Landlords risk jail, asset seizure over tenants’ criminal activities—Legal experts

Nigerian landlords eager to maximize rental income could be exposing themselves to serious legal consequences if they fail to properly screen tenants, legal practitioners and security experts have warned.

According to legal analysts, property owners who knowingly—or through negligence—rent out their buildings to kidnappers, internet fraudsters, or other criminal elements risk criminal prosecution, forfeiture of their properties, and substantial financial liabilities under several Nigerian laws.

The warning comes amid increasing efforts by law enforcement agencies to crack down not only on criminals but also on individuals whose properties facilitate criminal operations.

Experts point to provisions in the Advance Fee Fraud and Other Fraud Related Offences Act, the Cybercrimes (Prohibition, Prevention, etc.) Act 2015, and the Terrorism (Prevention and Prohibition) Act 2022 as key legal instruments that hold property owners accountable when their premises are used for unlawful activities.

Under Section 12 of the Cybercrimes Act, making premises available for cybercrime-related activities constitutes an offence. Legal experts say landlords who rent property to internet fraudsters, popularly known as “Yahoo Boys,” without conducting reasonable due diligence may face prosecution as accomplices.

Similarly, anti-terrorism laws and several state statutes treat the use of residential or commercial buildings for kidnapping operations as a grave offence.

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Authorities may investigate and prosecute landlords if evidence suggests they knowingly allowed or recklessly ignored criminal activities on their premises

Property Forfeiture Emerging as Major Risk

Beyond criminal liability, experts say one of the most severe consequences landlords face is the possible loss of their properties through court-ordered forfeiture.

The Economic and Financial Crimes Commission has repeatedly secured interim and final forfeiture orders against buildings linked to internet fraud and other criminal enterprises across major cities including Lagos, Ibadan, Abuja, and Benin City.

Under the Proceeds of Crime Act 2022 and relevant provisions of the EFCC Act, any property found to have been used in the commission of a crime or acquired through illicit proceeds may be confiscated by the government.

Legal practitioners note that courts may order permanent forfeiture regardless of how much rent a landlord has earned from the property.

“Once a court determines that a property was used to facilitate criminal activity, ownership rights can be extinguished through forfeiture proceedings,” a legal analyst explained.

Police Investigations and Criminal Liability

Security agencies have also intensified investigations into properties linked to criminal activities.

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The Nigeria Police Force has on several occasions sealed buildings allegedly used as kidnapping hideouts, while landlords and caretakers have been invited for questioning to determine whether they failed to exercise reasonable caution.

Investigators often examine whether landlords verified tenants’ identities, obtained proper documentation, or made efforts to understand the nature of activities being conducted on their properties.

Legal experts argue that accepting large sums of cash without maintaining records, tenancy agreements, or identification documents significantly weakens a landlord’s defence if authorities launch an investigation.

Duty of Care Extends Beyond Rent Collection

Court decisions in several forfeiture cases have reinforced the principle that property owners owe a duty of care to society.

Judges have reportedly emphasized that landlords must demonstrate that they took reasonable steps to prevent their properties from being used for illegal purposes.

According to legal practitioners, simply claiming ignorance may not be sufficient if evidence shows that obvious warning signs were ignored.

Beyond criminal proceedings, landlords may also face civil lawsuits from victims of crimes allegedly facilitated through their properties.

Victims of kidnapping, fraud, or other offences may seek damages, arguing that the property owner failed to take adequate precautions. Such claims can result in significant compensation awards.

Experts Advocate Strong Tenant Screening

In response to growing concerns, real estate professionals are urging landlords to adopt rigorous tenant-screening procedures similar to the “Know Your Customer” (KYC) standards used by financial institutions.

Recommended measures include verifying government-issued identification documents, obtaining Bank Verification Numbers (BVN), requesting employment records, checking references, and confirming sources of income.

For business tenants, experts advise landlords to verify registration details with the Corporate Affairs Commission and review the nature of the proposed business operations.

Security experts also recommend maintaining written tenancy agreements that clearly prohibit illegal activities and allow landlords to terminate occupancy if criminal conduct is discovered.

Growing Concern Over Criminal Activities in Residential Areas

The rise of alleged internet fraud training centres, sometimes referred to as “Yahoo schools,” within residential estates has heightened concerns among community leaders and security agencies.

Residents often report suspicious patterns such as unusual night-time activities, excessive generator use, frequent visits by unknown individuals, and overcrowded apartments occupied by groups of young men.

Experts advise landlords not to ignore such warning signs and to promptly report suspicious activities to estate associations, community leaders, or law enforcement authorities.

Due Diligence Remains the Best Defence

Legal and security experts maintain that thorough tenant screening, proper documentation, regular property inspections, and prompt reporting of suspicious activities remain the most effective ways for landlords to protect themselves.

They stress that while high-paying tenants may appear attractive in a difficult economic environment, the financial gains could be outweighed by the risk of criminal prosecution, property seizure, and reputational damage.

The consensus among stakeholders is clear: in today’s security environment, landlords can no longer afford to prioritize rent income over due diligence. Failure to properly vet tenants could ultimately result in the loss of both property and personal freedom.