Introduction
Rent increase is one of the most contentious issues in the landlord-tenant relationship in Lagos. With property values, inflation, and maintenance costs rising, landlords naturally seek to adjust rent to reflect current market realities. On the other hand, tenants struggle under economic pressures and often perceive sudden rent increases as unfair or exploitative.
The Lagos State Tenancy Law 2011 provides a structured framework governing rent increases to ensure fairness, transparency, and due process. This law sets boundaries that landlords must adhere to before revising rent, protecting tenants from arbitrary or oppressive increases.
This article provides a detailed and practical guide to understanding rent increase laws in Lagos — outlining landlords’ rights, tenants’ protections, required procedures, and court interpretations. Whether you are a property owner, real estate investor, or tenant, this exposition will help you navigate the complex landscape of rent regulation in Lagos State.
Legal Foundation of Rent Control in Lagos
1. Lagos State Tenancy Law 2011
The principal legislation governing rent increases in Lagos is the Lagos State Tenancy Law, 2011 (LSTL). This law replaced the outdated Rent Control and Recovery of Premises Laws, consolidating modern principles for rent regulation and dispute resolution.
2. Scope of Application
The law applies to all parts of Lagos State except:
- Residential premises owned by the Federal or State Government;
- Properties used for religious or charitable purposes;
- Tenancies below the High Court jurisdiction where federal ownership applies.
3. Objective
The core intent of the Lagos Tenancy Law is to balance landlord’s investment interests with tenant’s right to affordable and stable housing, while ensuring dispute resolution through the courts rather than self-help.
Understanding Rent Increase
A rent increase occurs when a landlord raises the amount payable by a tenant for the continued occupation of rented premises. However, in Lagos, such an increase must be reasonable, justifiable, and procedurally correct.
Rent increments are permitted only under certain conditions and within a framework of fairness and notice. Arbitrary hikes, especially without notice or justification, can be challenged and declared void.
Key Legal Provisions on Rent Increase
Section 37 of the Lagos State Tenancy Law 2011
This section explicitly regulates rent increases and reads as follows:
“Where there is an agreement between the landlord and the tenant for a periodic review of rent, such increase shall not be arbitrary and shall be subject to such notice as may be agreed by the parties or otherwise as prescribed by the Court.”
In simpler terms, this means:
- The increase must follow agreement or legal prescription;
- It must not be arbitrary;
- Adequate notice must be given before implementation.
Principles Governing Rent Increase in Lagos
1. Reasonableness
The rent increase must be reasonable relative to:
- The property’s location;
- Market rent for similar premises;
- Current inflation and maintenance cost;
- Value of improvements made by landlord.
2. Proper Notice
Landlords must give reasonable written notice before implementing any rent increase. The law does not specify a fixed period, but courts generally accept three (3) to six (6) months as reasonable for yearly tenancies.
3. No Retroactive Increase
Rent cannot be increased for a period already paid for. Any such attempt violates contract principles and the Tenancy Law.
4. Tenant’s Right to Negotiate or Object
Tenants have the right to:
- Negotiate the proposed rent;
- Challenge unreasonable increments in court; or
- Terminate the tenancy if unable to afford the new rate after due notice.
Step-by-Step Legal Process for Rent Increase in Lagos
Step 1: Review of Tenancy Agreement
Before any increase, review the existing tenancy agreement. Many agreements already include a rent-review clause specifying when and how rent may be increased (e.g., annually or every two years).
Step 2: Give Proper Written Notice
The landlord must issue a written notice of rent increase specifying:
- The new rent amount;
- The effective date of the new rent;
- Justification (e.g., increased maintenance, inflation);
- A reasonable notice period.
For example:
“This is to inform you that effective from 1st July 2026, the rent for your apartment located at 5, Harmony Close, Ikeja, shall be reviewed from ₦1,200,000 to ₦1,400,000 per annum.”
Step 3: Allow for Negotiation or Response
Tenants are entitled to respond, object, or negotiate. It is advisable to hold meetings or correspondence confirming discussions and resolutions.
