How Some Lagos Landlords Ruin The Economy Of Lagos

How Some Lagos Landlords Ruin the Economy of Lagos

alt

I have just read a report in the newspapers that a bill that will check the excesses of landlords in Lagos is on the floor of the hallowed chambers of the Lagos State House of Assembly for consideration and when passed into law it is going to be a landmark achievement that will stand the test of time in Nigeria . I hear that when the bill becomes a law, it will be an offence punishable by law to collect more than three months rent or for a would-be tenant to pay more than three months rent. I hear also that 3 years imprisonment awaits such offenders.

This is a revolution, which if religiously implemented, and to all intents and purposes, will add serious values to Lagos State . I have lived somewhere in Surulere since 1992 and for those 18 years I have seen how Lagos landlords have exploited poor Lagosians, killed their businesses and sent them to their villages. On my way to work and back I have seen shops rented for 2 years at N5000 per month depending on the size and pay for two or three years with agreement and agent fees duly paid. Goods worth more than N100, 000 may not be inside the shops. These shop owners stay for two or three years and when the rent expires they may not continue because there will not be enough money to pay for even one year rent. The landlords take over the shops and look for another customer, on jerked up rent. After two years the same thing happens and another person packs in. that way, the vicious circle continues and the landlord continues to smile to the bank.

The cycle of stupidity and fraud continues and our economy continues to nose-dive. For 18 years I have watched this dangerous trend and criminality along Adelabu-Agbonyin, Enitan-Pako and Agbebi Streets, all in Surulere. In a particular shop, I have keenly observed five shop owners coming and going within a span of 10 years. This is the same story all over Lagos and indeed the entire country.

Dubious and lazy landlords in Lagos have no conscience. They rely on houses they built 30-40 years ago to pay school fees for their children and children of their concubines in Nigeria and abroad, they rely on the money to feed, cloth and do naming ceremonies. They rely on the money to buy cars and do other sundry things. Routine maintenance of the building is not in their lexicon. Their children are busy learning the trade, and sometimes these children force their parents to die in order to take over the property and it becomes business as usual. In our area I have seen young men take over their father's property and with that they are comfortable. They do no other jobs except to collect rents. You know them when they gather once in a month at the Street gate to collect security and other levies.

I packed into a three bedroom flat in Ijeshatedo, Surulere in1992 for N18,000 per annum. From N18,000 it was moved to N25,000, N30,000, N50,000, N80,000, N100,000, N120,000, and N150,000, and for 18 years nothing has been added to that block of 12 flats in terms of anything by the landlord. We did all the repairs, changed kitchens, toilet, and bathrooms, repainted the flats, serviced the drains, and repaired the two gates leading to the compound. Today twelve of us are in possession of quit notices. What is his target?

A flat is now going from N300,000-N500,000 in Ijeshatedo depending on the type of building. If 12 of us leave, he will change few things in the two blocks of flats and probably paint the whole blocks he has not painted for 19 years now. The next thing is to ask for 500k per annum and two years rent. This is his target.

I have made the points at several fora in Lagos that rents in Lagos these days are not justifiable. It is completely running at variance with the real prevailing economic situation in Lagos. It is counterproductive, it is criminal, and it is absurd. Investment funds end in the pocket of landlords and they use it to marry more wives and breed more children. The trend is that whenever a landlords collects his rent, the repair and upgrading of his building falls on the tenants and the system is so favorable to the landlords that the tenant has nowhere to run to or else when he is not clamped down on, he is given quit notice. Which system runs like that? A system where a landlord wants to collect the cost of his building in one fell swoop is devilish and is not practiced anywhere else in the world.

Matters were not helped by the phenomenal growth of banks in Lagos whether real or fake. Cheap funds collected from sales of dubious shares and deposits of common people were converted to personal wealth by fraudulent bank CEOs, and where do they put the money? Properties. Cheap funds from banks workers raised the stakes very high in the property industry in Lagos especially living houses. A rent of N500,000 per annum is no money to them. Banks buy up property in any busy Street in Lagos at a mouth watering fee and there is a big scramble to sell houses to banks, and this has helped in no uncertain terms to render poor people homeless in Lagos.

