Concerned about the sufferings encountered by tenants in the country, especially in urban centres like Abuja, Lagos, Kano, Port-Harcourt, among others over accommodation rents, stakeholders are  contemplating a legislation that would peg rent to a maximum of one month, instead of one, two or more years that has become the norm.

This decision was being contemplated after the sixth meeting of the National Council on Lands Housing and Urban Development, where it  was agreed that a law to enforce monthly rent payments across the country should be enacted and enforced by the council.

Those agreeing with the idea include experts in housing delivery, who have been talking, arguing and pointing the way forward for the initiative.

Unlike other nations of the world, one-month rent payment is strange in Nigeria as many suppliers of housing products charge their rents in advance up to 12-24 months, and in some cases, landlords demand up to five-year rent. This situation, according to the council on housing, is abnormal in an economy where those who pay such rents, mostly workers, get their salaries monthly and even in arrears.

Piqued by the development which he said should be addressed, Minister of Power, Works and Housing, Mr Babatunde Fashola, who spoke at the meeting, noted that in Nigeria,  workers were not earning their salaries several years in advance.

“Therefore, it should worry many landlords where their tenants would get such money, the source of funds and its sustainability. When prospective tenants come up with rent pre-payments that are in multiples of their annual income, there is the need and desirability of one-month rent,” said Fashola.

However, it was observed that despite the good intentions of government, it is doubtful that monthly pre-payment of rents can be legislated or forced because house rent payment is a function of demand and supply.

Taking a critical look at the situation, Mr Chudi Ubosi, an estate surveyor and valuer, advised that government should rather focus on the root cause of rent problem in the country than tackle its effects.

“In trying to enforce the law, government might end up creating more problems such as enthroning  black market situation, discouraging investment in housing and ultimately reducing the already small annual housing production”, said Ubosi, citing many defects in the Lagos State Rent Control and Recovery of Premises Edict of 2007, which he said failed to correct the anomaly.

According to him, one of the major causes of the high house rent in Nigeria is land which hei said remained a major factor of production for housing. “So, to get it right, access to land must be eased and made cheaper than what it is today and the first step is to amend the Land Use Act.

“The attitude of governments which see land and land related transactions as a goldmine and an opportunity for revenue generation can only serve to drive up the final cost of investment in the production of housing. This cost will always be passed to the end users by way of rent or capital value”, he said, adding that provision of infrastructure and services which remained a major function of government has almost been left to the private developers. To him, these end up driving the cost of housing northwards, advising the opening up and development of our rural areas is key to driving down rents.

Another critical observation is the rural-urban migration that is unlikely to stop. Lagos, for example, has a daily immigrants of estimated at 800 people while Abuja has 400.  “This has to be reversed; if government fails to do this,  the pressure on available housing stock in the urban areas will continue to increase and so will rents etc”, he observed.

 

SOURCE: https://brandspurng.com/stakeholders-advocate-monthly-rents-payment-condemn-shylock-landlords/

I hope this works.

Even if it works, is it realistic? Given our socio-cultural nuances and earning structure.

Another ball outside the basket.

These guys talk too much. The main problem here is the judiciary and not the landlords. How do you expect the landlords to start collecting rent monthly when it will take the judiciary almost 2 years to settle a case between tenants and landlords?

Then the court also gives the tenant 3 months notice (WTF?)

For you to tell landlords to collect monthly rents, have courts that are ready to settle disputes as regards to rent defaults within days and the maximum notice for eviction should be 30 days.

If not, let financial houses be ready to invest. Financial institutions can pay rent to landlords yearly and the tenants will pay the institution monthly and they get to make interest. Like if your rent is 110k yearly, the bulk is paid off and the tenant pays 10k monthly, they get to make 10 profit and everyone is happy.

There is also the issue of businessmen. Monthly rent is more convinient for people who earn a monthly salary and is sure that money will come at the end of each month but to a shop/store owner, a farmer who depends on sales or a contractor who might not get money monthly, it is hell. There has to be middle men to make it easier

I pray we get there someday soon

Consider my landlord dead if this comes to pass

Most landlord cant enter heaven

Mynd44:
These guys talk too much. The main problem here is the judiciary and not the landlords. How do you expect the landlords to start collecting rent monthly when it will take the judiciary almost 2 years to settle a case between tenants and landlords?

Then the court also gives the tenant 3 months notice (WTF?)

For you to tell landlords to collect monthly rents, have courts that are ready to settle disputes as regards to rent defaults within days and the maximum notice for eviction should be 30 days.

If not, let financial houses be ready to invest. Financial institutions can pay rent to landlords yearly and the tenants will pay the institution monthly and they get to make interest. Like if your rent is 110k yearly, the bulk is paid off and the tenant pays 10k monthly, they get to make 10 profit and everyone is happy

Well said.

Reminds me of this guy in my neighborhood that inherited his father house.. As a newbie, his tenants took advantage of his naivety and somehow managed to owe him two years rent.
After a long and nasty physical, spiritual and court battle, my guy was finally able to get them evicted.



Now my guy is collecting house rent month by month.
Default payment by three days, you are out.
Na person wey wise go teach person wey no get sense.

