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Why Pay House Rent In Advance? - Properties - Nairaland

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Why Pay House Rent In Advance? by ikaleguy(m): 10:32am On Jun 10, 2008
People do not collect salaries in advance so am kind of annoyed why landlords,agents should be collecting rents in advance minimum 2 years.Fellow nairalanders your views please!!!!!!!!!!!!!
Re: Why Pay House Rent In Advance? by landis(m): 11:14am On Jun 10, 2008
.
ikaleguy:

People do not collect salaries in advance so am kind of annoyed why landlords,agents should be collecting rents in advance minimum 2 years.Fellow nairalanders your views please!!!!!!!!!!!!!

this is one of the anomalies of Nigeria.

yet Govt has not done anything and people themselves have not done anything.

National Assembly + state Assembly are same. we simply dont love/value ourselves.

EFCC alone should have done something.

Maximu should be 3months = which should be used as caution fee.
Re: Why Pay House Rent In Advance? by largie(f): 1:50pm On Jun 10, 2008
This is also one of the causes of hardship in the country.You'll see that once there a law against this act there will be almost 40% decrease in hardship. Also we would notice a higher percentage of the unmarried young men thinking about getting married and looking forward to a bright future.
Landlords asking tenants to pay 1 yr -2yrs in rent is not helping at all.But i doubt if the present set of leaders will do anything about it because who are the landlords we are talking about?
Re: Why Pay House Rent In Advance? by DisGuy: 2:08pm On Jun 10, 2008
Mr Michael Aaondakaa, the Attorney-General of the Federation and Minster of Justice, in May requested state commissioners of justice to initiate legislation to prohibit landlords from collecting house rents in advance.

Aaondokaa had argued that most Nigerians even in the formal sector did not earn income in advance to make up the payment of rents in the same proportion.

http://allafrica.com/stories/200806040554.html
Re: Why Pay House Rent In Advance? by 7kasali: 2:08pm On Jun 10, 2008
Generally an average Nigerian don't like to pay bills. We had a property that we charged month to month rent in ibadan the tenants always gave us stories each month until we transfered the management to a real estate company and somehow they are able to pay 1 year in advance.
Re: Why Pay House Rent In Advance? by Seun(m): 2:10pm On Jun 10, 2008
After spending millions of naira building a house, most times over budget because of the constant inflation, why would they not want to collect their rent two years in advance? It is only natural.

If landlords only ask for rent on a month to month basis, they will end up with more tenants who will not pay on time. When the landlord evicts them for not paying on time, they will say the landlord is wicked.

What is puzzling is that they don't give you an option of paying a higher rent on a pay as you go basis. Maybe I will pioneer this when I become a landlord, and other people will follow suit.

If landlords are forced to forego the 2 years advance, the average rental fee will definitely go up.

7kasali:

Generally an average Nigeria don't like to pay bills. We had a property that we charged month to month rent in ibadan the tenants always gave us stories each month until we transfered the management to a real estate company and somehow they are able to pay 1 year in advance.
Exactly. The average Nigerian deserves the current system. wink
Re: Why Pay House Rent In Advance? by DisGuy: 2:14pm On Jun 10, 2008
that's true because most landlords are very eager to get their investment back to build another house, throw a party, pay school fees or marry another wife grin

Another issue is budget people are used to it the way it is so they dont mind (well they are not complaining)
I think people (landlords,agents) should start collecting rent by direct debit so no excuse at month end

they'll definitely be a premium on pay as you go for the convenience
Re: Why Pay House Rent In Advance? by DisGuy: 2:16pm On Jun 10, 2008
Generally an average Nigeria don't like to pay bills.
no wonder they complain when they reach obodo oyinbo as if they are not the one
using the phone,electricity, etc tongue
Re: Why Pay House Rent In Advance? by tsharp(m): 2:45pm On Jun 10, 2008
so dat if you die somewhere along the line your landlord would have fewer things to worry about.
Re: Why Pay House Rent In Advance? by ifyalways(f): 2:48pm On Jun 10, 2008
landis:

.
this is one of the anomalies of Nigeria.

yet Govt has not done anything and people themselves have not done anything.

National Assembly + state Assembly are same. we simply don't love/value ourselves.

EFCC alone should have done something.

