Lagos Proposes New Tenancy Bill to Regulate Rents, Agency Fees and Disputes

Lagos State is set to introduce a new tenancy bill aimed at regulating rent increases, agency charges and disputes between landlords and tenants.

The bill is currently before the Lagos State House of Assembly. If passed, it will change how rental transactions are carried out across the state. While tenants may benefit from stronger protections, landlords and estate agents could face stricter rules.

Tenants could get more protection
One of the main goals of the proposed law is to protect tenants from excessive rent increases and arbitrary charges.

Lagos has recorded cases of rents rising by 100 to 200 per cent in some areas. The government says the new bill will strengthen rules around rent payments, tenancy agreements and evictions, and make rental processes more transparent.

The state also plans faster resolution of tenancy disputes, including sittings on weekends and public holidays for tenancy matters. For many tenants, this could reduce opportunities for exploitation by landlords or agents.

Landlords face stricter rules
The bill presents a mixed outcome for landlords.

Responsible landlords may benefit from clearer rules and faster dispute resolution. However, limits on rent increases and closer scrutiny of tenancy arrangements could reduce flexibility.

Landlords also continue to deal with rising costs of construction, maintenance and financing. If rent adjustments are restricted, some property owners may seek other ways to protect returns.

A key question is whether measures meant to make renting more affordable will lead some landlords to raise asking rents or become more selective with tenants. The impact will depend on the final version of the law and how it is enforced.

Estate agents to face mandatory registration
Estate agents are a major focus of the reforms.

The bill proposes mandatory registration with the Lagos State Real Estate Regulatory Authority, LASRERA. Operating without registration could become an offence.

This targets unregistered agents linked to excessive charges and weak accountability. The state said LASRERA recovered more than N270 million from fraudulent estate agents between 2025 and 2026.

For registered and professional agents, the regulation could improve market confidence by removing fraudulent operators.

Housing supply remains a bigger challenge
Experts note that regulation alone will not solve Lagos housing problems.

Even with stronger tenant protections and reduced charges, rents will remain under pressure if demand continues to outpace supply. High land costs, construction costs and financing challenges still make affordable housing difficult to deliver at scale.

The tenancy bill could make the rental market more transparent, but it will not address the housing shortage on its own. The test will be whether the law protects tenants without discouraging landlords and developers from providing more homes.

Cheaper rent areas in Lagos
For tenants looking for more affordable options, areas like Ikorodu are emerging as alternatives. Listings in the area show self-contained apartments and mini-flats at prices lower than in many central parts of Lagos.