Peoples Democratic Party (PDP) chieftain and former Delta State gubernatorial aspirant, Chief Sunny Onuesoke, has backed the appeal by Delta State Governor, Sheriff Oborevwori, urging estate firms to help reduce the cost of rent on properties in the state.
The PDP chieftain also used the opportunity to call on the state government to address the excessive fees charged by house rent agents, which have worsened the hardship faced by those seeking new accommodation.
The governor, represented by his Chief of Staff, Mr Johnson Erijo, had made the appeal on Monday at the 13th anniversary and annual convention of Property World Africa Network Marketing Company in Asaba, the state capital.
While urging real estate organisations to help lower rental costs, the governor stated that the current skyrocketing rents are unsustainable, particularly for public service workers.
He had called on property owners to apply innovative strategies to make housing more affordable.
Reacting to the governor’s appeal while speaking to journalists on the sidelines of the event, Onuesoke urged the Delta State government to also regulate the activities of house rent agents, whose excessive fees have exacerbated the financial burden on residents.
He noted that agency fees charged by agents are often higher than the rent collected by landlords, adding that such selfish practices contribute to rent increases.
Calling for a law to curb the exploitation by agents, Onuesoke said: “The agency fee is almost surpassing the rent itself. It should not be more than 10%, or at most 5%. But in Warri, agency fees range from 40% to 50%, with the justification that it is a one-time payment.
“The actions of these agents are worsening hardship in Delta State. For instance, a two-bedroom flat in Warri now costs between N800,000 and N1.2 million annually, excluding agency fees.
“How can people survive like this? You cannot rent a house without going through an agent. If you want to build, ‘Dev’ guys will harass you, and if you want to rent it out, agents create more problems.
“This is a major contributor to the economic hardship in Delta State.”
Onuesoke, who is currently on a sensitisation tour advocating for reduced rental costs, urged the state government to embark on a large-scale low-cost housing scheme as a solution to the high rent crisis in the state.
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