The House of Representatives is considering a bill to prohibit landlords, estate agents and property managers in the Federal Capital Territory (FCT) from demanding more than 12 months’ rent upfront from tenants.

The proposed law seeks to protect tenants from excessive rent demands and unfair practices in the rental market.

The bill, sponsored by Paul Nnamchi, representing Enugu East/Isi-Uzo Federal Constituency, and Ahmed Doro of Bindawa/Mani Federal Constituency, also seeks to establish an authority to regulate rent payments and resolve disputes between landlords and tenants.

Under the proposal, landlords would not be allowed to demand more than one year’s rent as a condition for granting or renewing a tenancy.

The bill also seeks to prevent landlords from using estate agents, compulsory service charges, separate agreements or repeated tenancy renewals to bypass the restriction.

However, tenants could voluntarily pay for more than 12 months if they initiate the arrangement without pressure, threats, discrimination or retaliation. The agreement and payment must be documented in writing.

The proposed legislation would also require landlords and authorised agents to provide written tenancy agreements before or at the start of a tenancy.

The agreements must state the rent, payment schedule, duration of the tenancy, refundable deposits and additional charges. They must also explain the rights and responsibilities of both parties.

To enforce the proposed rules, the bill seeks to establish the Federal Capital Territory Rent Regulation and Tenants’ Protection Authority.

The authority would investigate complaints, monitor compliance, help resolve disputes and order refunds where landlords collect rent unlawfully.

Under the proposal, the authority could direct a landlord to refund unlawful rent payments within 30 days of receiving the order.

The bill also proposes penalties for offenders. Individuals convicted of knowingly violating the restriction on advance rent could face fines ranging from N500,000 to N5 million.

Corporate offenders could pay between N5 million and N20 million. Anyone who fails to comply with a valid notice issued by the authority could also face a fine of up to N1 million.

The proposed law would allow landlords and tenants to seek redress in court. Anyone dissatisfied with a decision by the authority could appeal to the FCT High Court within 30 days.

The bill comes amid concerns over rising accommodation costs and the financial burden of paying large sums upfront to secure rented homes.

Last year, the National Assembly proposed limiting rent increases nationwide to 20 per cent and urged the Federal Government to enforce the measure.

However, there has been no verified confirmation that the proposal has been implemented.