Lagos Residents Grapple With Soaring Rent As Regulation Demands Increase

The 100% increase in rent across many areas in Lagos State is negatively impacting residents across various income levels, making it extremely difficult to find affordable and comfortable housing.

Landlords and agents are accused of exploiting tenants through rent increases, leading to demands for a review of existing tenancy laws, including potential sanctions to address the soaring rent.

A businessman, Abimbola Anifowose, who rented a mini-flat for ₦350,000 after his wedding three years ago in the Ogba area of Lagos State, said he was shocked in June when the landlord informed the tenants that a new payment of ₦ 650,000 would be required, and that anyone who could not afford it should leave the apartment.

Lamenting over the condition of the house, Abimbola stated that it has been over a year since the borehole water spoiled without any plan to fix it, and tenants have been buying water from outside.

Abimbola, who works in Ikeja, also shared that a landlord in August 2024 promised his friend a two-bedroom apartment at ₦700,000 with the assurance that the occupant would vacate the house in February 2025.

According to Abimbola, they were surprised when the landlord informed them about the availability of the house, but it would be rented at ₦1.2 million per annum.

In an interview with Naijaonpoint, Director of Public Affairs at the Lagos State Real Estate Regulatory Authority (LASRERA), Ibiruke Famakinwa, stated that the government is displeased with the current surge in rent.

Famakinwas also stated that the Lagos State House of Assembly has moved to improve landlord-tenant relationships as the state’s Tenancy Bill has passed the second reading stage.

According to her, the Lagos Assembly aims to reduce the agent and agreement fee from 20% to 10% each and enforce a reduction in rent.

She said, “The Lagos State government is not happy with the situation of rent in the state. Some people are using end-of-year bonuses, annual leave allowances, and a major chunk of their salary to pay for rent. There is no reason to justify the action of these greedy landlords. Some are pointing the current cost of building materials, yes we know that building materials have skyrocketed but what about people who built their house 10 to 20 years ago still joining the trend.

“The issue of rent has become serious, because even the Lagos State House of Assembly, recently delebrated on it as well as pegging the agent and agreement commission at 10% each. Another thing that is spoiling the whole issue of rent is desperate tenants, there are some people who are desperate and do not care how much they are charged for rent or the agent and agreement fee. All I know is that the government is working on it to regulate the rents, agreements and landlord relationship, and it will work out.”

Famakinwa also stated that LASRERA has been engaging in a series of campaigns and advocacy, especially regarding agreements and commissions, which should not exceed 10%.

She remarked, “We have been going to different locations in Lagos state for campaign and put signboards educating lagosians that agent and agreement should not be more than 10% each. Even during those campaigns, we hear some people lamenting that the issue of rent has got out of hand. I cannot promise anything now, but I know that the government will definitely work out something for the benefit of Lagosians.”

Also, in an interview with Naijaonpoint, a Real Estate Consultant and Property manager in Lagos State, Engineer Emmanuel Johnson, highlighted the challenges and dynamics surrounding the rental housing situation in Lagos, including landlords’ pricing behaviour, the implications of ageing buildings versus newly constructed properties, and the influence of market forces such as tenants and agencies.

Johnson referenced the customary 10% agency fee and additional charges such as damages, contrasting this with the often-inflated 20% fees demanded irregularly by landlords or other agents, which complicates negotiations.

He emphasised that some tenants can be desperate and willing to accept higher fees to secure a property, which is also driving prices of rent higher.

He said, “I want to say that most of the costs often emanate from the landlords. So, sometimes we do advise them about the rentage price that, okay, because you can’t compare a building that has been built many years ago to the current building and considering also the cost of materials of the present prices but they tell us that they only hired our services for the management of their property. So there is a limit to which we can push them. Personally, I am not actually in support of the surge about the current crisis here in Lagos. 

“Most importantly, we are talking about, you know, for instance, a property of like one million naira. So we have the belief, like me here, I have the belief that there should be 10% agency, 10% agreement, then 5% damages, that if need be, about that. But most of the time they will tell you that you have to, like, it’s 20% to anybody that cannot be able to take their apartment, can look for elsewhere. I’m okay by that, but most often they will tell you that you have to ask the next neighbor, the next landlord, the tenant that just collected their apartment recently paid the percentage, 20%, something like that. And this has been a kind of challenge to us. So I have to maintain also my job. And we have to make sure sometimes we have to dance to that tune that, okay, if some clients are even willing to pay for the 20% fee for both agreement and agent and if client is willing, we have no choice as service provider than to comply. 

“The client is also another factor. Some clients are very terrible. I’m talking about tenants. Some intended tenants are very terrible, telling you that since they have seen what they wanted, they have to go for it by all means. Either the percentage is increasing or maybe it’s higher or something like that, or what they know is that they want a place to put their heads.”

Speaking on the Lagos State push for new tenancy, Johnson stated that it is a right step in the right direction, but some landlords might object to the regulation, as they typically build their properties without the government’s support, and imposing rental controls might discourage landlords from renting out properties at all.

He also noted that previous governments had tried to regulate tenancy laws, which initially showed promise but gradually lost effectiveness over time.

He stated, “Though it is a good idea that governments were trying to come in for especially residents, tenants. But now, the reason why it will be very difficult to achieve I don’t think that, for instance, I am a landlord. I built my house. There is no contribution of the government to know like maybe, okay, there is maybe a kind of, okay, money loaned for me during the course of my building.

“After I built my property, I want to enforce a bill that, okay, you want to regulate the tenancy law and something like that. I may decide that, okay, if that should be the case, I may decide that I will not rent out my apartment to anybody. Let my apartment be made that way. So if government cannot come and tell me that, okay, I must rent that house out, this and that, I can decide not to rent it. I can lock it up. We have seen some landlords, they will tell us that, after all, the house does not eat, neither drink. 

‘This is not even the first time Lagos state government are trying to initiate that bill. And it feels, at the end of the day, after a while, maybe the first initiation will be very effective. But after a while, it begins to, like, feed off gradually.”