ukay2:


Very Apt.

My old tennants resisted increase in my rental apartments with the new tennants.

More than 5years now, I have not increased rental fees despite bearing the maintenance of the building. I have decided not to increase the rentals, let the rental incomes keep coming and be diversifying into equities like updc-reit etc. The tennants seem to be happy to have nice landlord

The troubles of real estate investment in the country have made me not to build any other rental apartments; having discovered the easy way of doing investments in equities and fixed income Investments without headaches.

Iam sure when the tenants came in, there was no agreement on percentage increase and frequency given to them. I have noticed that most landlords do not like doing this or shy away from it because they want to be able to wake up anytime and give a percentage. My landlord once gave us a 60% increment after 2 years. What can you say to that as a landlord?.

kalu61:
First, it really gave me first hand idea about state of Nigeria real estate. My brother is heavily investing in real estate and l can say, it is worth investing in if one is really.... really patient and wants to save or tie down cash.

Secondly, locating property in areas of potential value is a key factor because that's where the asset value reside. What's the city population size? Which areas are estate investors migrating to or the city expanding to?.

The property where l stay was build in 2010. I can't say about the cost of building materials then but l am very sure the 2 story buidling cost less than 25m plus land. During the lockdown before renovations was done, it was priced at 70M but was turned town.

The tenants now are capable. One flat is permanent for Winners Chapter deputy state pastor. One is a lecturer, the other Politician, another Pastor. The only issue is the Yahoo boys downstairs. Blasting music some part of the time and l can't tell how many there are in that flat. I keep seeing faces but they are cool. No problems. The Lecturer changed all the security lighs, said he loves light. the politician bought packlock for the big gate and wants security man but other tenants are not buying into that.
We have a WhatsApp group and it's all fun especially during birthdays. Good experience.

Only family people with children are given apartment. The Yahoo boys were exception, the lawyer wanted to use price to pursue them but niggars still paid

So why have you not given them quit notice after 3 or 5 years despite paying promptly?. Don't you know that they can form a union?.

NL1960:


That is where the issue is coming from. It is never written into it. It is codedly done in the 5th year in order to collect a higher rent from new tenants because by the 5th year, there is no way you can increase the rent of an existing tenant to match that of a new tenant.

There is a landlord in my area. Once a new building springs up, he goes to find out the rent for it and then tell his tenants that the going rate in that area is that price and so they should all pay that new price even though his property might be 15 years old.

New houses at Mafoluku attract rent of 800k for 3 bedroom apartment, old houses attract rent of 500k.


Old tenants who have spent about 10 years are paying less than 350k and they are not reasonable to understand that the increase to 450k by their landlord is fair enough.

They formed tenant union and have not paid for 9 months, Baba sold his house in April for for N38 million.

It took the Yahoo boy who bought the house just 4 weeks to take possession of the property and has started converting the property to a hotel

Tenant and Landlord wahala non de finish.

emmanuelewumi:
Indeed family is everything.

maybe they sold their house to buy dips

emmanuelewumi:




New houses at Mafoluku attract rent of 800k for 3 bedroom apartment, old houses attract rent of 500k.


Old tenants who have spent about 10 years are paying less than 350k and they are not reasonable to understand that the increase to 450k by their landlord is fair enough.

They formed tenant union and have not paid for 9 months, Baba sold his house in April for for N38 million.

It took the Yahoo boy who bought the house just 4 weeks to take possession of the property and has started converting the property to a hotel

That is unreasonable of them. Iam sure that there are others there that are reasonable. What iam against is using the same brush to paint every tenant. There is no guarantee that a new set after 5 years will be better. As i said in one of my post on this issue, the landlords do not put the rate of increase and frequency into their agreement when renting out and drafting agreements because they want to be able to wake and call any percentage. That is why they are argue. My landlord once gave us an increment of 60% even after initially increasing it 2 years prior. Who does that?. When we started contesting that, iam sure he will be telling people hat we are bad tenants.

NL1960:


That is unreasonable of them. Iam sure that there are others there that are reasonable. What iam against is using the same brush to paint every tenant. There is no guarantee that a new set after 5 years will be better. As i said in one of my post on this issue, the landlords do not put the rate of increase and frequency into their agreement when renting out and drafting agreements because they want to be able to wake and call any percentage. That is why they are argue. My landlord once gave us an increment of 60% even after initially increasing it 2 years prior. Who does that?. When we started contesting that, iam sure he will be telling people hat we are bad tenants.

You can only be reasonable when you are growing your earnings.

Apart from regular payment, being reasonable is important.


Imagine Ukay's tenants refused rent increase after 5 years, eventhough the property is in Abuja. Yet they are not willing to move out of the property

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emmanuelewumi:



You can only be reasonable when you are growing your earnings.

Apart from regular payment, being reasonable is important.


