Refundable Caution Deposits in Lagos: How to Get Your Money Back

One of the most common disputes between landlords and tenants in Lagos revolves around the Caution Deposit (also known as a security or damages deposit). Many tenants treat this money as a sunk cost, assuming they will never see it again once they pay it.

However, under the Lagos Tenancy Law 2011, caution deposits are strictly regulated, and you have a legal right to get your money back.

What is a Caution Deposit?

A caution deposit is a sum of money paid by the tenant to the landlord at the beginning of a tenancy. It acts as a security blanket for the landlord against:

• Unpaid rent or utility bills at the end of the tenancy.
• Damage to the property caused by the tenant (beyond normal wear and tear).

Your Rights Under the Law

Section 37 of the Lagos Tenancy Law clearly stipulates that a landlord or his agent must issue a separate receipt for a caution deposit.

More importantly, the deposit must be refunded to the tenant at the expiration of the tenancy, provided the tenant leaves the property in good condition and has no outstanding rent or bills.

If the landlord intends to make deductions for damages, they must provide a detailed, itemized breakdown of the repair costs. They cannot arbitrarily withhold the entire deposit without proof of the damages incurred.

How to Ensure You Get Your Refund

1. Document the Property Condition: Before you move in, take clear, date-stamped photos and videos of every room. Do the exact same thing on the day you move out. This is your proof against false claims of “damage.”
2. Get a Separate Receipt: Ensure your tenancy agreement explicitly states the exact amount paid for the caution deposit and the conditions for its refund.
3. Use the Agreement Clinic: At MyEasyAgent, our Agreement Clinic vets every lease before you sign it. We ensure that the terms regarding your caution deposit are fair, legal, and clearly defined, preventing your landlord from trapping your funds unfairly.

Don’t let landlords treat your caution deposit as a non-refundable bonus. Know your rights, document everything, and always have your agreements vetted by professionals.