One of the growing trend in real real estate is now the demand by landlords for two years rent before new tenants occupy their property.

Be it for residential or commercial purpose, the trend is gradually taken over major cities across Nigeria.

Some Nigerians said if allowed to continue, many people may not have the opportunity to rent houses of their choice due to their inability to raise two years rent.

Some residents of Abuja who spoke to Daily Trust expressed displeasure and how government has done nothing about the situation.

A rent seeker in Abuja, Basil Jonah told Daily Trust that on three occasions, he could not rent a house because of two years upfront rent demanded by the landlord.

“I have gone to Lugbe and Kubwa to look for a one bedroom house, I got the house no doubt but I was unlucky that all the landlords were demanding two years rent upfront

“And the agents are not also helping matters, instead of them to help by pleading with the landlords, they are supporting them,” he lamented

Another rent seeker, Anna brahim told this paper how she was refunded her initial one year rent, two days after payment

“I got a two bedroom apartment in Apo for N3.5 million, the agent gave me the account details of the landlord and I made the payment, and also paid the agency and other fees

“Two days after l, the agent called me to tell me that the landlord has changed his mind and now wants two years rent of N7 million. Despite my plea, he asked that my money be returned to me because he only wants a tenant that can pay two years rent upfront,” she said

Similarly, Abubakar Yunusa said the trend is not only for residential purposes but also for commercial purposes.

“I wanted to rent a shop in Jahi and the owner told me clearly that without two years rent I can’t get it. I have to cough out that money and it came with so much inconvenience

“My worry is government know what these landlords are doing but are not doing anything about it and it is sad,” he said.

What tenancy laws say

Checks by Daily Trust show that Tenancy laws vary different forms ranging from fixed-term tenancies, periodic tenancies, or tenancies at will. The agreement sometimes could be specific, including the duration, rent amount, and any additional terms and conditions.

First, a fixed-term tenancy is a rental agreement that lasts for a specific period, typically six months or one year. During this time, both the landlord and tenant are bound by the terms and conditions specified in the agreement. Once the term expires, the tenant has the option to renew the agreement, negotiate new terms, or vacate the property.

Second is month to month tenancy also known as a periodic tenancy, this agreement does not have a fixed end date and continues on a month-to-month basis until either the tenant or landlord gives proper notice to terminate the tenancy. The notice period is typically one month, but it may vary based on the terms agreed upon.

The third is yearly tenancy. This type of tenancy agreement covers a one-year period but automatically renews for an additional year unless either party provides notice of termination before the end of the current term. It offers more stability and continuity for both landlords and tenants.

Fourth is a long-term lease which typically covers multiple years, providing the tenant with greater security and stability. The lease outlines the conditions and rules for the entire lease period, and it is legally binding on both parties. However, breaking a long-term lease before the agreed-upon period may come with penalties.

The commercial leases are used for renting properties for business purposes, such as office spaces, retail shops, or warehouses. The terms and conditions of commercial leases can be more complex than residential tenancy agreements, and they often include provisions for rent adjustments and commercial activities allowed on the premises.

The last of most common tenancy agreements is the short-term rental agreements are typically used for vacation rentals or temporary stays. These agreements may last anywhere from a few days to a few months and often have higher rental rates.

Lawyers react

Reacting to the development,  a lawyer,  Idongesit Bassey noted that receiving two years rent from tenants by landlords is subject to agreement and only applicable to non commercial properties.

She however noted that the Law forbids collecting two years rent in Lagos state

“Outside Lagos state, the practice is common but in 2011, Lagos state enacted a law to ban that practice. Section 4(1) of the Tenancy Law of Lagos State, it is illegal for a landlord to demand or recieve rent in excess of one year in advance from a tenant for a residential property.

“This provision generally does not apply for commercial property. So landlords can collect 2 years in advance or more

It shall be unlawful for a landlord or his agent to demand or recieve from a sitting tenant rent in excess of six (6) months for a monthly tenant and one (1) year from a yearly tenant in respect of any premises’

“This provision is from Section 4(1) of the Tenancy Law of Lagos State 2011,” she said.

Also speaking, Barr. Jeremiah Mosee  however noted that collection of two years rent is not illegal as parties are at liberty to enter into agreement provided it is not against the Law.

“You can pay rent for three years and you can pay for five years. If you are paying for one or two years, it is called tenancy, then from three years, it is called lease agreement. However all these are subject to agreement between tenants and landlord, therefore from my perspective it is not illegal,” he said

Also speaking, another Lawyer, Martha Kama noted that although there is no Law proscribing landlords from receiving two years rent, there is no provision of the Land Use Act or Constitution that also permits that

She added that “The only reason why the anomaly is thriving is because Nigeria being a is a country where anything passes and nobody is held accountable for wrong doing,”

Lagos state model

Daily Trust reports that the Lagos State Government has called on residents to report any landlords or agents who demand more than one year’s rent, as part of its broader effort to rein in real estate excesses in the state.

Barakat Bakare, Special Adviser on Housing to the Lagos State Real Estate Regulatory Authority (LASRERA), who made the appeal recently during an appearance on the TVC programme Your View, where she reiterated the government’s commitment to regulating the property market and making housing more accessible.

The special adviser said ongoing discussions are being held with landlords, developers, and property associations aimed at promoting fair pricing and responsible housing practices. She explained that allocations for state-owned housing are based on strict and transparent criteria designed to ensure equity and accountability. Bakare also advised prospective tenants to verify the registration status of any real estate agent or developer with LASRERA before engaging in transactions.

“Times are hard. We are not here to make life harder for Lagosians. We are sitting with landlords, looking for a middle ground, and doing everything we can to make housing more humane and accessible,” she said. Highlighting the need for clarity in property dealings, she pointed out that there is a distinct difference between the responsibilities of lawyers and agents in property transactions.