Maximu should be 3months = which should be used as caution fee.
exactly ! ! ! .here u dont pay more than 6 months advance and even that is very rare,the normal thing is just 3 months.BTW just like someon said,maybe its cos the average 9jerian hates to pay bills undecided
Re: Why Pay House Rent In Advance? by LearnBook: 2:55pm On Jun 10, 2008
Me thinks that the real reason is the lack of enforceability (is there such a word?) of laws. It should be possible to pay monthly but equally possible to quickly eject someone who is in arrears and claim the backlog against his future earnings. Our biggest problem in this regard is the ability to properly identify citizens and also being able to measure their credit worthiness.

seun - PAYG Rent is a good idea if and only if tenants can be quickly evicted if they default. Just like the phone companies just stop you from making calls.
Re: Why Pay House Rent In Advance? by 2Legit: 2:57pm On Jun 10, 2008
if u sef build housemake u collect only monthly payment.
e good make some ppl start d thing first
Re: Why Pay House Rent In Advance? by favcom(m): 3:12pm On Jun 10, 2008
@ topic
Some comments so far has been disappointing, to say the least. Why do we always generalise that Nigerians don't like to pay bills? What brought this sentiment? I'm not in that category, and I believe many are like me. A lot of people (like someone already noticed) would have done so many things with their lives - young men settling down in this hard terrain - if not for the exhorbitant rates the landlords asks. I believe house owners can afford to collect say three to six months upfront maximum. Then, what do we do with the 'agreement' and 'commission' fees agents demand? These fees are sometimes at par with the rents!!!
So much to say, but who listens
Re: Why Pay House Rent In Advance? by ayomifull(f): 3:19pm On Jun 10, 2008
ifyalways:

exactly ! ! ! .here u don't pay more than 6 months advance and even that is very rare,the normal thing is just 3 months.BTW just like someon said,maybe its because the average 9jerian hates to pay bills undecided

Where is the HERE please?
Re: Why Pay House Rent In Advance? by shuboy: 3:20pm On Jun 10, 2008
I agree it does not make any sense paying rent in advance in Nigeria, but looking at it on from the Landlords perspective it would be difficult for the landlord collecting his rent monthly and on time. The fact is there are lots of people who don't get paid on time or somethings are owed salaries for months. Imagine all the excuses.
Re: Why Pay House Rent In Advance? by DoubleN(m): 3:30pm On Jun 10, 2008
Naija!This topic has always bothered me,i ma so happy that someone has brought it up.
Re: Why Pay House Rent In Advance? by sheniqua: 3:34pm On Jun 10, 2008
let me speak as the daughter of a landlord  smiley kiss

I remember how tenants stiffed my dad of money several times.
I remember driving up with my dad to collect rent and the man of the house would dissappear and the wife will be begging for more time.
I remember people moving out in the dead of the night literally without telling him and owing months overdue
I remember trips to people's homes sometimes out of town after they had moved but owed and many would "not be around"
I remember people paying half the rent begging to be given time to pay the rest.
I remember people owing their rents but had enough money to buy a car or motocycle.

It actually got worse when my dad became a born again Christian,even fellow bethren expected him to turn a blind eye if they owed because they were brothers in Christ.

These people forget that the Landlord needs that money to feed his own family including extended family, pay their school fees, maintain his property and do his own family obligations including take care of aged parents.

Now that I'm older I know that paying 2 years or I year in advance may be very difficult but then in our society where the proper credit system is not in existence ,that's the only way that landlords are not taking great advantage of.
They depend on that money.

That's the reason we pay cash and carry for cars and not make monthly payments like in the western world.
car dealers and other sales men want their money in full.
Same with landlords.
Anyone that thinks the system is unfair should build a house and lease to tenants and depend on monthly payments then come back and tell me your experience in Nigeria.
Re: Why Pay House Rent In Advance? by sheniqua: 3:41pm On Jun 10, 2008
Thankfully now that dad is much older and hasn't the strength to drive around town asking and begging for payments or threatening court evictions, God has blessed him with reliable tenants including government, so his golden years are better than his younger days.
I love you daddy!
You are my hero!
I hope to see you soon!
kiss kiss kiss kiss kiss kiss kiss kiss kiss kiss kiss
Re: Why Pay House Rent In Advance? by favcom(m): 3:45pm On Jun 10, 2008
@ sheniqua
Pele o, omo baba landlord wink
Truth be said, some people are the cause for the two-year demand - but house owners could afford to collect rent for three months na undecided
Re: Why Pay House Rent In Advance? by landis(m): 3:56pm On Jun 10, 2008
sheniqua:

