Introduction
Tenancy arrangements in Lagos form the backbone of the city’s booming real estate market. From annual apartment rentals in Ikeja to monthly shop leases in Yaba, the nature of each tenancy determines the rights, responsibilities, and remedies available to both landlord and tenant.
Two of the most common tenancy types under Nigerian law — and particularly within Lagos State — are the fixed-term tenancy and the periodic tenancy. While both grant the tenant a legal right to occupy a property, the differences in duration, renewal process, and termination procedures are significant.
Understanding these distinctions is crucial, especially when drafting tenancy agreements, negotiating renewals, or resolving rent disputes. This article provides a comprehensive guide to the difference between fixed and periodic tenancies under Lagos law, analyzing their features, legal effects, and implications for landlords and tenants.
Legal Framework for Tenancy in Lagos
Tenancy in Lagos is primarily governed by:
- Lagos State Tenancy Law, 2011
- The principal legislation regulating residential and commercial tenancies within the state.
- It prescribes rights and obligations of both parties, notice requirements, and eviction procedures.
- Recovery of Premises Law, Cap 118, Laws of Lagos State 2015
- Governs procedures for recovering possession and enforcing tenancy rights.
- Judicial Precedents and Common Law
- Nigerian courts, through landmark cases, have provided interpretations clarifying tenancy relationships, rent review, and termination processes.
Understanding Tenancy
A tenancy is a legal relationship between a landlord (the property owner) and a tenant (the person granted possession) under an agreed rent. The law classifies tenancies based on duration and renewal nature.
Broadly, there are two main types:
- Fixed-term tenancy
- Periodic tenancy
Let’s explore both in detail.
What Is a Fixed-Term Tenancy?
A fixed-term tenancy is a tenancy created for a specific, pre-agreed duration. The start and end dates are clearly defined in the tenancy agreement. Once the period expires, the tenancy automatically terminates — unless renewed or extended by a fresh agreement.
Example
A landlord leases an apartment for one year, from 1st January 2025 to 31st December 2025, at ₦2,000,000 per annum. At the end of the year, the tenancy expires without need for a notice to quit.
Key Features
- Definite start and end dates.
- No need for a notice to quit upon expiry.
- Renewal requires mutual consent.
- Rent is usually paid in advance (annual or semi-annual).
- If the tenant holds over after expiry, he becomes a tenant at sufferance or statutory tenant.
Legal Authority
Under common law principles, once a fixed-term tenancy expires, the landlord can lawfully recover possession without notice, subject to the 7-day Owner’s Intention to Recover Possession notice under the Lagos Tenancy Law, Section 13(5).
Advantages of Fixed-Term Tenancy
For Landlords
- Certainty of rental income for a defined period.
- Control over renewal and rent review.
- Easier legal recovery after expiry.
For Tenants
- Rent stability within the fixed period.
- Protection against arbitrary rent increases.
- Predictable occupation term for budgeting and planning.
Disadvantages of Fixed-Term Tenancy
- Landlord cannot increase rent mid-term unless agreement provides for it.
- Tenant may lose possession automatically upon expiry, even without default.
- Renewal may require additional documentation and cost.
What Is a Periodic Tenancy?
A periodic tenancy is a tenancy that continues from one period to another (week to week, month to month, or year to year) without a defined end date. It automatically renews after each payment cycle until either party terminates it by giving proper notice.
Example
A tenant pays rent monthly without a written agreement. As long as the landlord accepts payment, a monthly periodic tenancy exists.
Key Features
- No fixed termination date.
- Duration depends on rent payment frequency.
- Requires statutory notice for termination.
- Automatically renews upon rent payment.
- Common in informal or short-term arrangements.
Legal Recognition
Under Section 13 of the Lagos State Tenancy Law (2011):
| Type of Periodic Tenancy | Required Notice to Quit |
|---|---|
| Yearly Tenancy | 6 Months |
| Half-Yearly | 3 Months |
| Quarterly | 3 Months |
| Monthly | 1 Month |
| Weekly | 1 Week |
This ensures fairness and predictability in property relationships across Lagos.
Advantages of Periodic Tenancy
For Landlords
- Flexibility to review rent regularly.
- Ability to terminate with proper notice.
- Suitable for short-term or trial occupation.
For Tenants
- No long-term financial commitment.
- Easier to relocate when necessary.
- Usually lower documentation requirements.
Disadvantages of Periodic Tenancy
- Rent may be reviewed frequently.
- Uncertainty about long-term occupancy.
- Termination possible anytime with statutory notice.
Distinguishing Between Fixed and Periodic Tenancies
| Feature | Fixed-Term Tenancy | Periodic Tenancy |
|---|---|---|
| Duration | Definite start and end date | Indefinite, continuous based on rent cycle |
| Termination | Automatically ends at expiry | Requires notice to quit |
| Rent Payment | Usually annual or lump-sum | Regular intervals (monthly, quarterly, etc.) |
| Notice Requirement | No notice required upon expiry | Statutory notice compulsory |
| Renewal | Requires express agreement | Renews automatically with payment |
| Rent Review | At renewal only | Anytime, with due notice |
| Legal Remedy After Expiry | Landlord may recover possession after 7-day notice | Must follow notice procedure before eviction |
Transition Between Fixed and Periodic Tenancies
After a fixed-term tenancy expires and the tenant continues to pay rent with the landlord’s consent, the tenancy automatically converts into a periodic tenancy based on the frequency of payment.
