Relief is on the horizon for tenants across Lagos State as the government has commenced rigorous enforcement of its updated Tenancy Law.

The revised legislation aims to curb exploitative practices by landlords and establish a fairer balance of rights between property owners and renters.

The move signals a significant step towards enhanced tenant protection and the promotion of more transparent and equitable housing practices in Nigeria’s bustling commercial capital.

Key among the provisions of the updated law is a strict limitation on advance rent.

According to state government, Landlords are now prohibited from demanding more than three months’ rent upfront from existing tenants.

Similarly, tenants are barred from offering more than this amount. Non-compliance carries hefty penalties, including fines of up to ₦100,000 or a potential three-month prison sentence.

In a bid to increase transparency, the law mandates the issuance of detailed rent receipts by landlords. These receipts must clearly state the date of payment, the names of both the landlord and tenant, the specific property location, the amount paid, and the rental period covered. Failure to provide such a receipt will attract a fine of ₦10,000.

The government has also reaffirmed the existing cap on tenancy agreement fees, limiting them to 10% of the annual rent. Any landlord or agent found charging above this threshold will be considered in breach of the law.

For tenancies without a written agreement, specific notice periods for termination have been outlined: one week for weekly tenants, one month for monthly tenants, three months for quarterly or half-yearly tenants, and six months for yearly tenants. The law also allows landlords to seek court intervention to recover possession if a monthly tenant defaults on rent for a period of three months.

The updated law robustly protects tenant rights, guaranteeing reasonable privacy, freedom from unlawful disturbances, exclusive possession of the rented premises, and the right to use common areas for lawful purposes. Furthermore, tenants who undertake property improvements with the landlord’s written consent may be eligible for compensation if the tenancy is terminated.

All disputes arising from tenancy agreements are to be adjudicated in the High Court or Magistrates’ Court within the relevant jurisdiction. Crucially, the law explicitly prohibits illegal evictions, stating that landlords must follow due legal procedures. Unlawful or forceful evictions are now punishable offences.

The government has also clarified that the combined cost of legal and agreement fees must not exceed the 10% cap on annual rent. For instance, on an annual rent of ₦1,000,000, the total fees for legal services and the tenancy agreement should not be more than ₦100,000, regardless of how this fee is apportioned.

The Lagos State Real Estate Regulatory Authority (LASRERA) has been designated as the primary agency for tenants to report any violations of the Tenancy Law.

The state government has reiterated its unwavering commitment to safeguarding the rights of all parties involved in rental agreements across Lagos.