The Enugu State House of Assembly has taken a bold step toward regulating tenancy-related charges by introducing a bill aimed at curbing excessive agency and legal fees.
This legislative move follows mounting complaints from residents about the exploitative practices of some landlords and property agents, which have made securing accommodation increasingly burdensome.
The proposed law, titled The Bill for a Law to Amend the Landlord and Tenant Law, CAP. 101, Laws of Enugu State, 2024, is sponsored by Hon. Okey Mbah, representing the Nkanu East State Constituency. It underwent its first reading on Tuesday.
Key provisions of the bill include capping agency and legal fees at a maximum of 10% of the annual rent. Additionally, it seeks to eliminate caution fees—non-refundable charges imposed by landlords that often serve as an extra financial strain on tenants.
Under Section 3(3) of the bill, agency fees for securing accommodation must not exceed 10% of the total rent, while Section 3(4) ensures that legal fees for tenancy agreements, payable only to qualified legal practitioners, are also capped at 10%.
To enforce compliance, the bill prescribes strict penalties for violators, including fines of up to N500,000, a six-month prison sentence, or both.
Beyond financial relief, the legislation aims to safeguard tenants from forced evictions by introducing standardized eviction timelines and notice periods. It also proposes mandatory certification for individuals operating as land agents or property managers, ensuring professionalism in the sector.
Furthermore, a designated government ministry or agency will be tasked with overseeing housing regulations, providing clearer guidelines for tenancy agreements in Enugu State.
Speaking after the bill’s first reading, Hon. Mbah described the initiative as a response to the concerns of Enugu residents. He expressed optimism that the bill would receive strong backing from fellow lawmakers, as it directly addresses pressing issues affecting their constituents.
If passed, this law could reshape tenancy practices in Enugu, offering tenants greater financial protection and promoting fairness in the housing sector.
