Lagos updates tenancy law, introduces stricter rules to protect tenants, regulate landlords

The Lagos State Government has updated its Tenancy Law to better safeguard tenants’ rights, curb exploitative practices by landlords and agents, and ensure greater fairness in rental transactions across the state.

The revised law, which was announced through the Lagos State Real Estate Regulatory Authority (LASRERA), introduces new provisions on advance rent restrictions, mandatory receipts, tenancy agreement fees, eviction processes, and dispute resolution.

Key Provisions of the Updated Law

1. Advance Rent Restrictions

Landlords can no longer demand more than three (3) months’ rent in advance from existing tenants. Tenants are also prohibited from paying beyond this limit.

Violations attract penalties of up to N100,000 in fines or three months’ imprisonment.

3. Mandatory Rent Receipts

Every landlord must issue receipts for rent payments, showing: Date of payment; Names of landlord and tenant; Property address; Amount paid; Rental period covered

Failure to issue receipts attracts a N10,000 fine.

3. Tenancy Agreement Fee Cap

The government reaffirmed that tenancy agreement and legal fees must not exceed 10% of annual rent.

For example, where the annual rent is N1,000,000, the combined legal and agreement fees must not exceed N100,000. Any amount above this is deemed illegal.

4. Notice Periods for Termination

Where no written agreement exists, landlords must give tenants the following notice periods before termination:

1 week for weekly tenants

1 month for monthly tenants

3 months for quarterly/half-yearly tenants

6 months for yearly tenants

However, if a monthly tenant defaults for three months, the landlord may seek possession through the courts.

5. Tenant Rights

The law reinforces tenants’ rights, including:

Reasonable privacy

Freedom from undue disturbance

Exclusive possession of rented premises

Use of common areas for lawful purposes

In addition, tenants who carry out improvements with written consent from landlords can claim compensation if the tenancy ends.

6. Dispute Resolution

All tenancy disputes are to be handled by either the High Court or the Magistrates’ Court in the relevant jurisdiction, ensuring due legal process is followed.

7. Prohibition of Unlawful Evictions

The law explicitly bans landlords from using force or “self-help” methods to evict tenants. Any eviction outside court approval is illegal and punishable under the law.

Enforcement and Complaints

To report violations, tenants are encouraged to contact LASRERA, which has been mandated to enforce compliance with the new tenancy regulations.

The Lagos State Government emphasized that the reforms are aimed at balancing landlord-tenant relations and curbing sharp practices in the housing sector.

“Our position remains that legal and agreement fees combined must not exceed 10% of annual rent. This is the law, and anything above this is illegal,” LASRERA stated.

With Lagos State housing demand continuing to rise, the new legal framework is expected to provide stronger protection for tenants while promoting transparency and accountability among property owners and agents.