A lease is a contract widely used by owners who intend to allocate their property for a period not exceeding 3 years. The rental agreement sets out the terms agreed by both parties during a lease. Don`t believe otherwise. In Lagos, a new tenant is expected to pay rental fees plus contract fees, commission and other fees that vary from landlord to lessor. A lease must be drafted by the lawyer to the lessor and duly reviewed by a potential tenant before signing. The tax is 6% of the amount of the lease or rental contract. However, these additional costs are borne by the tenant or the person who obtains the lease, while the responsibility for the transfer to the FIRS lies with the owner or broker of the property. Under section 47 of the Lagos State Tenancy Law 2011, it means “written or oral, explicit or implied agreements between a lessor and a tenant regarding the ownership of premises”. In Lagos, for example, it is customary to collect agency fees and contractual fees. Sometimes these fees can cost up to 50% of the actual rental or rental fee. In many parts of Lagos, for example, agency and contract fees are between N100,000 and N150,000.
In Ogun State, it costs between 60,000 and N120,000. Contract and commission fees are usually up to 10 percent of the rent paid. Some real estate agents in Lagos would either like to take more than 10 percent or collect a contract/commission fee for two years, which makes no sense, as these fees are not recurring like rental fees (you only have to pay once).