New Lagos Rent Bill Drops: What it Means For Landlords, Tenants, Agents, Others
- Lagos State government is revising its rent and tenancy laws, giving more power to the system in Lagos
- The state, which considers landed properties as crude oil, has proposed a new tenancy law, which is currently in the House of Assembly
- Meanwhile, experts have said the new law may be lopsided, giving more power to one party over another
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
For months, the Lagos real estate space has been buzzing with anticipation over the Lagos State Tenancy and Recovery of Premises Bill 2025.
It was introduced by the government as a major update to the current Tenancy Law of 2011 and aims to tackle the city’s notorious challenges: two-year advance rent, unregulated agents, prolonged eviction battles and exploitative housing practices.
Source: Getty Images
Regulation of agents and new 5% Fee cap
The proposed bill promises a major reset in how tenancy relationships are regulated in Africa’s largest commercial city. Here is a breakdown of what changes and who is most affected.
One of the most dramatic parts of the proposed law is the crackdown on agents and middlemen.
Section 3 mandates that all agents must now be registered with the Lagos State Real Estate Regulatory Authority (LASRERA).
It also sets a strict limit on agents’ service charges by capping agency fees at 5 percent of annual rent.
Payments collected from tenants must be remitted to landlords within seven working days, and proper receipts are compulsory.
Failure to comply comes with steep penalties of up to N1 million in fines, a maximum of two years in prison, or both.
For years, Lagos tenants have fallen victim to fake or unlicensed agents. Cases of inflated commissions, double-renting scams and outright fraud have become commonplace.
In 2019, a well-publicised case involved a newly married couple who lost N900,000 to fraudulent house agents.
The proposed regulation is designed to enforce transparency and protect renters from predatory middlemen.
It also puts landlords and legitimate agents under clear, measurable rules.
Advance rent payments finally restricted
Perhaps the most anticipated provision is the limit on advance rent. The bill makes it illegal for landlords to demand more than one year’s rent from new tenants.
For existing tenants, landlords cannot request more than three months upfront if rent is paid monthly.
Tenants are also prohibited from offering more than these limits. Breaking the rule attracts a fine of N1 million or up to three months in prison.
Many Lagosians see this as a groundbreaking change. Years of paying two-year rent has pushed countless residents into financial hardship, debt or even homelessness.
However, experts warn that enforcement may still be weakened by market forces, especially scarcity and high demand in areas like Lekki, Ikoyi and Ikeja.
Illegal evictions and harassment now criminal offences
Another major shift is a clear ban on illegal eviction practices. Sections 10 and 43 explicitly forbid landlords from removing roofing sheets, disconnecting water or electricity, blocking access or seizing tenant property.
Lagos has seen countless cases where landlords resort to self-help tactics, use thugs or forcibly eject tenants without court orders. Under the bill, these acts are criminal offences punishable by a N1 million fine or up to six months in jail.
The new provision strengthens tenant safety and addresses one of the most widespread abuses in the state’s housing system.
Tenants can challenge rent increases
The bill stops short of introducing rent control, which many Lagos residents hoped for, but it provides a legal route to challenge rent increases that feel excessive.
Section 33 allows courts to determine if a rent hike is unreasonable by comparing prices in similar neighbourhoods, hearing evidence and reviewing special circumstances.
During such disputes, landlords cannot evict tenants. With Lagos known for sharp and sudden rent hikes, this becomes a form of legal protection tenants have never enjoyed before.
Faster court processes and stronger tenant rights
Sections 20–24 introduce faster eviction and tenancy procedures. Cases can now be filed by originating summons, hearings scheduled within 14 days, and courts may sit on weekends and public holidays. Mediation must not exceed 30 days.
The bill also increases transparency around service charges and security deposits. Landlords must issue statements twice yearly showing how service charges are used and must return deposits except where documented damages exist.
Tenants also gain explicit rights to privacy, peaceful occupation and use of common areas.
Still a draft, not yet law
The Lagos State Tenancy and Recovery of Premises Bill passed second reading in July 2025 and is before the Committee on Housing for further review.
As of late 2025, it remains a draft and has not yet become law.
Still, the provisions have already shifted conversations across Lagos. For many renters, it signals long-awaited relief.
Source: Getty Images
For landlords and agents, it brings new accountability and a stricter legal framework.
The coming months will determine whether these changes reshape housing in Lagos or spark new battles over rent, law and property rights.
Lagos state declares end to single-use plastic
Legit.ng earlier reported that the Lagos State Government earlier announced the ban on single-use plastics in the state, as a move to curb the resulting environmental challenges.
The warning stated that any vendor found to be storing, selling, distributing, or using single-use plastics would have their outlet shut.
This ban targets plastic materials below 40 microns as they pose major environmental threats, clog the drainage channels, and pollute the ecosystem.
Source: Legit.ng
