Lagos State Assembly Proposes New Tenancy Bill to Curb Rent Abuses
The Lagos State House of Assembly is working on a new law, the "Lagos State Tenancy and Recovery of Premises Bill," aimed at regulating the relationship between landlords, tenants, and agents. The bill, which has passed its second reading, seeks to address issues such as arbitrary rent increases and unfair eviction practices.
Key provisions and details of the proposed bill include:
Rent Payment Limits: The bill makes it unlawful for a landlord to demand or receive rent in excess of one year from a new tenant. For a sitting tenant, a landlord is prohibited from demanding more than three months' rent for a monthly tenancy or one year for a yearly tenancy.
Penalties for Violations: Any person, landlord or tenant, who violates the rent payment limits could face a fine of N1 million or three months' imprisonment upon conviction.
Notice Periods: The bill provides clear guidelines for notice periods for eviction, particularly when there is no existing agreement. For example, a monthly tenant would be entitled to one month's notice, while a yearly tenant would be entitled to six months' notice.
Regulation of Agents: The proposed law also seeks to regulate the conduct of property agents. It mandates that a commission or agency fee must not exceed 5% of one year's rent and makes it an offense for an agent to collect money from more than one person for the same property.
Enforcement: During the debate, some lawmakers have called for the establishment of a dedicated enforcement body to ensure the law is properly implemented and to prevent landlords from imposing arbitrary rents.
The bill is expected to create a more balanced and transparent framework for housing in Lagos, providing legal clarity for courts to resolve tenancy disputes and protecting both tenants and landlords. The House Committee on Housing is currently reviewing the bill and is expected to submit a report in the coming weeks.
