Lagos moves to regulate rents, curb abuse, with new Tenancy Bill
• Legislation penalises payer, receiver for breach of monthly, yearly rent rules
• Prescribes jail terms, N1million fine, or both for violations
• Prohibits landlords from cutting off utilities, disturbing tenants
• Streamlines court proceedings, allows virtual hearings
The Lagos State House of Assembly has proposed a new law aimed at fostering harmonious relations between landlords and tenants by clearly defining rent payment structures, including yearly and monthly options and procedures for issuing eviction notices, among other provisions.
In the final draft seen by The Guardian, the “Bill For A Law To Regulate The Relationship Between Landlords And Tenants Including The Procedure For The Recovery Of Premises In Lagos State And For Other Connected Matters” will repeal the Tenancy Law Cap. T1 Laws of Lagos State 2015.
“This law is long overdue and will modernise housing relationships in Lagos,” lawmaker Femi Saheed said in July. He described the bill as a positive step, noting that it defines landlords’ rights, such as tenement rates, land use charges, and other levies, while also confirming tenants’ rights and the courts’ authority over tenancy issues.
Under the bill, it is unlawful for a landlord or agent to demand or receive from a sitting tenant rent exceeding three months for a monthly tenancy or one year for a yearly tenancy, regardless of the tenancy’s nature at commencement.
Likewise, sitting tenants are prohibited from offering or paying rent exceeding these limits. For new or prospective tenants, landlords or their agents must not demand or receive rent beyond one year, and tenants must not offer or pay rent above that limit.
Any person who receives or pays rent above the prescribed limit commits an offence and is liable, on conviction, to a fine of N1 million or three months’ imprisonment.
Where there is no agreement specifying the length of notice required to terminate a tenancy, the bill sets default notice periods. A tenant at will must receive one week’s notice; a monthly tenant, one month; a quarterly tenant, three months; a half-yearly tenant, three months; and a yearly tenant, six months.
For a monthly tenant in arrears by two months, the tenancy lapses, and the landlord may serve seven days’ written notice of the intention to recover possession. The same applies to a quarterly or half-yearly tenant in arrears by three months. For a yearly tenant who defaults on rent for three months after the tenancy lapses, the landlord may also serve seven days’ notice to recover possession.
In the case of a fixed-term tenancy, no notice to quit is required at the end of the term. Unless renewed, the tenant must vacate the premises. Where a tenant holds over beyond the term and the landlord intends to take legal action, a seven-day written notice must be served.
The nature of a tenancy, unless proven otherwise, will be determined by the timing of rent payment or demand. All notices must be served between 8:00 a.m. and 5:00 p.m.
The bill also stipulates that any person acting as an agent for a landlord or tenant must be duly registered under the Lagos State Real Estate Regulatory Authority Law 2021. An agent who collects rent from a prospective tenant must not collect rent from another person for the same property while holding the first payment.
Furthermore, an agent who collects rent from a tenant must remit the payment within seven working days, unless otherwise directed in writing by the landlord, and all rent collected must be receipted.
The proposed legislation stipulates that the commission or agency fee for any tenancy must be agreed upon by the agent and the landlord or tenant who engaged the agent, and must not exceed five per cent of the amount paid as one year’s rent.
Any person who acts as an agent without the required registration, or any agent who breaches the rules on rent collection, remittance, or commission, commits an offence and is liable, on conviction, to repay the sums collected. Such a person may also face imprisonment for up to two years, a fine of N1 million, or both.
The bill affirms that a tenant has the right to quiet and peaceable enjoyment of the premises, including privacy, freedom from unreasonable disturbance, exclusive possession subject to the landlord’s limited right of inspection, and use of common areas for reasonable and lawful purposes. Where a tenant, with the landlord’s prior written consent, makes improvements to the premises and the landlord later terminates the tenancy, the tenant is entitled to claim compensation for any unexhausted improvements upon eviction or ejection.
Tenants are required to pay rent at the agreed time and in the agreed manner, and, except for unpaid bills left by a previous occupant, to settle all existing and future rates and charges payable by the tenant. They must also keep the premises in good and tenantable repair, allowing for reasonable wear and tear.
Tenants must permit the landlord or their agents, during reasonable daytime hours and after prior written notice, to inspect the property and carry out necessary repairs. They must not make alterations or additions without the landlord’s written consent, nor assign or sublet any part of the premises without such consent.
They must promptly notify the landlord if any structural or substantial damage occurs and, at the end of the tenancy, return the premises in a tenantable condition or bear the cost of doing so.
UNDER the proposed law, the landlord has rights, including inspecting the premises during the tenancy after giving prior notice, ensuring the property is used only for lawful purposes, and demanding and collecting service charges where applicable.
The landlord is prohibited from disturbing the tenant’s quiet and peaceable enjoyment of the premises, including by removing the roof, cutting off electricity or water supply, or otherwise interfering with peaceful occupation.
The landlord is responsible for paying all legally required rates and charges, must not restrict the use of common facilities or services, seize tenant property, or interfere with the tenant’s access to their belongings.
The landlord must also carry out repairs and maintain the external and common parts of the premises, and issue receipts for rent payments.
The bill further provides that notices to a tenant of a residential property must be served personally. This may include delivering the notice directly to the tenant, handing it to an adult resident at the premises, or, if the tenant cannot be found or is avoiding service, delivering it at the premises via a courier service.
Alternatively, a notice may be affixed to a conspicuous part of the premises, and service will be deemed proper if the person to be served has knowledge of the notice.
For business premises, and subject to any statutory provisions regulating service on registered companies, corporations, or corporate bodies, proper service on a tenant includes personal service as described for individuals, delivery to a director, secretary, trustee, or other senior or responsible officer of the organisation, or leaving the notice at the registered, principal, or advertised office or place of business within the jurisdiction.
Where a person is a licensee and, upon the expiration or withdrawal of their licence, refuses or neglects to give up possession, they must be served with a seven-day notice of the owner’s intention to apply to recover possession.
If a tenant neglects or refuses to quit and hand over possession of the premises, or any part of it, after the tenancy has ended, either by written notice to quit or at the end of a fixed term, the landlord or their agent may serve the tenant with a written notice, signed by the landlord or agent, of the intention to recover possession. This notice must specify a date not less than seven days from the date of the notice.
The proposed law applies to all premises in Lagos State, including both business and residential properties, unless otherwise specified. However, except where such premises are let commercially, it does not apply to certain categories of residential property. These include accommodation owned or operated by an employer for staff, residential premises of educational institutions for staff and students, emergency shelter facilities, and residential premises within care or hospice centres.
The law excludes residential accommodation in public or private hospitals or mental health facilities made available as part of rehabilitative or therapeutic treatment.
The tenancy bill also seeks to streamline court proceedings for landlords and tenants. It sets out grounds for possession, standardises procedures, introduces mediation as an option for dispute resolution, and permits virtual court hearings to improve efficiency in handling tenancy matters.
The Guardian
