LASG reaffirms 10% cap on tenancy agreement fees, warns against illegal charges 

May 14, 2025

The Lagos State Government has reiterated its stance against the imposition of excessive tenancy agreement fees, reminding all stakeholders within the state that the stipulated maximum remains 10% of the annual rent.

In a statement by the State, this declaration was made by the Special Adviser to the Governor of Lagos State on Housing, Barrister. Barakat Odunuga-Bakare, during the 2025 Ministerial Press Briefing held at the Bagauda Kaltho Press Centre in Alausa, Ikeja.

Odunuga-Bakare underscored the clarity and unambiguous nature of the Lagos State Tenancy Law, stating unequivocally that any landlord or agent found demanding or collecting more than 10 per cent of the annual rent as agreement or legal fees is in direct violation of the state’s tenancy regulations.

Expressing concern over reports of unscrupulous practices, the Special Adviser stated, “We have been overwhelmed by reports of the activities of these unscrupulous elements making life hard for Lagosians with agreements and commissions that is like asking for an arm and a leg.

We are calling on members of the public not to keep silent but to report such agents and landlords to us for the government cannot be everywhere, every time”.

Acknowledging the significant challenges posed by the nation’s burgeoning population and increasing rural-urban migration on the state’s housing sector, Barr. Odunuga-Bakare recognised that this situation has unfortunately created opportunities for some individuals to exploit vulnerable residents.

However, she firmly asserted the State Government’s unwavering commitment to regulating and sanitising the housing sector to protect the interests of Lagosians.

Furthermore, Odunuga-Bakare highlighted the collaborative efforts between the government and recognised associations of real estate agents.

“We have met with associations of real estate agents, and they have assured us that the people who are engaging in such practices are not registered agents that identify with their associations,” she noted, suggesting that these illegal activities are often perpetrated by unregistered individuals operating outside the purview of established professional bodies.”

The Lagos State Government urges all residents who encounter demands for tenancy agreement fees exceeding the legally mandated 10% to report such incidents through the Lagos State Real Estate Regulating Authority (LASRERA) on Facebook, Instagram: lasrera 1 and X (formerly Twitter) @lasrera

This call to action aims to empower citizens and ensure the effective enforcement of the Tenancy Law, thereby fostering a fairer and more transparent housing market in Lagos State.