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What The Landlords Say
The current high rise of house rent in Lagos urgently calls for serious attention. The conduct of landlords, house agents and caretakers in Lagos should be scrutinized, as their actions have caused significant high cost in the area of property leasing and renting. It has been argued that the 70 to 80 percent increase in property rent and leasing in Lagos is largely as a result of greed on the part of some estate agents, landlords, and caretakers. This group has become so powerful that they now dictate the rent for properties.
In recent time house rents, especially, in Lagos, have skyrocketed. It is becoming increasingly difficult for average salary earners to find a decent apartment, particularly in mainland areas such as Agege, Ikeja, Maryland, Isolo, Festac, Ketu, Ogba, Oworoshoki, Gbagada, Alapere, and Surulere. Presently, some of these neighborhoods have rents much higher than what they used to be.
Recent findings by City People revealed the reasons behind the soaring house rents especially, in the mentioned locations.
HOUSE AGENTS AND CARETAKERS
These two entities significantly contribute to the current skyrocketing house rents in Lagos. They influence and entice landlords with higher offers on behalf of their clients to secure desirable homes. They often present irresistible sums, exceeding the landlords’ original requests for new tenants.
During our investigation, we spoke with Mr. Agboola, who recently rented a self-contained room and parlour in the Oworoshoki area of Lagos. He expressed frustration over the challenges he faced while searching for an apartment. Previously, the tenants living in the same unit had been paying 350,000 naira, but upon Mr. Agboola’s arrival, he ended up paying 900,000 naira instead.
“When I was looking for a place, I had some offers, but none satisfied me until I found this one. Currently, vacant apartments are scarce, especially on the Lagos mainland. When I finally found this apartment, I had to pay extra to secure it. The agent who assisted me mentioned that two other people were ready to pay for the same unit, but if I could pay 900,000 naira, I would be prioritized because the landlord had set their price at 800,000 naira. Once I paid and the landlord received the 900,000 naira alert, he refunded the other applicant who had paid 800,000 naira.”
It should also be noted that to secure a decent two-bedroom apartment in Oworoshoki, you need at least 3 million naira, while approximately 2.5 million naira would suffice for a room and parlour self-contained unit.
RENTING BECOMES A BIDDING WAR
Renting a house in Lagos, particularly in the aforementioned mainland areas, often resembles a bidding war. For instance, if a landlord states they are renting out a two-bedroom apartment for 700,000 naira, and six people view the property through different agents, those agents may advise their clients to offer more money. Even if the landlord has already accepted another tenant’s offer, they may be compelled to refund that individual and lease the apartment to the highest bidder. This method contributes to the rising rent prices.
While many landlords may be unaware of such sharp practices by agents, some will not refuse a higher rent if it is offered. If a landlord originally lists their property for 600,000 naira and an agent brings an offer of 1 million naira, the landlord is unlikely to decline. This dynamic is one reason why agents in Nigeria are often viewed as opportunists seeking quick profits. The industry has historically been loosely regulated, requiring no serious qualifications or expertise to enter.
EXTRA CHARGES ON HOUSE RENT
Additional charges associated with house rentals are major barriers for average salary earners seeking decent apartments. These fees often stem from the greed of some agents and lawyers involved in the process. For example, if the basic rent is 800,000 naira, some greedy agents may impose a 200,000 naira commission, a 200,000 naira agreement fee, and a 150,000 naira caution fee—totalling 550,000 naira in extra costs for someone earning less than 100,000 naira per month.
City People’s findings indicate that such sharp practices are prevalent throughout Lagos and in various other Nigerian states.
In Ogudu, the cost of renting a room and parlor self-contained apartment ranges from 2.5 to 3 million naira. City People spoke with Mr. Oseni, who recently rented such an apartment in Ogudu. He revealed that he paid over 3.5 million naira. According to him, “the basic house rent is 2.7 million naira, but I also had to pay for lawyer fees (270,000 naira), commission (200,000 naira), caution (200,000 naira), and service charges (100,000 naira).” He lamented that the government needs to come to their rescue.
In many cases, some caretakers, due to their greed, encourage landlords to increase their rents. They often refuse to accept tenants who won’t pay above the normal rate. When someone offers a higher amount, existing tenants are compelled to match the new rate. This is a tactic that many landlords in Lagos deploy to raise rental prices, especially in the mainland areas.
The law states that landlords or their agents have no power to increase rent without the tenant’s knowledge and consent. If a landlord wishes to increase rent, he should invite the tenant to discuss and agree on a suitable amount, taking into consideration the prevailing rental rates for such apartments at the time or any other relevant circumstances.
If a landlord has raised your rent without your consent, it is advisable to write to him through a lawyer, explaining the legal position and any reasons that make the increase unreasonable while suggesting a more suitable rent. Should the landlord refuse to reconsider, the law permits the tenant to proceed to court and request a declaration that the rent increase is unlawful, arbitrary, and unreasonable.
A lawyer who specializes in landlord-tenant issues in Lagos stated, “I want to appeal to landlords and landowners: do not increase your rents or land prices. The purpose of infrastructure development is to provide relief to the people, not to create further hardship.” In situations where a landlord refuses to accept the current rent, tenants have the right to apply to the court to allow them to pay the rent into the court’s registry. Notably, in such cases, the landlord may not receive the full rent again, as the court reserves the right to retain 10% and pay him the remainder.
Many tenants now live in fear of challenging their landlords, knowing that if they leave their current apartments probably priced at 1 million naira per year, they may need at least 3 million naira to rent similar apartments elsewhere.
Another contributing factor to rising rents is infrastructure improvements. When the government constructs or repairs roads in certain areas, landlords often seize the opportunity to raise their rents. A few months ago, Lagos State Governor Mr. Babajide Sanwo-Olu, inaugurated several roads, including the Abiola/Ajayi/Ogba and Obawole/Iju-Ishaga roads. During the ceremony, he urged landlords not to increase rent due to these improvements. He stated, “The essence of this infrastructure is to bring relief to the people, not to create further hardship.”
City People also spoke with two landlords in Isolo, including Mr. Abayomi Ajayi, who shared insights on why rents in Lagos remain unregulated. He said, “When I built my house here in Isolo, Lagos State government agencies came with all sorts of requirements. I paid a substantial amount for building approvals and inspections. The costs included soil testing and more. I spent over 10 million naira on a single house. The price of building materials has skyrocketed, has the government offered any subsidy for builders like us? No! We are now spending about more than three times the amount to construct one building in this tough economy.” He questioned how the government could effectively regulate the housing market under such circumstances.
ISAAC ABIMBADE.
08155107955
