New Lagos tenancy bill aims to cut estate agents’ fees to 5%

A member of the Lagos State House of Assembly, Mr Stephen Ogundipe, says the new Tenancy Bill of the House aims to protect tenants against exploitation by estate agents.

Ogundipe, Chairman, House Committee on Information, said this in an interview with the News Agency of Nigeria on Thursday in Lagos.

NAN reports that the House had on Wednesday organised a public hearing on the bill
Ogundipe said the bill contains provisions designed to reduce financial burden on accommodation seekers in the state.

He added that the bill was a direct response to public complaints regarding high fees charged by agents.
According to him, a salient provision of the bill is the reduction of agency fees on annual rents from 10 per cent to five per cent.

Ogundipe expressed optimism that the bill would foster harmony in landlord-tenant relations and stimulate real estate investment in the state.

According to him, the bill will not only restore the confidence of real estate investors but also open opportunities for new financiers to enter the market.

“The new bill currently under consideration by the House is designed to protect the rights of both tenants and landlords.

It will also reduce disputes and remove barriers to large-scale housing development by private investors.

“If the bill is passed into law, it will put an end to many of the recurring controversies between landlords and tenants.

This bill will promote mutual understanding, clearly define rights and obligations, and ensure peaceful co-existence,” he said.

Ogundipe appreciated all stakeholders for their participation in the public hearing, highlighting that their contributions would help in shaping a progressive and balanced law.

He also emphasised the need to review the existing legal requirements for landlords to insure their premises against loss or damage.

The lawmaker also said the proposed law gives landlords the right to inspect and maintain their property upon giving prior notice to tenants.

NAN reports that Wednesday’s hearing was attended by the Chairman, House Committee on Housing, Mr Olusegun Ege; House Majority Leader, Mr Noheem Adams and Commissioner for Housing, Mr Moruf Akinderu-Fatai.

Also in attendance were the Senior Special Assistant to the Governor on Housing, Mr Ayodeji Amodu and representatives from key real estate bodies, including the Nigerian Institution of Estate Surveyors and Valuers.

Others included representatives of the Nigerian Bar Association, Real Estate Developers Association of Nigeria, Association of Realtors, and the Real Estate Agents Association of Nigeria, among others.

NAN