Lagos State is set to modernize its rental market with the Lagos Tenancy and Recovery of Premises Bill 2025, a proposed law designed to improve landlord-tenant relations, protect tenants from exploitation, and regulate real estate agents.
The bill addresses long-standing challenges in Lagos’ housing sector, including excessive advance rent demands, unregulated agency fees, and prolonged eviction disputes that have affected thousands of tenants in the city.
Regulation of Real Estate Agents and Agency Fees
The bill requires all real estate agents operating in Lagos to be formally registered with the Lagos State Real Estate Regulatory Authority (LASRERA). Agency fees are capped at 5% of annual rent, ensuring fair compensation without overcharging tenants.
Agents must remit all collected funds to landlords within seven working days and issue receipts. Violations may result in fines up to ₦1 million, imprisonment for up to two years, or both.
Limits on Advance Rent
A major tenant grievance—advance rent—is addressed in the bill. New tenants cannot be asked to pay more than one year’s rent upfront, while current monthly tenants cannot be forced to pay more than three months in advance.
Any violation carries penalties of ₦1 million or up to three months imprisonment. This provision is expected to ease financial pressure on Lagos residents and reduce debt or homelessness caused by excessive rent demands.
Protection Against Harassment and Illegal Eviction
The bill criminalizes self-help eviction methods, including cutting utilities, blocking access, or seizing property without a court order. Landlords attempting illegal eviction face fines of ₦1 million or six months imprisonment.
Tenants now have a legal pathway to challenge unfair rent increases, with courts considering comparable rents, evidence from both parties, and other relevant circumstances before approving hikes. Eviction proceedings are paused during disputes.
Faster Eviction and Tenancy Court Procedures
To address slow judicial processes, the bill allows originating summons filings, with hearings scheduled within 14 days, including weekends and public holidays. Mediation for disputes is capped at 30 days, ensuring quicker resolution while protecting tenant rights.
Transparency in Deposits and Tenant Rights
Landlords must provide tenants with clear accounts of security deposits and service charges every six months. Deposits are refundable except in documented cases of property damage.
Tenants also gain explicit rights to privacy, peaceful enjoyment, and compensation for improvements made with landlord consent, promoting accountability in the rental market.
Current Status and Next Steps
Introduced in July 2025, the Lagos Tenancy Bill passed its second reading on 10 July 2025 and is currently under review by the Committee on Housing. Once enacted, it will bring significant reforms to Lagos’ rental sector, benefiting tenants, landlords, and agents alike.
Experts believe the law will professionalize the real estate sector, curb exploitation, and enhance transparency, ultimately fostering a more sustainable and fair rental market in Lagos.
