By Bilesanmi Abayomi
The Managing Director of Black and Bold Properties, Komolafe Ayodele during a recent interview with the Kosofe Post shared his experience in real estate management, and sales, and explains one year certain, among others.
Kosofe Post: How long have you been in the real estate industry?
Black and Bold: Of course, it’s more than 15 years. Precisely 15.
KP: Can you briefly tell us what terminates the agreement between a landlord and a tenant?
BB: Well, the truth of the matter is that everything that has to do with the tenancy agreement is right there in that document, which is called a tenancy agreement. That document is done by a lawyer, of course, or by the owner of the property. Or if a tenant takes time to read the tenant agreement, it stipulates the responsibility of the tenant and the responsibility of the landlord. So if a tenant defaults on any of those clauses, it automatically terminates the agreement.
KP: Can you highlight one of these clauses that is very key and that a tenant must take note of?
BB: Let me give one example, which has to do with giving property to a tenant for a certain period of time. What that means is that the tenant is expected to verbally or in writing renew the tenancy three months before its expiration.
It is not to pay, but to say that I will be interested in renewing, and at that time the owner of the property takes that to mean that this person is willing to renew, which will allow him to now grant you another year, for failure to do so automatically means that you are not ready to renew your tenancy. and that, of course, can mean eviction.
KP: What is your general advice to the general public as regards this?
BB: It is a problem whereby many do not understand what it means. This word, “year certain,” is, however, my advice to let all tenants read and understand what it means. It is very simple.
If you go to anyone, what they will tell you is that one year is certain. If you are a tenant and you want to renew, endeavor to renew your rent verbally or in writing three months before the expiration. And if you do that and also follow the other responsibilities in the tenancy agreement, you are good to go. You have no problem whatsoever.
KP: Some landlords are fond of increasing house rent annually. Is it a normal practice?
BB: The truth of the matter is that there is a tendency for exploitation on the part of the landlord. The reason is that, as we all know, there is what we call “demand” and “supply.” In a situation where people demand more than what is available, it becomes a venue for exploitation. But here, the government has already put some controls in place, and under those, we have rent control, rent regulation, and rent stabilization.
These are the mechanisms to stabilize and control rent in any country in the world. Now, Lagos State, for example, also has benchmarks for how tenancies should be run. It is in the tenancy law as amended in 2011.
Now, it is not a requirement or it is not allowed under that law for a landlord to increase rent at his will. It is there in the tenancy law. So I encourage everyone to read that part of the tenancy law.
Now, it is not allowed to increase rent year after year. Of course, the tenancy law stipulates when and how it should be renewed. Now, of course, it is normal practice to allow a period of time to pass before any tenant or landlord can increase rent.
Now, if a landlord doesn’t even want to renew rent, there is a law that guides how, to what extent, and at what percent. The owner can renew it. So I also encourage you to read this part of the law now.
Let’s now go by the issue of an increment going by the economy or the situation of the country. It is also ideal for the landlord to benefit from the market price. But of course, there is what we call an existing tenant and the new intake, or the new tenant.
Of course, the rent between the existing tenant and the new tenant should not be at par or the same.
There must be consideration between the two. That, of course, is the spirit of the law as far as Lagos State tenancy is concerned.