• We’re groaning under weight of rising rent, agency fees
By Ngozi Nwoke
The rising cost of house rent and agency fees in Lagos is leaving many residents in constant struggle to find affordable accommodation.
A recent survey conducted by Saturday Sun revealed that the average rent for a one-bedroom apartment in Ikeja, Agege, Egbeda and Costain areas of Lagos has increased by over 50 per cent in the past two years, with some areas like Ikoyi, Lekki, Omole phase one and Victoria Island experiencing even more staggering hikes.
In Ikoyi, for example, the rent for a one-bedroom apartment can range from N1.5 million to N3 million per annum, while in Lekki, a similar apartment can cost between N1.2 million and N2.5 million. In addition to these exorbitant rents, tenants are also expected to pay agency and agreement fees, which can range from five per cent to 10 per cent of the total rent package.
Merit Sola-Akande, a tenant living in a one-bedroom apartment in Ezekiel Street, Surulere, lamented that being a tenant in the city is a huge burden.
“I have been searching for an apartment for months, but everything is just too expensive,” said the mother of two. “I’m currently paying N800,000 per year for a one-bedroom apartment in Surulere, but my landlord just increased the rent to N1.2 million. I don’t know how I’ll afford it.”
Another Lagos resident, James Raphael shared his harrowing experience with Saturday Sun, recounting how his landlord surprised him with a whopping 100 per cent rent increase just two months before the expiration of his rent.
“I initially ignored the notice, but after weighing my options, I had to negotiate with my landlord,” Raphael told our reporter. “He eventually reduced the increase to 90 per cent, but it was still a significant blow to my finances.”
The sudden rent hike forced James to make drastic lifestyle adjustments. “It affected our lifestyle at home, and we had to cut back on several expenses,” he lamented.
Raphael is not alone in his frustration. Many Lagos residents are feeling the pinch of exorbitant rent increases, with some landlords seemingly more interested in lining their pockets.
“Landlords think their houses are ATMs, generating money without any consideration for tenants. House agents are also a major problem, convincing landlords to increase rents to boost their own commissions,” Raphael lamented.
To address the issue, he advocated rent regulation and stricter oversight of house agents. He also suggested that the government could help alleviate the housing shortage by repurposing abandoned buildings, such as the old Federal Secretariat in Ikoyi.
“Why let these properties waste when they could be leased out for residential purposes?” Raphael asked. “It’s time for the government to step in and provide relief for tenants like me who are struggling to make ends meet,” he said.
Another tenant, Adelani Adesanya, who occupies a two-bedroom apartment at Amuwo-Odofin, where the rent is from N500,000 to N1 million, is of the view that landlords should also consider fair pricing based on the value of their properties and the economic realities of tenants.
“The rent increase has significantly impacted my finances, forcing me to cut back on essential expenses like food, transportation, and utilities. It’s becoming harder to save or plan for the future.
“I don’t think it’s justified for landlords to continue increasing house rents. The services and structures provided do not match the rising costs. Most properties lack basic amenities, yet tenants are charged exorbitant rates.
“To address this, the government could enforce rent control policies, build more affordable housing units, and improve infrastructure in suburban areas to reduce pressure on urban housing.”
Taiwo Isah, who lives in a duplex in the Egbeda area, also stressed that the frequent increase of house rent is unsustainable as his salary hasn’t increased for the past one year.
He said: “I’m extremely frustrated and disappointed by the sudden increase in my house rent. I’ve been living in this apartment for three years, and I’ve always paid my rent on time. However, last week, my landlord informed me that he’s increasing the rent by 40 per cent, It’s outrageous.
“I understand that the cost of living in Lagos is high, but this increase is unsustainable for me. My salary hasn’t increased in the past year, and I’m already struggling to make ends meet. I don’t know how I’ll be able to afford this new rent.
“What’s even more upsetting is that the landlord didn’t even give me enough notice. He just sent me a text message saying that the rent is increasing, effective next month. It’s like he doesn’t care about the impact this will have on my life.
“I’m not sure what I’ll do next. I’m trying to look for a new apartment, but it’s not easy. The rent prices in Lagos are just too high. I’m appealing to the government to do something about the housing crisis in Lagos. We need affordable housing options, and we need protection from exploitative landlords.”
Real Estate experts say that the high cost of house rents and agency fees in Lagos is driven by a combination of factors, including the city’s rapid population growth, inadequate housing supply, and the activities of some unscrupulous estate agents and landlords.
“The Lagos State Government needs to intervene urgently to address this crisis,” said Austin Adekunle Yusuf, a real estate stakeholder. “One way to do this is to implement policies that encourage the development of affordable housing, such as providing incentives for developers and imposing rent control measures.
“As the rent crisis in Lagos continues to worsen, it remains to be seen what measures the government will take to address the situation. One thing is certain, which is that something needs to be done and fast to prevent thousands of Lagos residents from being priced out of their homes,” he asserted.
Defending the high cost of house rents and agency fee, Lagos-based house agent, Chika Ogboka shed light on the controversies surrounding high rental prices and agency fees in the city’s housing market.
The agent explained that his primary role is to market properties on behalf of landlords and connect them with potential tenants.
He emphasised that the properties he advertises are priced by the landlords themselves, based on prevailing market conditions.
The agent acknowledged the difficulties but maintained that it’s not his place to dictate prices to landlords. Instead, he focuses on providing a platform for landlords to showcase their properties and for tenants to find suitable accommodations.