Imagine Ukay's tenants refused rent increase after 5 years, eventhough the property is in Abuja. Yet they are not willing to move out of the property

I do not support this. He should quit them. My landlord does an increase every 2 years which we the tenants are comfortable with. Initially he was slamming a 40-60% increase which was the cause of our disagreements with him. He is no longer doing that. He now does a reasonable percentage increase.

NL1960:


I do not support this. He should quit them. My landlord does an increase every 2 years which we the tenants are comfortable with. Initially he was slamming a 40-60% increase which was the cause of our disagreements with him. He is no longer doing that. He now does a reasonable percentage increase.

What is the value of the increase. 2 years is too short, three to four years is okay at increment of 40k to 50k

emmanuelewumi:




What is the rental income from the property?


@ 2 storey, is that 3 floors.

Ground floor, 1st floor and 2nd floor.


What part of town is the property located?

What percentage of the rental income will keep for the maintenance of the property

Roughly 380k and 400k+ for new tenants.
Ya, 3 floors.
Very close to town but near a village There is a new government house in the area going on since 2015 couple with one NPF Zonal HQ are reasons for the surge in rent.

There is no % per say. Things get fixed once tenants complain.

ojesymsym:
Another opportunity exist here.

It is meant to be a monthly thing and I would have really enjoyed with a dedicated amount. But then, the First time I tried it was June 2021. The money left my account immediately before settlement but as I am typing this, I have not gotten the allotment. I have contacted my broker severally on it but was told it hasn't been allotted. I don't know where my money is and the terms/condition of the Investment. That is why I am not going to try this one now.

kalu61:

Roughly 380k and 400k+ for new tenants.
Ya, 3 floors.
Very close to town but near a village There is a new government house in the area going on since 2015 couple with one NPF Zonal HQ are reasons for the surge in rent.

There is no % per say. Things get fixed once tenants complain.

The property is not in Lagos, I guess
Total rental income is about N2.4 million

emmanuelewumi:



The property is not in Lagos, I guess
Total rental income is about N2.4 million

Yes, SE.
N1.8M minus landlord's apartment.

I do not understand this at all

freeman67:


It is meant to be a monthly thing and I would have really enjoyed with a dedicated amount. But then, the First time I tried it was June 2021. The money left my account immediately before settlement but as I am typing this, I have not gotten the allotment. I have contacted my broker severally on it but was told it hasn't been allotted. I don't know where my money is and the terms/condition of the Investment. That is why I am not going to try this one now.

NL1960:


Iam sure when the tenants came in, there was no agreement on percentage increase and frequency given to them. I have noticed that most landlords do not like doing this or shy away from it because they want to be able to wake up anytime and give a percentage. My landlord once gave us a 60% increment after 2 years. What can you say to that as a landlord?.

I have nothing to say.

Left mine as my contribution to housing deficit in the country.

emmanuelewumi:



What is the value of the increase. 2 years is too short, three to four years is okay at increment of 40k to 50k

He once did between 100k-150k. We were surprised in the last one when he did 50k. He does increase every 2 years. We have adjusted to his 2 years. If the amount or percentage for the every 2 years was known, somebody can plan. So you can imagine planning for a particular amount and he comes and slam two or three times that amount. That throws your planning out the window and when you say you should be given time to make up the new amount based on what he did, it is that the tenant is a bad tenant who does not want to pay rent. Next thing is quit notice. Meanwhile, this is a learned landlord and executive in a company.

Oga, you are taking this matter too personal. Tenant vs Landlord wahala non de finish, non be u wan use Nairaland resolve am.

But as per bolded, that means if the rent was 1 million, he just increased it to 1.6 million? Is that correct abi I need to press my calculator again?

NL1960:


My landlord once gave us a 60% increment after 2 years. What can you say to that as a landlord?.

kalu61:

Yes, SE.
N1.8M minus landlord's apartment.

As a matter of policy it is always good to invest 10% of rental income for repairs, it is more like a self insurance for the property.

When the property gets to 15 years or thereabout, there will be a time when repairs can take 50% to 100% of the rental income.

When I started managing my grandma's real estate, we spent 200% of the expected rental income to renovate and repair the property

NL1960:


He once did between 100k-150k. We were surprised in the last one when he did 50k. He does increase every 2 years. We have adjusted to his 2 years. If the amount or percentage for the every 2 years was known, somebody can plan. So you can imagine planning for a particular amount and he comes and slam two or three times that amount. That throws your planning out the window and when you say you should be given time to make up the new amount based on what he did, it is that the tenant is a bad tenant who does not want to pay rent. Next thing is quit notice. Meanwhile, this is a learned landlord and executive in a company.

You are getting super value, that is why you are still staying in house.


If not you would have sacked your landlord

ojesymsym:
Oga, you are taking this matter too personal. Tenant vs Landlord wahala non de finish, non be u wan use Nairaland resolve am.

But as per bolded, that means if the rent was 1 million, he just increased it to 1.6 million? Is that correct abi I need to press my calculator again?