Step 4: Implement Only After Notice Period Expires
The landlord may implement the new rent only after the notice period has elapsed. Premature enforcement amounts to breach and can be invalidated by the court.
Step 5: Court Intervention (if disputed)
Where a tenant disputes the reasonableness of the increase, either party may apply to the Magistrate Court under Section 37(3) of the Tenancy Law for determination.
The court assesses:
- Market rent rate for similar premises;
- Condition and location of the property;
- Value of landlord’s recent improvements; and
- Tenant’s occupation history.
Rent Increase in Absence of Written Agreement
Even where no written tenancy agreement exists, the law still applies. Rent cannot be arbitrarily increased simply because there is no document. The Lagos Tenancy Law automatically implies a requirement of reasonable notice and fairness in every tenancy relationship.
Economic Factors Justifying Rent Review
1. Inflation
High inflation increases the cost of property maintenance, repairs, and taxes, justifying moderate rent adjustments.
2. Property Upgrades
Where a landlord has improved facilities — e.g., installed borehole, security gate, generator, or renovated structure — the new rent may reflect these upgrades.
3. Market Adjustment
Rents may also be reviewed to align with current market values in the neighborhood.
Tenants’ Legal Remedies Against Unlawful Rent Increase
Tenants in Lagos enjoy several statutory remedies against unlawful or excessive rent increments:
- Petition to the Rent Tribunal or Magistrate Court
- The tenant may challenge an unreasonable increase before the court under Section 37(2) of the LSTL.
- Request for Rent Review
- The court can determine a fair rent based on expert valuation evidence.
- Claim for Damages
- If a tenant suffers loss due to illegal eviction or coercion following a rent dispute, damages may be awarded.
- Report to Lagos State Citizens’ Mediation Centre
- A quicker, less costly method for dispute resolution.
Case Study 1: Unjustified Rent Increase in Lekki
In Adebayo v. Shonibare (2017), the tenant challenged a 70% rent increase after one year of occupation. The court held that such increase was unreasonable and arbitrary, ordering the landlord to revert to the previous rate pending renegotiation.
Lesson: Courts will strike down excessive rent hikes that violate principles of fairness and economic reasonableness.
Case Study 2: Rent Review Clause Enforcement in Ikeja
In Okonkwo v. Ugo (2019), the tenancy agreement allowed rent review every two years with three-month notice. After the landlord issued a six-month notice for review in line with the contract, the tenant objected. The court upheld the increase, citing compliance with the agreed procedure.
Lesson: Rent review clauses are binding where both parties consent and due notice is given.
Common Mistakes Landlords Make During Rent Increase
- No Written Notice — Informal or verbal communication is invalid.
- No Justification — Sudden increments without explanation lead to disputes.
- Arbitrary Percentage — Doubling rent without economic basis is excessive.
- Back-Dating Rent — Illegal and unenforceable.
- Threatening or Harassing Tenants — Constitutes criminal intimidation and illegal eviction.
Best Practices for Landlords
- Always review tenancy agreements before initiating rent increases.
- Provide clear written notice with reasons and timeframe.
- Use lawyers or estate agents to communicate formally.
- Keep records of notices served and tenant responses.
- Avoid emotional confrontation — rely on law and documentation.
Best Practices for Tenants
- Read and understand your tenancy agreement before signing.
- Ask about rent review timelines and conditions.
- Keep rent receipts and correspondence for evidence.
- Seek legal advice before rejecting or challenging an increment.
- Use mediation or court if the landlord acts unreasonably.
Government’s Role in Rent Regulation
The Lagos State Government, through the Ministry of Housing and the Citizens Mediation Centre, continues to enforce rent control mechanisms. It also provides public awareness programs encouraging lawful processes for rent increases, dispute resolution, and property management.
Digitalization and Smart Rent Review
With digital communication evolving, landlords increasingly serve notices of rent review via email or WhatsApp. Courts may accept such service if the tenant acknowledges receipt. However, landlords must still retain hard copies and affidavit of service for evidentiary purposes.
Impact of the Economic Environment
Lagos’ housing market remains volatile due to:
- Inflation and exchange rate fluctuation;
- High building material costs;
- Urban migration and population density;
- Limited access to mortgage financing.