He explained: “While I understand that high rents can be a challenge for many house hunters, it’s not my place to dictate prices to landlords.
“Concerning the agency fee, it’s a standard practice in the industry to charge a fee for our services. The fee covers the costs of marketing, viewings, and administrative tasks involved in securing a tenant.
“I would like to clarify that the agency fee is not just a profit-making venture. It’s a necessary cost that enables us to provide a professional service to both landlords and tenants.”
Another house agent simply identified as Nelson clarified that these charges are standard practice in the industry, covering costs such as marketing, viewings, and administrative tasks.
He emphasised that the fees are not solely profit-driven but necessary to provide professional services to both landlords and tenants.
While sympathising with tenants struggling to afford high rents, the agent suggested that government intervention, such as policies to address the housing shortage and regulate rents, could help alleviate the situation.
He also encouraged landlords to consider offering flexible payment terms or incentives to reduce tenants’ burden.
Nelson reaffirmed his commitment to facilitating fair and transparent transactions between landlords and tenants, acknowledging the complexities of Lagos’ housing market.
He noted: “I do sympathise with tenants who are struggling to afford high rents. Perhaps the government could consider implementing policies to address the housing shortage and regulate rents. Additionally, landlords could consider offering more flexible payment terms or incentives to attract tenants.
“However, as an estate agent, my primary focus is on facilitating transactions between landlords and tenants. I’m committed to providing a fair and transparent service to all parties involved.”
In the meantime, tenants are advised to be cautious when dealing with estate agents and landlords and to always insist on written agreements and receipts for payments made.
Providing context to the recent rent increase that has left many tenants stranded, an 82-year-old landlord of a three-storey building and three-bedroom apartment, Azaniah Nwoke, explained the reasoning behind his decision to increase rent on his houses.
According to the landlord, the increase in house rent was necessitated by the current economic realities.
“The cost of maintaining the property has increased significantly over the past year,” he explained. “Utilities, security, and repairs are all more expensive now, and I have to factor those costs into the rent.”
The landlord also cited the high demand for housing in Lagos, which has driven up property values and rents. “As a property owner, I have to ensure that my investment keeps pace with the market,” he said. “If I don’t increase the rent, I risk losing money on my investment.”
Despite the challenges posed by the rent increase, Nwoke claims to have been reasonable in his pricing, “I have taken into account the tenants’ concerns and the current market rates,” he said. “I’m willing to work with my tenants to find a mutually beneficial solution, but I also have to ensure that my property remains a viable investment.”
Another landlord at Okota, Cyril Sunday Eze noted that he increased the rent on his property due to rising maintenance costs, including utilities, security, and repairs.
Eze, who owns a six-flat apartment, assured that he has tried to be reasonable and considerate, taking into account the tenants’ concerns.
He stated: “The high demand for housing in Lagos has driven up property values and rents, and I must ensure my investment keeps pace with the market. I have tried to be reasonable, taking into account my tenants’ concerns and the current market rates.
“I don’t think the Lagos State Government should implement rent control measures, as this could lead to unintended consequences such as a decrease in housing quality and investment. Instead, the government should focus on addressing the root causes of the housing shortage, such as inadequate supply and infrastructure challenges.
“They could also provide support for low-income households through subsidies or other forms of assistance, helping to address affordability issues in a more sustainable and equitable way.”
In a heartening display of empathy, Festus Dare, a Lagos-based landlord who owns two flats at Àgbàdo has taken an unconventional approach to managing his property.
Despite being legally entitled to raise the rent, he chose to give his tenants a year’s notice, citing the economic situation in Nigeria as his reason for the generous gesture.
His tenants, who are currently in their third year of occupancy, must be understandably grateful for the reprieve.
However, Dare acknowledged that rent hikes can be unfair, particularly if the increase is excessive. As a landlord, he believes it’s essential to strike a balance between meeting his own needs and being considerate of his tenants’ financial constraints.
“My current tenants are spending their third year in the building, with the tenancy period being August to July. I should have increased the rent last August, but considering the economic situation in Nigeria, I decided to give them a year’s notice from August 2024 to July 2025 for the next rent increase. I considered this a palliative measure, and surprisingly, my tenants appreciated it.
“However, I acknowledge that a rent hike can be unfair, depending on the percentage increase. As landlords, we also operate within the same market as our tenants, so we have to adjust our prices accordingly to meet our needs.”
He expressed support for the Lagos State government’s potential implementation of rent control measures.
He believes such regulations would be justified, provided the government creates an enabling environment for landlords to build and maintain properties.
“In my opinion, the Lagos State government would be justified in implementing rent control measures to regulate the rising cost of housing, but only if they provide an enabling environment for landlords and prospective landlords to erect properties. Currently, this is not the case.
“It’s challenging for the government to regulate rent when landlords like myself provide essential services such as electricity wires and poles, boreholes for water supply, and other amenities. Despite these efforts, residents often rely on alternative power sources like generators, solar panels, or inverters.”
The landlords’ comments come at a time when many Lagos residents are struggling to afford the high cost of living in the city.
As the debate over rent control and affordable housing continues, landlords like Nwoke, Eze, and Dare are finding themselves at the centre of the controversy.
While some may view the landlords’ decision as heartless, others may see it as a necessary evil in a city where the demand for housing far outstrips the available supply.
As the city continues to grapple with the challenges of providing affordable housing for all, one thing is clear that the issue of rent control is far from being resolved.