The Enugu State House of Assembly has taken a significant step toward amending the 2004 Landlord and Tenant Law. The bill, which aims to address the challenges faced by tenants, passed its second reading during a plenary session on Tuesday at the Assembly Complex in Enugu.
The sponsor of the bill, Okey Mbah, explained that the amendment is intended to alleviate the difficulties and exploitation faced by prospective tenants.
He highlighted the heavy burden of additional fees like legal charges, agency fees, caution fees, and caretaker commissions that often make it challenging for tenants to afford decent housing.
Mbah noted that the proposed changes have garnered considerable public interest both within and outside the state. While acknowledging that some individuals benefit from these extra charges, he clarified that the amendment does not target landlords or intend to increase rent. Instead, it aims to regulate agent fees and offer protections for low-income earners.
“This amendment seeks to address the arbitrary and high charges levied by agents in Enugu State when renting houses to prospective tenants,” Mbah explained.
“The rent market has become unregulated, with many individuals posing as agents and defrauding innocent accommodation seekers.”
The bill proposes capping agent and legal fees at a maximum of 10% of the annual rent. Additionally, it seeks to eliminate other arbitrary charges such as caution fees and management bills, which are often imposed on tenants without justification.
During the debate, Anthony Nwankwo (PDP, Awgu South) expressed concern over the increasing cost of rent and additional fees in Enugu, comparing them to those in Lagos and Abuja.
He suggested an investigation into landlords who increase rent annually, as this practice places a financial strain on residents.
However, Hyginus Okoh (PDP, Enugu East Urban) cautioned that regulating agent fees could result in unintended consequences. He referenced a past situation where a fixed fee for land surveying led to a rise in costs, warning that a similar outcome could occur with rental agents.
Following the debate, the Speaker of the House, Uche Ugwu, directed the House Committees on Housing and Judiciary to review the bill and present their findings by March 25.
