The Updated Lagos Tenancy Law and How it Affects Landlord and Tenants

The Lagos State Tenancy Law has been updated to better protect tenants and regulate landlord practices.  Here are the key provisions:

1. Advance Rent Restrictions

Landlords are prohibited from demanding more than three (3) months’ rent in advance from sitting tenants.  Similarly, tenants are not allowed to pay more than three months’ rent upfront. Violations can result in fines up to ₦100,000 or imprisonment for up to three months. 

2. Mandatory Rent Receipts

Landlords must issue rent payment receipts to tenants, detailing the payment date, names of both parties, property location, amount paid, and the rental period covered.  Failure to provide a receipt can lead to a ₦10,000 fine. 

3. Tenancy Agreement Fee Cap

The Lagos State Government has reaffirmed that tenancy agreement fees should not exceed 10% of the annual rent.  Landlords and agents charging above this limit are in violation of the law. 

4. Notice Periods for Termination

In the absence of a written agreement, the law stipulates the following notice periods:

One week’s notice for a weekly tenant

One month’s notice for a monthly tenant

Three months’ notice for a quarterly or half-yearly tenant

Six months’ notice for a yearly tenant

If a monthly tenant is in arrears for three months, the landlord may seek possession through the courts. 

5. Tenant Rights

Tenants are entitled to:

Reasonable privacy

Freedom from unreasonable disturbance

Exclusive possession of the premises

Use of common areas for lawful purposes

Additionally, tenants who make improvements with the landlord’s written consent may claim compensation if the tenancy is terminated. 

6. Dispute Resolution

Tenancy disputes can be addressed in either the High Court or Magistrates’ Court within the relevant jurisdiction. 

7. Prohibition of Unlawful Evictions

Landlords must not evict tenants without following due legal process.  Self-help evictions are prohibited and can result in legal penalties. 

For further details or to report violations, tenants can contact the Lagos State Real Estate Regulatory Authority (LASRERA). The Lagos State Government’s position is that the total charge for legal and agreement fees combined should not exceed 10% of the annual rent.

Example:

If the annual rent is ₦1,000,000:

Total charge for both legal and agreement fees together should be ₦100,000 or less.

This means legal = 5% and agreement = 5%, or any other breakdown, as long as the total does not exceed 10%.

Anything above this is considered illegal under the Lagos Tenancy Law.

If you need a formal reference or want to lodge a complaint, you can contact LASRERA (Lagos State Real Estate Regulatory Authority).