The woes of tenants in Lagos are endless and unbelievable. They are hopeless, helpless, hapless and totally humiliated. We need courage and political will to enforce this law. This law is long over due, it is imperative, it is a must law. It will help to release the investment funds going into the pockets of landlords, it will help the poor, it will reduce crimes, it will create jobs, and it will help the economy of Lagos. The move is a political master stroke, it is creative thinking in action, and it is creative governance in action and Lagos is getting it right. Lagos State House of Assembly, please pass this law immediately and follow it up with affirmative action. A follow up is to set up a rent tribunal that will handle cases from this envisaged law and many other tenant-landlord related issues that have made the lives of tenants a living hell in Lagos and indeed Nigeria.

Joe Igbokwe.

Lagos.



1 2 3
How Some Lagos Landlords Ruin The Economy Of Lagos
Joe Igbokwe posted on 01-23-2010, 21:43:06 PM

How Some Lagos Landlords Ruin the Economy of Lagos

alt

I have just read a report in the newspapers that a bill that will check the excesses of landlords in Lagos is on the floor of the hallowed chambers of the Lagos State House of Assembly for consideration and when passed into law it is going to be a landmark achievement that will stand the test of time in Nigeria . I hear that when the bill becomes a law, it will be an offence punishable by law to collect more than three months rent or for a would-be tenant to pay more than three months rent. I hear also that 3 years imprisonment awaits such offenders.

This is a revolution, which if religiously implemented, and to all intents and purposes, will add serious values to Lagos State . I have lived somewhere in Surulere since 1992 and for those 18 years I have seen how Lagos landlords have exploited poor Lagosians, killed their businesses and sent them to their villages. On my way to work and back I have seen shops rented for 2 years at N5000 per month depending on the size and pay for two or three years with agreement and agent fees duly paid. Goods worth more than N100, 000 may not be inside the shops. These shop owners stay for two or three years and when the rent expires they may not continue because there will not be enough money to pay for even one year rent. The landlords take over the shops and look for another customer, on jerked up rent. After two years the same thing happens and another person packs in. that way, the vicious circle continues and the landlord continues to smile to the bank.

The cycle of stupidity and fraud continues and our economy continues to nose-dive. For 18 years I have watched this dangerous trend and criminality along Adelabu-Agbonyin, Enitan-Pako and Agbebi Streets, all in Surulere. In a particular shop, I have keenly observed five shop owners coming and going within a span of 10 years. This is the same story all over Lagos and indeed the entire country.

Dubious and lazy landlords in Lagos have no conscience. They rely on houses they built 30-40 years ago to pay school fees for their children and children of their concubines in Nigeria and abroad, they rely on the money to feed, cloth and do naming ceremonies. They rely on the money to buy cars and do other sundry things. Routine maintenance of the building is not in their lexicon. Their children are busy learning the trade, and sometimes these children force their parents to die in order to take over the property and it becomes business as usual. In our area I have seen young men take over their father's property and with that they are comfortable. They do no other jobs except to collect rents. You know them when they gather once in a month at the Street gate to collect security and other levies.

I packed into a three bedroom flat in Ijeshatedo, Surulere in1992 for N18,000 per annum. From N18,000 it was moved to N25,000, N30,000, N50,000, N80,000, N100,000, N120,000, and N150,000, and for 18 years nothing has been added to that block of 12 flats in terms of anything by the landlord. We did all the repairs, changed kitchens, toilet, and bathrooms, repainted the flats, serviced the drains, and repaired the two gates leading to the compound. Today twelve of us are in possession of quit notices. What is his target?

A flat is now going from N300,000-N500,000 in Ijeshatedo depending on the type of building. If 12 of us leave, he will change few things in the two blocks of flats and probably paint the whole blocks he has not painted for 19 years now. The next thing is to ask for 500k per annum and two years rent. This is his target.

I have made the points at several fora in Lagos that rents in Lagos these days are not justifiable. It is completely running at variance with the real prevailing economic situation in Lagos. It is counterproductive, it is criminal, and it is absurd. Investment funds end in the pocket of landlords and they use it to marry more wives and breed more children. The trend is that whenever a landlords collects his rent, the repair and upgrading of his building falls on the tenants and the system is so favorable to the landlords that the tenant has nowhere to run to or else when he is not clamped down on, he is given quit notice. Which system runs like that? A system where a landlord wants to collect the cost of his building in one fell swoop is devilish and is not practiced anywhere else in the world.

Matters were not helped by the phenomenal growth of banks in Lagos whether real or fake. Cheap funds collected from sales of dubious shares and deposits of common people were converted to personal wealth by fraudulent bank CEOs, and where do they put the money? Properties. Cheap funds from banks workers raised the stakes very high in the property industry in Lagos especially living houses. A rent of N500,000 per annum is no money to them. Banks buy up property in any busy Street in Lagos at a mouth watering fee and there is a big scramble to sell houses to banks, and this has helped in no uncertain terms to render poor people homeless in Lagos.

