Calls for Stricter Regulation of Real Estate Agents as Housing Crisis Worsens
Property renters and consumer rights advocates are urging the government to implement tougher regulations on real estate agents, who they say are making it increasingly difficult for tenants to secure affordable and decent housing.
They are also pushing for stronger policies and legislative measures to address the growing affordability crisis in the rental and lease market.
Residents in Lagos, Delta, Port Harcourt, and Abuja have expressed frustration over arbitrary rent hikes, excessive agency fees, service charges, and legal costs, which make securing accommodation a major challenge.
Real Estate Agents Accused of Exploitation
In Nigeria’s major cities, particularly Lagos, Abuja, and Port Harcourt, real estate agents serve as intermediaries between landlords and tenants. While their role is to facilitate transactions, many have been accused of exploitation.
These agents allegedly inflate rental prices, impose excessive commissions, charge dubious fees, and engage in fraudulent activities such as collecting multiple payments for the same apartment. Some collaborate with landlords to exploit tenants, worsening the housing crisis.
A real estate developer, Taiwo Oke of Greenchell Homes and Properties, noted that the rising commissions and agency fees have further deepened the country’s housing deficit.
Calls for Government Intervention
Real estate and property advocates are demanding stricter regulations for estate agents and landlords.
“There should be a regulatory body ensuring that all real estate agents are licensed and held accountable for unethical practices,” a real estate expert suggested.
Property lawyer, Bunmi Adewale, also called for a standardized rent structure to protect tenants from arbitrary charges.
“Over the past two years, agency fees have surged alongside a more than 100% increase in rental costs, yet tenants’ incomes have remained largely stagnant,” Adewale observed.
Real Estate Agents Defend Their Fees
Some real estate agents argue that their commission fees are justified due to the work involved in securing properties for clients.
Ayo Olotu, a realtor and developer, explained:
“People don’t see the effort we put in. We spend hours, sometimes days, searching for properties that meet clients’ preferences. We also negotiate with landlords and handle paperwork. Our fees reflect the value we provide.”
However, many tenants disagree, citing deceptive tactics used by agents to increase rental costs.
A schoolteacher in Delta, Bridget Orie, shared her experience:
“I found a two-bedroom flat for N1,000,000 and contacted the agent immediately. He asked me to meet him for an inspection the next day. When I arrived, he claimed the apartment had been taken but offered another one for N1.5 million—of much lower quality in a terrible location.”
Some tenants have also fallen victim to outright fraud, paying for non-existent properties or apartments that had already been rented out to multiple people.
Legal practitioner Rotimi Opeifa recalled a case where a colleague lost money after paying for an apartment that had already been leased to three other people. The agent disappeared, and the landlord denied any involvement, leaving the victim with no recourse.
Landlords Also Blamed for High Rent and Fraud
Some estate agents claim that landlords often dictate rental terms, leaving them with little negotiating power.
Abuja-based agent, Hilary Okafor, said:
“Sometimes, landlords give us a listing but rent it out without informing us. We only find out when a tenant complains. And regarding inspection fees, they help filter out unserious clients who just want to look around with no intention of renting.”
However, legal experts argue that many landlords collaborate with agents to overcharge tenants. Even when fraud is less direct, landlords frequently use agents to inflate rental prices above market rates, taking advantage of high demand and limited housing supply.
Weak Enforcement of Existing Laws
While Lagos State enacted the Tenancy Law of 2011, which prohibits excessive rent collection and mandates fair dealings, enforcement remains weak.
Housing experts and consumer rights advocates are calling for stronger oversight to protect tenants from exploitative practices by landlords and estate agents.