Lagos State Slashes Agency Fees to 5% as New Tenancy Law Reshapes Renting in 2025

Lagos State Slashes Agency Fees to 5% as New Tenancy Law Reshapes Renting in 2025

Lagos tenants can finally breathe easier. In a landmark move set to redefine the rental landscape, the Lagos State Government has reduced agency fees on rental properties to a standard 5%, ending years of widespread complaints about excessive commissions ranging from 10% to 20%.

But that is only one part of a sweeping reform.

The newly signed Tenancy Law 2025 is being hailed as a game-changer—one that brings long-awaited structure, fairness, and protection to millions of Lagos residents and property owners.

Below is a comprehensive breakdown of the key changes.

🔹 Major Highlights of the Tenancy Law 2025

1. No More Outrageous Upfront Rent Demands

For decades, Lagos tenants have endured:

 • Two years’ rent upfront

 • 18-month advance payments

 • “Pay before you even enter” policies

The new law has ended this.

The New Rule:

 • Maximum 3 months upfront for monthly rent

 • Maximum 1 year upfront for yearly rent

A massive relief for tenants across the state.

2. Agency Fee Now Capped at 5%

Agents can no longer charge whatever they please.

The New Rule:

 • Maximum commission: 5% of annual rent

 • Eliminates 10%, 15%, and even 20% agent/agreement fees

This reform aligns Lagos with global real estate standards.

3. Rent Increases Must Come With Proper Notice

Lagos tenants are now protected from sudden, shocking rent hikes.

The New Rule:

Landlords must:

 • Issue a written notice before any rent increment

 • Provide reasonable time for tenants to prepare

This ensures transparency, fairness, and peace of mind.

4. Illegal Evictions Are Now Criminal

No landlord can:

 • Change your padlock

 • Throw out your belongings

 • Use thugs to force you out

 • Harass or intimidate you into leaving

The New Rule:

 • A court order is now mandatory for any eviction

 • Illegal eviction is now a criminal offence

Tenants now have real, enforceable protection.

5. Faster Dispute Resolution

The new law introduces:

 • Clear conflict-resolution channels

 • Virtual hearings to reduce delays

 • Faster access to justice for both landlords and tenants

This modernised process cuts out unnecessary bottlenecks.

What This Means for Lagos

The new Tenancy Law:

 • Makes renting more affordable

 • Strengthens tenant rights and protections

 • Gives landlords a clear legal framework

 • Reduces tension and conflict

 • Encourages fairness and transparency in the housing market

For Nigeria’s economic capital, this is more than a policy shift—it is a structural transformation of the rental ecosystem.