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Lagos Tenancy Law yet to achieve goal - estate managers

By The Rainbow
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Lagos -  Some real estate managers on Friday said that the Lagos Tenancy Law had yet to achieve its objective of reducing problems of accommodation seekers.

They told journalists in Lagos that the law would take a long time before meeting the objective because of the high population of the state.

The law prohibits a landlord from demanding or receiving more than one year rent in advance.

The state government signed its Tenancy Bill into law on Aug. 24, 2011.

Mr Ayo Adejumo, a Managing Partner in Ayo Adejumo and Company, Lagos, told reporters that the law had not stopped some landlords from demanding two years rent in advance.

'The simple reason remains that landlords are profit-oriented businessmen who independently source funds to build houses.

'The landlord collects two years rent or more in a bid to recoup his investment,' he said.

He said that landlords would continue to decide rent in the state until the government built enough houses or created an enabling environment for developers to build houses at a low cost.

Mr Oluwaseyi Alabi, a Partner in Property Scan Concepts Ltd., Lagos, told NAN that the high population of Lagos resulted in high demand for accommodation as well as high rent.

He said that the population was higher than available houses, and that rent in the commercial centre would continue to be high because of the high demand.

'Since the demand for houses is higher than the supply, even if landlords request for more than two years rent, a prospective tenant will pay.

'This is because the tenant does not have an alternative,' Alabi said.

Mr Ayodeley Alao, a property developer, urged the government to properly enforce the law.

'The core issue is that housing stock should be increased to a level whereby there will be alternatives for tenants.

'It is under such a condition that the law will achieve the desired goal,' he said. (NAN)