Fashola Moves Against Landlords
May 20, 2009.

By Kazeem Ugbodaga
Governor Babatunde Fashola has sent a bill to the Lagos State House of Assembly to stop landlords from collecting any form of advance payment for house rent.


When passed into law, it becomes a criminal offence for landlords to collect advance payment of rent from tenants. What this means is that landlords who collect one or two years’ advance payment for rent from the would-be tenant or tenants have committed criminal offence and are therefore liable for prosecution. The Attorney-General and Commissioner for Justice, Mr. Olasupo Sasore (SAN), said the new bill, Tenancy Bill 2009, is already before the State House of Assembly and is meant to relieve the plight of tenants from shylock landlords.

He said the bill is meant to make multiple collection of rent in advance from tenants, by landlords who greedily exploit the people, criminal. Sasore stated that the bill would consolidate all existing tenancy laws in the state and would also reduce the period when landlords would commence civil procedures against tenants. The commissioner added that a public hearing would be held on the bill to enable Lagosians add their input before it is passed into law.

Landlords in the state had for long exploited would-be tenants with many of them collecting advance payment for rent ranging from two to five years, while tenants have been groaning under their exploitation as they, landlords, continue to feed fat on the hapless tenants. Meanwhile, the commissioner has said that the state was determined to sustain and build on the success of the Criminal Case Tracking System (CCTS) by establishing a Crime Data Bureau (CDB) which would maintain a Crime Data Register.

“Among others, the Crime Data Register will be a repository for both custodial and noncustodial sentences. “The goal of the CDB as a whole is to deliver effective crime data-processing and crime record-keeping support to the Lagos State Criminal Justice System,” he stated. Sasore added that in the next one year, the ministry would continue with the implementation of the reforms in the administration of criminal justice. According to him; “it is expected that the amendments to the Administration of Criminal Justice Law will pass through the legislative process. “The implementation of the Community Service Scheme and the establishment of the Lagos State Rehabilitation and Correctional Centre are also expected to crystalise in the next one year.”

Erm am not so sure as to how he can pull this off. He is more or less intervening in the laws of demand and supply. It aint healthy.

Instead of trying to control what people can do and not do, perhaps spending a bit on affordable housing may be the next logical thing?

@@@@

my friend before u make a post, look to see if there is one existin

damn there is one if u check

chineke

ElRazur:

Erm am not so sure as tp how he can pull this off. He is more or less intervening in the laws of demand and supply. It aint healthy.

Instead of trying to control what people can do and not do, perhaps spending a bit on affordable housing may be the next logical thing?

Fashola is doing the right thing even as this initiative , in practice ,  may be difficult to implement . Collecting rent 2-3 years in advance is another example of how actions that are almost criminal have evolved and come to be accepted as the norm , enough to be deemed "demand and supply", because of unchecked lawlessness  that has made Nigeria devoid of any civility and decency.

Affordable housing is not the entire solution either. Nothing , for example , will stop greedy wealthy Nigerians from buying up 'affordable' houses and collecting 3 years rent in advance from deserving Lagosian who will not get a sniff of an "affordable" house given how Nigeria works currently. Fairness for everyone(tenant, Landlord or home buyer ) is the way forward.

It is clear from the article also that Fashola thinks things through unlike many Nigerian leaders. While providing laws to improve the lot of tenants he is simultaneously making provision to look out for Landlord by shortening the period within which they can evict non-paying tenant who may want to take advantage of the new system. 

the bill would consolidate all existing tenancy laws in the state and would also reduce the period when landlords would commence civil procedures against tenants.

I see what he is trying to do, however, I really do not see how such action amounts to criminality. I mean, people can always opt to go and rent elsewhere. People can charge what they want for their house/property. It is down to the consumers whether they would pay or not.

It would be interesting to see how this would be implemented.


PS
As for the affordable housing, I am sure if something like that is implemented, there are ways to stop multiple ownership etc. There is similar scheme in the UK. [Not saying we should copy UK, but instead look at how they manage to pull it off and learn from it.]

ElRazur:

I see what he is trying to do, however, I really do not see how such action amounts to criminality. I mean, people can always opt to go and rent elsewhere. People can charge what they want for their house/property. It is down to the consumers whether they would pay or not.

Thats why I said "almost criminal" . Don't you think it highly unethical at best and almost criminal at worst for Landord to collect 3 years rent in advance in one of the poorest nations on Earth ? Opting to rent elsewhere is really not so simple considering that rent collected years in advance is the norm and not the exception in Nigeria. So , in effect, poor Nigerians are held to ransom to the extent that they must borrow from relatives to pay their rent !!! From an ethical point of view , the practice should stop.

