The new Lagos Landlord and Tenancy bill has passed second reading. The bill seeks to reduce constant frictions between landlords and tenants and set standards for estate agents. When it is eventually signed into law, can it be enforced and effectively sanitise the sector, OKWY IROEGBU-CHIKEZIE and ADEBISI ONANUGA ask real estate practitioners and lawyers.

The Lagos State House of Assembly on August 14 held a public hearing on the new landlord and tenancy bill.

The bill titled “A Bill for a Law to Regulate the Relationship between Landlords and Tenants in Lagos State including the Procedure for the Recovery of Premises and for connected purposes” which has passed second reading and is awaiting the assent, seeks to reduce constant frictions between landlords and tenants and set standards for estate agents.

The bill, seeks to reform housing laws and protect both tenants and landlords.

It also seeks to redefine the legal framework governing tenancy agreements, rights, responsibilities, and the processes for eviction in the state.

Other provisions

The bill stated that:

• All agents must register with LASRERA.

• Collecting rent from multiple tenants for one property is now a criminal offence.

• Maximum agent fee: 5%.

• No more than three months’ rent in advance for monthly tenancies and one year for annual tenancies. Violations attract fines or jail time.

• No need for “Notice to Quit” if tenant owes rent beyond the grace period. Just a 7-day eviction notice required.

• Tenants must show proof of rent and utility payment to file or appeal cases.

• Disputes can now be heard online to save time and increase access.

• Tenants can take landlords to court over unreasonable rent hikes, and can’t be evicted while the case is ongoing.

If passed into law, it will ensure that all stakeholders – tenants, landlords, and agents – understand their rights and obligations.

Past Landlords and Tenants Law

This would not be the first time that Lagos is putting in place a law to regulate relationship between landlords, tenants and estate agents.

In 2011, then Governor Babatunde Raji Fashola put in place a law to govern landlords, tenants and agents relationship.

The Lagos State Tenancy Law of 2011, aimed to protect tenants from exploitation by establishing rules for rent payment, receipts, and peaceful enjoyment of premises. The law sets limits on rent collection (6 months for monthly tenants, 1 year for yearly tenants), mandates rent receipts, and outlines penalties for violations. The law’s application was restricted in areas like Apapa, Ikeja GRA, Ikoyi, and Victoria Island.

Key Aspects of the 2011 Tenancy Law

The 2011 tenancy law in Lagos emphasised limitations to rent payment in the state.

Under the law, landlords or their agents, for instance, cannot demand or receive rent exceeding six months from a monthly tenant or one year from a yearly tenant.

Tenants also have the right to quiet enjoyment of the property and the right to a receipt for rent payments among others.

Pre-2011 Law

In the period prior to year 2011, Lagos was primarily governed by the Rent Control Law, which applied to the entire state and regulated landlord-tenant relationships, particularly concerning rent payment and recovery.

While the specific provisions of the Rent Control Law are not detailed , it was however aimed to provide a legal framework for these relationships. The law was eventually superceeded by the 2011 Tenancy Law which was more comprehensive and introduced stricter regulations on rent payments, receipt issuance, security deposits, and eviction.

Given the peculiarity of Lagos State and past attempts, can the new 2025 landlord and tenats law be effectively enforced?

Mixed reactions

Reactions to the new Lagos landlord. Tenants and agent bill have been mixed.

Some tenants welcomed the development, arguing that agents exploit vulnerable Nigerians by charging unauthorised fees and inflating rents. Some however approached the issue with caution.

A builder, Lateef Rufai, stressed that many landlords are inaccessible without intermediaries, and warned that sidelining agents could drive some into social vices. He suggested creating a legal framework to regulate and separate credible agents from exploitative ones.

Agents themselves have defended their work, saying they provide valuable services in connecting landlords and tenants. Some argued that high inflation and rising demand for housing were the real drivers of escalating rents, not agency fees. An agent in Abakaliki pointed out that rents for one-room apartments in the city have doubled since early 2025, blaming economic pressures rather than the activities of middlemen.

Bill pro landlords

A landlord, Odion Efe, said the bill was pro landlords and that government should think through the social implications of the bill. He said that it’s anti development and wondered how a government that didn’t contribute positively to his building his house but instead made it very difficult by their cumbersome and costly approval payments and high cost of building would decide for him how to charge his tenants.

He said :”All over the world, a lot of technical or legal safeguards are placed in tenancy laws in ways that make it appear unfair to landlords.. But even at that you don’t make the law pro tenants because everyone prays to be a landlord. My take is that the law is anti- development and shouldn’t be encouraged.

A landlady, Mrs. Obianuju Okoro, said tenants will choose to pay her bill or wait for the Governor’s house as she knows what she went through to build the house with her husband.