let me speak as the daughter of a landlord  smiley kiss

I remember how tenants stiffed my dad of money several times.
I remember driving up with my dad to collect rent and the man of the house would dissappear and the wife will be begging for more time.
I remember people moving out in the dead of the night literally without telling him and owing months overdue
I remember trips to people's homes sometimes out of town after they had moved but owed and many would "not be around"
I remember people paying half the rent begging to be given time to pay the rest.
I remember people owing their rents but had enough money to buy a car or motocycle.


All these are not valid reasons.

there should be new law.

1. You pay your rent montly

2. You must have bank account.

3. Your Bank must have standing order to pay direct to landord by 30th of every month.

4. No matter what you do, market woman, you must have bank account to RENT house, apartment. This will force all money to go to bank system and not under the Pillow.

5. In case you loose your JOB, you must present letter to your landdord + local govt and allowed 4months to vacate

6. if your business collapsed, you must go to Local Govt. declare poverty and 3months to vacate.

7. there should be defaulter database; simple access db is enough in all local govt. LandLord can check themselves, if your name is there bye, bye no house for you.

We should stop behaving like some LUNATIC people and for once be civilised.

Above  points, will solve 30% of our social ills.

1 Like

Re: Why Pay House Rent In Advance? by sheniqua: 3:59pm On Jun 10, 2008
favcom:

@ sheniqua
Pele o, omo baba landlord wink
Truth be said, some people are the cause for the two-year demand - but house owners could afford to collect rent for three months na undecided

LOL
I remember vividly one instance where dad was building a house and had completed the boys quarters,people were coming to rent the 3 room  boys quarters.He eventually rented it out to this man who had a wife and 3 little kids and worked as a security guard in a ministry.
Soon after the man stopped paying rent and his wife would cry her eyes out and fall on her knees when dad went to collect .
Meanwhile the main house was being built and dad just asked the man to be cutting the grass and cleaning the area ,he couldn't even do that and dad didn't have the heart to throw him out to the streets with a crying wife and little babies.
The house was eventually sold, only then did he move to God knows where.

The povery and hardship in Nigeria just kills me.
Re: Why Pay House Rent In Advance? by sheniqua: 4:06pm On Jun 10, 2008
landis:

All these are not valid reasons.

there should be new law.

1. You pay your rent montly

2. You must have bank account.

3. Your Bank must have standing order to pay direct to landord by 30th of every month.

4. No matter what you do, market woman, you must have bank account to RENT house, apartment. This will force all money to go to bank system and not under the Pillow.

5. In case you loose your JOB, you must present letter to your landdord + local govt and allowed 4months to vacate

6. if your business collapsed, you must go to Local Govt. declare poverty and 3months to vacate.

7. there should be defaulter database; simple access db is enough in all local govt. LandLord can check themselves, if your name is there bye, bye no house for you.

We should stop behaving like some LUNATIC people and for once be civilised.

Above  points, will solve 30% of our social ills.


Your no 5 proposal had me ROFL
hohohoho hehehehe hahahahah

and within the 4 months, what does the landlord tell the bank if he owes them a morgage and used his property as collateral?
how does he send his kids back to school
tell them he's waiting for his tenants to pay?
buy garri and yam on a 4 months credit?
You can propose whatever you like on paper.
We are yet to have a working system and until that happens,you might as well be singing to the choir!
Re: Why Pay House Rent In Advance? by sheniqua: 4:10pm On Jun 10, 2008
BTW in America a landlord can write off his losses from his business in his taxes and can sue his tenant for wages owed, in Nigeria what do you do?
hope and pray you're paid.
My dear you're comparing apples and oranges.
salaries are not even being paid regularly and in full to the average worker and you expect a landlord to absolve the losses, give everyone a 4 month grace when he has his own business to run.
abeg go siddon!
Re: Why Pay House Rent In Advance? by landis(m): 4:14pm On Jun 10, 2008
and within the 4 months, what doesthe landlord tell the bank if he owes them a morgage and used his property as collateral

The tenant will pay 4months in advance after that its every month.

