The Enugu State House of Assembly has introduced a bill aimed at addressing the rising concerns over excessive agency and legal fees related to tenancy agreements.
The bill, which responds to growing complaints from residents about exploitation by landlords, seeks to regulate these fees and offer greater protection to tenants.
Titled The Bill for a Law to Amend the Landlord and Tenant Law, CAP. 101, Laws of Enugu State, 2024, the proposed legislation was sponsored by Hon. Okey Mbah, the representative for Nkanu East State Constituency, and had its first reading on Tuesday.
Key provisions of the bill include capping agency and legal fees at a maximum of 10% of the rent. It also seeks to eliminate the practice of caution fees—charges that are often never refunded to tenants at the end of their tenancy. Section 3(3) of the bill states, “Agent fees for securing accommodation shall not exceed 10% of the rent payable by the prospective tenant.” Meanwhile, Section 3(4) stipulates that tenants will only be required to pay legal fees for the preparation of tenancy agreements, which also cannot exceed 10% of the rent.
The bill imposes severe penalties for violations, including fines of up to N500,000, a six-month prison sentence, or both.
Additionally, the bill aims to protect tenants from forced, irregular, or fraudulent evictions by defining clear eviction timelines and notice periods. It also requires that all property agents or managers be certified by the relevant authorities and proposes the establishment of a government agency to oversee housing and tenancy regulations in the state.
After the first reading, Mbah emphasized that the bill aligns with the concerns of the people of Enugu State. He expressed confidence that the bill would gain broad support from fellow lawmakers, as it directly addresses issues affecting residents across the state.