Lagos State Reaffirms 10% Cap on Tenancy Agreement Fees, Warns Against Illegal Charges

The Lagos State Government has reiterated that no landlord or agent is permitted to charge more than 10% of the annual rent as tenancy agreement fees, in line with the state’s tenancy laws.

Speaking during the 2025 Ministerial Press Briefing at the Bagauda Kaltho Press Centre in Alausa, Ikeja, the Special Adviser to Governor Babajide Sanwo-Olu on Housing, Ms. Barakat Odunuga-Bakare, issued a stern warning against the imposition of excessive fees on prospective tenants.

She emphasized the clear provisions of the Lagos State Tenancy Law, stating that any landlord or agent demanding or collecting fees beyond the 10% threshold is in direct violation of state regulations.

“We have received numerous complaints about unscrupulous individuals charging outrageous amounts under the guise of agreement and commission fees,” Ms. Odunuga-Bakare said. “These practices are exploitative and place undue burdens on Lagosians.”

Acknowledging the housing pressures exacerbated by rapid population growth and rural-urban migration, she noted that the resulting demand has created opportunities for exploitation, especially by unregistered individuals operating outside recognized professional bodies.

The Special Adviser affirmed the government’s resolve to regulate and sanitize the housing sector, adding that there is ongoing collaboration with real estate associations to curb these illegal practices.

“We have engaged with accredited real estate associations, and they have disassociated themselves from these practices, stating that such actions are mostly perpetrated by unregistered agents,” she said.

Ms. Odunuga-Bakare urged residents to report cases of illegal charges via the Lagos State Real Estate Regulatory Authority (LASRERA) on Facebook and Instagram (@lasrera1) or X (formerly Twitter) @lasrera. She encouraged the public to take an active role in ensuring compliance, stating that government cannot be everywhere at once.

This renewed effort, she concluded, is aimed at protecting residents and fostering a fairer, more transparent housing market across Lagos State.