Rent increment is a common source of dispute between landlords and tenants in Nigeria. Many tenants worry about sudden rent hikes, while landlords seek to adjust rent to match inflation. It is always a point of dispute between landlord and tenant in Nigeria whenever increment in rent arises. This article explores the increase in rent by landlords and how the Nigerian law governing rent increase in Nigeria a protects both the tenant and the landlord.
Landlords shall not increase the rent at will without consulting the tenants.
Yes, house rent can only be increased while the tenant is in occupation by agreement with the landlord and the tenant upon consultation. Some tenants are in disbelief when this is being said but that is the correct position in reality.
A landlord cannot increase house rent while the tenant is in occupation of the property without first consulting with the tenant and an agreement being reached. There are rights aimed at securing the tenant from the oppressive behavior of the landlord.
It is pertinent to understand the rights you have as a tenant which is included in Section 6 of the Lagos state Tenancy laws and some of the key tenant rights include:
_ Right to privacy
_ Peaceful possession of the rented property
_Protection against ‘trespassing’ by the landlord or other parties
–_Protection from ‘excessive and arbitrary rent increments’ by the landlord
Legal Remedies Available to Tenants Against Arbitrary Rent Increase
Where there has been an arbitrary increase in the payment of rent by a landlord without prior consultation with the tenant, such a tenant is allowed by law to approach the courts for redress. By the express provisions of Section 37(1) of the Lagos State Tenancy Law of 2011, every tenant is entitled to apply to the court for a declaration that the rent so increased is unreasonable. What this means is that this law created an obligation on a landlord to serve a notice on the tenant, propose an increase of rent to him/her, and reach an agreement. If the tenant thinks that this increase is not in order, refuge may be sought from the court by declaration against the invalidity of the increase.
Rent Negotiation Process
The landlord cannot arbitrarily increase rent based on his wish or circumstance without going through the due process of law. This involves serving a notice on the tenant, discussing and determining the terms of increase with him/her. There must be express approval on the part of the tenant of the new rent. A unilateral act of rent increase by a landlord is immediately contestable by the tenant.
In Udih vs. Izedonmwen (1990) 2 NWLR (Pt. 132) 357’, the court was faced with a situation where the landlord increased rent from ₦50 to ₦500 without the tenant agreeing. The Supreme Court described rent issue as an agreement. The Court held: ‘The issue of rent between the landlord and tenant is a matter of agreement. The Agreement may be express or implied. The relationship between them too is a contractual one. And being a matter of contract its term cannot be altered by either party without the agreement of the other’.
Both tenant and landlord can determine the modality of rent increment in the tenancy agreement. A standard tenancy agreement ought to make provision for rent increment; the duration and the steps to initiate it.
In Lagos State, by the provision of Section 37 of the Lagos State Tenancy Law 2015, a tenant may approach the Court to declare a proposed rent increment by the landlord unreasonable.
When a landlord and tenant are unable to agree on the issue of rent increment, it becomes a ground upon which the tenancy agreement may be terminated.
This was further reinforced in Jovinco Nigeria Ltd & Anor v Ibeozimako (2014) LPELR-23599(CA), wherein it was again said that increase of rent is an offer which the tenant is at liberty to accept or reject.
A tenant may reject rent increment and the landlord may follow due process of law to eject such tenant at the expiration of the subsisting tenancy.
The court held that whatever unilateral increase of this type can only amount to an offer, which the tenant is free to accept or reject, and that upon rejection by him, the landlord must either go back to the original terms or determine the tenancy in accordance with the law.
Though an unfair increase in rent can be challenged by tenants, in return, it is also upon the tenant that they should pay rent regularly. In situation where rent is not paid there are remedies for breach of covenant to pay rent available to the landlord which include distrain for rent, action for arrears of rent or an action for forfeiture. When a tenant is not up-to-date on the payment of rent, they may not have good standing in case of disputes about the increase in rents.
A tenant who is displeased with the increment of rent can ;
Consult a Lawyer: If the tenant thinks the increase in his rent is unfair, he should consult a lawyer who will write to the landlord explaining why the increase is not reasonable.
Challenge in Court: If the landlord refuses to revert the rent increase, the tenant may approach the court to challenge the increase.
A tenant can agree to a rent increase when a tenancy agreement states that rent can be increased during the tenancy, this means that the tenant has accepted that an increment can occur. However, these terms need to be stated within the contract. It is advisable that tenants go back to their tenancy agreements to see the terms involving the issue of increase in rent.
Conclusion
The legal structure regarding increase in rent will definitely vary from one state to the other. For instance, while the Lagos State Tenancy Law of 2011 and Enugu State Landlord and Tenant Law of 2008 are quite protective of tenants with respect to increases in rent, each tenancy law has its specific differences in the process for increasing rent and other tenant’s rights.
While it is within the right of landlords to make suggestions concerning increases in rent, they cannot impose this without following the due process of law and upon approval by the tenants. It is also hoped that tenants will not only know their rights but also exercise due responsibility by paying rent on time and opposing practices against them when called for.