The Lagos State Government has sent a strong warning to estate agents across the state, reaffirming its commitment to a legal one-year maximum for rent payments while cracking down on the illegal fees often imposed on tenants. In a joint statement released Wednesday, Moruf Akinderu-Fatai, the Commissioner for Housing, and Mr. Barakat Odunuga-Bakare, Special Adviser to the Governor on Housing, reiterated the government’s stand on ensuring fairness and transparency in the real estate sector.
Speaking at a recent meeting with the executives of the Estate, Rent and Commission Agents Association of Nigeria (ERCAN), Akinderu-Fatai emphasized the government’s ongoing efforts to engage with stakeholders and facilitate a smooth transition to the newly established rent payment structure. This includes the allowance for monthly, quarterly, and yearly rent payments, with a cap of one year, aiming to make housing more affordable and accessible for Lagos residents.
The Commissioner expressed concern about the unethical practices currently plaguing the real estate market, particularly the sharp rise in rent costs and the imposition of unapproved fees by certain agents. These actions are in direct violation of the Lagos State Real Estate Transaction Law, which limits estate agents’ fees to no more than 10% of the transaction amount.
To tackle these issues, Akinderu-Fatai urged real estate professionals and trade associations to take a stand against unqualified individuals who encourage landlords to hike rents arbitrarily and charge unlawful fees. The government remains committed to collaborating with stakeholders to enforce the law and make the housing market more transparent.
Additionally, the government is keen to ensure that rent payments remain consistent and affordable, benefiting both tenants and property owners. The new system is designed to eliminate the widespread irregularities in the sector and restore trust in real estate transactions.
In response, ERCAN President, Mr. Godwin Aleke, assured the government of the association’s full support in promoting the new rent payment structure. He also pledged to collaborate with other professional bodies to ensure the real estate industry is sanitized and that ethical practices are upheld across the state.
With this firm stance, Lagos is determined to restore balance and fairness to its housing sector, benefiting all involved parties.
