6 Mistakes Every Landlord Should Avoid In Nigeria

6 Mistakes Every Landlord Should Avoid In Nigeria

There are common legal mistakes that landlords make that can have serious repercussions under tenancy laws.

According to Koriatlaw, Here are the common mistakes every landlord should avoid. Hence it is essential, that the under-listed mistakes should not just be viewed as mere mistakes; they are actually errors that could cost you time, a lot of money and can lead you to jail.

Arbitrary Increase of Rent

The act of unilateral increase of rent with an unimmaginable and unreasonable percentage by landlords without any justification should be avoided. Section 37 of the tenancy law of Lagos state deals with arbitrary increase of rent and prescribes that if a tenant believes that the rent increase is unfair, he or she can institute a court action and ask for the court to review the rent. By the provision of the section of the law, a Landlord cannot just increase his house rent based on his mood without going through the due process. It is advisable that a tenancy agreement should contains a rent review clause. This clause enables the landlord to review the rent to fit into the prevailing market rate.

Lack of Written Tenancy Agreement

Every landlord should issue a tenancy agreement to their tenants. For example Section 3 of the Tenancy Law of Lagos State 2011 recognizes both written and oral tenancy agreement. It is however important that the landlord and tenant insist on a written agreement, which is a useful reference point whenever parties are aggrieved and need to insist on any obligation to each other. 

Non-Issuance of Rent Receipts

Non-issuance of rent receipts is a common mistake that should be avoided by Landlord. Receipts is a document that serves as a proof that tenants as actually paid their rents. It is also useful when resolving issues on rents. Section 5 of the Tenancy Law of Lagos State has made it compulsory that tenants be issued a receipt upon payment of rent. This law regards failure to do this as an offence and prescribes a punitive fine of N100,000. It is also advisable for every Landlord to have a copy of the receipt issued to a tenant.

Not Having any Traceable Information About Potential Tenants

This is a common mistake among first time landlords who are yet to learn the ropes. it is essential you allow potential tenant fill out rental or lease form which would contain their personal details. Avoid admitting just any tenant into your rental property without doing a background check, you may regret your decision to admit the tenant subsequently. It is also essential you put every agreement you reach with your tenant in writing to forestall any problem that may arise in the future.

Failure to Charge a Caution Fee or Security Deposit

There is need to charge a new tenant a caution fee. A caution fee is an amount of money that a tenant has to pay while renting a property. it is used to cover damage caused by the tenant. This money can also cover missing rent if a renter does not pay. After a tenant moves out, a landlord can use the caution fee to fix the damage caused by the tenant. Failure to charge a caution fee may lead to unsavory situations for the landlord.

Unlawful Eviction of Tenant

Ejecting a tenant can be a very daunting task and many landlords usually resort to self help. Self help is the ultimate use of ones efforts to evict a tenant from their premises and this includes: changing the key locks of the tenant's building, mobilizing uniformed personnel to forcefully remove the tenant and their belongings from the premises, seizing the tenant's property and/or employing other forceful ejection mechanisms. Doing these are against the law and you could risk earning yourself a jail term for forcefully ejecting your tenant. There are laid down procedures for eviction put in place by the law which must be adhered to. However it is advisable to seek the counsel of a lawyer to avoid uncontemplated troubles with the law enforcement agencies.