Disclaimer: This is not a legal advice. It is for education
Renting or leasing a property in Nigeria happens every day. But it also comes with stories of lost deposits, sudden evictions, double rent, and tenants fighting with landlords or estate management and a lot more.
Most of these issues happen because intending tenants don’t see the need to approach real professionals who understand the nitty-gritty of tenancy and lease agreements, and their unintended consequences. Yes, you can do it yourself. But property is one of the biggest expenses you’ll make in a year. If you choose the DIY route, treat it like a business transaction. Here are important safeguards to protect your money, peace of mind, and legal rights:
- Start With Due Diligence on the Agent/Broker. A fake agent is the fastest way to lose money in Nigeria’s rental market. Use NIESV-registered Estate Surveyors & Valuers. They are trained, regulated, and can be held accountable by the Nigerian Institution of Estate Surveyors and Valuers. If you are in Lagos State, use agents licensed under LASRERA – Lagos State Real Estate Regulatory Authority. Ask to see their LASRERA ID card. LASRERA keeps a database and can sanction erring agents. Avoid inspection fees from people with no office or verifiable address. Legitimate agents do not need to ask you for any small deposit to take you for inspection of a property. Google the agent/company. Check reviews, CAC registration, and how long they’ve b been in business. When an agent starts pressuring you to pay quickly before someone takes it without due diligence, be careful. This is a red flag for fake agents who wants to collect your money and run away.
- Verify Landlord’s Title and Ownership Status. You must be sure the person collecting rent has the legal right to rent the property to you. Ask this question “are you the owner, attorney, or agent” Get it in writing. Demand proof of ownership: C of O, Governor’s Consent, Deed of Assignment, or Registered Lease. If it’s a sub-lessor: Demand to see the Head Lease Agreement and a Letter of Consent to Sublet from the main landlord. Check if subletting is even allowed in the lease agreement. For estate properties: Confirm with the estate management that the person is the recognized allottee and that ground rent/service charge is up to date. Check building approval: Ask if the building has government approval. Demolition risk is real in many areas. Do a search at the Land Registry for properties with high value or long leases. A lawyer can help here. This is very important because if the person has no authority, a court can void your tenancy and you lose both money and the house.
- Check the building requirements of the location of the building. if businesses premises are allowed in that zone. If it is a high rise building from 3 floors and above, confirm if that is approved in that zone to avoid problems in case of demolition. This is very important because in most urban areas in Nigeria, developers contravene this law. Some areas have limitation on the number of floors that are approved. Most times developers find their ways around these contraventions and the tenants will bear the brunt upon demolition. Find out if your business is permitted in that location. Factories that house heavy equipment, filling stations, churches, mosques and some other businesses that have some environmental impacts are restricted.
- Inspect Physical and environmental risks”Don’t just inspect in the afternoon when the sun is out. Visit the property at night and during rain. This reveals flooding, poor lighting, insecurity, and noise. Check for structural defects: Cracks, tilting walls, dampness, leaking roof, and poor drainage. Test utilities: Turn on taps, flush toilets, test power points, ask about water source and hours of supply. Assess road condition, parking, security gates, and distance to work/school. Ask neighbors about PHCN issues, flooding history, security and landlord behavior. Environmental hazards: Proximity to canal, dump site, high-tension cable, or noisy market. Take a checklist with you. Emotions make people ignore red flags which is very dangerous. Don’t be in a hurry.
- Confirm all financial obligations: Rent, Service Charge & hidden Levies. get a written breakdown before paying: rent, agency, Legal, Caution, Service Charge, Parking, Generator, etc. For estates/malls: Demand an audited breakdown of service charge. Ask what it covers: security, cleaning, diesel, estate maintenance. Ask how often it can be increases. Put all charges in the tenancy agreement. Verbal promises are not enforceable. Ask about rent increase clause. Ensure that these issues are articulated in the tenancy/lease agreement.
- Confirm payment account name. It should match the landlord’s name or the company on the POA. Make Payment the Right Way as this is where most people get defraud. Pay to the confirmed owner or their bank account. Get account details on company letterhead. Do not pay to agents unless they show you a valid, stamped Power of Attorney authorizing them to collect rent on behalf of the landlord. Collect receipts for every payment – inspection, agency, legal, rent. For leases five years and above: The law requires it to be prepared by a lawyer and registered at the Lands Registry to be enforceable. Insist on this. Avoid cash payment. Your bank statement is evidence and pay in Naira not any foreign currency.
- Payment in Foreign currency is illegal: The law says transactions in Nigeria should be done in Naira. The Central Bank of Nigeria Act 2007, Section 20(1) “The currency notes issued by the Bank shall be legal tender in Nigeria for the payment of any amount” That means Naira is the only legal tender for domestic transactions. The CBN has repeatedly warned that pricing, billing, and payment for goods and services in Nigeria must be in Naira and EFCC also prosecutes people for “dollarization” of the economy – collecting rent, school fees, hospital bills, etc in USD, GBP, EUR. Take note of this.
- In taking possession after documentations, Take the inventory of the condition of the property. Protect your caution deposit from day one. Do a joint inspection with landlord/agent before moving in. Take dated photos and video of every room, walls, ceiling, doors, windows, kitchen, toilet, and meter reading. Mention the date and purpose in the video audio. Sign a “Schedule of Condition” with the landlord. List all existing defects. Both parties should sign. Get keys and change locks with the landlord’s consents. This is for your security. Get a copy of house rules for estates. Know rules on pets, parties, renovation, and visitors.
- Get a Proper Tenancy Agreement. A WhatsApp chat is not an agreement. Use a lawyer-drafted agreement. It should state: names, property description, rent, duration, renewal terms, who pays what, notice period, and dispute resolution. Check exit clauses. How do you recover your caution fee. What constitutes damage. Stamp the agreement at the Stamp Duties Office. It makes it admissible in court. Both parties and 2 witnesses should sign.
- Additional Safeguards Most People Ignore: Confirm land use charge and tenement rate. In some estates, landlords pass this to tenants. Ask about prepaid meter vs estimated billing. Get the meter number and confirm debt status with DISCO. For furnished apartments: Do a full inventory list and sign it. Get emergency contacts: Landlord, agent, estate manager, security. Don’t sublet without written permission. It can get you evicted. Keep all documents in one folder: Agreement, receipts, photos, ID copies.
If you need to do any serious improvement in the house, get the Landlords consent and note repairs that are for the landlord like structural problems.
PROPERTYGROOM Advice: Engage a professional Agent, NIESV Estate Surveyor or lawyer to get you a suitable property. They will do due diligence, negotiate terms, and ensure everything is articulated properly. The fee you pay them is cheaper than the loss from a bad tenancy. Remember: A landlord will do due diligence on you. You have every right to do due diligence on the property and the landlord too.
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