The Lagos State Government has announced a significant reform in the rent payment structure aimed at providing more flexibility for tenants.

Tenants will now have the option to pay rent monthly, quarterly, or annually, with a maximum cap of one year for advance payments. This change is intended to ease the financial burden on tenants and enhance affordability in the housing market.

The reform was announced by the Commissioner for Housing, Mr. Moruf Akinderu-Fatai, and the Special Adviser to the Governor on Housing, Mrs. Barakat Odunuga-Bakare, following discussions with the Estate, Rent and Commission Agents Association of Nigeria (ERCAN). The government is working closely with stakeholders to ensure a smooth transition to this new structure.

The government has expressed concerns over unethical practices among real estate agents, such as unjustified rent increases and the imposition of non-statutory charges. These practices violate the Lagos State Real Estate Transaction Law, which limits agents’ commissions to a maximum of 10% on transactions.

The primary objectives of the revised rent payment model include curbing arbitrary rent practices, improving affordability for tenants, protecting the interests of landlords, and ensuring consistent rent compliance by tenants.

ERCAN President Godwin Aleke has pledged the association’s support for the new rent regime and committed to collaborating with stakeholders to promote best practices and professionalism within the real estate sector.

This reform is expected to bring about a more transparent and equitable rental market in Lagos, benefiting both tenants and landlords.