The Lagos State Government has announced that its monthly rental scheme will be implemented by the end of this year or early next year. This could be a result of the cry of tenants on the skyrocketing rent prices.
The Special Adviser to Lagos State Governor on Housing, Barakat Odunuga-Bakare, made this known during a recent press briefing of the Lagos State Real Estate Regulatory Authority in Ikeja, ThePunch reports.
The scheme will make tenants pay their rent monthly instead of the current rental model, which requires them to pay a year’s rent in advance.
The policy according to Odunuga-Bakare will also require property owners to charge according to their tenants’ earnings instead of charging exorbitant rent prices.
It would be recalled that in 2021, Governor Babajide Sanwo-Olu, advocated a monthly rental system, saying the current rental model was inimical to the current realities in the housing sector.
Sanwo-Olu believes the monthly rental model would be affordable to low- and middle-income earners and ease the pressure of paying annual rent on them.
The governor advocated a monthly rental system, which he said would be affordable to low- and middle-income earners pressured by the yearly rent obligation.
Sanwo-Olu made the recommendation at the 10th meeting of the National Council on Lands, Housing and Urban Development held in Lagos recently.
He urged policymakers to consider the suggestion and initiate a regulatory framework that would aid the transition to a new rental system.
The governor said Lagos was already working out monthly rent modalities to accommodate residents not keen on the state’s homeownership scheme.
The then Minister of Works and Housing, Babatunde Fashola, corroborated Sanwo-Olu’s position, stressing that the yearly rental system created housing supply inequality and widened the affordability gap for low-income earners.
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