The Lagos State Government has unveiled a new tenancy bill designed to address growing concerns over arbitrary rent increases, excessive agency fees, and fraudulent practices in the real estate sector. The proposed legislation, currently before the Lagos State House of Assembly, is expected to introduce comprehensive reforms aimed at protecting tenants, enhancing transparency, and restoring confidence in the housing market.
Mandatory Registration for Estate Agents
One of the key provisions of the proposed law is the mandatory registration of all estate agents with the Lagos State Real Estate Regulatory Authority (LASRERA). According to the Commissioner for Housing, Moruf Akinderu-Fatai, estate agents operating without registration will face legal sanctions once the bill becomes law. This move is intended to curb fraudulent activities often linked to unregistered operators, including multiple sales of properties, fake listings, and excessive charges imposed on prospective tenants. The government believes that stricter regulation will help sanitize the sector and reduce exploitation faced by Lagos residents seeking accommodation.
Regulation of Rent and Agency Charges
The proposed legislation also focuses on regulating rent-related practices and agency fees. Akinderu-Fatai reiterated the state's position that agency charges should not exceed 10 percent of the total rent paid by tenants. The government has expressed concern over cases where tenants are forced to pay multiple fees, significantly increasing the cost of securing housing. The new law is expected to strengthen enforcement mechanisms and discourage arbitrary charges prevalent in the property market.
Faster Resolution of Tenancy Disputes
The bill seeks to accelerate the resolution of landlord-tenant disputes through special judicial arrangements. Under the proposal, tenancy-related cases could be heard on weekends and public holidays to reduce delays and ensure quicker access to justice. Additionally, tenants intending to take legal action against landlords must present evidence of rent payments and up-to-date utility bills before commencing court proceedings.
Government Intensifies Fight Against Housing Fraud
The commissioner disclosed that LASRERA has intensified enforcement against fraudulent operators, recovering over N270 million from fraudulent estate agents between 2025 and 2026. This highlights the scale of malpractice in the industry. The administration of Governor Babajide Sanwo-Olu remains committed to making housing transactions more transparent, affordable, and investor-friendly. If passed, the new tenancy law will apply across all parts of Lagos State and is expected to reshape the relationship between landlords, tenants, and estate agents, promoting greater accountability in the real estate sector.
