THE House of Representatives is considering a bill seeking to prohibit landlords, property managers and estate agents in the Federal Capital Territory (FCT) from demanding more than 12 months’ rent as a condition for granting or renewing a tenancy.
News Point Nigeria reports that the proposed legislation, sponsored by Paul Nnamchi, representing Enugu East/Isi-Uzo Federal Constituency, and Ahmed Doro, representing Bindawa/Mani Federal Constituency in Katsina State, seeks to establish an authority to regulate rental payments and protect tenants from unlawful practices.
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The bill also proposes measures to prevent landlords from circumventing the restriction through intermediaries, compulsory service charges, artificial tenancy renewals, separate agreements or other arrangements designed to compel tenants to pay more than 12 months’ rent upfront.
Under the proposal, tenants would be allowed to voluntarily pay rent for more than one year if they initiate the arrangement without coercion, threats, discrimination or retaliation, provided the agreement and payment are documented in writing.
The proposed legislation also requires landlords and authorised agents to provide written tenancy agreements before or at the commencement of a tenancy. The agreements must specify the rent, payment schedule, duration of the tenancy, refundable deposits, additional charges, and the rights and obligations of both parties.
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The bill seeks to establish the Federal Capital Territory Rent Regulation and Tenants’ Protection Authority, which would be responsible for investigating complaints, monitoring compliance, facilitating dispute resolution and ordering refunds of unlawful rental payments.
Under the proposed law, if the authority finds that a tenant has paid rent in violation of its provisions, it may order a refund of the unlawful amount within 30 days of serving the order.
The bill proposes fines ranging from N500,000 to N5 million for individuals convicted of knowingly violating the restriction on advance rent payments, while corporate offenders would face fines ranging from N5 million to N20 million.
It also provides for a fine of up to N1 million for anyone convicted of failing to comply with a valid compliance notice issued by the authority.
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The proposed legislation stipulates that tenants and landlords would retain the right to seek judicial redress, while anyone dissatisfied with the authority’s decisions could appeal to the FCT High Court within 30 days.
Last year, the parliament proposed capping rent increases nationwide at 20 per cent and urged the Federal Government to enforce the measure. However, the resolution has not been verifiably implemented.
