Monthly vs. Yearly Rent in Nigeria?
“Can they just allow us to start this year in peace and put their nose in other sectors of the economy screaming for help?” - My friend exclaimed.
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As the year kicks off and people slowly start shedding the holiday weight, vibes, etc the reality of the coming days begins to settle in. I once lived in the South-Western part of Nigeria, Lagos to be precise and I had a love-hate relationship with the state. In Lagos, the issue of accommodation is a huge and sensitive one.
The Lagos housing market is known to have one of the most expensive markets in Nigeria. Don’t let me get started on the fact the standard of the house is not commensurate to what the house is valued at. Far too many times, you see a house that is sub-standard and old yet still valued at a high amount because of several factors.
It’s just absurd, to say the least!
I recently had a conversation with a friend who is currently based in Lagos and while he was still in the spirit of the New Year, sending well-wishes, the sudden mention of the new Lagos monthly rent scheme with proposed implementation starting January 2022 immediately threw him off.
This call soon turned into a debate on monthly rent versus yearly rent system and so I probed further.
Basically, the new Lagos monthly rent scheme states that tenants are no longer mandated to make payment of yearly rent in advance to or by their landlords.
My mother is into real estate and has a few landed and building properties within her portfolio so this scheme has been a topic of discussion in my house as soon as it hit the news. I believe this scheme could favor both the tenant and landlord. However, my friend thought otherwise.
A Tenant's Perspective
He believes the yearly payment of rent was a better method because the tenant is under little to no pressure and has ample time to save up to pay the rent at the expiration date which is a year later.
He further stated that he could start saving his rent for the following year 6-months before the expiration date.
He also emphasized the uncertainty that came with monthly expenses and adding rent to that list could potentially cause him more financial stress and burden.
A Landlord’s Perspective
My mother’s response to the scheme was mostly positive. She expressed that this system could afford her monthly income from all her tenants which could still sum up her bulk money expected.
On the flip side, the landlord might need to make personal adjustments to their expectations of what they have been used to in the time of yearly rent payment method.
A Bystander's Perspective
Listening to my friend, I clearly understood his position on things. It is true that this system could bring about some level of discomfort but it is practicable as this system is used by other countries and it seems to be working.
I believe the scheme definitely has its positives as well as its negatives but I am plagued with some questions such as
- Can we successfully implement this monthly rent system as seen in other parts of the world?
- Do we have what it takes especially given the current state of our infrastructure?
- What does the government have to gain in all this?
I am aware the government does not really push an agenda or scheme they have nothing to benefit from given past experiences.
Although they claim their intent is for the scheme to address all forms of harassment, intimidation, and eviction if the landlords are ever challenged by the tenants in a tenancy dispute.
But do I really believe that they are starting to act for the greater good? Oh well...
Till I come your way again…
Thank you for your precious time!
And Bye for now!
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I personally don't believe the government is working towards the greater good of its citizen, while this could be a plot we don't know about yet, can't say for sure the reason for such action rn, things will be clear as time goes on.
What I see about them trying to adopt other countries ideas and make it happen here is very insensitive, you don't pay up like they do but you want to collect from your citizens the way wester countries do.
They can start with paying all workers weekly or bi-weekly, its not everything practiced over there that we have to bring here tbh, we have our own different ways and trying to be like then isn't moving forward but just avoiding the main issue and doing what's best for themselves(government).
There are two sides to a story for sure and some tenants will be even motivated to get their sh*t together too but alot of people would be too pressured with the new payment system.
Just my honest opinion😊
Have a great day ahead
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@marvinix you didn’t lie.
I share similar sentiments with you, hence my questions in my post.
Although, I’m a half-full perspective type of person rather than half-empty. Except an idea is entirely bad, I’m open minded...
Like you rightly said time will tell.
Thank you for your time 🙂
I live in Lagos and with the way living in Lagos is it is way better to collect the rent yearly before I got my last place we were told to pay two years first because landlords are tired of changing tenants every year, the process is exhausting.
Imagine if it's monthly, the month the tenants can't afford to pay what then happens, he leaves and gets another place? Or the landlord has to endure?
In my opinion, the government should scrap out the idea entirely because it is not favorable for both landlords and low living masses...
I totally understand your point and it is very valid.
To be fair, this could put a lot of people on their toes- both tenant and landlord…
My point is let’s just give it a try and see, it’s not a new system globally, it’s just new in Nigeria.
P.S: I’m in the middle on this one.
Thank you for stopping by @estherscott