of willingly offering to pay more than a years rent is barbaric and reactionary legislation that is not well thought-out, and is therefore not good public policy. Would you support a bill that makes it illegal for a landlord to charge more than a statutorily-fixed amount of rent? For example, rather than allow the free market system of demand and supply to set the market rate for rental rates, would you support a bill that requires landlords to charge no more than N500k a year for rent because landlords are supposedly inflating rental rates?

This is a prime example of band-aid legislation. That is to say, rather than fix or address the underlying problem of the high rental rates, for example by incentivizing the act of providing cheap and affordable rates, the government is trying to legislative around the problem.
Re: Lagos Tenancy Bill Passed To Fashola For Signing by adozie(m): 12:54am On May 31, 2011
@Ayubam : Well spoken my brother. It is unfortunate that the average Nigerian wants the government to do everything for them. Government is there to create enabling environment and laws to ensure a civil society and for people to thrive. The law is there; if any landlord demands that you pay him more than six months rent at a time, take him to court. I live in the United States and I know that I do not expect the government here to do everything for me. I also know that there has to be a legal contract each time I rent a property. The Lagos State government has done a great deed for all Lagosians with this law. The rest of the States in Nigeria should take steps to enact similar laws to protect renters and landlords. There are many tenants who might not be able to afford a 2 year rent at a time, but that does not mean that they can not pay their monthly rents. When Nigerians complain, sometimes it is because they have not taken the right step to utilize the resources and opportunities available to them. Lawyers in Lagos can lobby the legislators to include as part of the new law, a provision that all rentals be entered into with a legal contract to be drafted by an attorney. This way, lawyers can tap into the real estate market and charge fees for these services. Wait!, before you start calling me names, I want you to realize that with this, both the landlord and tenant will be protected. The tenant does not have to be scared of his landlord making un-necessary demands or arbitrary increase in rent and the landlord does not have to spend so much money bribing the police to put out a tenant who defaults in their rent. On the other end, the lawyers in Lagos state will also use their machinery to ensure that there is speedy resolution of rental cases, that way everybody wins!
Re: Lagos Tenancy Bill Passed To Fashola For Signing by adozie(m): 1:11am On May 31, 2011
@ Princek12 : I understand your argument about free market. However when free market is not regulated, it runs berserk! The recent economic melt down in the United States clearly illustrates this. Nigeria and Nigerians are peculiar. Unfortunately, if you do not put a rate limiting step, landlords will use the opportunity to rent only to those who can pay more than a year's rent. The true economic impact of stripping people of their money by collecting long term rents is unprecedented in a cash economy like ours. With regards to a government agency, honestly we don’t need more government agencies filled with fraudulent officials. The courts are there, all we need is to make them efficient. Nigeria has too many unemployed lawyers who can be employed in the bench.
Re: Lagos Tenancy Bill Passed To Fashola For Signing by Seun(m): 2:12am On May 31, 2011
Regulations should be win-win for everybody except cheats/inbeciles. Don't punish landlords to please tenants.
Re: Lagos Tenancy Bill Passed To Fashola For Signing by Binutiri(m): 3:42am On May 31, 2011
@ayubam pls think outside the box

House in Nigeria are too overpriced in that Lagos that is why people will be runnung at loss in that Lagos if u re buying unreasonable houses for 100million common flat for 60million ki lo de in that Nigeria.U can buy a bettter house in USA or UK FOR EXAMPLE, Dont you think landlord deserve to enjoy or have dividend on their investments.
And people wanted to invest in stocks and have dividends.This trend shows how Greed some people are in their life.
If u buy a House at Ikoyi for 500 million naira on short term loan(which is hardly impossible for an average to have the cash expect for loan)
so 6 month rent at what rate.
Maintainance to keep the Value up ansd servicing of Loan.
So the man will be running at a loss.
He will hardly pay back his debt.
Even to transfer houses itself nah wahala, all those commission that Fashola Levied. n ko cool grin,
Re: Lagos Tenancy Bill Passed To Fashola For Signing by maxproxl: 3:58am On May 31, 2011
av expected this for long. a good step in the right direction, landlords in lagos has really exploited tenants. its so bad that some even demand for 3 - 4 years rent and outrageous legal/agency fees. please this law should be implemented and a high fine attached to it. eko oni baje
Re: Lagos Tenancy Bill Passed To Fashola For Signing by member479760: 5:31am On May 31, 2011
The rent too cheap, increase the rent by 5, collect every month, that will be fine.
Now, back to the lagos gov. did we have any option to choose from?
When omooniles are selling land for 600K, this same Lagos gov selling their 10 times omoonile price back-door, same moda foka passing bill without options.
Re: Lagos Tenancy Bill Passed To Fashola For Signing by DaDoctor: 9:42am On May 31, 2011
If only this would be FULLY IMPLEMENTED,

Lest i forget, i saw a MASQUERADE LAST FRIDAY, But didnt see anyone pick or attempt to jail him,( abi na her or it).
Re: Lagos Tenancy Bill Passed To Fashola For Signing by samtoye(m): 10:16am On May 31, 2011
All these rambling happen only in the pages of newspaper, its a simple case of law of demand and supply, richer prospective tenants would outdo themselves to outpay their competitor since the houses available are limited!!!! would govt fault a private agreement between two people? Instead of enacting feckless laws they should build low cost houses to accommodate the growing populace!!!naturally prices for private houses would go done!
Re: Lagos Tenancy Bill Passed To Fashola For Signing by DaDoctor: 10:21am On May 31, 2011
@SAMTOYE, You are truly learned and wise.

God bless you, THE PR IS JUST HIGHER THAN THE WORKS.
Re: Lagos Tenancy Bill Passed To Fashola For Signing by baslone: 10:31am On May 31, 2011
Da Doctor:

If only this would be FULLY IMPLEMENTED,

Lest i forget, i saw a MASQUERADE LAST FRIDAY, But didnt see anyone pick or attempt to jail him,( abi na her or it).

What did you do? ?

You have the right to inform the police nah? ? ? cheesy
Re: Lagos Tenancy Bill Passed To Fashola For Signing by DaDoctor: 10:33am On May 31, 2011
oga abi na madam, patrol team dey parade the area , if them see am close eye, na me go go open them aye??

abeg o, i no dey work for ALAUSA
Re: Lagos Tenancy Bill Passed To Fashola For Signing by eros(m): 11:24am On May 31, 2011
The tenancy bill should be made effective in every state in the country. This is long over due, but a great development.
Re: Lagos Tenancy Bill Passed To Fashola For Signing by ayodeji1(m): 11:37am On May 31, 2011
a welcome development though,but will it work?ive been hearing that a long time ago.also that there shouldnt be such thing as the agency fees,agreement stuff.fine,the govt can introduce such.but if the owner of the house refuses to accept,and u need the house badly,what will u do?run to the govt that the owner is asking for 2years upfront from u?what effort has the government itself made to make building a house easier for the masses?rather its the other way round.so me thinks the landlord has final say bout such.if u need it,u take it,if u dont,go somewhere else.shikennah!
Re: Lagos Tenancy Bill Passed To Fashola For Signing by otitokoro1: 11:47am On May 31, 2011
A friend of mine rented 2 room self contained he paid 70,000 per year and paid two years (N140,000) this shown on the receipt. However, my friend actually paid N390,000 (Rent = N140,000, Agreement = N100,000, Agency = N100,000 and damages = N50,000). Will this bill address all of this?

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