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Lagos ‘tenancy Act’ Pushes Up Rent By 100% - Properties - Nairaland

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Lagos ‘tenancy Act’ Pushes Up Rent By 100% by whatalife: 7:13am On Sep 20, 2011
The debate on the Lagos state tenancy bill which was passed into law in August continues to generate interest from every quarter as the state is set ,

to review the bill again in less than a month, according to the Lagos State Commissioner for Justice, Ade Ipaye.

Recently, in an interactive session with journalist, Mr. Sola Fatoki, chairman of the Lagos State branch of Nigerian Institution of Estate Surveyors and Valuers, NIESV, noted that rent control in Lagos has never achieved the desired result.

While professional stakeholders are voicing their fears that the tenancy act might prevent investment in property in the state, the issue in town is not about investment but the problems that have arisen in a matter of weeks and months since the ascension of the bill, even before it became an act.

One of such problems is the unprecedented hike in house rents in many parts of town along with letters of quit notice by some landlords to their sitting tenants.

A spectator at Oko-Oba Agege, Ayoola Longe, noted in his area that a landlord served quit noticed to his tenants and hiked the rent for incoming tenants. “Their initial rent was N200, 000 per annum and he increased it to N270, 000 and refused to collect six months rents from the sitting tenants. When the quit notice was served, the tenants had to go pay for a year. The landlord also got new tenants who paid a total of N520, 000 to rent the same size of apartment for a year, since he cannot collect for two years.”

Also in Oworonshoki, the story is the same as a two bedroom apartment that was previously letting for N150, 000 - N200, 000 per annum of which intending tenants were expected to pay for two years has gone up to N350, 000 for a single year.

Home seekers have different stories to tell about their experiences in different parts of the state. Enifome Anthony, a microfinance employee who works on the Island said he’s been house hunting since the beginning of the year. “I want a mini-flat or 2 bedrooms flat in Surulere or Gbagada or Ajah,” he told BH. “The types I could afford were previously going for N180, 000 – N200, 000. I didn’t pay then because I had to pay for two years, agency and agreement so I was still saving before the tenancy bill was passed. The problem now is, apartment that was initially N180, 000 is now N250, 000 and add agency and agreement to that, I will be paying almost what I would have paid for two years. So in as much as the tenancy act is good to protect people like me, a proper regulation should be in place to check increase in house rental.”

Other spectators feel it is criminal and totally inconsiderate for landlords to hike rents in other to make more money.

“There is absolutely no difference in what the landlord makes at the end of day,” Onadeko Samson Adeyinka, a professional estate manager with Ampris Global Resources Ltd, an estate developing firm, said. “What the landlords who are increasing their rents fail to realize is that what they are doing is criminal. The bill wasn’t passed to enrich the landlord more and impoverish the tenant the more. Unfortunately, some agents also push the landlords to increase the rent so their commissions will be much without considering the middle income earner who is struggling to pay the rent.”

On complying with the law, Adeyinka noted that some landlords are now playing by the book and not hiking their rents like some others are doing.

Another stakeholder with Benaiah Energy, Edwin Agbodu, who also works as a real estate agent said “the state government is only trying to protect the tenants from harassment and unnecessary increase by their landlords. Let the truth be told, it is often difficult for many people to pay this 2 years rent. I also read that the law doesn't apply in some areas such as Ikoyi, Victoria Island and Ikeja Gra/ Apapa because of the high cost of properties at these special areas.”

He also confirmed what Adeyinka said above that many landlords are complying with the law. “In fact tenants are quoting the laws to the landlords as it is in their own interest.”

With issues of rent hike, and a black market situation that favours tenants who are willing to play by the landlords’ law, what can the government do to ensure that the tenancy act is not only enforced and obeyes, but that rent hike is checked?

“I will also expect the state government to begin construction of affordable housing projects for its average citizens like the Jakande regime and there should be provision for mortgages,” Edwin Agbodu said.

Other stakeholders agree that construction of affordable housing by the government will help, while calling on the government to lead by example in collecting land charges monthly, instead of annually

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