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.
The proposed legislation, sponsored by Paul Nnamchi (Enugu
east/Isi-Uzo federal constituency) and Ahmed Doro (Bindawa/Mani federal
constituency in Katsina), seeks to establish an authority to regulate rental
payments and protect tenants from unlawful practices.
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 could 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 start
of a tenancy, specifying the rent, payment schedule, tenancy duration,
refundable deposits, additional charges, and the rights and obligations of both
parties.
The bill aims to establish the Federal Capital Territory
Rent Regulation and Tenants’ Protection Authority, which would investigate
complaints, monitor compliance, facilitate dispute resolution and order refunds
of unlawful rental payments.
If the authority finds that a tenant paid rent in violation
of the proposed law, it may order a refund of the unlawful amount within 30
days of serving the order.
The bill proposes fines of between N500,000 and 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.
The proposed law 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.
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 percent and urged the federal government to enforce the
measure, but the resolution has not been verifiably implemented.
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