I swear if them fit do am it pays

We like talk for dis country.. Oga Mynd above has said it all. Make I no talk d same thing now com chop ban

In Nigeria monthly rent will be of more harm than good... Imagine giving 25k to your landlord every month.. Meanwhile there are tenants struggling to even pay 45k for one room every year.. Na monthly them come fit pay?

It is not applicable in our country, first the system is riddled with corruption, how many workers get their salary at month end or as at when due? Even government owe salaries for months and how do u expect the tenants to pay their rents, everything needs to start from the top first, don't just implement what is not applicable..

Naija My Country

LexngtonSteele:
Wont work in Nigeria.

For someone like me, i actually prefer to pay once and forget it for a year.

It would however help those who suddenly relocate

They forget that a large population dont earn noney per month. Some earn it yearly

Mynd44:
These guys talk too much. The main problem here is the judiciary and not the landlords. How do you expect the landlords to start collecting rent monthly when it will take the judiciary almost 2 years to settle a case between tenants and landlords?

Then the court also gives the tenant 3 months notice (WTF?)

For you to tell landlords to collect monthly rents, have courts that are ready to settle disputes as regards to rent defaults within days and the maximum notice for eviction should be 30 days.

If not, let financial houses be ready to invest. Financial institutions can pay rent to landlords yearly and the tenants will pay the institution monthly and they get to make interest. Like if your rent is 110k yearly, the bulk is paid off and the tenant pays 10k monthly, they get to make 10 profit and everyone is happy.

There is alsp the issue woth businessmen. Monthly rent is more convinient for people who earn a monthly salary and is sure that money will come at the end of each month but to a shop/store owner, a farmer who depends on sales or a contractor who might not get money monthly, it is hell. There has to be middle men to make it easier

The Nigerian judiciary has it's own systemic problems, yes, but the real culprit is the land use act. Land transactions in Nigerian urban centres are too convoluted and booby-trapped with myriad opportunities for fraud, it makes it difficult for individuals to access land ownership & build their own houses. It makes the building of a house a lifetime achievement.

It has a direct feeedback into the high rate of crime in this country, but it's just amazing that our evil leaders never talk about it

Mynd44:
These guys talk too much. The main problem here is the judiciary and not the landlords. How do you expect the landlords to start collecting rent monthly when it will take the judiciary almost 2 years to settle a case between tenants and landlords?

Then the court also gives the tenant 3 months notice (WTF?)

For you to tell landlords to collect monthly rents, have courts that are ready to settle disputes as regards to rent defaults within days and the maximum notice for eviction should be 30 days.

If not, let financial houses be ready to invest. Financial institutions can pay rent to landlords yearly and the tenants will pay the institution monthly and they get to make interest. Like if your rent is 110k yearly, the bulk is paid off and the tenant pays 10k monthly, they get to make 10 profit and everyone is happy.

There is alsp the issue woth businessmen. Monthly rent is more convinient for people who earn a monthly salary and is sure that money will come at the end of each month but to a shop/store owner, a farmer who depends on sales or a contractor who might not get money monthly, it is hell. There has to be middle men to make it easier

Thank you for been able to diagnose the main reason why. The tenancy laws favours tenants too much to the detriment of landlords. Until this is redressed, government is just wasting it's time.

double0seven:


Thank you for been able to diagnose the main reason why. The tenancy laws favours tenants too much to the detriment of landlords. Until this is redressed, government is just wasting it's time.

I know people who owe their landlords 3 year rents and still be telling the landlord to go to court because they know it will just drag on. If in 30 days, you can get judgement and evict a crazy tenant, monthly rent will be blissful

I pray it should work.......many countries pay monthly and not yearly and they should stop agreements and commissions
imagine was looking for a house last time,they ask for 1years with agreement 50k and commission 50k
the agreement and commission is for What!! !!!!!!!!�����
even if it should be yearly,the agreements and commissions should stop

Mynd44:
These guys talk too much. The main problem here is the judiciary and not the landlords. How do you expect the landlords to start collecting rent monthly when it will take the judiciary almost 2 years to settle a case between tenants and landlords?

Then the court also gives the tenant 3 months notice (WTF?)

For you to tell landlords to collect monthly rents, have courts that are ready to settle disputes as regards to rent defaults within days and the maximum notice for eviction should be 30 days.

If not, let financial houses be ready to invest. Financial institutions can pay rent to landlords yearly and the tenants will pay the institution monthly and they get to make interest. Like if your rent is 110k yearly, the bulk is paid off and the tenant pays 10k monthly, they get to make 10 profit and everyone is happy.

There is also the issue of businessmen. Monthly rent is more convinient for people who earn a monthly salary and is sure that money will come at the end of each month but to a shop/store owner, a farmer who depends on sales or a contractor who might not get money monthly, it is hell. There has to be middle men to make it easier

DID YOU INHERITED A PROPERTY OR YOU ARE AN ESTATE MANAGER?

Ahmeduana:

DID YOU INHERITED A PROPERTY OR YOU ARE AN ESTATE MANAGER?

A concerned participant

Stakeholders who also own and rent out their own houses or chronic tenants looking for freebies?

Another stupid project, how do you motivate people to build houses?
rents shud be restricted to 6months 1yr.
Monthly payments will abused by dubious tenants, its rather more expensive to pay monthly with all d associated stress.
Those of you who pay for utilites on a monthly basis can attest to this.