The House of Representatives is considering a bill seeking to prohibit landlords, property managers and estate agents in the Federal Capital Territory (FCT), Abuja, from demanding more than one year’s rent in advance from tenants.
The proposed legislation aims to protect tenants from excessive advance rent payments and establish regulations governing rental transactions in the FCT.
The bill was sponsored by Paul Nnamchi, representing Enugu East/Isi-Uzo Federal Constituency, and Ahmed Doro, representing Bindawa/Mani Federal Constituency in Katsina State.
Under the proposal, landlords and property agents would be prohibited from requiring tenants to pay more than 12 months’ rent upfront as a condition for securing or renewing a tenancy.
The bill also seeks to prevent landlords from circumventing the proposed restriction through intermediaries, compulsory service charges, artificial tenancy renewals, separate agreements or other arrangements designed to compel tenants to make excessive advance payments.
However, tenants would be permitted to voluntarily pay rent for more than one year if the decision was made without coercion, threats, discrimination or retaliation. Such arrangements would also have to be documented in writing.
The proposed legislation would require landlords and authorised agents to provide written tenancy agreements before or at the commencement of a tenancy.
The agreements would specify the rental amount, payment schedule, tenancy duration, refundable deposits, additional charges, and the rights and responsibilities of both landlords and tenants.
Proposed Rent Regulatory Authority
The bill seeks to establish the Federal Capital Territory Rent Regulation and Tenants’ Protection Authority to oversee rental transactions and safeguard tenants’ rights.
The proposed authority would be responsible for investigating complaints, monitoring compliance with the law, facilitating dispute resolution and ordering refunds of unlawful rental payments.
Where a tenant is found to have paid rent in violation of the proposed legislation, the authority could order the refund of the unlawful amount within 30 days of issuing the order.
Proposed Penalties for Violations
The bill recommends fines ranging from ₦500,000 to ₦5 million for individuals convicted of knowingly violating the restriction on advance rent payments.
Corporate offenders could face fines between ₦5 million and ₦20 million, while anyone convicted of failing to comply with a valid notice issued by the authority could be fined up to ₦1 million.
The proposal also preserves the right of landlords and tenants to seek judicial redress. Anyone dissatisfied with a decision of the proposed authority would be able to appeal to the FCT High Court within 30 days.
The latest proposal follows an earlier move by the House of Representatives to recommend a nationwide cap of 20 per cent on rent increases and urge the Federal Government to enforce the measure.
However, the implementation of that earlier resolution has not been independently verified.
The proposed legislation is aimed at addressing concerns over high rental costs and the financial pressure associated with paying several months or years of rent upfront in Abuja.
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