The Enugu State House of Assembly has made a bold move to arrest outrageous house rents and multiple fees demanded from prospective tenants in the State with the introduction of a Bill that has already passed first reading on the floor of the House.
The Bill, which is a response to growing complaints by residents of the State, is aimed to checkmate the exploitation of tenants by landlords with their house rents and other arbitrary charges, including Agency, legal and caution fees.
In Enugu, especially in places like the city centre and Nsukka around the University campus, house rents are quite high and this arises from high concentration of tertiary institutions and a large civil servant-population, most of whom are renters.
This explains why the bill entitled ‘Bill for a Law to Amend the Landlord and Tenant Law, CAP. 101, Laws of Enugu State, 2024’ and sponsored by Okey Mba, a member representing Nkanu East Constituency, seeks to regulate agency and legal fees, and abolish caution fee completely.
The bill also seeks to set both fees at a maximum of 10% as well as abolish the agelong practice of caution fees demanded of tenants by landlords, but never refunded at the end of their tenancy, insisting that the 10% can be negotiated lesser but never above that.
Section 3 (3) of the proposed legislation provides that “with effect from the commencement of this law and notwithstanding any provisions in other enactments, agent fee chargeable for procuring any accommodation in the state shall not exceed 10% of rent by the prospective.
Also, Section 3 (4) provides that no tenant shall be caused to pay any further premium in acquiring any accommodation except legal fee payable to a qualified legal practitioner for the purpose of preparing the landlord and tenant agreement and such fee shall not exceed 10 percent of the rent.
Offence under this bill, when passed into law, attracts a N500,000 fine or a prison term of six months or both.
Read also: Abuja residents seek government help on rising house rents
The bill equally seeks to checkmate the injustice suffered by tenants through forced, irregular, and fraudulent evictions by establishing a legally defined duration for eviction and other relevant notices.
It additionally intends to ensure that anyone who wishes to operate as a land agent or property manager, is properly certified by the relevant agency, while also empowering a designated Government ministry or agency (MDA) to make further regulations on housing and tenancy matters in Enugu State.
Mbah, the sponsor the bill, explained that the move was in sync with the “earnest desires of the people and residents of Enugu State,” saying he had no doubt that it would get the support of an overwhelming majority of the members of the House of Assembly because “the ills it seeks to address are widespread and generally suffered by our constituents.”
But like other Government legislations of this nature, this Bill has been receiving kudos and knocks since it was made public. While some people see it as a good development, others say it is another pipe smoke that won’t solve the problem it is intended for, citing similar legislation in Lagos State.
Caleb Fumnanya Aloh, writing on his X (former Twitter) wonders how the same Enugu State that is charging millions of Naira can be talking about rent legislation, noting that in the Western world, a deposit or caution fee is not negotiable.
Aloh reasoned that instead of the government investing in mass housing, they want to chase shadows.
On the contrary, Nwaogbuebule, also writing on his X, described the bill as the best news ever. “I thought about this yesterday. And here it is,” he said.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp