It’s funny how when renting a new place, a lot of us painstakingly
find the ideal place, immediately pay “to secure the property” then proceed to
move in; all this being done before the landlord/agent drops off the tenancy
agreement, that’s if there is even a tenancy agreement at all.
The role of the lawyer when renting new premises is so
underplayed; however, we all know that the Legal fee is a non-negotiable part
of the whole transaction. In most instances the lawyer gets to receive awoof money,
as the agreement sent out tends to be “copy and paste” in nature.
Tenancy in Lagos State is governed by the Lagos State Tenancy
Laws, however the majority of the provisions of this act may be contracted out
of via the tenancy agreement. Please note that this article was written with
yearly tenancies in Lagos State in mind, but some of the issues highlighted are
universal.
Many of the following terms are so vital, yet they are either not
adequately addressed or not even included in the Tenancy Agreement at all.
Unfortunately, the moment those terms not included in the document become a
cause for quarrel. A sweet relationship can turn sour very quickly. Trust me,
beef on one’s doorstep is never advisable.
Eviction
I recently reviewed what I must say is the greatest tenancy agreement I have
ever read. The lawyer who drafted it protected the landlord in all ways
possible, unfortunately to the detriment of the tenant… my client.
What struck me in the agreement was the clause which dealt with
the landlord’s ability to recover the premises, which was to the effect
that: “if the tenant at any time fails or neglects to perform and
observe any of the covenants and conditions contained for a period of up to (1)
week, whether there has been a formal notice
or not, then the landlord may re-enter the premises, enjoying same as if
this tenancy has not been granted”
And boy did this agreement have A LOT of restrictive covenants and conditions?!
Obviously you cannot take away the landlords right to protect
himself from nuisance tenants; but in doing so the landlord should at least be
fair. When negotiating the eviction clause, try and push for 6 months’ notice
as this is what is prescribed under the act.
Rent Payable
We all know that as a tenant you face the risk of being evicted if you are in
arrears with your rent. Unfortunately for some, the moment they are just about
settling down in the house they rented, the landlord comes to inform them that
the rent has gone up, without caring if the tenant has a fixed budget (which
has not gone up). The tenant then cannot afford an increase in rent. Many
tenancy agreements do not address rent review, giving the Landlord the power to
bully the Tenant.
One of my friends got a shocking letter from the landlord telling
her that the rent for her shop had increased from 1.1m to 2.2m within the space
of 12 months. The guy had seen her activities on social media, and had seen the
kind of clientele visiting her shop, he felt “this babe is making money ooh”,
and got greedy. As you can imagine, she was not a happy bunny, but had no
choice other than to pay up. She had already branded her business location and
moving was simply not in her plans for that year.
Ideally when renting a place, you should try and negotiate that
the rent be fixed for a period of 3 years, after which there may be an upward
review of 15-20%. This increase should be communicated to the tenant 3-6 months
prior to the end of the tenancy.
Service Charge
The service charge is an interesting topic. When I first moved back, I had a
little apartment, and I bought my gen which the gate man helped me to operate.
After some time the gen developed spiritual problems and my gate man developed
shakara. At times, he would switch off his phone when I called him to put on
the gen at 3.30am because NPEA has taken light. Honestly, I believed that
service apartments were the only way forward, but was seriously advised to be
very careful.
I must stress that the service charge is entirely contractual and
not regulated by law. Unfortunately, in many instances landlords will impose a
specified service charge, without actually detailing the services you are being
charged for. I am finding increased instances where the concept of service
charge is being abused, and landlords using this purely as a means of
extracting more money from the tenant.
Before paying the service charge insist on a fully itemized
breakdown of exactly what the money is to be used for. Where the service charge
does not include diesel usage, insist that the landlord provides a monthly
estimate of what the likely diesel usage per apartment per month is likely to
be. I know the landlord is not a psychic, but where you are not the first ever
tenant to live in the apartment, they can use the average monthly usage from
the previous year to project the usage for this year.
Caution Fee/ Deposit For Damage
Please note: although not the case in all instances, in MOST instances when
accepting the caution fee, the landlord has no intention what so ever of
refunding it, upon the termination of the agreement. Again this is another way
landlords siphon more money from unsuspecting tenants, and most likely that
money is going to be used to “re-pimp” the place for the next tenant.
I have not seen a single instance where the tenant vacates
premises, leaving it in exactly the same condition as it was in when the tenant
moved in. Most landlords do not want to accept that there will always be wear
and tear, and where they do accept this, they have now devised this interesting
way of hedging against possible losses. In an event where the landlord insists
that you pay a deposit, make sure you take pictures of everything before you
move in so that you can use this as a reference point in case of a future
dispute.
5 Right to Peaceful Possession
A friend of mine rented a very nice property. She was in love with the place,
and honestly when I saw it I was too. The house was amazing. Unfortunately for
her, the landlady lived in the neighboring compound and that was the beginning
of the issues. There was a gap in the fence and my friend would often complain
that she would come home from work to find the landlady on her side purportedly
“inspecting” the property. She ignored it. Things came to a head when the
landlady started dictating the latest time she could open her gate, screaming
“Lagos is a dangerous place”. For months my friend found herself tip toeing
around the landlady, because she just didn’t want the old woman’s trouble…… eventually
she called someone to tastefully seal the gap in the fence and boned.
I must stress that the right to peaceful possession is a
fundamental right and that without it you don’t have a lease, but a mere
licence to occupy space. Once the property has been rented to a tenant, the
landlord no longer has the right to re-enter the premises unless he has the
tenant’s express permission and upon reasonable notice of same.
Conclusion
When moving into a new property always ask the neighbors as many questions as
possible. Ask about the landlord’s temperament; ask about the area; investigate
why the old tenant moved out. Sha ask as many questions as
possible. This is usually a good way of gaging what to reasonably expect from
the property.
However, I must stress that when renting new premises, even where
one has been as diligent as possible, life can always throw curve balls which
are totally unexpected for both the tenant and the landlord.
In all instances a positive and understanding mind-set will always
go a long way. Try to put yourself in the shoes of the other party and act
accordingly.
Written by Ivie Omoregie
