Key Issues as Lagos Unveils New Tenancy Bill to Regulate Rent Hikes, Agency Fees
- Lagos State introduces tenancy bill to tackle rent hikes and fraudulent agency practices
- Proposed law mandates registration for estate agents to curb real estate fraud
- New measures aim to expedite the resolution of landlord-tenant disputes in Lagos
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Lagos state government has unveiled a new tenancy bill designed to tackle rising concerns over arbitrary rent increases, excessive agency fees and fraudulent practices within the state's real estate sector.
The proposed legislation, currently before the Lagos State House of Assembly, is expected to introduce far-reaching reforms aimed at protecting tenants, improving transparency and restoring confidence in the housing market.
Source: Getty Images
Speaking during the 2026 Ministerial Press Briefing in Alausa, Ikeja, the Commissioner for Housing, Moruf Akinderu-Fatai, said the bill would address long-standing challenges affecting landlords, tenants and property investors across Lagos.
Crackdown on unregistered estate agents
According to a report by Channels Television, one of the major provisions of the proposed law is the mandatory registration of all estate agents with the Lagos State Real Estate Regulatory Authority.
According to the commissioner, estate agents who operate without registration will face legal sanctions once the bill becomes law.
The move is aimed at curbing fraudulent activities often linked to unregistered operators, including multiple sales of properties, fake listings and excessive charges imposed on prospective tenants.
The government believes stricter regulation of estate agents will help sanitise the sector and reduce the exploitation many Lagos residents encounter while searching for accommodation.
New measures to address rent and agency charges
Another key aspect of the proposed legislation is its focus on regulating rent-related practices and agency fees.
Akinderu-Fatai reiterated the state's position that agency charges should not exceed 10 per cent of the total rent paid by tenants.
The government has repeatedly expressed concern over cases where tenants are compelled to pay multiple fees that significantly increase the cost of securing accommodation.
The new law is expected to strengthen enforcement mechanisms and discourage arbitrary charges that have become common in parts of the state's property market.
Faster resolution of tenancy disputes
The bill also seeks to accelerate the resolution of landlord-tenant disputes through special arrangements within the judicial system.
Under the proposal, tenancy-related cases could be heard on weekends and public holidays to reduce delays and ensure quicker access to justice for affected parties.
In addition, tenants intending to institute legal action against landlords will be required to present evidence of rent payments as well as up-to-date utility bills before commencing court proceedings.
Government intensifies fight against housing fraud
The commissioner disclosed that LASRERA has stepped up enforcement against fraudulent operators in the real estate sector.
According to him, the agency recovered more than N270 million from fraudulent estate agents between 2025 and 2026, highlighting the scale of malpractice within the industry.
Source: Twitter
He said the administration of Babajide Sanwo-Olu remains committed to making housing transactions more transparent, affordable and investor-friendly.
If passed, the new tenancy law will apply across all parts of Lagos State and is expected to reshape the relationship between landlords, tenants and estate agents while promoting greater accountability in the real estate sector.
What the new tenancy bill means for landlords, others
Legit.ng earlier reported that 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.
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.
Source: Legit.ng
