Share
Olugbemi. Adeyinka Ogunleye
3 months ago
Overview
What new Lagos tenancy bill means for landlords, tenants and agents and why it matters
The bill seeks to overhaul landlord‑tenant relations in Lagos, introduce limits on advance rent, regulate real estate agents, provide tenants a legal path to challenge unfair rent increases, and streamline eviction and dispute resolution through faster court procedures and mediation.
For months, the real estate sector in Lagos has been buzzing with talks of the Lagos State Tenancy and Recovery of Premises Bill 2025, introduced by the state government to modernise and reshape tenancy regulations in the state.
Like any major city, Lagos has been inundated with issues such as excessive advance rent, poorly regulated real estate dealings, and prolonged eviction dispute, problems the existing Tenancy Law enacted by the Lagos State House of Assembly in 2011 could not fully solve.
These issues have long posed a threat to the state’s status as one of the largest real estate markets in Africa, thanks to factors such as rapid urbanisation and population growth.
The bill, if passed, aims to overhaul landlord‑tenant relations in Lagos, introduce limits on advance rent, regulate real estate agents, provide tenants a legal path to challenge unfair rent increases, and streamline eviction and dispute resolution through faster court procedures and mediation.
Regulation of agents and 5% agency fee cap
Section 3 of the Tenancy Bill stipulates that all individuals acting as real estate agents must be formally registered with the Lagos State Real Estate Regulatory Authority (LASRERA). The law also places a cap on agency fees at five per cent of the annual rent. This ensures that agents cannot charge excessive commissions.
The law also provides that any money collected from tenants must be remitted to the landlord within seven working days and receipts must be properly issued to provide transparency. Violating these rules carries serious consequences including a fine of up to N1 million and imprisonment for a maximum of two years or both.
