Lagos State House of Assembly has proposed a bill that would peg agency fees for landlords and tenants at 5% of annual rent.
Gatekeepers News reports that the bill, which is currently undergoing public hearing, aims to regulate the relationship between landlords and tenants in the state.
According to Mudashiru Obasa, Speaker of the Lagos House of Assembly, the proposed bill would reduce the agency fee or commission on annual rent from 10% to 5% if passed into law. Obasa, represented by Stephen Ogundipe, a lawmaker, said section 3(4) of the proposed tenancy law would make it an offense for any agent collecting more than 5% of annual rent.
“Any agent who collects more than 5% of annual rent commits an offense punishable by refund, two years’ imprisonment, or a fine of N1 million,” Obasa said.
The bill aims to provide a framework for tenancy agreements, rent payment, property maintenance, and the process for recovery of premises.
Olusegun Ege, Chairman of the Committee on Housing, said the proposed legislation has four parts and 45 clauses and addresses rights, obligations, tenancy agreements, rent payments, and dispute resolution procedures.
However, professional bodies at the public hearing raised concerns over the 5% agency fee limit, saying it conflicts with established professional charges.
