The Lagos State House of Assembly has proposed a bill aimed at protecting tenants from exploitation by estate agents by reducing agency fees on annual rents from 10% to 5%. According to Mr. Stephen Ogundipe, Chairman of the House Committee on Information, the bill is designed to reduce the financial burden on accommodation seekers in the state. The proposal is a direct response to public complaints regarding high fees charged by agents.
The House of Assembly organized a public hearing on the bill, which was attended by various stakeholders, including representatives from key real estate bodies, the Nigerian Bar Association, and the Real Estate Developers Association of Nigeria. Ogundipe appreciated the contributions of all stakeholders, highlighting that their input would help shape a progressive and balanced law.
The proposed bill aims to foster harmony in landlord-tenant relations, stimulate real estate investment in the state, and restore the confidence of real estate investors. Ogundipe expressed optimism that the bill would promote mutual understanding, clearly define rights and obligations, and ensure peaceful coexistence between landlords and tenants. The bill also seeks to reduce disputes and remove barriers to large-scale housing development by private investors.
One of the salient provisions of the bill is the reduction of agency fees on annual rents from 10% to 5%. The bill also gives landlords the right to inspect and maintain their property upon giving prior notice to tenants. Additionally, the proposed law emphasizes the need to review the existing legal requirements for landlords to insure their premises against loss or damage.
The proposed bill is expected to have a significant impact on the real estate industry in Lagos State. By reducing agency fees and promoting harmony in landlord-tenant relations, the bill aims to stimulate investment and development in the sector. As the bill progresses, it will be interesting to see how it is received by stakeholders and whether it will achieve its objectives of promoting mutual understanding and peaceful coexistence between landlords and tenants.
