Landlords Increase Rents in Lagos, State Set to Intervene, Introduces Monthly, Quarterly Rent
- Lagos State, Nigeria's commercial hub, has battled a persistent housing shortage made worse by growing rents.
- A flexible rent payment mechanism that can be made monthly, quarterly, or annually is being developed by the state government
- Lagos State urges stakeholders to reduce rent prices for Lagos residents and steer clear of the typical illegal fees in the real estate sector
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
Lagos State, Nigeria's commercial hub, has battled a persistent housing shortage made worse by growing rents, a concerning trend that led to the creation of shanties, which are becoming the norm rather than the exception.
Source: UGC
The state administration is working to implement a flexible rent payment system that may be paid monthly, quarterly, or annually to help address the traumatising housing situation and save the state from the misery of shantytowns.
Daily Sun reported that tensions and expectations have increased throughout the real estate industry as a result.
Although the government presents the program as a way to alleviate financial strain and housing affordability, landlords consider the effects on property management and revenue stability, while tenants appreciate the reprieve from large payments.
The state government has consistently included all pertinent parties to ensure the seamless implementation of the new rent pattern for the benefit of rent seekers.
State warns against illegal charges
The state government also called on real estate industry professionals and trade groups to carefully address the public's mounting concerns about the arbitrary charges that violate Lagos State's real estate laws and the frequent and alarming increases in rent.
This commitment and charge were made during an exploratory meeting with representatives of the Estate, Rent and Commission Agents Association of Nigeria (ERCAAN) in the state by Moruf Akinderu-Fatai, the Lagos State Commissioner for Housing, and Barakat Odunuga-Bakare, the Special Adviser to the Governor of Lagos State on Housing.
The two referred the practitioners to the Lagos State Real Estate Transaction Law's provisions while voicing the Lagos State Government's concern about unwholesome estate agent practices and the resulting rise in rent default.
“The existing law recognises your role and specifies a percentage of chargeable fees of not more than 10 per cent on real estate transactions,” stated the Honourable Commissioner.
Akinderu-Fatai also urged real estate brokers and other organisations to speak out against quacks who push landlords to raise rent arbitrarily and impose costs that aren't covered by Lagos State's real estate transaction law.
Additionally, he counselled ERCAAN members to assist in promoting monthly, quarterly, and annual rent among its members.
The Commissioner stated that the Lagos State Government is ready to partner with all stakeholders to promote the rent payment system to “halt the indiscriminate practices, make rent affordable, guarantee the interest of property owners, and ensure the continuity of regular rent payment by tenants.”
In his remarks, Mr. Godwin Aleke, President of the Estate, Rent and Commission Agents Association of Nigeria (ERCAAN), said that the organisation's members are dedicated to making rents affordable and will help the Lagos State Government to establish a monthly, quarterly, and annual rent system. He promised that the group is prepared to collaborate with other stakeholders and professional organisations to purify the real estate industry in Lagos State moving forward.
In a similar development, the State Government asked the leadership of the Association of Estate Agents in Nigeria (AEAN), the Nigerian Institution of Estate Surveyors and Valuers (NIESV), and the Real Estate Developers Association of Nigeria (REDAN) to back the initiative to lower rent costs for Lagos residents and avoid the common unlawful fees in the real estate industry.
The professional bodies were also encouraged to slow the rate at which agents across the real estate value chain participate in the rivalry of fees in real estate transactions.
The emergence of illegal fees such as caution charge, inspection fee, finder’s fee, and others indicates professionally destructive activities which impact tenants and put the integrity of the practitioners and property owners at stake.
The goal of including all stakeholders, according to Housing Commissioner Moruf Akinderu-Fatai, is to improve the State Government's collaboration with professional associations for the good of Lagos residents.
Akinderu-Fatai said:
“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 Commissioner underlined the objective of the Lagos State Government to encourage and promote monthly and quarterly rent payment in the State in compliance with the tenancy law.
Source: Getty Images
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.
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.
The article was updated with additional information by the head of the business desk, Victor Enengedi.
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Source: Legit.ng
