A Residential lease in Nigeria is typically regulated by the tenancy laws in each state, just like the Tenancy Law of Lagos state 2011. Some people mistake lease to tenancy but they are in fact different.
While a tenancy agreement is a contract between a Landlord and the Tenant which sets out the rights and obligations of both the Landlord and the Tenant when renting a property in Nigeria. A residential lease agreement, on the other hand, is a contract used between a landlord and a tenant when the Landlord wishes to rent or lease the property to a Tenant for residential purposes for more than 3 years. The difference here is that for a residential lease, the period for a rental is more than three years.
What you should know: In lease agreements, the lessor is the owner of the assets that are being leased or rented, that is the landlord. While the lessee is the party that pays for the lease or renting of the property, that is the tenant.
Features of Residential Lease
The law has certain provisions for the terms of a residential lease agreement as agreed by both parties, that is the landlord and tenant or lessor and lessee.
Some of which include;
Length of Term; This is the duration of the lease which would be in agreement by both parties. It may either be fixed for a particular time or be renewable upon expiration depending on what both parties want.
Rent Increment: The review or upgrade in rent explains the time period during which rents will be increased. It is backed by law and should be included in the agreement. The rent increment however should be because of the market rate and should be set at a specified percentage as some states have laws that prevent arbitrary rent increase.
Tenants right to remain in the premises at the end of term: The tenancy law in Nigeria protects tenants from forceful eviction. According to the law, a tenant who holds over property and refuses to hand over possession to the landlord is a statutory tenant. The tenant is allowed to remain in the possession of the house until evicted by an order of the court.
Tenants Obligations: The tenant’s contribution to the property is contractual. The tenant is typically supposed to maintain the interior of the property and keep it in good shape.
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Steps A Landlord Might Need To Take For A Tenant To Vacate Premises After Termination Of A Residential Lease
The landlord might at any time decide to terminate a residential lease for sensible reasons best known to him or her such as when a tenant breaches the agreement both parties had previously made.
The tenancy law of each state in the country has stipulated statutory requirements or certain steps a landlord should take when he wants to repossess his property. This includes;
Issuing a notice to quit: This is a formal demand from the landlord asking the tenant to quit using the property and leave. The length of the notice is statutorily prescribed and depends on the length of tenancy itself.
Issuing a notice of owners intent to recover possession: If the time is given to a tenant in a quit notice and then it elapses but the tenant is yet to leave the property, the landlord might then issue a quit notice informing the tenant of his intention to recover his property in court. Repossession of a property can only be legally obtained by recourse to the court.
Court action: In a case where the tenants have been served the aforementioned notices and still refuses to comply, the landlord might approach the appropriate court within the jurisdiction where the property is situated to repossession, rent arrears fees and compensation.
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