That 4 months is to offset this period before the Govt will eject such tenant.

It is not magic.
grin cheesy grin
Re: Why Pay House Rent In Advance? by sheniqua: 4:19pm On Jun 10, 2008
landis:

The tenant will pay 4months in advance after that its every month.

That 4 months is to offset this period before the Govt will eject such tenant.

It is not magic.
grin cheesy grin

now I understand you.
It all sounds good but how about self employed folks including petty traders,illiterates and people in rural places?
They also need to open accounts?
some villages have no banks you know
Re: Why Pay House Rent In Advance? by favcom(m): 4:20pm On Jun 10, 2008
Sheniqua!  cool
We know sey u don jand, but if u know what we face here u'll know that it's pretty difficult meeting the challenge of two years upfront payment. U shouldn't be surprised also, some landlords actually asks for three years!!!
U have the right to support the motion due to what ur dad has faced before, but we still need to consider others. In Nigeria today, a graduate goes back to live with the parents. Why? Because he can't afford to pay the rents (imagine someone still struggling to get a job?)
Re: Why Pay House Rent In Advance? by landis(m): 4:21pm On Jun 10, 2008
salaries are not even being paid regularly and in full to the average worker


BANK must give 1month over drawn incase money is not in account at that time but with interest.

People are liable to report their company to LG if salary not paid on 30th May. And such company is liable to fine or declare bankruptcy.

It is not magic. If Nigeria is serious, it will be done.
Re: Why Pay House Rent In Advance? by landis(m): 4:22pm On Jun 10, 2008
now I understand you.
It all sounds good but how about self employed folks including petty traders,illiterates and people in rural places?
They also need to open accounts?
some villages have no banks you know

YES. thats why there is MFN: MICRO FINANCE BANK

This will also create JOBS.

If we implement above point, I am confident 50% of our social ills will be gone.
Re: Why Pay House Rent In Advance? by sheniqua: 4:24pm On Jun 10, 2008
favcom:

Sheniqua!  cool
We know sey u don jand, but if u know what we face here u'll know that it's pretty difficult meeting the challenge of two years upfront payment. You shouldn't be surprised also, some landlords actually asks for three years!!!
You have the right to support the motion due to what your dad has faced before, but we still need to consider others. In Nigeria today, a graduate goes back to live with the parents. Why? Because he can't afford to pay the rents (imagine someone still struggling to get a job?)

My brother, I know the situation in Nigeria is very tough.I go home regularly and I weep.
Especially our young men becoming rogues just to survive and  girls sleeping with men for money most times to support their families.
Re: Why Pay House Rent In Advance? by sheniqua: 4:26pm On Jun 10, 2008
landis:

YES. thats why there is MFN: MICRO FINANCE BANK

This will also create JOBS.

If we implement above point, I am confident 50% of our social ills will be gone.

The naija problems are so complex and intricate.
They should first start with clean pipeborne water,regular power supply and good roads.
Re: Why Pay House Rent In Advance? by 7kasali: 4:35pm On Jun 10, 2008
Why do think NITEL, NEPA etc, all went bankrupt? Pay as you go is the best and most efficient form of credit system we have in most african countries. Why do you think the cell phone companies have thrived? if majority of ppl are allow to use the phone and pay at month end its just not going to work. This is not just happening in Nigeria in alot of other african countries too.
Re: Why Pay House Rent In Advance? by landis(m): 4:43pm On Jun 10, 2008
7kasali:

Why do think NITEL, NEPA etc, all went bankrupt? Pay as you go is the best and most efficient form of credit system we have in most african countries. Why do you think the cell phone companies have thrived? if majority of people are allow to use the phone and pay at month end its just not going to work. This is not just happening in Nigeria in alot of other african countries too.

Mainly becos INFO is not available on people and our documentation process is ZERO. But you can equate this with renting house.

The 3 basic things in LIFE: accommodation, food, cloth must be guarantee to people by its country.

The naija problems are so complex and intricate.
They should first start with clean pipeborne water,regular power supply and good roads.

if you build those first and people dont have culture of paying bill, they have no regards for it and it goes to decay.

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