The recent passing of the Rent Control Bill into an Act, by the Lagos State House of Assembly, has thrown tenants in the state into wild jubilation. Particularly estatic, are the low income earners, who hand out over 50 percent of their monthly incomes to landlords.
The impact of the ‘Rent Control Act’ is far- reaching, as statistics reveal that up to 65 percent of Lagos residents live in rented apartments.
Government’s promise that this law, unlike the one before it, will be enforced to the letter, has given fillip to this jubilation and for the tenants.
George Odoh, a tenant, described the law as a welcome development and one that every tenant in Lagos had always wished for. Odoh pointed out however, that enforcement remains an issue. “My concern is on the enforcement, because it is one thing for government to come up with a policy like this, but a different kettle of fish to implement it”.
Olusegun Madamidola, a landlord, told our correspondent that he, like any other Lagos resident, hails government’s action, noting however that obedience to the law will depend more on individual disposition, than fear of government wielding the big stick.
“I do not believe that two years advance rent payment will make me recover my investment overnight. I am always sensitive to the plight of my tenants and this is what guides what I demand for, from a tenant seeking to live in my house”, he said.
Rents in Lagos State are particularly high, with some landlords asking for as much as three years advanced payments on their properties. Industry watchers say the reasons for this include a rapidly growing population, the fact that the state is relatively commercially active, greed on the part of the property owners and their agents, a faulty mortgage system and poor regulation by government over the years.
Worried by the plight of tenants at the hands of landlords, the state government came up with the Rent Control Bill, which prohibits the two-year rent payment. The law, which is still awaiting the state governor’s assent, stipulates that it is unlawful for any landlord or his agent, to demand or receive more than one year’s rent from a new tenant. It also stipulates that it is unlawful and criminal for a landlord or his agent, to demand or receive from a sitting tenant, rent in excess of six months in respect of any premises.
This means that those who are already tenants are not expected to pay more than six months in advance to their landlords. The law further stipulates a fine of N100, 000 or three years imprisonment, on any landlord or new tenant who pays in excess of one year’s rent, and a fine of N100,000 or three months imprisonment for any landlord who fails to issue a receipt to a tenant for payment of rent.
The law also assigns the responsibility for payment of agents involved in a transaction between landlord and tenant, to the landlord. This means that landlords will now be responsible for payment of agency fees, a burdenwhich before now was borne by the tenent.
Officials of the state government have remained silent on the mechanism for enforcing the law when it is signed by the state governor.
Lagos State Commissioner for Justice and Attorney- General, Ade Ipaye, did not respond to our reporter’s phone calls and text messages.
At the Office of the Public Defender (OPD), under the Ministry of Justice, one official said tenants or landlords, who suffer a violation of the provisions of the law, when it becomes operational, could approach the OPD with their complaints.
In spite of everything, analyst say enforcement may face some difficulties.
According to Sola Enitan, an estate surveyor and valuer, government may not be able to regulate rent, when it has no control over exchange rates and cannot control the importation and sale of building materials. “For the law to succeed and its enfocement to be thorough, there should be a market intervention by government in the form of developing affordable or social housing; not the kind of houses developed by the Lagos State Development and Property Company (LSDPC) for profit, where its two-bedroom flats in Ikorodu are selling for N7 million per unit”, he said.
Chike Muoguilim agrees. He says that enforcement of the law may create a black market in the property sector.
A Senior Advocate of Nigeria (SAN), Anthony Aribisala, in a telephone interview with Business Day, said: “The law, in my thinking, is to make life comfortable for tenants. I do know that this is not applicable to those living in their own houses, but is for those in rented apartments, in view of the difficulties faced as a result of the downturn in the economy.
“This is also not peculiar to Lagos . Even in England , rents are generally one month in advance. The highest a tenant can pay in England is six months and this is backed by the law. So if a country with economy as buoyant as England can operate such a law, why can’t Nigeria , where most of the people live below the poverty line?” Aribisala asked.
He observed, however, that the difference:”is that in England , the law is designed to give equal protection to both landlords and tenants. “So we have a situation where if a tenant fails to pay his rent as required, the law allows the landlord to summarily eject such tenant.” He added however, that the one being considered, tends to give priority to tenants who may take advantage over their landlords. He therefore foresees a situation where this lapse could lead landlords to flout the law.
Speaking separately, Lagos lawyer, Bamidele Aturu, said: “There is nothing wrong with the law. As far as I am concerned, it is well intended. But does government have the moral authority to enforce such law? You would recall there has been a similar attempt in Lagos by the former military administration of Buba Marwa, which failed,” Aturu said, adding that factors that worked against the successful implementation of the law at that time are still prevalent in the economy.
A major factor in this regard, according to Aturu, remains acute shortage of housing and high costs of building materials which landlords do not have control over. He stressed that government must first address this, to make the enforcement of the law morally justifiable.
personally i think such laws should be backed by housing supply on he part of the Government. our fingers are crossed to see if this will work.
