Tuesday, June 24, 2014

TENANTS LEGAL RIGHTS

A couple of years ago Lagos State brought out a law to protect tenants, The Lagos State Tenancy Law.  The question on many people’s lips today is, is the law working? It is difficult to answer this question as I know that if you speak to ten people, you will get ten different perspectives. I guess that in itself is an answer that the Tenancy Law is not as cohesive as it should be. In my opinion as a property professional, the Law is not being followed to the letter, I guess this is because it is difficult to implement some of the requirements ie collecting only one year’s rent in certain areas and not in others. This creates confusion for landlords and tenants who cannot understand why Lekki should command one year’s rent and Victoria Island, two years. Some landlords, who are paying off mortgages, really cannot afford to take one year’s rent as they need to service their mortgages. Landlords will tell you that if the tenant cannot pay the two years or more rent that he wants, they are welcome to go and look for a property elsewhere that accepts one year payment. The landlord is well within his rights to decline a tenancy as long as monies and an agreement have not been exchanged, which can be tendered as evidence in a court of Law

A Tenancy Agreement must be given to each and every tenant before allocation of a unit of accommodation is made. All laws, rights and obligations must be stated in the Agreement. The Agreement must be read and signed by both the landlord and tenant, and the tenant should receive a copy of the Agreement. Landlords should provide the tenant with sufficient time to read the agreement and raise any questions they have before signing and agreeing to the terms. The landlord is also required to provide the tenant with their full name and address. All tenancy agreements should state the parties involved, the rental price, any deposit retained by the landlord, the property address, the start and end date of the tenancy, and the obligations of the tenant and the landlord.  All tenancy agreements must comply with statutory law. This is law that is enforceable by the judicial system and is therefore legally binding regardless of what is stated in the tenancy agreement. With all tenancy agreements there are rights by law for both landlord and tenant; even though these may not have been discussed between both parties in advance, they apply to all tenancy agreements.

The rate at which court decisions are made for the eviction of illegal occupiers is so slow, as they end up staying rent free for up to a year or more before a judgment is made. There is therefore a lack of confidence in the court system. The Property law is of course open to corruption and unregulated practices when one or all parties involved, try to cut corners. Agents who are mentioned in the Tenancy Law also give the business a bad name by going behind the backs of their main client and collecting fees from both parties. Some landlords will go with whoever closes on the property and not who they appointed and blatantly tell you that they owe no one any allegiance, therefore the property market regulations are really subject to the honesty of those involved in its practices.

A lot of tenants are still not aware of their rights and therefore get bullied by landlords who increase rents without notice or because they have received an offer of higher rent payments or they tell the current tenants to leave the property before their lease expires. If the tenant does not move out or increase the rent to match the offer being given by the landlord, they are asked to leave. Most tenants resort to begging the landlord instead of taking the matter to court. Sometimes Agents capitalise on this by demanding exorbitant fees and higher rent from the tenant in order to assure them of getting a sought after property. The responsibility of carrying out repairs is another area where tenants and landlords are not clear about responsibilities. Some landlords feel that a tenant should take their property in the state of disrepair as it is advertised and fix the repairs themselves. This is wrong! Some tenants carry out all sorts of alterations and works to their rented property without consulting the landlord. Both actions are wrong and can be taken to a court of law for resolution.

What is needed in the property market is closer monitoring of practices and instant enforcement of penalties from the monitoring agencies for those found breaking the law.

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