The Abuja advance rent proposal before the House of Representatives seeks to prohibit landlords, estate agents and property managers in the Federal Capital Territory (FCT) from demanding more than 12 months’ rent upfront from tenants.
The proposed legislation aims to reduce the financial pressure on tenants and address unfair practices in the rental market.
Sponsored by Paul Nnamchi, who represents Enugu East/Isi-Uzo Federal Constituency, and Ahmed Doro of Bindawa/Mani Federal Constituency, the bill also seeks to establish an authority to regulate rent payments and resolve disputes between landlords and tenants.
Under the proposal, landlords would not be allowed to demand more than one year’s rent as a condition for granting or renewing a tenancy.
Abuja Advance Rent Bill Targets Excessive Demands
The bill seeks to prevent landlords from bypassing the proposed limit through estate agents, compulsory service charges, separate agreements or repeated tenancy renewals.
However, the proposal would allow tenants to voluntarily pay more than 12 months’ rent if they initiate the arrangement without pressure, threats, discrimination or retaliation.
Such agreements would have to be documented in writing.
The proposed legislation would also require landlords and authorised agents to provide written tenancy agreements before or at the start of a tenancy.
These agreements must state the rent amount, payment schedule, tenancy duration, refundable deposits and additional charges. They must also outline the rights and responsibilities of both parties.
Proposed Authority to Regulate Rent Payments
The bill seeks to establish the Federal Capital Territory Rent Regulation and Tenants’ Protection Authority to oversee compliance with the proposed rules.
The authority would investigate complaints, monitor landlords and agents, help resolve disputes and order refunds where rent has been collected unlawfully.
Under the proposal, landlords could be directed to refund unlawful payments within 30 days of receiving an order from the authority.
The Abuja advance rent proposal also outlines penalties for individuals and companies that violate its provisions.
Proposed Fines for Landlords and Companies
Individuals convicted of knowingly demanding advance rent beyond the permitted limit could face fines ranging from ₦500,000 to ₦5 million.
Corporate offenders could face fines between ₦5 million and ₦20 million.
Anyone who fails to comply with a valid notice issued by the proposed authority could also face a fine of up to ₦1 million.
The bill would allow landlords and tenants to seek redress in court. Anyone dissatisfied with a decision by the authority could appeal to the FCT High Court within 30 days.
Rising Rent Costs Drive Calls for Reform
The proposal comes amid concerns over rising accommodation costs and the difficulty many tenants face when required to pay large sums upfront.
For many renters, securing a home can involve paying a full year’s rent in advance, alongside agency fees, legal charges and other expenses.
The National Assembly also proposed limiting rent increases nationwide to 20 per cent last year and urged the Federal Government to enforce the measure.
However, the supplied report does not establish that the earlier proposal has been implemented.
The new bill remains a proposal, and its provisions should not be treated as existing legal requirements unless the legislation is passed and brought into force.