Fashola's approach is correct i.e stop the odious practice and strenghten the ability of landlords to quickly evict non paying tenant who may want to exploit how they are now allowed to pay rent monthly or quarterly.

It would be interesting to see how this would be implemented.

Difficult but ultimately achievable. Initially the practice will remain popular through underground mutual patronage between desperate tenants and unscrupulous landlords. In the end , and with the laws applied efficiently to punish errant Landlords , tenants will eventually learn to only patronise law-abidding Landlords.

PS
As for the affordable housing, I am sure if something like that is implemented, there are ways to stop multiple ownership etc. There is similar scheme in the UK. [Not saying we should copy UK, but instead look at how they manage to pull it off and learn from it.

I am not against affordable housing. I just think it is required alongside ( and not instead of ) this measure Fashola is enacting into law to alleviate the housing woes of Lagosians. The housing problems of Lagos will require multiple solutions and not one solution at the expense of another.

I see what he is trying to do, however, I really do not see how such action amounts to criminality. I mean, people can always opt to go and rent elsewhere. People can charge what they want for their house/property. It is down to the consumers whether they would pay or not.

It would be interesting to see how this would be implemented.

elrAzor i alway beleive u should stay in the joke section!

wetin come happpen to ur brain

@Elrazur

The laws of Demand and Supply are less pertinent in this case because alternatives are perpetually in short supply.

Gbawe:

Thats why I said "almost criminal" . Don't you think it highly unethical at best and almost criminal at worst for Landord to collect 3 years rent in advance in one of the poorest nations on Earth ? Opting to rent elsewhere is really not so simple considering that rent collected years in advance is the norm and not the exception in Nigeria. So , in effect, poor Nigerians are held to ransom to the extent that they must borrow from relatives to pay their rent !!!  From an ethical point of view , the practice should stop.

Yeah I see what you mean. You see that is precisely the problem, you cannot criminalise something simply because he/his advisor's feel it is unethical. It is a capitalist economy Nigeria is operating as such, perhaps Fashola is out of his depths? I really do not see how people are held to ransom to be honest. Consumers would only pay for what a product is worth. Hence why I made the original statement of the forces of demand and supply.

As a side point, speaking of ethics in somewhere like Nigeria is laughable to some.

Fashola's approach is correct i.e stop the odious practice and strenghten the ability of landlords to quickly evict non paying tenant who may want to exploit how they are now allowed to pay rent monthly or quarterly.

If he start controlling the market in what is supposedly a free market. . . I think you would find that it is highly improbable, if not impossible.

Difficult but ultimately achievable. Initially the practice will remain popular through underground mutual patronage between desperate tenants and unscrupulous landlords. In the end , and with the laws applied efficiently to punish errant Landlords , tenants will eventually learn to only patronise law-abidding Landlords.

For the sake of this debate, how do you think this would be enforceable? A similar example is Fox hunting in the UK, despite the fact that there is a ban, it still goes on and police have admit they are finding it hard to enforce the law. They cannot follow every fox hunt etc. I think this case may be similar if it ever becomes law.

I am not against affordable housing. I just think it is required alongside ( and not instead of ) this  measure Fashola is enacting into law to alleviate the housing woes of Lagosians. The housing problems of Lagos will require multiple solutions and not one solution at the expense of another.

Again I see your point. I originally said "Instead of" as I really do not see how he can pull this one off.

vanitty:

@Elrazur

The laws of Demand and Supply are less pertinent in this case because alternatives are perpetually in short supply.

Thanks. Hence why I suggested affordable housing, Just a thought.

PS
Govt. interference in a capitalist economy is really frowned upon, that is what fashola's move amounts to in my opinion.

Govt. interference in a capitalist economy is really frowned upon, that is what fashola's move amounts to in my opinion.

Capitalist economy must also be regulated.It can not be free for all.

walata44:

Capitalist economy must also be regulated.It can not be free for all.

Agreed. Fashola's attempt is crude at the very best. He is literally telling house owners what they can charge and what they cant. I mean, that is just wrong. I mean, where does it stop?

Read the article and I am yet to see what the problem is. How is interferring with advanced payments inteferring with setting price? Price interferance is fixing prices of rent, which was not at all mentioned in the article. What was however mentioned was stopping the act of landlords asking for years in payment of rent upfront, it is basically regulating on such a henious act that gave landlords so much power to prey on the innocent. So how does supply and demand factor into such an act which is nothing short of bullying? Supply and demand affects prices of rents, if landlords want to put up their rent nothing is stopping them. Good move and about time too. It would put some power in the hands of ordinary citizens.

ElRazur:

Agreed. Fashola's attempt is crude at the very best. He is literally telling house owners what they can charge and what they cant. I mean, that is just wrong. I mean, where does it stop?

