Despite clear provisions in the Lagos State Tenancy Law mandating monthly and quarterly rent payments, many landlords and property agents across the state continue to demand one-year and even 18-month upfront payments from tenants, in open defiance of the law.

While the state’s policy aims to ease rent burdens and promote housing affordability, investigations reveal that both landlords and even some tenants still prefer lump-sum payments, citing stability of income, investment recovery, and convenience.

Why Monthly Rent Still Struggles to Take Hold

The monthly rent model was introduced to relieve tenants from the financial stress of bulk annual payments and to create a more inclusive and flexible rental market. However, old habits persist.

For landlords and facility managers, annual payments provide predictable cash flow and reduce exposure to payment defaults. “It’s easier to manage a property when your income is assured for a full year,” said one landlord in Yaba.

Meanwhile, some tenants say they prefer annual payments to avoid the pressure of monthly bills, particularly in a city where household expenses already stretch incomes thin.

State Government Still Pushing Policy Forward

The Commissioner for Housing, Moruf Akinderu-Fatai, insists that the policy is still on course. He stressed that monthly and quarterly options give Lagosians breathing space and reduce the difficulty of sourcing large upfront rent sums.

“We’re engaging landlords, agents, and developers to resolve enforcement bottlenecks before full rollout. This initiative is designed to protect tenants, improve affordability, and sanitize the sector,” he said.

He also reiterated that real estate agents, brokers, and developers must register with LASRERA or face legal consequences. The aim is to rid the sector of quacks and bring about transparency in real estate dealings.

Mixed Reactions from Stakeholders

The Estate Rent and Commission Agents Association of Nigeria (ERCAN) has thrown its weight behind the new rent system. Its president, Godwin Aleke, assured that members would promote monthly and quarterly rent structures and support the government’s efforts to reform the rental market.

Yet, opinions remain divided. Real estate developer Olawale Babatunde expressed concern that staggered rent payments could weaken property owners’ ability to recover investments. He warned of possible default risks and income instability for landlords.

Concerns Over Housing Supply and Investment

Gbenga Ismail, a principal partner at Ismail & Partners, said that while the policy helps tenants, it may discourage new property investments. According to him, supply shortages could worsen if property owners lose confidence in the market.

He called on the government to back the rent policy with broader reforms, including access to affordable land, cheaper building materials, and supportive infrastructure to make the housing sector more resilient.

The Law vs. Reality

Under the Advance Rent Section of the Lagos State Tenancy Law, it is illegal for a landlord or agent to demand more than three months’ rent from a sitting tenant. Offenders face fines of up to ₦100,000, three months’ imprisonment, or other legal sanctions.

However, enforcement remains weak. Without concrete action from regulatory bodies, the gap between policy and practice continues to widen.

Until the law is actively enforced and matched with strong housing support policies, monthly rent in Lagos may remain more of a theory than a reality.

The post Lagos Landlords Shun Monthly Rent Law, Stick to Annual Payments Despite Regulations appeared first on Housing TV Africa.