She said there was no way she could collect one year rent from a first-time tenant, she wondered how she would recoup her investment even in 20 years.

Bill in interest of tenants

Also, Ojediran Isiaka and Stanley Obia hailed the law as being in the best interest of tenants. They accused some landlords as being shylocks who would prefer to recoup their investment in a year.

They also commented on how some callous landlords eject their tenants through kangaroo methods and said the law was in order as it would check such inhuman acts.

Lawyers’ reaction

Lawyers who reacted to the bill argued that its success depended on enforcement. They included Professor of law, Emeka Chianu, a former Commissioner of Ogun State Judiciary Service Commission, Abayomi Omoyinmi, Ige Asemudara and a former Deputy Speaker of Ogun State House of Assembly, Chief Edwards Ayo-Odugbesan

Rent control not workable

Prof. Chianu, a lawyer and author, stated that rent control was a waste of time and resources. He said when economics collides with the law, parliament makes the latter kowtow.

According to him, even under military rule rent control didn’t work. He narrated a personal experience.

“I rented an apartment as a teenager in the late 1970s. Rent Control Edict was stringently enforced in Lagos then. I paid what the landlord compelled me to pay but he issued receipts in accordance with the Edict and insisted that I should kneel to collect the receipts from him. I had no problem with the kneeling as he was in his 60’s. But this brief account says a lot”.

In my landlord and tenant books there are several English cases where tenants joined in subterfuge to circumvent rent control statutes.

Estate agents problematic

Omoyinmi noted that landlords and tenants laws have undergone several reforms in the last three decades in Lagos. He said going by the peculiarity of the state of Lagos, there was for effective enforcement.

According to him, the agents have become very problematic for would-be tenants. He said cases abound where agents collect rents from prospective tenants and disappear with such payment or even failed to provide accommodation. He said there was need for proper regulation for agents as proposed.

He said the act of collecting rents from multiple prospective tenants for none available property knowingly was itself a crime. The courts have always not been in support of where a landlord unreasonably hikes rents, and thereby wanting to eject a tenant on the basis of refusal to pay such hike, the court has discretion to refuse such attempt to eject a tenant where it could be shown that the landlord has hiked rent unreasonably.

Omoyinmi said the peculiarity of Lagos had always been a contributory factor to non effective enforcement of landlord and tenants law in the past, except where such cases were determined in the court.

Landlord’s, tenants’ cases work on consensus

On most cases the landlord and tenant are in consensus on agreement outside the provisions of the laws for better and workable understanding among the duo.

Lagos is where tenants who at all cost want a roof over their heads may have no choice than to accept what is agreed by the landlord, hence, enforcement may pose difficulty where parties have both agreed not to abide by the provisions of the law which may not be practicable under the circumstances they found themselves. This may ultimately be one of those laws if passed and assented to may be difficult to enforce for lack of cooperation among stakeholders.

Law will address endless litigation

He noted that there had been situations where tenants held their landlords to ransom with litigation up to the Supreme Court without paying rents. This law will address such situation. We have seen high-handed landlords who do all sorts. We have seen what the agents are doing with their commissions and how some disappear with people’s money. The law will address it. So, it is a giant stride to have such law.

Enforcement key to success of law

Omoyinmi, however, stressed that enforcement was key to the success of the law. The people should be ready first of all. Then the agencies will do their own. Without a ready people, the law enforcement institutions will be acting in vain. Our courts are up to it. LASRERA will do its own.

“I am not worried about the enforcement. I am worried about Lagosians. Are they ready for the change? Are they ready to enforce their rights? Are they ready to embrace a new regime? Once Lagosians are prepared, the enforcing agencies and institutions will do their works. Most of the failures we complain about are actually the people’s failure and not of the agencies. We must embrace progress”, he said.

Tenancy law serious

Asemudara described the bill as a welcome development. According to him, Lagos is fast growing and the laws must catch up with the growth. Every growing city or state in the world takes its tenancy laws seriously.

Law will address litigation

“We have had a situation where tenants held their landlords to ransom with litigation up to the Supreme Court without paying rents. This law will address such situation. We have seen high-handed landlords who do all sorts. We have seen what the agents are doing with their commissions and how some disappear with people’s money. The law will address it. So, it is a giant stride to have such law.

Asemudara also argued that enforcement was key.

“I believe we can all do it. The people should be ready first of all. Then the agencies will do their own. Without a ready people, the law enforcement institutions will be acting in vain. Our courts are up to it. LASRERA will do its own.