I had to read the article again, and I did not see where it says he plans to regulate the price. I think the goal of the bill to protect consumer and make sure the consumers have the choice to choose between paying on a monthly basis or on a yearly basis.

This is not like Dubai, were the govt has a percentage cap on how much landlords can charge.

Sky Blue:

Read the article and I am yet to see what the problem is. How is interfering with advanced payments intefering with setting price? Price interferance is fixing prices of rent, which was not at all metnioned in the article. What was however mentioned was stopping the act of landlords asking for years in payment of rent upfront, it is basically regulating on such a henious act that gave landlord so much power to prey on the innocent. So how does supply and demand factor into such an act which is nothing short of bullying? Supply and demand affects prices or rents, if landlords want to put up their rent nothing is stopping them. Good move and about time too. It would put some power in the hands of ordinary citizens.

Thank You

Sky Blue:

Read the article and I am yet to see what the problem is. How is interfering with advanced payments intefering with setting price? Price interferance is fixing prices of rent, which was not at all metnioned in the article. What was however mentioned was stopping the act of landlords asking for years in payment of rent upfront, it is basically regulating on such a henious act that gave landlord so much power to prey on the innocent. So how does supply and demand factor into such an act which is nothing short of bullying? Supply and demand affects prices or rents, if landlords want to put up their rent nothing is stopping them. Good move and about time too. It would put some power in the hands of ordinary citizens.

I see your point. The ultimate problem that would happened in my opinion are what I already raised. Landlord can ask what they want, it is their property and as such can do and undo. Fashola stepping in amounts to some form of control.

Again I cited forces of demand and supply. Landlord can charge what they want, however are people willing to pay for it?

ElRazur:

I see your point. The ultimate problem that would happened in my opinion are what I already raised.  Landlord can ask what they want, it is their property and as such can do and undo. Fashola stepping in amounts to some form of control.

Again I cited forces of demand and supply. Landlord can charge what they want, however are people willing to pay for it?

Landlords can still charge what they want, that right is not being stepped on, they just simply wouldn't be able to ask for five years advance which is simply ludacris and has gone on for too long. Whether people can afford prices or not isn't the issue. If prices are too high nobody will rent and supply and demand will simply adjust the scenario. Again, this is not about inteferring with rent prices, it is about ludacris pay advances. We read same article so where are you getting your maggi and pepper from? 

Anyway, won't argue much longer, I support the move and its about time. The bill will give relief to ordinary citizens and protect them from predatory landlords.

^^See your point and point taken.

ElRazur:

Agreed. Fashola's attempt is crude at the very best. He is literally telling house owners what they can charge and what they cant. I mean, that is just wrong. I mean, where does it stop?

Fashola  is simply trying to bring fairness to bear in a highly unrealistic and grossly abnormal housing market. ElRazur , responsible government the World over try and ensure that citizens can live comfortably within their means at the very least as a way to stop them from succumbing to desperate frustration leading to criminal conducts and lawlessness. If you earn 30,000 Naira monthly is it not desirable you are allowed to comfortably pay 5,000 Naira monthly rather than be put in a situation where you must find 180,000 Naira for 3 years rent in advance ? Furthermore you have no choice but to pay  as every Landlords terms are the same !!! Cough up the dough or sleep under Eko Bridge !!! How one get's the dough  may involve crime because ,logically ,  the percentage of the population in this desperate situation , excacerbated by a dearth of conventional lending, means some will surely turn to crime.

Nothing at all wrong with Fashola trying to make Lagosians enjoy the civility of paying their rent within a period of time that will not cause them financial discomfort. That is the norm Worldwide even if not so in Nigeria.

As others have pointed out Fashola is not "telling Landlords what they can charge". He wants Landlord to collect  whatever sum they want as rent (the same amount wether viewed in months or years) at intervals that will ease the burden on an already unfeasibly overburdened people .

Oga point taken.

Elzaur

has about 10 properties in lagos and Fashola has dealt a massive blow . A friend of mine who was looking to rent a property in lekki last week and he was told to pay for three years in advance which amounted to N5.5 Mil - Haba you wan kill person


I absolute think it is a welcome development. Enforcement is another topic for different day.

ElRazur:

Oga point taken.  

No Yawa . I get some of your points too but ultimately I support whatever makes life easier for ordinary Nigerians. What we see in Nigeria today stems from the unchecked harmful precedence set by the few stealing money 'Yafun-Yafun' .  18 million cost price for an average Surulere home may be "demand and supply" but it is not desirable or fair demand and supply as it does not involve majority of Nigerians . "Demand and supply" is then another way of saying that most Nigerians will never be able to buy a home when in civilised societies home-buying should be the priviledge of many and not just the minority elite - as is the case in Nigeria's where poverty is endemic.

