₦airaland Forum

JOSEPHINE OGUNDEJI examines how the hike in rents across the country has worsened the economic challenges tenants are going through

Wahab Ajibola’s lips curled into a wry smile, a delicate dance of emotions etched on his face as he lowered himself into the chair reserved for him at the other end of the table, as he just lost his father.

On a sunny afternoon in Magboro, Ogun State, he wiped his face with a swift motion. For a moment, he savoured the coolness of the restaurant. 40 years old, he exuded politeness, yet a palpable haze of bewilderment lingered in his eyes.

“On June 1, 2023, I dialled my landlord’s number with anticipation, ready to discuss the impending renewal of my lease. However, the ringing tone echoed unanswered, leaving me with an unsettling feeling. Undeterred, I sent a text message, hoping to convey the urgency of the matter.

“The following day, I received a call that would change the course of my plans. My father, a pillar of strength and love, had passed away. Amid the emotional turmoil, I felt compelled to inform my landlord about the sudden turn of events. With trembling fingers, I typed out a message, explaining my need to travel for my father’s funeral, an unexpected journey.

“His response, though delayed, arrived with condolences and understanding. Yet, intertwined with the empathy was the revelation that a brief meeting awaited me upon my return,” he told our correspondent.

A single father, who recently lost his father, found himself without a salary increase. Uncertain about how this lack of financial growth would affect providing for his only daughter, who is currently enrolled in a polytechnic school. He had been having conflicts with the landlord.

He recalled, “The following week, we had a meeting during which he informed me about a rent increase of an additional N100,000. I objected to this, pointing out that I had only moved in a year ago and emphasised the need for a minimum three-month notice for such a change.

“We could not reach an agreement initially. He proposed that if I decided to vacate by December 2023, I would still have to pay the old rent for those six months. I disagreed with this proposal. Eventually, we settled on a N50,000 increment. I transferred the previous annual payment of N300,000 to his account and agreed to balance him with N50,000.

“During the meeting, I inquired about the repairs he had promised to carry out before I moved in, and he reassured me he would address them. However, to date, those promises remained unfulfilled.”

According to Ajibola, on November 30, 2023, a heated argument ensued between him and his landlord when he cut off his water supply due to the outstanding N50,000.

“I insisted that he should fulfil his promises regarding the repairs before I pay the balance. In response, he presented a quit notice, urging me to sign a copy, which I declined but accepted a copy.

“I reached out to his lawyer to intervene and ensure the restoration of my water supply, which was eventually done. I agreed to move out of the apartment when my current lease expires on June 30, 2024,” he narrated.

Ajibola is not the one having issues with the significant hike in the country. Many tenants who spoke with our correspondent expressed their grievances about the skyrocketing rents in the country.

A data analyst, who lives around the OPIC area in Isheri, Ogun State, Jumoke Osunbiyi, stated that she was notified of a rent increase only three weeks before her rent was due.

She said, “When I was about to move in, the landlord said he was not using the money to feed his family, and he usually does not increase rent. Only for him, three weeks ago, say that in the area the least amount for the mini-flat I am living in was N800,000.

“I am planning on moving out of his house because of the short notice, and the increase was from N650,000 to N800,000, which is quite high. Where am I going to get that kind of money from?”

Similarly, an engineer, David Albert, noted that the rent of the one-room self-contain he was living in at Ilasa, Isolo was raised by N100,000.

“I was paying N200,000 before now but I was notified orally that N100,000 had been added to the rent. The funny part is I am still looking for how to comfortably feed and there is no increase in my salary. The economy is so discouraging,” he lamented.

“My landlord adds N100,000 every year to our rents. In February 2023, I paid N450,000 and in December, I was told that I would be paying N550,000,” an entrepreneur, Adesola Okanlawon, disclosed.

The Ogba resident said he could not cope with the annual increase in rent because of his salary.

He said, “I live in Ogba, Okera, and I cannot cope with the annual increase because as a salary earner, my employer is not increasing my salary annually. The reason they increase the rent is to frustrate the existing tenants to leave the property for new tenants to come in, to enable them to collect higher rent from the new tenants, inclusive of agreement and agency fee.

“Given this notification of a rent increase, I intend to relocate to a more stable residence where I won’t be burdened with escalating rents each year. This will allow me to plan more effectively for myself and my future family.”

Also, an accountant, Funmilola Sobowale, said he was served an eviction notice by his landlord.

I got into the apartment in September 2022. I paid N500,000 for a 2-bedroom apartment; I thought the rent would remain unchanged till 2024. However, the landlord came up with stories that he wanted to use the apartment. That is the general excuse these landlords come up with.

“I was orally told to move out three months before the expiration of my rent. I was shocked because as a tenant paying yearly rent, by law, I am entitled to a six-month eviction notice. It was when I approached him that he disclosed he was planning to increase the rent to N600,000. I had no choice because it was close to my workplace and the stress of paying for agency and agreement fees all over again, which can gulp over N200,000 or more, apart from the rent.”

Meanwhile, a landlord, Seyi Amusan, said the sudden increase in rents, especially in Lagos, had been largely influenced by the economic state of the country.

He said, “Landlords, who invested in their properties for the sake of getting annual returns to sustain their livelihood, suddenly woke up to the rude shock that the value of their rentals had dropped by about 50 per cent.

“The rise in the costs of building materials and construction has also been a major factor for the increase in the value of the property and rent. This has led to the need for them to increase rents across the board by about 100 per cent.”

Amusan claimed that the increase in house rents has made things difficult for tenants, especially employees, whose salaries remain the same.

