The Lagos State Government has said that it is engaging real estate developers and landlords to consider collecting monthly rent.
However, the government said it has no plans to force the decision on the landlords and developers.
The state economy has suffered one of its deepest depression on the account of the Covid-19, but the impact is more noticed on property acquisition and rent payment.
Rent in Nigeria’s biggest commercial hub has been on the rise as property owners arbitrarily jerked rents, a move the state resisted in March this year.
The State Government recently inaugurated a 16-man Technical Committee on Real Estate Regulation in the state to restore sanity to the sector.
Adetoke Benson-Awoyinka, Special Adviser To Lagos State Governor on Housing, said on TVC Business, that the government was also bent on making the state uncomfortable for real estate fraudsters.
Benson-Awoyinka said, “Landlord tenant relationship, developer off taker relationship, we have a tenancy law that deals with that. I will love Lagos where you pay your tenancy every month and I believe that some property tech companies are looking at that. We are going to be engaging them. We are going to make sure that everything available in the industry we are going to make use of.
“So I think I have seen some young technology savvy people, who are also introducing themselves as a stop gap for you and the landlord. I don’t know what they are doing, I have not studied it, I don’t know how it will work out but I think it is the way to go. As a government, we cannot compel you on how much to charge, but we can tell you tenancy should be a yearly tenancy agreement or biannual.
“But we cannot actually say month to month, because we also understand that investments have gone into building those structures and if I tell you I am charging you N1m per annum, then you tell me to start taking N80,000 monthly, people have planned for that gross money and we cannot really do that.”
She said that the issue of fraud in the sector is being looked at adding that, “We saw that the fraud in the sector is something we needed to look at, take hold of and make sure that we as government take our proper place in the industry.
“Someone built a 15-unit structure, and sold it to over 200 people, so we were in court. We have had several of those.”
She revealed that similarly fraudulent property in Ajao Estate has been forfeited to Lagos.
“We intend to sell off that property and give victims back their money… Every fraud in real estate starts with an advertisement.
“So you put up that real estate advert, somebody is going to ask you, are you registered, because we require that all practitioners real estate register with the Lagos Real Estate Authority.
“So if you are not registered with the Lagos Real Estate Authority, you are going to be contravening the law.,” said Benson-Awoyinka.
She further hinted that every income earning Lagosian could own a home if properly guided.