Illustration
A one-year lease expires in December 2024. The tenant continues to pay rent monthly, and the landlord accepts it. The relationship becomes a monthly periodic tenancy.
To terminate, either party must now issue a one-month notice to quit.
This principle is backed by the case of African Petroleum Ltd v. Owodunni (1991), where the Supreme Court held that rent payment frequency determines tenancy type.
Tenant’s Rights Under Both Tenancies
1. Right to Quiet Enjoyment
Tenants in either tenancy are entitled to undisturbed possession throughout the tenancy term.
2. Right to Adequate Notice
Only fixed-term tenants at expiry may be exempt from notice, while periodic tenants are entitled to statutory notice before eviction.
3. Right to Challenge Illegal Eviction
Regardless of tenancy type, self-help eviction is prohibited under Section 44 of the Lagos Tenancy Law (2011).
4. Right to Recover Caution Deposit
Tenants are entitled to refund of caution deposits after lawful termination.
Landlord’s Rights Under Both Tenancies
- Right to receive rent when due.
- Right to enforce contractual terms.
- Right to recover possession lawfully after tenancy expiry or notice lapse.
- Right to increase rent with reasonable notice (Section 37, Lagos Tenancy Law).
Common Disputes Arising from Tenancy Type Misunderstanding
- Landlord assumes tenancy expired when it was periodic.
- Leads to defective notices and case dismissal.
- Tenant assumes automatic renewal of fixed tenancy.
- Results in eviction after expiry without notice.
- Disagreement over rent frequency or increase.
- Often due to absence of written agreement.
Practical Legal Guidance for Landlords
- Always state type and duration of tenancy clearly in agreement.
- Issue receipts for rent payments with period covered.
- Serve proper statutory notices before recovery.
- Engage a property lawyer to structure agreements.
- Avoid oral tenancy arrangements to prevent litigation.
Practical Legal Guidance for Tenants
- Ensure tenancy terms are in writing.
- Retain receipts for all payments.
- Clarify renewal or termination procedures upfront.
- Insist on adequate notice before eviction.
- Seek legal advice before paying rent after expiry.
Case Study 1: Tenant at Sufferance (Ikeja)
A tenant’s one-year lease expired, but he remained in possession without the landlord’s consent. He claimed he was still a tenant. The court ruled that he was a tenant at sufferance, not a periodic tenant, since no rent was accepted post-expiry.
Lesson: Acceptance of rent distinguishes a periodic tenant from one at sufferance.
Case Study 2: Monthly Periodic Tenancy (Surulere)
A tenant paid monthly rent for three years without a written agreement. The landlord later demanded he vacate within two weeks. The court held that since rent was paid monthly, the tenant was entitled to one-month notice under Section 13(1) of the Tenancy Law.
Lesson: Frequency of rent payment determines the notice period and tenancy type.
Recent Judicial Developments
- Adeniji v. Morakinyo (2021): Courts reaffirmed that tenancy type determines applicable notice duration.
- Eze v. Aja (2020): Where rent payment is irregular, tenancy defaults to monthly periodic tenancy.
- Okafor v. Ugo (2019): Acceptance of rent after expiry converts fixed tenancy into periodic tenancy.
Frequently Asked Questions (FAQs)
1. Do I need to issue a notice to quit for a fixed-term tenancy?
No. Once the fixed term expires, you only need to issue a 7-day owner’s intention before filing for possession.
2. Can a periodic tenancy become fixed term?
Yes, if both parties sign a new written agreement specifying a definite duration.
3. What happens if a tenant keeps paying after a fixed-term lease expires?
The relationship becomes a periodic tenancy, and notice will be required to terminate it.
4. Can rent be increased during a fixed-term tenancy?
No, unless the agreement expressly provides for periodic rent review.
5. What’s the safest tenancy type for landlords?
Fixed-term tenancies provide greater control and legal clarity, especially for high-value properties.
Conclusion
In Lagos, understanding the difference between fixed and periodic tenancies is essential for avoiding costly disputes. A fixed-term tenancy offers certainty and stability, while a periodic tenancy offers flexibility.
For landlords, clarity in drafting and adherence to statutory procedures safeguard income and investment. For tenants, knowing their rights prevents unlawful eviction and ensures fair treatment.
Both parties should always engage a qualified property lawyer to draft, review, and manage tenancy agreements that comply with the Lagos State Tenancy Law, 2011.
Call to Action
At Chaman Law Firm, we specialize in Property and Real Estate Law, guiding landlords, tenants, and investors across Lagos and Ogun States through tenancy documentation, dispute resolution, and legal compliance.
Our expert team ensures that every tenancy agreement is legally sound, transparent, and enforceable, protecting your rights and financial interests.
Contact Us
Chaman Law Firm
115, Obafemi Awolowo Way,Allen Junction, Beside Lagos Airport Hotel, Ikeja, Lagos
📞 0806 555 3671, 08096888818,
