Enugu moves to cap house rent fees, abolish caution fee

Enugu State lawmakers have introduced a bill to regulate agency and legal fees in tenancy agreements, aiming to curb exploitation by landlords and protect tenants from unfair charges.

The bill, titled “Bill for a Law to Amend the Landlord and Tenant Law, CAP. 101, Laws of Enugu State, 2024,” was sponsored by Hon. Okey Mbah, who represents Nkanu East Constituency. It underwent its first reading on Tuesday at the State House of Assembly.

The legislation seeks to cap agency and legal fees at 10 per cent of the rent, ending excessive charges imposed by property agents and landlords. It also aims to abolish caution fees—an amount traditionally paid by tenants as security against damages but often not refunded at the end of their tenancy.

“With effect from the commencement of this law… agent fee chargeable for procuring any accommodation in the State shall not exceed 10 per cent of rent,” states Section 3(3) of the bill. Additionally, Section 3(4) provides that legal fees must be paid only to a qualified legal practitioner and shall not exceed 10 per cent of the rent.

Beyond financial regulations, the proposed law seeks to address issues surrounding forced evictions, fraudulent tenancy agreements, and unregulated property management. It intends to establish a legally defined duration for eviction notices to prevent arbitrary removals.

Furthermore, the bill proposes that only certified agents and property managers should be allowed to operate, ensuring professionalism in the sector.

A designated government ministry or agency will also be empowered to make further regulations on housing and tenancy matters in the state.

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Landlords who violate the provisions of the bill, once passed into law, will attract a fine of ₦500,000, a six-month prison term, or both.

Hon. Mbah expressed confidence in the bill’s passage, stating that it aligns with the interests of the people. “The ills it seeks to address are widespread and generally suffered by our constituents,” he said. “I have no doubt that an overwhelming majority of the Assembly members will support it.”