The woes of tenants in Lagos are endless and unbelievable. They are hopeless, helpless, hapless and totally humiliated. We need courage and political will to enforce this law. This law is long over due, it is imperative, it is a must law. It will help to release the investment funds going into the pockets of landlords, it will help the poor, it will reduce crimes, it will create jobs, and it will help the economy of Lagos. The move is a political master stroke, it is creative thinking in action, and it is creative governance in action and Lagos is getting it right. Lagos State House of Assembly, please pass this law immediately and follow it up with affirmative action. A follow up is to set up a rent tribunal that will handle cases from this envisaged law and many other tenant-landlord related issues that have made the lives of tenants a living hell in Lagos and indeed Nigeria.

Joe Igbokwe.

Lagos.



..Read the full article
Re: How Some Lagos Landlords Ruin The Economy Of Lagos
Emenanjo posted on 01-23-2010, 21:43:06 PM

How Some Lagos Landlords Ruin the Economy of Lagos

alt

I have just read a report in the newspapers that a bill that will check the excesses of landlords in Lagos is on the floor of the hallowed chambers of the Lagos State House of Assembly for consideration and when passed into law it is going to be a landmark achievement that will stand the test of time in Nigeria . I hear that when the bill becomes a law, it will be an offence punishable by law to collect more than three months rent or for a would-be tenant to pay more than three months rent. I hear also that 3 years imprisonment awaits such offenders.

This is a revolution, which if religiously implemented, and to all intents and purposes, will add serious values to Lagos State . I have lived somewhere in Surulere since 1992 and for those 18 years I have seen how Lagos landlords have exploited poor Lagosians, killed their businesses and sent them to their villages. On my way to work and back I have seen shops rented for 2 years at N5000 per month depending on the size and pay for two or three years with agreement and agent fees duly paid. Goods worth more than N100, 000 may not be inside the shops. These shop owners stay for two or three years and when the rent expires they may not continue because there will not be enough money to pay for even one year rent. The landlords take over the shops and look for another customer, on jerked up rent. After two years the same thing happens and another person packs in. that way, the vicious circle continues and the landlord continues to smile to the bank.

The cycle of stupidity and fraud continues and our economy continues to nose-dive. For 18 years I have watched this dangerous trend and criminality along Adelabu-Agbonyin, Enitan-Pako and Agbebi Streets, all in Surulere. In a particular shop, I have keenly observed five shop owners coming and going within a span of 10 years. This is the same story all over Lagos and indeed the entire country.

Dubious and lazy landlords in Lagos have no conscience. They rely on houses they built 30-40 years ago to pay school fees for their children and children of their concubines in Nigeria and abroad, they rely on the money to feed, cloth and do naming ceremonies. They rely on the money to buy cars and do other sundry things. Routine maintenance of the building is not in their lexicon. Their children are busy learning the trade, and sometimes these children force their parents to die in order to take over the property and it becomes business as usual. In our area I have seen young men take over their father's property and with that they are comfortable. They do no other jobs except to collect rents. You know them when they gather once in a month at the Street gate to collect security and other levies.

I packed into a three bedroom flat in Ijeshatedo, Surulere in1992 for N18,000 per annum. From N18,000 it was moved to N25,000, N30,000, N50,000, N80,000, N100,000, N120,000, and N150,000, and for 18 years nothing has been added to that block of 12 flats in terms of anything by the landlord. We did all the repairs, changed kitchens, toilet, and bathrooms, repainted the flats, serviced the drains, and repaired the two gates leading to the compound. Today twelve of us are in possession of quit notices. What is his target?

A flat is now going from N300,000-N500,000 in Ijeshatedo depending on the type of building. If 12 of us leave, he will change few things in the two blocks of flats and probably paint the whole blocks he has not painted for 19 years now. The next thing is to ask for 500k per annum and two years rent. This is his target.

I have made the points at several fora in Lagos that rents in Lagos these days are not justifiable. It is completely running at variance with the real prevailing economic situation in Lagos. It is counterproductive, it is criminal, and it is absurd. Investment funds end in the pocket of landlords and they use it to marry more wives and breed more children. The trend is that whenever a landlords collects his rent, the repair and upgrading of his building falls on the tenants and the system is so favorable to the landlords that the tenant has nowhere to run to or else when he is not clamped down on, he is given quit notice. Which system runs like that? A system where a landlord wants to collect the cost of his building in one fell swoop is devilish and is not practiced anywhere else in the world.

