Lagos State Declares Caution Fee, Inspection Cost, Others Illegal, Advocate Rent Reduction
- The Lagos State Government is attempting to support efforts to reduce rent prices for Lagos residents
- In addition, it is looking to steer clear of the typical illegal fees associated with the real estate sector
- Professional groups were urged to reduce the number of agents vying for fees in real estate transactions along the value chain
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
The Nigerian Institute of Estate Surveyors and Valuers, the Real Estate Developers Association of Nigeria, and the Association of Estate Agents in Nigeria have been tasked by the Lagos State Government to assist in the effort to lower the cost of rent for Lagos residents and avoid the common unlawful fees in the real estate industry.
Source: Getty Images
In a statement, Ganiu Lawal, the Deputy Director of Public Affairs, called on professional associations to reduce the number of agents in the real estate value chain who compete for fees in real estate deals.
It stated,
“The introduction of illegal fees such as caution fee, inspection fee, finder’s fee, and others represents a professionally harmful practice which affects tenants and puts the integrity of the practitioners and property owners at stake.
“The Nigerian Institution of Estate Surveyors and Valuers, Real Estate Developers Association of Nigeria, and Association of Estate Agents in Nigeria, were invited to a stakeholders meeting jointly chaired by the Commissioner for Housing, Moruf Akinderu-Fatai, and the Special Adviser to the Governor of Lagos State on Housing, Barakat Odunuga-Bakare.
“The session is a continuation of the strategic engagement to curb arbitrary rent charges, demand for high agent fees, and promotion of sanity in the real estate business in Lagos state. The meeting was held at the Conference Room of the Ministry of Housing, Alausa – Ikeja.”
State govt advocates low rent
Through the commissioner and the special adviser, the state government tasked the association with defending the integrity of the real estate industry while advocating for a concerted effort by all parties involved to fully enforce and comply with Lagos State's real estate transaction regulations.
Akinderu-Fatai said:
“The aim of engaging all stakeholders is to strengthen the working relationship between the State Government and the professional bodies for the benefit of Lagosians.
“Lagos State Government is concerned about the challenges faced by families in securing and retaining rental accommodation in the state, with unpleasant rent increments and illegal estate transaction charges.
“The session is a continuation of the strategic engagement to curb arbitrary rent charges, demand for high agent fees, and promotion of sanity in the real estate business in Lagos state. The meeting was held at the Conference Room of the Ministry of Housing, Alausa – Ikeja.”
Through the commissioner and the special adviser, the state government tasked the association with defending the integrity of the real estate industry while advocating for a concerted effort by all parties involved to fully enforce and comply with Lagos State's real estate transaction regulations.
Source: Getty Images
Akinderu-Fatai said:
“The aim of engaging all stakeholders is to strengthen the working relationship between the State Government and the professional bodies for the benefit of Lagosians.
“Lagos State Government is concerned about the challenges faced by families in securing and retaining rental accommodation in the state, with unpleasant rent increments and illegal estate transaction charges.”
In accordance with the tenancy law, the commissioner restated the Lagos State Government's intention to support and encourage monthly and quarterly rent payments throughout the state.
Monthly rent to positively impact tenants, landlords
Also speaking on the policy, Tunji Bakare, a real estate developer, told Legit.ng that the move from annual to monthly rent collection in Lagos would have significant economic effects on residents when implemented.
He said:
"By aligning rent payments with monthly salaries, this approach makes it easier for tenants to manage their finances and increases affordability. It reduces the burden of paying a large amount upfront, which often forces tenants into financial difficulty or even relocation. Additionally, it helps tenants adjust to rising rent prices more easily, as they can make adjustments monthly rather than facing a lump-sum increase once a year. For landlords, receiving rent monthly ensures a steady flow of income and helps avoid long periods without tenants."
He added that it would be crucial that this system is implemented carefully and regulated properly to maximise its benefits for both tenants and landlords.
FG finally moves to lower building material costs
Legit.ng reported that Ahmed Dangiwa, minister of housing and urban development, has said the government is making a concerted effort to create centres for the production of building materials.
Dangiwa clarified that the Federal Government's plan to set up manufacturing centres for construction materials in six geographical zones was intended to lower building material costs and greatly increase home affordability in Nigeria.
The Punch reported. During a recent ministry-organised meeting with housing industry stakeholders at the Radisson Blu Hotel in Ikeja, Lagos, with the theme "Development of Fiscal Incentives for Manufacturers of Local Building Materials Components in Nigeria," the minister made this claim.
This article has been updated by head of business desk, Victor Enengedi, with additional comments provided by an expert.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