When most Nigerians cannot buy it becomes even more imperative to ensure they are not punished with unrealistic rent terms.

@ gbawe

well said. i like ur opinions. i only hope this so called bill sees the light of the day.but considering the kind of force fashola is, it might come to pass.

@post

Good law but cannot work.

They should have considered rather a Land use bill. Where all the land in the state becomes the state land because this is where the problem is coming from.

What you do is you make it illegal for any one to buy sell land to anyone rather you(LAGOS STATE) resell the land to cooperation that will build mini estates and mega cities.

This will mean that if i company A is buying ten plots before I am sold the land i must give out what i am going to build. The family and stool lands in the state will become the state land, there will be still federal lands though.

Some people will say oh that is not fair because we want to build what we like that is simple. you can approach Company A that you want 2 plots of land from the ten he has because you have a specific house you like to put up.

you will authorize few companies in the state

1) buy BULK LAND
2) build min cities and estates
3) Charge monthly

THE HOSUING ISSUES IS DEMAND AND SUPPLY YOU CAN NOT BREAK THIS UNIVERSAL LAW. THE CITIZENS WE HAVE LOVE MONEY MORE THAN THERE BROTHERS. THE ELITE STRANGLES THE LOWER CLASS TO CORRUPTION THIS IS THE AREA THEY ARE WINNING. TO BEAT TO IT YOU MUST GO TO THE ROOT OF THE MATTER LAND AND NOT RENT.

THERE SO MANY COMPANIES THAT WILL MOVE INTO LAGOS STATES WHEN IT KNOWS THAT BULK LAND IS SOLD AND THEY DONT HAVE TO FACE LAND GUARDS (OMONILE). JUST AS IN ENGLAND YOU JUST CANT DO ANYTHING YOU LIKE.

He should make landlord charge a max of 6 months in advance but not eradicate in total. Many tenents will default and even the duration of eviction is shortened, thenents might still get away with a month or two's rent.

What about all the Ikoyi luxury apartments rented out to business customers , i dont see any problem with that if they charge 2 years in advance.

I couldnt imagine face me i face u tenants paying monthly and all the bottlenecks that come with it.

I support the idea behind this move. However, some sundry issues may crop up and we may have landlord-tenant shouting matches all over the place. I'll suggest a quarterly or bi-annual rents with a month security deposit. Tenants must renew their rents a month before expiration.


I also believe this policy will reduce property value, as it'll be difficult to recoup one's investment pretty fast.

This can also be abused by the Landlords by increasing rents every time.

It is a good Idea, dont think it will be implemented as stated in the article cos there will be a public hearing on the Bill, will most likely require modifications, will prefer a situation where may 3 months deposits and then monthly payments, if tenants misses 2 months rents consecutively landlord begans eviction and the eviction process shouldnt take more than 3 months hence worst case scenario the landlord losses a months rents, and tenants gets 3 months also to either cough up, or be evicted, fairness to but parties as most properties in the state are privately owned and Fashola should not discourage investors away from the property investments as the govt is unable to cater for theproperty needs of the state

This Fashola is a genius, the greatest of them all! Wish he will one day be the president of that gr8 country.

that is what is obtainable in the advanced country. Even in south africa u don't have to pay a year rent b4 u get a house.
no salary earner is paid more than a month rent. even if it does not work, it will be a good start.

ayomifull:

This Fashola is a genius, the greatest of them all! Wish he will one day be the president of that gr8 country.

that is the kind of leader we pray 4.

fyneguy:

I support the idea behind this move. However, some sundry issues may crop up and we may have landlord-tenant shouting matches all over the place. I'll suggest a quarterly or bi-annual rents with a month security deposit. Tenants must renew their rents a month before expiration.


I also believe this policy will reduce property value, as it'll be difficult to recoup one's investment pretty fast.

If it achieves the effect in bold then about time, property value in lagos is ridiculously overvalued and overpriced, only getting to such levels due to simple supply and demand. Anything that can begin to reduce prices of property can't be a bad idea as it might help mitigate the effects of the seemingly inevitable property bubble burst in lagos which has been long overdue. I am yet to see what I might deem a genuine negative implication of the proposed bill.

fyneguy:

This can also be abused by the Landlords by increasing rents every time.

Not if everything is guided by concrete contractual law. Insistence on the use of  tenancy agreement , recognised in law by the Lagos State Judiciary , will ensure that Landlord cannot 'move the goal post during the match'. If the tenancy agreement is for 10,000 Naira per month for 12 months then that is what the Landlord must collect within the 12 months period covered by the agreement. In the end there will be 'teething' issues but Fashola , with his usual tenacity, can reverse the ugly trend of 2-3 years advance rent collection in making monthly or quarterly rent payment the norm.