Experts caution govt on imposition of monthly rental collection

Say prevailing economic situation makes it a burden

Housing industry’s experts have cautioned the government, especially the Lagos authority, over its ongoing policy on monthly collection of rents.

The experts warned that apart from the wrong timing of such policy, no thanks to the prevailing economic situation, the proposed imposition of monthly rental collection would discourage investment in the real estate sector by private developers and foreigners.

The experts, who spoke with Nigerian Tribune in Lagos, comprised the Managing Director/CEO, Fame Oyster & Co., Olufemi Oyedele; former Chairman, Nigerian Institute of Town Planners, Omotayo Awomosu; and Past President, Nigerian Institute of Building, Chucks Omeife.

Already, the Lagos Tenancy Bill before the state House of Assembly has gone through the second readings.

It is expected that the final passage of the bill by the legislators and signing into law by the Governor will signal the commencement of monthly rental collection across the state.

The Lagos State Government came out with the idea of monthly and quarterly rent payment options as part of efforts to reduce the financial pressure on residents, especially low-income earners.

Pending the passage of the bill, an official from the Ministry of Housing, who did not want her name in print, said people have been advised to avoid fraudulent practices.

She added that estate agents have also been advised not to take more than 10 per cent as agency fee from home seekers.

“Any landlord or agent that fail to render the appropriate service. We have asked people to report them to the office of the Lagos State Real Estate Regulatory Authority (LASRERA).

“Everybody is awaiting the passage of the Tenancy Bill to law. People are being advised to avoid fraudulent practices,” she said.

Speaking, Femi Oyedele said that no government law on one-month rental collection can work in any nation including socialist countries like Cuba.

He was of the opinion that the right time to push for social housing in Lagos State is now rather than pushing for one-month rent.

In other countries, he explained that the government pushed for one-month rent through social housing and also influenced private housing owners’ decision through it.

He said: “No government law on one-month rent can work in any nation including socialist countries like Cuba. In Cuba, where there is rent control and price control on goods and products, there are two different currencies of the same denomination. While citizens spend normal currency, visitors and non-citizens like embassy foreign workers spend the currency with less value, so they pay higher amount on rent than the Cuban citizens.”

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“A responsible government must be able to house its citizens without hitch.”

On the proposed monthly rental collection, he said: “The government of Lagos State really feels for the tenants and pray it can protect the tenants because that is one of the statutory functions of the state to the people. In a state where owner-occupiers are less than 25 per cent, tenants will be more than 75 per cent of the population. The government wants to reduce the burden of the tenants by recommending monthly rent in the state. Unfortunately, it will not work.”