Business Hilights
Tracking Nigeria's Headline Business News Online

Why Lagos house agents’ charge hostile commission on clients

A Lagos lawyer, Mr. Kabir Akingbolu, has identified a lacuna in the prevailing Lagos Rent Edit enacted into law during the administration of former Governor Bola Tinubu.

In a memo sent to the current Governor and made available to Business Hilights, Akingbolu argued that “While the law makes it illegal to pay more than one year rent for a new tenant and six months in case of a sitting tenant, the law has no provision to regulate agency. Thus, in practice, the agents are at liberty to collect any amount as commission. Citizens now pay through the nose to rent houses as agency fees are higher than rent in most cases”.

“There is the need for an effective control mechanism for property agents in Lagos State because agents are not entitled to more than five per cent; but presently,  agents have come up with the obnoxious idea of collecting commission for agreement and another commission for agency. We implore Governor Ambode to come to the aid of the citizens in this regard.”

Accordingly, he has called on the Lagos State Governor, Akinwunmi Ambode, to initiate the process of amending the Lagos State Rent Control Law to regulate fees chargeable by property agents as commissions.