Government Moves to Regulate Activities of Landlords, Agents, Passes Bill to Cap Legal Fees, Others

• It is a new dawn for housing in Enugu as the state House of Assembly has finally answered the cry of house seekers
• A new bill has passed the first reading, with strict regulations for the landlords and house agents or managers
• The bill imposes stiff penalties of six months imprisonment or heavy monetary fines for defaulters

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

A bill to protect tenants and regulate the excesses of landlords and house agents has passed the first reading in the Enugu state House of Assembly.

The bill also puts an upper cap on the legal and house agency fees usually charged by the landlords and house agents, to house seekers and prospective tenants.

The bill titled ‘Bill for a Law to Amend the Landlord and Tenant Law Cap 101 of Enugu State 2024’ scaled through the first reading, and was sponsored by Honorable Okey Mbah, the representative of Nkanu East constituency.

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Mbah noted that the bill was a response to the cries of Enugu state residents over challenges in house rentals, and the exploitation by the landlords and agents.

Enugu state passes bill to cap legal fees

The provisions of this new bill state in section 3 (4) that tenants shall not be made to pay any premium other than the legal fees which must be paid to a qualified legal practitioner.

The bill also caps this fee at 10% of the rent and says it must serve the sole purpose of paying a legal practitioner to prepare the landlord-tenant agreement.

Defaulters of this provision would face stiff penalties of a fine of N500,000, a six-month prison term or both, News Agency of Nigeria (NAN) reports.

The bill also abolishes arbitrary fees like caution fees from negotiations in house rentals.

Bill bans forced and irregular evictions in Enugu

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Speaking on the bill, Mbah noted that it sets a legal duration for eviction and other notices, thus protecting tenants from irregular evictions and other injustices suffered.

The bill also mandates all property agents and managers to be registered and certified by the government.

Mbah explained further that there is a 10% cap for both agency and legal fees so that it is never above 10% of the rent.

The Ministry of Housing would now be the supervisory ministry to make further regulations on housing-related issues in the state.

A house seeker in Lagos state, Mr. Emmanuel Okugbo, who spoke to Legit.ng noted that this is a good move and Lagosians are looking forward to see the same initiative extend to Lagos.

He said;

"House hunting in Lagos is not for the weak. Some of these fees almost amount to 100 percent. I was looking to change houses recently, and got a place for N1 million around Ikeja, but the fees and charges attached added another N700,000 to the bill. Thats 70 percent. We can't continue like this"

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Housing issues have become a problem, in recent times, with several state governments stepping in. Lagos state government has also initiated the construction of 704 housing units to meet the increasing demand for more housing.

The federal government is also working out single-digit interest loans for the populace.

FG steps in as rents hit the roof

Earlier, Legit.ng reported that the federal government announced an intervention plan to stop the increasing price of house rents in Nigeria.

The government plans to establish facilities for the manufacture of construction materials, to lower the cost of building materials and subsequently the rent prices.

This is expected to assist producers in meeting the rising demand for building materials while also increasing capacity and reducing prices.

Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng