Lagos Tenancy Law: The 1-Year Advance Rent Limit Explained
Section 4 of the Lagos Tenancy Law 2011 limits advance rent: a landlord can't demand more than one year's rent from a new tenant. Know your rights.
Understanding the advance rent limit is crucial for both landlords and tenants in Lagos state to ensure compliance with the law and avoid disputes.
The 1-Year Rent Limit Law
Under Section 4 of the Lagos State Tenancy Law 2011, it is unlawful for a landlord or agent to demand or receive more than one year’s rent in advance from a new tenant (Section 4(3)). For a sitting tenant, the limit is one year for a yearly tenancy and six months for a monthly tenancy (Section 4(1)).
The 2011 Law does not apply in Apapa, Ikeja GRA, Ikoyi and Victoria Island (Section 1(3)).
This law was enacted to protect tenants from the unreasonable financial burden of being forced to pay two or three years of rent upfront, which was a common practice that fueled the housing crisis.
Legal Consequences
Anyone who receives or pays rent above these limits commits an offence and is liable to a fine of ₦100,000 or three months’ imprisonment (Section 4(5)). That includes the tenant: offering or paying more than the limit is also an offence (Section 4(2) and 4(4)).
To ensure your tenancy agreement perfectly adheres to the Lagos Tenancy Law, utilize the MYEASYAGENT Agreement Clinic for professional vetting before signing.