The Enugu State House of Assembly is considering a bill to regulate agency and legal fees for tenancy agreements, and to ban caution fees charged by landlords.
Following complaints about tenant exploitation, the bill, titled “A Bill for a Law to Amend the Landlord and Tenant Law, CAP. 101, Laws of Enugu State, 2024,” was sponsored by Hon. Okey Mbah, representing Nkanu East State Constituency, underwent its first reading on Tuesday.
The proposed legislation seeks to cap agency and legal fees at 10% of the rent and abolish caution fees—charges imposed on tenants by landlords that are rarely refunded at the end of the tenancy.
Section 3(3) of the proposed law states: “With effect from the commencement of this law and notwithstanding any provisions in other enactments, agent fees chargeable for procuring any accommodation in the state shall not exceed 10% of the rent payable by the prospective tenant.”
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Similarly, Section 3(4) provides: “No tenant shall be required to pay any further premium in acquiring accommodation except for a legal fee payable to a qualified legal practitioner for the preparation of the landlord and tenant agreement, which shall not exceed 10% of the rent.”
Violations of the law, once enacted, will be punishable by a fine of N500,000, a six-month prison term, or both.
The bill also aims to protect tenants from forced, irregular, and fraudulent evictions by establishing legally defined eviction timelines and notice periods.
It further proposes that individuals operating as letting agents or property managers must be certified by relevant authorities and empowers a designated government ministry or agency to issue additional regulations on housing and tenancy matters in Enugu State.
Speaking after the bill’s first reading, Mr Mbah stated that the initiative aligns with “the earnest desires of the people and residents of Enugu State.” He expressed confidence that the bill would receive widespread support
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