Lagos introduces monthly tenancy scheme, how tenants can Participate

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According to the Lagos administration, N5 billion has been set aside to begin the state's monthly tenancy scheme in January 2022.

This was revealed by Rabiu Olowo, the commissioner for finance, during a panel discussion at the Lagos real estate marketplace conference and expo on Wednesday.

Monthly Tenancy Scheme
Monthly Tenancy Scheme

The two-day event was dubbed 'Lagos: 21st Century Real Estate Investment Hub' by the Lagos State Real Estate Regulatory Authority (LASRERA).

The scheme was created, according to the commissioner, to assist renters and landlords with rent remittance.
According to Olowo, the first group of beneficiaries will come from the formal sector, the second group from the informal sector, and so on.

"We were able to construct a model that would be launched and known as the Lagos monthly rental policy," the commissioner added, citing a poll.

“You (stakeholders) have nothing to fear. You will get a better deal by joining the scheme.

“To start with, an N5 billion portfolio has been put in place to kick off the scheme.

“We welcome more support from more financial institutions to raise the bar of the portfolio for the masses to enjoy from this policy.”

“The survey reveals that a large percentage of Lagos residents finds it difficult to pay their rent on yearly basis, hence the introduction of the initiative.

The initiative, according to Toke Benson-Awoyinka, special adviser to the Lagos governor on housing, is part of attempts to strengthen the real estate market and enhance investor confidence.

She explained that the strategy is similar to the rent-to-own program that is already in place in Lagos.

According to Benson-Awoyinka, the government has the authority to tell landlords how to collect rent from tenants.

"Yes, there is a way we can dictate," she said, citing the tenancy law, which states that in some sections of Lagos state, you cannot collect more than a one-year tenancy.

"We also recognize that, due to Nigeria's credit system, we are unable to impose a monthly tenancy, so we must create an environment that encourages individuals to participate in the plan."

“So, there are various components to this. We have the insurance, financier, the landlord, the tenant and the legal, apart from the administrative cost of the scheme.”

She noted that there is a process for present tenants that would like to join the scheme.

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