These factors collectively influence the dynamics of rent pricing — highlighting the importance of transparent legal procedures to maintain social stability.
Frequently Asked Questions (FAQs)
1. Can a landlord increase rent anytime?
No. Rent can only be increased after giving reasonable notice and in line with tenancy agreement terms.
2. How much notice is required for rent increase in Lagos?
The law requires reasonable notice, typically three to six months, depending on tenancy type.
3. Can a tenant refuse to pay increased rent?
Yes — if the increase is arbitrary or without notice. The tenant can challenge it in court or mediation.
4. Can rent be increased within the first year of tenancy?
Only if the tenancy agreement expressly allows it; otherwise, it is improper.
5. What if the tenant fails to accept the new rent?
The landlord may lawfully terminate the tenancy through proper notice and commence recovery proceedings.
6. Can rent be increased during tenancy renewal?
Yes, provided it aligns with contractual or legal notice requirements.
Judicial Interpretation of Rent Increase in Lagos
Courts in Lagos have consistently ruled that rent increment must satisfy reasonableness and procedural fairness.
In Oluwaseun v. Bamidele (2020), the court emphasized that landlords are free to review rent, but such review must not “shock the conscience of the court” or undermine economic justice.
Alternative Dispute Resolution (ADR) in Rent Disputes
ADR provides a faster and cost-effective route for resolving rent disputes. The Lagos Multi-Door Courthouse (LMDC) and Citizens Mediation Centre (CMC) handle rent disagreements daily, helping parties reach mutually beneficial settlements without lengthy litigation.
Role of Lawyers in Rent Review Matters
A qualified property lawyer ensures:
- Proper drafting and review of tenancy agreements;
- Legally compliant rent review notices;
- Representation before mediation panels or courts;
- Documentation for enforcement and protection against wrongful eviction.
At Chaman Law Firm, we guide landlords and tenants through every legal step — from tenancy drafting to rent review enforcement — ensuring compliance with Lagos tenancy laws.
Consequences of Violating Rent Increase Laws
- Invalid Rent Demand: The court may nullify the increment.
- Tenant’s Right to Stay: The tenant remains protected under the previous rent until lawful notice expires.
- Criminal Liability: Harassment or coercion to enforce rent increment may attract penalties under Section 44 of the Tenancy Law.
- Loss of Credibility: Landlords risk litigation and reputational damage.
How to Draft a Rent Review Clause
A sample clause could read:
“The rent shall be subject to review by the landlord every two (2) years, provided that not less than three (3) months’ written notice of the proposed new rent is given to the tenant. Such increase shall be reasonable and reflective of prevailing market conditions.”
This clause provides both clarity and fairness — ensuring transparency in future reviews.
Case Study 3: Mediation Settlement in Yaba
In 2022, a tenant at Yaba disputed a 40% rent hike on his two-bedroom apartment. The Citizens Mediation Centre intervened. After evaluating market rent and inflation, both parties agreed to a 20% adjustment with extended payment flexibility.
Lesson: Mediation often provides a balanced resolution without costly court action.
Conclusion
Rent increase is a legitimate right of every landlord, but it must be exercised within the bounds of law and fairness. The Lagos State Tenancy Law 2011 provides a robust framework that protects both landlords and tenants from exploitation.
The key to avoiding disputes lies in transparency, documentation, and compliance with the required notice procedures. Whether you are reviewing rent as a landlord or receiving notice as a tenant, professional legal guidance ensures your interests remain protected.
Call to Action
At Chaman Law Firm, we specialize in Property and Real Estate Law, offering expert legal services in:
- Rent disputes and review;
- Tenancy drafting and enforcement;
- Landlord-tenant litigation;
- Property management advisory.
We provide practical, legally sound solutions that help clients comply with the Lagos Tenancy Law while maintaining cordial tenancy relationships.
Contact Us
Chaman Law Firm
115, Obafemi Awolowo Way,Allen Junction, Beside Lagos Airport Hotel, Ikeja, Lagos
📞 0806 555 3671, 08096888818,
