Enugu Assembly Moves to Regulate Tenancy Fees, Protect Tenants

The Enugu State House of Assembly has introduced a bill aimed at curbing alleged exploitation in agency and legal fees for tenancy agreements.

According to the House, the bill responds to growing complaints from residents about excessive charges imposed by landlords on tenants and prospective renters.

Titled The Bill for a Law to Amend the Landlord and Tenant Law, CAP. 101, Laws of Enugu State, 2024, the proposed legislation is sponsored by Hon. Okey Mbah, who represents Nkanu East State Constituency. It underwent its first reading on Tuesday.

Among its key provisions, the bill seeks to cap agency and legal fees at a maximum of 10 per cent of the rent. It also aims to abolish caution fees—charges imposed by landlords that are rarely refunded at the end of tenancy.

Section 3(3) of the proposed law states: “With effect from the commencement of this law and notwithstanding any provisions in other enactments, agent fees chargeable for procuring any accommodation in the state shall not exceed 10 per cent of the rent payable by the prospective tenant.” Similarly, Section 3(4) provides: “No tenant shall be required to pay any further premium in acquiring accommodation except for a legal fee payable to a qualified legal practitioner for the preparation of the landlord and tenant agreement, which shall not exceed 10 per cent of the rent.”

Once enacted, violations of the law will attract a fine of N500,000, a six-month prison term, or both.

The bill also seeks to protect tenants from forced, irregular, and fraudulent evictions by introducing legally defined eviction timelines and notice periods.

Additionally, it proposes that individuals wishing to operate as land agents or property managers must obtain proper certification from relevant authorities. A designated government ministry or agency will also be empowered to issue further regulations on housing and tenancy matters in Enugu State.

Speaking after the bill’s first reading, Mbah said the initiative aligns with “the earnest desires of the people and residents of Enugu State.” He expressed confidence that the bill would gain overwhelming support from House members, as it addresses widespread concerns affecting their constituents.