The Enugu State House of Assembly has taken a step toward addressing high rental charges in the state by reading for the first time a Bill seeking to amend the Landlord and Tenant Law of Enugu State, 2004.
Sponsored by Hon. Okey Mbah, the proposed legislation aims to cap agent fees at 10% of annual rent, reducing the financial burden on prospective tenants.
“With effect from the commencement of this law and notwithstanding any provision in other enactments, agent fee chargeable for procuring any accommodation in the State shall not exceed 10% of rent paid by the prospective tenant,” Mbah stated.
The bill also seeks to regulate legal fees associated with tenancy agreements, ensuring that only a qualified legal practitioner can charge such fees, and setting a limit on the amount.
“No tenant shall be caused to pay any further premium in acquiring any accommodation except legal fee payable to a qualified legal practitioner for the purpose of preparing the landlord and tenant agreement and such fee shall not exceed 10% of the rent.”
Additionally, the legislation proposes that the Enugu State Housing Development Corporation, through its managing director, be given the authority to register and regulate agents operating in the state.
Individuals seeking to work as property agents would be required to obtain a permit, which must be renewed annually.
The bill includes strict penalties for violators, stating that “any person or persons who contravene any of the provisions of this law is liable, on summary conviction to a fine of N500,000 or imprisonment for a term of six months or to both such fine and imprisonment.”
If passed into law, the bill is expected to provide relief to tenants by eliminating excessive charges and streamlining the rental process in Enugu State.
