A bill regulating the payment of rent has been introduced in the Senate, the bill sponsored by Senator Smart Adeyemi, who is representing Kogi west has passed one of the five required readings and it comes amidst complaints about the high cost of rent in Abuja.
The bill makes it an offense for a landlord to demand the payment of rent in advance and replaces yearly rent with a monthly plan where the first three months will be paid for, followed by subsequent monthly payments.
Typically, rent in most parts of Nigeria is paid annually and sometimes a two-year advance is required for new tenants. This scenario has resulted in some tenants defaulting on payments resulting in endless court cases, resorting to borrowing to pay their rent etc. In some of these cases even the Landlord forfeits the rent due them.
The bill does not mean lower rent costs only that the mode of payment will be different.
Yearly or Monthly, What do Nigerians Prefer
4 of 19 surveyed African countries pay rent on a monthly basis and a report had identified the dwindling incomes of Nigeria and a need for monthly rent payments.
In an interview, Tunde Balogun, the CEO of Rent SmallSmall observed that only African landlords practiced rent payment per annum. He said most developed countries are on monthly rent payment.
So which would Nigerians rather do?
People’s opinions on this bill varied significantly. A social media poll conducted by Dataphyte shows that only 38.1% of respondents prefer a monthly rent payment. A significant portion, 61,9% still preferred remitting their rents annually.
Sandra, a young accountant, said she prefers yearly over monthly rent payments. Another respondent, a middle-aged trader, Hauwa prefers the monthly rent, stating that paying rent monthly would give her the flexibility to explore more options for apartments. She spoke about how convenient it is to move to a suitable location in a situation where she isn’t content with her current apartment and would not have to worry about how much it would cost her if she’s paying a year or two in advance.
A house agent, Remi says this will affect their income as they charge 10% to 15% on tenants’ initial rent as an agency fee. Thus, the 10% to 15% of the monthly rent or three-month initial deposit will mean less income for them compared to what they stand to receive on annual rent payments.
Mr. Abubakar, a landlord in Ushafa, Abuja said tenants will be at the receiving end. He opined that landlords who put his house up for rent under the condition of monthly payments would have the impression that if an individual is not willing to pay, another one would pay. He suggested that the bill should instead focus on regulating the prices paid for rent and not how rent is paid. It is unclear whether there was any consultation carried out before the Senator’s rent intervention but it appears, at least according to citizens, that annual payment is just fine. The cost rather than mode of payment might be an issue of bigger concern.