You are cortect but we refused the 60% and we were on it for several months. We come tell am make he carry us go court since he refused our counter offer. At the end of the day, we agreed on an amount. As you said, Tenant vs Landlord wahala no dey finish.

emmanuelewumi:



As a matter of policy it is always good to invest 10% of rental income for repairs, it is more like a self insurance for the property.

When the property gets to 15 years or thereabout, there will be a time when repairs can take 50% to 100% of the rental income.

When I started managing my grandma's real estate, we spent 200% of the expected rental income to renovate and repair the property

Thanks sir.
You are actually well experienced in this industry. Your last two paragrams sumed it all.

The landlord is planning on changing the zinc due to some minor leakages and l last month there was leakage in one of the floors. The bathroom pipe cracked inside the wall and had to be fixed.

The building is almost 12years now. Yes naintenance is gradually increasing. Do you advice the property be disposed?

NL1960:


So why have you not given them quit notice after 3 or 5 years despite paying promptly?. Don't you know that they can form a union?.

My submission is very clear. We don't need to argue about this.

emmanuelewumi:


You are getting super value, that is why you are still staying in house.

If not you would have sacked your landlord

Iam not one to be moving accommodation as i always carefully choose where i want to stay. Once i get such a place and stabilizes, it does not make sense to be move. We do not have any issue with the Landlord. It was that off the cuff increment that was annoying. If you wan quit me, just tell me straight and i move instead of trying to use wayo of anyhow increase to do it. Afterall, na your house. When i was coming to Lagos to look for work, i know say na person house i go rent as i cannot carry my papa house follow body come Lagos. So tell me straight say make i move and i move.

kalu61:

Thanks sir.
You are actually well experienced in this industry. Your last two paragrams sumed it all.

The landlord is planning on changing the zinc due to some minor leakages and l last month there was leakage in one of the floors. The bathroom pipe cracked inside the wall and had to be fixed.

The building is almost 12years now. Yes naintenance is gradually increasing. Do you advice the property be disposed?

What will you do with the fund?

N70 million producing N2 million rental income get as e be.

I believe 80% or more of real estate money, must go back to real estate.

Referring to money realized after disposing a property. This is true for 95% of us

NL1960:


You are cortect but we refused the 60% and we were on it for several months. We come tell am make he carry us go court since he refused our counter offer. At the end of the day, we agreed on an amount. As you said, Tenant vs Landlord wahala no dey finish.

The bolded is not right at all. Na this kain entitlement attitude dey make landlords like Oga Emma and his lawyer to put that ‘over familiarity 5 year limit clause’ for their contracts.

Na the guy house and if you no like the rent increase, then move out of his house immediately!

Lazyyouth4u:


The bolded is not right at all. Na this kain entitlement attitude dey make landlords like Oga Emma and his lawyer to put that ‘over familiarity 5 year limit clause’ for their contracts.

Na the guy house and if you no like the rent increase, then move out of his house immediately!

Move out keh.

emmanuelewumi:



Move out keh.

Yes. Move out. Trust me, most landlords will call a good tenant to negotiate when the good tenant refuses to pay an unreasonable increase and lets the landlord know they would rather move.

Landlords know that it is not easy to find good tenants.

emmanuelewumi:



What will you do with the fund?

Exactly the same question he asked me when l told him to consider the offer.

For some seconds l was dumb. Then l said "more properties".
The he asked "What am l doing?"

He is developing two properties as we speak and a personal house at Villa.

I suggested shares sha make e no be like say l be olodo. He told me about his experience with Spring cum Heritage bank.

Lazyyouth4u:


Yes. Move out. Trust me, most landlords will call a good tenant to negotiate when the good tenant refuses to pay an unreasonable increase and lets the landlord know they would rather move.

Landlords know that it is not easy to find good tenants.

That is wickedness na, do you think it is easy to get a new accommodation, the cost nko

NL1960:


Iam not one to be moving accommodation as i always carefully choose where i want to stay. Once i get such a place and stabilizes, it does not make sense to be move. We do not have any issue with the Landlord. It was that off the cuff increment that was annoying. If you wan quit me, just tell me straight and i move instead of trying to use wayo of anyhow increase to do it. Afterall, na your house. When i was coming to Lagos to look for work, i know say na person house i go rent as i cannot carry my papa house follow body come Lagos. So tell me straight say make i move and i move.

It is part of the value, good location, amenities, security etc.

I know tenants who paid for 12 months in Lagos and had the vacate the area after 6 months, not minding the fact that the landlord won't compensate them by returning part of the rent paid

emmanuelewumi:


That is wickedness na, do you think it is easy to get a new accommodation, the cost nko

For the tenant to tell the landlord he is moving, it means he has options na.

If the tenant doesn’t have options, it means the rent increase is not unreasonable. And he should just suck it up and pay and be on the look out for another place.

By the way, I like your sarcasm