The Enugu State Government has moved to regulate house rent agency and legal fees as a bill proposing a 10% cap scaled its first reading in the State House of Assembly.
A bill sponsored by Okey Mbah, representing Nkanu East constituency, tagged “Bill for a Law to Amend the Landlord and Tenant Law Cap 101 of Enugu State 2024” was introduced in response to complaints about exploitation by landlords.
Mbah stated that the bill seeks to cap agency and legal fees at 10% of the rent, allowing for negotiation below this limit but never above it.
The development was reported by the News Agency of Nigeria (NAN) on Tuesday.
“A bill seeking to regulate house agency and legal fees in Enugu State has scaled first reading in the State House of Assembly.
“The bill titled, “Bill for a Law to Amend the Landlord and Tenant Law Cap 101 of Enugu State 2024” was sponsored by the member representing Nkanu East constituency, Mr Okey Mbah,” the NAN report read in part.
It added, “The first term lawmaker explained that there was a 10 per cent ceiling for both Agency and Legal fees, the percentage can be negotiated lesser but could never be above 10 per cent.”
The bill also stipulates that tenants should not be required to pay any other premium for acquiring accommodation, except for the legal fee payable to a qualified legal practitioner.
This fee, Mbah noted, must be solely for preparing the landlord and tenant agreement and should not exceed the 10% cap.
The lawmaker, Mbah, added that offences under the bill would attract a fine of N500,000 or a six-month prison term, or both.
Mbah said the bill grants government ministries or agencies the authority to make further regulations on housing issues within the state.
In his remarks, the Speaker of the Enugu State House of Assembly, Uche Ugwu, commended Mbah for sponsoring the bill, describing it as timely.
He urged members to thoroughly review the bill in preparation for deliberations during the second reading, the NAN report disclosed.