Lagos State Government Issues Strong Warning to Landlords Over Excessive Rent Demands

The Lagos State Government has issued a stern warning to landlords and real estate agents across the state, urging them to comply with regulations that prohibit the collection of more than one year’s rent in advance. This move follows growing concerns over the unethical practices of some landlords who have been charging exorbitant rent upfront, placing an unnecessary financial burden on tenants.

During a recent appearance on TVC’s popular show, Your View, Barakat Bakare, the Special Adviser on Housing to the Lagos State Real Estate Regulatory Authority (LASRERA), took a firm stance against the prevalent practice. She reiterated the government’s commitment to curbing the excesses of landlords, agents, and developers who are exploiting tenants in a city already grappling with high living costs.

Bakare's remarks came in response to the increasing complaints from residents about real estate agents and landlords demanding more than the legal limit of one year’s rent, a situation she described as “unacceptable.” She was quick to clarify that while landlords are allowed to collect rent on a monthly, quarterly, or yearly basis, anything beyond one year’s rent in advance is prohibited by law.

“Tenants must understand that the minimum amount that can be collected as rent is one month, and nothing beyond a year should be demanded,” Bakare emphasized, underscoring the state’s zero tolerance for landlords attempting to skirt these rules. “If anyone is being asked to pay more than one year’s rent, it is illegal, and the tenant should not hesitate to report the violation.”

The call to action for tenants is clear: report any landlords or agents that flout the regulations. Residents are encouraged to lodge complaints either by visiting LASRERA’s office in Ikeja, located at Block 21, First Floor, Alausa, or through the agency’s online platform. These channels have been made available to ensure that investigations can be carried out promptly, with violators being subject to sanctions. Bakare highlighted that the aim is to protect tenants from unfair treatment and ensure that landlords operate within the legal framework.

This warning comes as part of the Sanwo-Olu administration's broader efforts to streamline the real estate sector and address long-standing issues of exploitation and inconsistency within the rental market. Over the years, the rapid population growth in Lagos has resulted in increased demand for housing, especially in the commercial and residential hubs like Victoria Island, Lekki, and Surulere. With this rise in demand, unscrupulous landlords have been taking advantage of the housing shortage to impose exorbitant rent prices, sometimes demanding payment for two, three, or even more years of rent upfront.

The real estate market in Lagos is notorious for its lack of regulation, and tenants have often found themselves at the mercy of landlords and agents who exploit the shortage of affordable housing. In addition to the large upfront payments, tenants have also been subject to other unfair practices, including unreasonable maintenance fees, arbitrary increases in rent, and delayed tenancy agreements.

However, the government’s new push aims to create a more transparent and fair rental market. By encouraging tenants to speak out against these unlawful practices, the Lagos State Government hopes to establish a more balanced relationship between tenants and landlords. The hope is that by creating a platform for complaints and holding landlords accountable, the government can curb the exploitation of residents and encourage fairer rental practices across the state.

Real estate agents, who often act as intermediaries between tenants and landlords, also find themselves under scrutiny. Many agents have been accused of inflating rent prices and charging excessive fees under the guise of “administrative costs” or “service charges.” In response to these concerns, Bakare reminded the public that the role of real estate agents is to facilitate transactions and not to exploit tenants for personal gain.

Lagos State has long been a city marked by high property prices and fierce competition for housing. As one of Africa’s largest and most populous cities, Lagos has seen both a housing boom and a crisis in affordable accommodation. The rapid urbanization and influx of people from across the country and even abroad have led to a strained housing market where landlords can often demand rents that are beyond the reach of many residents.

The Lagos State Government, recognizing these challenges, has been working to introduce more affordable housing projects and provide regulatory oversight to make the housing market more accessible. The establishment of LASRERA, for instance, was a major step toward creating a more orderly and regulated real estate environment. The agency’s mandate is to oversee the activities of real estate developers, property managers, and agents, ensuring that they comply with the law and uphold ethical standards.

Yet, despite these efforts, challenges remain. In a city like Lagos, where demand often outstrips supply, tenants are frequently at a disadvantage. In these situations, they often find themselves compelled to accept unfair terms just to secure a place to live. With the current high cost of living in Lagos, the additional financial burden of paying multiple years of rent upfront can be a significant setback for many residents, particularly low- and middle-income earners.

The recent statement from the Lagos State Government is a timely reminder to both landlords and tenants of the need for fairness and adherence to regulations. While the government’s warning is expected to have an impact, it remains to be seen whether it will lead to a more sustainable shift in the rental market, or whether landlords will continue to find loopholes to exploit.

For now, tenants in Lagos are urged to be vigilant and take advantage of the channels available to them to report any irregularities. This latest move is a step toward a more just housing system, one where tenants can enjoy the peace of mind that comes with knowing they are not being taken advantage of by those seeking to profit off the city’s housing crisis. If successful, this could mark the beginning of a new era in Lagos’ real estate sector, where the rights of tenants are respected, and housing affordability becomes a more realistic goal for all.