The Lagos State Government has warned estate agents and property managers to desist from illegal and excessive charges that go against the state’s real estate laws, while promising support for reforms to make rent more affordable for residents.
Commissioner for Housing, Hon. Moruf Akinderu-Fatai, gave the warning during a stakeholder meeting with executives of the Estate, Rent and Commission Agents Association of Nigeria (ERCAN) in Lagos. He was joined by the Special Adviser to the Governor on Housing, Barakat Odunuga-Bakare.
Akinderu-Fatai expressed concern over the growing number of rent-related complaints, especially arbitrary rent hikes and introduction of fees that are not backed by law. He said such practices were largely encouraged by unlicensed and unregulated agents, describing them as “quacks” who mislead landlords for personal gain.
“The Lagos State Government is ready to partner with all stakeholders to stop these indiscriminate practices. We want to make rent more affordable and at the same time protect the interests of both property owners and tenants,” he said.
He stressed that professionals must adhere to the Lagos State Real Estate Transaction Law, which clearly stipulates that agents cannot charge more than 10% commission on any real estate transaction.
The Commissioner also reiterated the government’s commitment to promoting flexible rent payment systems across the state. He said the state is working towards ensuring monthly, quarterly, or yearly rental options—stopping the long-standing demand for upfront payment of two years’ rent.
“The goal is to reduce the burden on tenants while ensuring landlords get their rent consistently. We have been consulting stakeholders to ensure the successful take-off of the monthly, quarterly, and annual rent options,” he said.
Speaking during the meeting, ERCAN President, Mr. Godwin Aleke, assured the government of the association’s full support. He said ERCAN members were already committed to improving rent affordability and cleaning up real estate practice in Lagos.
“We are ready to promote the new rent structure among our members and ensure strict adherence to the 10% legal commission limit. We will also support efforts to remove quacks and non-professionals from the industry,” Aleke stated.
He also pledged that ERCAN would work hand in hand with other professional bodies and government agencies to restore order and integrity to real estate practice in Lagos.
The meeting was part of an ongoing stakeholder engagement strategy by the Lagos State Government aimed at addressing the issue of excessive and hidden real estate charges, rent defaults, and regulatory breaches within the property sector.
Akinderu-Fatai urged ERCAN to take the message back to their members and educate landlords and tenants on the proper rent structure and the penalties for violating the state’s housing regulations.
“We are not here to fight landlords or agents,” he said. “We are here to work with you to ensure a fair system that works for everyone and supports housing development in our state.”
