Lagos State’s government has introduced a new tenancy bill aimed at modernizing the relationship between landlords and tenants.
Accrosing to the Lagos State House of Assembly, the proposed law seeks to define clear payment structures and eviction procedures while also repealing the existing Tenancy Law of 2015. The “Bill For A Law To Regulate The Relationship Between Landlords And Tenants Including The Procedure For The Recovery Of Premises In Lagos State And For Other Connected Matters” will repeal the Tenancy Law Cap. T1 Laws of Lagos State 2015. A key focus is to prevent abuse and streamline legal processes, with provisions that benefit both property owners and occupants.
The bill introduces strict rules for rent collection and payment. It is now illegal for landlords or agents to demand more than three months’ rent for a monthly tenancy or one year’s rent for a yearly tenancy. Similarly, tenants are prohibited from paying above these limits. Any person who violates this provision faces a fine of up to N1 million or three months in jail, or both, upon conviction.
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For a tenancy to be legally terminated, the bill outlines specific notice periods. These range from one week’s notice for a “tenant at will” to six months’ notice for a “yearly tenant.” It also simplifies the process for landlords to recover possession from defaulting tenants, requiring a seven-day notice period if a monthly tenant is two months in arrears, or a yearly tenant is three months behind on rent after their lease has ended.
The legislation provides extensive protections for tenants, affirming their right to “quiet and peaceable enjoyment” of their premises. This explicitly prohibits landlords from taking actions like cutting off utilities, removing roofs, or seizing a tenant’s belongings. It also stipulates that landlords must carry out necessary repairs and maintain common areas, while tenants are required to pay rent on time and keep the property in good condition.
To ensure accountability, the bill mandates that all real estate agents must be registered with the Lagos State Real Estate Regulatory Authority. Agents who fail to remit rent to landlords within seven working days, or who collect rent for a property that is already rented, will face fines and potential imprisonment. The commission or agency fee for any tenancy is also capped at a maximum of five percent of one year’s rent.
The new law also seeks to streamline legal proceedings for tenancy disputes by introducing mediation as an option and allowing virtual court hearings to improve efficiency. While it applies to most residential and business properties in Lagos, the bill makes specific exceptions for institutional housing, such as employee accommodations, educational facilities, and