Lagos State Urges Tenants To Report Agents And Landlords Over Exploitation And Arbitrary Charges

• Lagos State remains at the forefront of government efforts to restore sanity and legality to the real estate sector
• The government has now provided a channel for tenants who feel they have been charged unlawful fees to report
• The government has also capped the agency fees and declared several other fees unlawful based on the LASRERA law

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

The Lagos State Government has reiterated that there will be zero tolerance for landlords and agents imposing excessive tenancy agreement fees, and other arbitrary charges.

The government noted that the Lagos state laws cap agency fees at a maximum of 10% of the annual rent, and every agent or landlord who goes above this rate is guilty of an offence.

The Special Adviser to the Governor of Lagos State on Housing, Barrister Barakat Odunuga-Bakare, stated this while speaking at the 2025 Ministerial Press Briefing held at the Bagauda Kaltho Press Centre in Alausa, Ikeja.

She noted that the Lagos State Tenancy Laws and regulations are unambiguous in this regard, and urged Lagosians to report breaches.

What the tenancy law says about fees

The Lagos State Tenancy Law of 2011 and the Lagos State Estate Agency Regulatory Authority (LASRERA) Law provide that estate agents are only permitted to charge a maximum of 10% of the total annual rent as their agency fee.

The law also declared that it is the responsibility of the party engaging the agent, typically the tenant, to pay the agency fees unless otherwise agreed.

Odunuga-Bakare earlier explained that the law prohibited the imposition of arbitrary charges like caution fees, inspection fees, and finder's fees, and their introduction to the real estate sector is a professionally harmful practice.

Lagos State urges tenants to report

Speaking about the situation, Odunuga-Bakare stated;

"We have been overwhelmed by reports of the activities of these unscrupulous elements making life hard for Lagosians with agreements and commissions that is like asking for an arm and a leg.

"We are calling on members of the public not to keep silent but to report such agents and landlords to us for the government cannot be everywhere, every time”.

She acknowledged the pressures that Nigeria’s exploding population and the rural-urban migration pose in the face of limited real estate, particularly as Lagos stands as Africa's second-largest economy.

She, however, warned that this should not become an avenue to exploit vulnerable residents with illegal fees and reiterated the government’s unwavering commitment to protect Lagosians from exploitation.

Reporting channels for Lagos state residents

The SA to the Governor on Housing disclosed that the government had already engaged the real estate agents association who confirmed that their registered members are not involved in such practices.

They insisted that it was the handwork of unregistered individuals parading themselves as agents without properly identifying with the professional body or acquainting themselves with the laws.

Odunuga-Bakare added that reporting of such exploitative occurrences can be done on social media using the verified LASRERA handles.

• The agency is on Facebook and Instagram as lasrera1
• On X (formerly Twitter) as @lasrera
• Reports can also be done physically at the Lagos State Real Estate Regulatory Authority, Block 21, 1st floor, Room 109 and 119, Secretariat, Alausa, Lagos.

Lagos targets landlords charging excessive rent

The Lagos State Government also declared its plan to impose sanctions on landlords who demand exorbitant rents for their properties.

This move aligns with the federal government’s earlier announcement to impose triple ground rent fees on vacant estates and houses, aimed at reducing Nigeria’s housing shortage.

Moruf Akinderu-Fatai, the Commissioner for Housing, made it clear in a statement that the government is committed to tackling exploitative rent practices.

He highlighted that many residents within state housing developments have expressed frustration over inflated rental costs charged by some landlords.

The commissioner also warned that allocations would be withdrawn from those found guilty of such offences.

Lagos State moves to implement quarterly rent payment

In related news, the Lagos state government has disclosed plans to implement a monthly and quarterly rent payment system in the state.

Legit.ng reported that the state government engaged with the real estate agents' associations to discuss the possibilities.

The government expressed readiness to partner with the group to ease the suffering of Lagosians by offering a monthly or quarterly payment plan.

The article was updated with additional information by the head of the business desk, Victor Enengedi.

Source: Legit.ng