● Ferdy Agu
In a bid to curb rising concerns over excessive charges imposed on tenants and prospective tenants in Enugu State, the State House of Assembly has introduced a bill aimed at regulating agency and legal fees while also abolishing the controversial caution fee.
Titled A Bill for a Law to Amend the Landlord and Tenant Law, CAP. 101, Laws of Enugu State, 2024, the proposed legislation, sponsored by Mr. Okey Mbah, who represents Nkanu East State Constituency, was read for the first time on Tuesday.
Among its key provisions, the bill seeks to cap agency and legal fees at a maximum of 10 percent of the rent and eliminate the practice of caution fees, which tenants are often required to pay but rarely get refunded at the end of their tenancy.
Section 3(3) of the bill states: “With effect from the commencement of this law and notwithstanding any provisions in other enactments, agent fee chargeable for procuring any accommodation in the State shall not exceed 10 per cent of rent by the prospective tenant.”
Additionally, Section 3(4) stipulates that “no tenant shall be caused to pay any further premium in acquiring any accommodation except legal fee payable to a qualified legal practitioner for the purpose of preparing the landlord and tenant agreement, and such fee shall not exceed 10 per cent of the rent.”
Violations of the proposed law, once enacted, would attract a fine of N500,000 or a six-month prison term, or both.
The bill also aims to protect tenants from forced, irregular, and fraudulent evictions by establishing a legally defined timeline for eviction and other relevant notices. It further mandates that individuals operating as land agents or property managers must be duly certified by the appropriate regulatory body. A designated government ministry or agency would also be empowered to develop additional housing and tenancy regulations in the state.
Speaking after the first reading of the bill, Mbah described the legislation as a response to the “earnest desires of the people and residents of Enugu State.” He expressed confidence that it would receive overwhelming support from his colleagues, adding, “The ills it seeks to address are widespread and generally suffered by our constituents.”
Reacting to the proposed law, a landlord in Enugu, Mr. Emeka Odo, acknowledged the concerns raised by tenants but urged the Assembly to consider a balanced approach. “While I agree that excessive charges should be checked, landlords also face challenges, including maintenance costs and property management expenses,” he said.
A prospective tenant, Miss Amaka Ugwu, welcomed the bill, describing it as “a long-overdue intervention.” She noted that many young professionals and families struggle to afford multiple fees when securing accommodation. “This will bring relief to many people who have been subjected to exploitative charges,” she added.
Similarly, a tenant, Mr. Uchenna Nwankwo, hailed the move to abolish caution fees, stating, “I have lived in different apartments, and not once have I gotten my caution fee back. It’s just another way of extorting tenants. This bill, if passed, will restore fairness in the housing sector.”
The bill is expected to undergo further legislative scrutiny before its passage into law. GMTNewsng