The architect said, “Rising rental prices in Nigeria, driven by economic factors like high inflation and currency depreciation, are prompting tenants to seek more affordable housing options. This has led to a migration of residents from expensive areas to cheaper ones, with some even relocating from the Island to the Mainland. Some landlords, capitalising on the housing demand, are exploiting tenants, worsening the affordability crisis.”

Unreasonable rent increase

In an exclusive interview, the Managing Partner of The Law Suite, Prince Nwafuru, said the relationship between landlords and tenants in Nigeria was generally contractual.

He said, “The tenancy agreement typically provides the basis and extent of rent increment except where the relationship is not documented. It is easier for existing tenants to challenge unreasonable and arbitrary rent increases, where the relationship is documented in the tenancy agreement. The first measure is for tenants to insist on written agreements and have their lawyers review them before signing.

“The higher bargaining power of the landlord and the tendency to abuse such power in the course of negotiating the terms of the tenancy agreement is often checked by proper legal advice on the part of the tenant. The tenancy laws applicable in states in Nigeria equally provide some yardstick to measure the reasonableness of rent increase albeit subject to the agreement of the parties. For instance, the Tenancy Law of Lagos 2011 gives existing tenants the right to challenge unreasonable rent increases subject to the provision of the tenancy agreement.

“In determining whether an increase is unreasonable, the court is to consider several factors, which include the general level of rents in the locality or similar locality for comparative analysis; evidence of the parties; any special circumstances relating to the premises in question or any other relevant matter. Interestingly, this provision of the law is subject to the agreement between landlord and tenant.

Nwafuru noted that while landlords have a right to increase rent under the tenancy laws, such right is not exercised arbitrarily but must be subject to the agreement of the parties and the factors considered earlier.

Meanwhile, the Chairman of the Nigerian Society of Engineers, Ikeja Branch, Femi Adedotun, said the Lagos State Tenancy Law had given a lot of latitude to tenants.

However, he emphasised that landlords maintained ownership of their property and, if not convinced otherwise, retained the ability to evict tenants by exploiting loopholes in the law.

He said, “Though the price is a direct product of demand and supply, the landlord has been magnanimous to state his intention of an increment of 100 per cent. The tenant can negotiate and count on past goodwill, in case it is non-existent.

“The tenant can seek redress through the court vide the above-stated law. If the tenant wins, he pays whatever the court agrees, which may not be up to 100 per cent as noted by the landlord. However, the landlord who might have felt unhappy due to the judgment can serve him a quit notice, which will eject him within six months, making the tenant pay the old price for a period not less than one year.

According to him, with the loophole in mind, the landlord can issue the quit notice six months before the end of the next due rent date, adding that this way he would lose just a few weeks in rent if he can take advantage of the loophole of the law.

Rent control

Historically, factors like land scarcity, high demand, and expensive construction materials have led to soaring rental prices in Nigeria, especially in Lagos State. This has prompted discussions about implementing rent control to address the issue.

Rent control involves the government setting a standard rent limit to make housing more accessible and protect tenants from excessive increases.

Many cities worldwide, such as New York City, San Francisco, Berlin, and Stockholm, have adopted similar measures to address housing affordability.

In Lagos, rental costs have surged by at least 100 per cent between 2023 and 2024, according to data from Propertypro.

This underscores the pressing need for rent control to mitigate the burden on tenants and ensure fairness in the housing market. By setting maximum rent levels and providing avenues for tenants to challenge unjustified increases, rent control can help stabilise prices and promote housing equity.

WaleBuraimoh:
Wahab Ajibola’s lips curled into a wry smile, a delicate dance of emotions etched on his face as he lowered himself into the chair reserved for him at the other end of the table, as he just lost his father.

On a sunny afternoon in Magboro, Ogun State, he wiped his face with a swift motion. For a moment, he savoured the coolness of the restaurant. 40 years old, he exuded politeness, yet a palpable haze of bewilderment lingered in his eyes.

obonujoker:
Government need to do something to stop all this increments in rents. It's unfair in a country like Nigeria.

Our fathers had it easier. Many were able to purchase properties easily but youths of today find it difficult to rent.

Imagine someone working at VI, rent for a self con is 1 or 2M per annum, and for mini flat rent may be 3M or 4M, the person has to move to the mainland or after the island such as lakowe or Awoyaya etc.... how will such a person save money?


Government should do something please... At least for the citizens... The occultic spell placed on Nigerians by the politicians, must be broken in Jesus name

obonujoker:
Government need to do something to stop all this increments in rents. It's unfair in a country like Nigeria.

Our fathers had it easier. Many were able to purchase properties easily but youths of today find it difficult to rent.

Imagine someone working at VI, rent for a self con is 1 or 2M per annum, and for mini flat rent may be 3M or 4M, the person has to move to the mainland or after the island such as lakowe or Awoyaya etc.... how will such a person save money?


Government should do something please... At least for the citizens... The occultic spell placed on Nigerians by the politicians, must be broken in Jesus name

helinues:
Where are their parents?

helinues:
Where are their parents?

phorget:
You mean they should move back to go live with their parents?🤷‍♂️... that is a case of 'ti iwaju o ba se e lo eyin a se e pada si'. You are very right, we should all just go back to our parents of family houses so we dont pay rent. As for me and my household we are moving back to ogbomosho as soon as my rent is due.

helinues:
No, wondering why all the attentions have been shifted on government about hardship while the parents have been left out from the discussion.

When did some people add FG as their next of kin?

phorget:
How is their parents important in the discussion please? Those people might even be the ones feeding their parents.