Lagosians must embrace new law

He, however, expressed worry over enforcement of the law. “I am not worried about the enforcement. I am worried about Lagosians. Are they ready for the change? Are they ready to enforce their rights? Are they ready to embrace a new regime? Once Lagosians are prepared, the enforcing agencies and institutions will do their work. Most of the failures we complain about are actually the people’s failure and not of the agencies. We must embrace progress”, he said.

Chief Ayo-Odugbesan a Lagos-based property and land litigation expert, noted that there are many changes in the new law when compared to that of 2011 law.

He said the law has statewide application compared to the former 2011 which law applies only to a sectional part of the state.

He noted that the most important aspect of this new law is that it regulates the agencies. It also attempts to eliminate quack agencies.

Why LASRERA registration

He noted that apart from property agents in Lagos State, no other state has the property agents business, booming as much as it is in Legos State.

So, towards this purpose, the bill or the law has decreed that all Lagos State Real Estate Agents dealing with any tenancy matters in Lagos state must register with the Lagos State Real Estate Regulatory Authority (LASRERA).

“So, if you don’t register with this agency, you are liable to forfeit the agency fee you have collected upon complaint. You will also be penalized by the government for up to two years and you pay up to N1 million damages as penalty. So, you can see that this is aradical departure from what is obtained in the past.

Thirdly, there is red caps. You cannot collect rent for more than three months for quarterly tenants, six months rent for half year tenants , one month rent from one month tenants and one year from yearly tenants.

“In the past where you say you pay three years in advance, I think with this law, you will be committing an offence. So this provision protects both the tenant and the property owner, otherwise called the landlords.

Faster eviction of defaulting tenants

Chief Ayo-Odugbesan also noted that the bill made provision for faster eviction or tenants who are in default or want to not paying their rents. But at the same time, it protects tenants in the way that no landlord can wake up one day and just double direct and say,’ if you don’t pay, get out of my house’.

He said If a tenant has a feeling of that, he is liable to file complaint and the landlord will be sanctioned. If a tenant has been enjoying a particular facility in your premises, you cannot just wake up one day and deny that tenant of that facility . May be you say the tenant is not paying, you cannot just go and remove his window, remove his door, his ceiling or roofing. You will be committing a criminal offence and you will be penalized under this new law.

Obligations on landlords

This law also imposes a lot of obligations on the tenant to pay the rent as at when due and to cooperate with the landlord.

Also, there are things that for instance, the external fittings, the common areas,, the power supply, permanent fixtures, the roofing, the fencing, the gate, the water supply, the landlord is supposed and expected to ensure they are well maintained as at when necessary.

Withholding tax

There is now an obligation on the rental income. In the past, landlords will collect rents and use the way they want. Now there is withholding tax which had been In existence. This law now seek to enforce it with penalty. But I think this law now seeks to enforce it with strict penalty.

Also, the law makes a provision for instance, if there is service charges, if there are some services in the premises, maybe water supply, generators supply, common cleaning, common sanitation, what you call services. If there are services rendered in a premises, then these should be covered by separate agreement with the tenants.

Also the landlord’s expected to remit account of the service charge that you collect from the tenants after six months.

Deposits

There is also a portion of the security deposit and damages in some properties. These should be refunded to you at the end of your tenancy, provided that you do not commit any breach. You are to collect your money back provided or you do not damage anything.

Ayo_Odugbesan noted that the law is a radical departure from the old law pointing out that there is provision re-entry during pendency of the suit.

“The law protects both the landlord and tenants while the matter is in court. The landlord is not supposed to do anything until the matter is resolved. The same apply also to the tenant. So, the law is very protective.

“The bill also made provisions for use of forms in filing your case . The beauty of this law is that it has provision for virtual hearing. You can apply for virtual hearing if you cannot come to court for one reason or the other.

“The court even has power to sit on weekends and public holidays with the consent of parties or their counsel.

“The law made provision for mediation in case there are parties willing to subject themselves to mediation. The court upon filing the suit, with consent of parties, will refer the matter to a mediator, that is the Citizen Mediation Centre or the Multidoor courthouse or any other available dispute resolution center. With consent of parties, judgment reached at such mediation center will be binding and the result of such alternative dispute resolution agreement will be endorsed and accepted by the court as a judgment in the matter.

“So, by and large, I think it’s a beautiful and lovely legislation especially at this time considering the unwholesome activities being conducted by both landlords and tenants.

“For example, you find out in Lagos, when a tenant wants to leave a premises, instead of surrendering it to landlord, they will go ahead and rehire you to a new person, and collect high rent from the person and be paying the landlord, the old rent.I think this is not healthy and this law has made provision for such situations.

“So the law is commendable and I want to enjoy all landlords in Lagos State and all tenants, to honour same so as to get a worthy and, healthy tenancy situation in all parts of Lagos State”, he said. (The Nation)