Matters were not helped by the phenomenal growth of banks in Lagos whether real or fake. Cheap funds collected from sales of dubious shares and deposits of common people were converted to personal wealth by fraudulent bank CEOs, and where do they put the money? Properties. Cheap funds from banks workers raised the stakes very high in the property industry in Lagos especially living houses. A rent of N500,000 per annum is no money to them. Banks buy up property in any busy Street in Lagos at a mouth watering fee and there is a big scramble to sell houses to banks, and this has helped in no uncertain terms to render poor people homeless in Lagos.

The woes of tenants in Lagos are endless and unbelievable. They are hopeless, helpless, hapless and totally humiliated. We need courage and political will to enforce this law. This law is long over due, it is imperative, it is a must law. It will help to release the investment funds going into the pockets of landlords, it will help the poor, it will reduce crimes, it will create jobs, and it will help the economy of Lagos. The move is a political master stroke, it is creative thinking in action, and it is creative governance in action and Lagos is getting it right. Lagos State House of Assembly, please pass this law immediately and follow it up with affirmative action. A follow up is to set up a rent tribunal that will handle cases from this envisaged law and many other tenant-landlord related issues that have made the lives of tenants a living hell in Lagos and indeed Nigeria.

Joe Igbokwe.

Lagos.



..Read the full article
Re: How Some Lagos Landlords Ruin The Economy Of Lagos
Benztown posted on 01-24-2010, 05:14:18 AM
@Bode Eluyera, on which planet do you spend most of your time? As an expert you ignore the fact that most civilized country has law with regards to renting properties and price you pay on square meter depending on the area you live. Three months caution fee is universally accepted and by law in most country deposited on a saving account with interest which is dually paid back with interest if the person renting the property leaves to another house or the contract expires, only in the case of damage to the property does he or she forfeit the caution. Major repairs in rented homes are done by the property owner and tenets are responsible for interior decorations like painting their homes.
When we profess wisdom that are arbitrary and strange to world norm and morally wrong in the name of Nigeria, is not only disingenuous but troubling
What type of economic wisdom support siphoning money from business to property owners as clever? Ever ask yourself who creates the most jobs in an economy, the small business or property owners?
Yes the lack of available and affordable housing plays a major role here and the Government as you rightly pointed has a major role to play here, but that don't mean that Land and property owners should do as they deem fit in a country that acknowledged rule of law
Re: How Some Lagos Landlords Ruin The Economy Of Lagos
Denker posted on 01-24-2010, 05:51:07 AM
@author, well written...thank u!

@emenanjo, to enforce the law is as simple as ABC...Fashola is a lawyer and an action governor...am sure he knows wat to do
Re: How Some Lagos Landlords Ruin The Economy Of Lagos
Katampe posted on 01-24-2010, 06:36:27 AM
Populist policies don't solve free market problems of this nature.They will only make it worse and restrict incentives to deliver more rental spaces into the market. While on first blush it looks good on paper and good for politicians, yet it restricts property rights that is the fundamental purpose of a free market economy.

We can make the moral argument that it is wrong all we want, yet, based on historical evidence on rental laws, this is sure to impact heavily on the rental market causing more problems that is meant to create, problems like black markets that would spring up to circumvent the laws. More like artificial scarcity would be created to compound an already existing problem.

If these folks were smart, they would realise that this is the way Lagos economy allocates resources in the market, and its own way of addressing the issue of influx of people into the city through enormous cost of housing spaces that already overstretches the infrastructural facilities that support them.

If this so called governor really wants to help, he should create renovation funds/loans for home owners that Lagos landlords can go to borrow money for maintenance of their properties. This is crude economics and the author shows ignorance on these matters.
Re: How Some Lagos Landlords Ruin The Economy Of Lagos
HolyPagan posted on 01-24-2010, 06:58:24 AM
The Nigerian commercial Property market is a free market impacted by Demand and Supply.
If the lagos state govt wants to artificially influence tenure...they should offer the Landlords some form of security for their expected rent, in the form of a guarantee that after the initial 3 months, they (LASG)would step up, and make sure the Landlord gets his subsequent month's rent.(We know this is impossible hehehe)

Landlords do not ask for multiple years rent up front, because they want to be wicked....a Lot of Nigerians do not have a secure means of income and therefore are not a safe bet for short term financial arrangements, like this maximum "3months rent upfront business"...Also some of our people, are known to rent places they can ill afford, and if its the Landlord's means of livelihood, in a country without a social welfare safety net...You bet the Landlord will have to find ways, to ensure he does not end up without what is due him.
Re: How Some Lagos Landlords Ruin The Economy Of Lagos
HolyPagan posted on 01-24-2010, 07:12:29 AM
QUOTE:
@Bode Eluyera, on which planet do you spend most of your time? As an expert you ignore the fact that most civilized country has law with regards to renting properties and price you pay on square meter depending on the area you live. Three months caution fee is universally accepted and by law in most country deposited on a saving account with interest which is dually paid back with interest if the person renting the property leaves to another house or the contract expires, only in the case of damage to the property does he or she forfeit the caution. Major repairs in rented homes are done by the property owner and tenets are responsible for interior decorations like painting their homes.
When we profess wisdom that are arbitrary and strange to world norm and morally wrong in the name of Nigeria, is not only disingenuous but troubling
What type of economic wisdom support siphoning money from business to property owners as clever? Ever ask yourself who creates the most jobs in an economy, the small business or property owners?
Yes the lack of available and affordable housing plays a major role here and the Government as you rightly pointed has a major role to play here, but that don’t mean that Land and property owners should do as they deem fit in a country that acknowledged rule of law


Do you have a credit rating agency in Nigeria, that the landlord can have access to, to ensure he is not letting a habitual debtor into his property, who will live there and string him along for months and end up not paying?

Do you have a means to ensure that should a defaulting tenant pack up and vamose in the middle of the night, owing multiple month's rent, there is a credible means at the landlord's disposal for tracking him down, sueing him in a competent court to recoup his monies.

Do you have a means of guaranteeing that the landlord will get his money at the end of the initial mandatory 3 months up front rent?

Most markets are efficient at resolving the issues presented by its unique challenges...the lagos commercial property rental market is no exception.....
The day that the problems which asking for multiple year's rent 'up-front' seeks to address, does not exist anymore, in the spirit of true competition, as obtains in any efficient market...The practice will die a natural death.

Right now it solves a problem, that is why it goes on.
Re: How Some Lagos Landlords Ruin The Economy Of Lagos
Ph3y posted on 01-24-2010, 08:39:51 AM
Rents are overpriced in Lagos and that is what needs to be checked. Some people don't mind paying in advance as requested by the Landlords if the asking price is reasonable. A landlord asks for like 300k for a 3 bedroom apartment which is made up of cubicles....!!
All the rooms are tiny, some bedrooms can only take a bed and nothing else. the conveniences are even worse off. When i was house hunting, i came across all forms of shacks being paraded as houses. then you'll pay rent, pay agency, pay caution, pay legal, pay maintenance, pay yahoozee, pay obesere the list never ends...
Re: How Some Lagos Landlords Ruin The Economy Of Lagos
Onikoyi posted on 01-24-2010, 10:57:29 AM
Rents may be overpriced in Lagos but have you seen the way some tenants use the houses or flats? Often they pay that move in price and then default for so many years. The space is crowded with heaven knows how many people, you rent to a family of four and ten people end up living there. If you live in a place it should be treated as if you own it. Why destroy some one else's property in Lagos when you keep yours neat in the village?
Re: How Some Lagos Landlords Ruin The Economy Of Lagos
Benztown posted on 01-24-2010, 16:41:41 PM
@HOLYPAGAN

Do you have a means to ensure that should a defaulting tenant pack up and vamose in the middle of the night, owing multiple month's rent, there is a credible means at the landlord's disposal for tracking him down, sueing him in a competent court to recoup his monies.

Do you have a means of guaranteeing that the landlord will get his money at the end of the initial mandatory 3 months up front rent? Etc

Is not about socialism letting dubious tenets occupy homes or flat that they can't afford, the enforcement rather a tested working policy being practiced worldwide and is very simple; you pay three months caution and should you be owing three months back-payment the same law allow the property owner to end the contract and evict the tenet,
Now painting the story of people not having work and can't afford a home tells another story in the whole dilemma that is not discussed. If 50% of the tenets economical can't afford a home or flat the price of Nigerian properties are not then as valued as is now meaning that the rent should come drastically down in other to reflect its true worth.
1 2 3
Please register before you can make new comment