Reps consider bill to ban landlords from demanding more than one year’s rent in FCT

The House of Representatives is considering a bill seeking to stop landlords, property managers and estate agents in the Federal Capital Territory (FCT) from demanding more than 12 months’ rent upfront before granting or renewing tenancy agreements.

The proposed legislation, sponsored by Paul Nnamchi, representing Enugu East/Isi-Uzo Federal Constituency, and Ahmed Doro, representing Bindawa/Mani Federal Constituency of Katsina State, also seeks to establish an authority to regulate rental payments and protect tenants from unlawful practices.

The bill aims to prevent landlords and their agents from using other arrangements to bypass the proposed restriction.

Such practices include using intermediaries, imposing compulsory service charges, creating artificial tenancy renewals, entering into separate agreements or adopting other methods to compel tenants to pay more than one year’s rent upfront.

Under the proposal, tenants could voluntarily pay rent for more than one year if they initiate the arrangement without coercion, threats, discrimination, or retaliation, provided the agreement and payment are documented in writing.

The proposed legislation also requires landlords and authorised agents to provide written tenancy agreements before or at the start of a tenancy, specifying the rent, payment schedule, tenancy duration, refundable deposits, additional charges, and the rights and obligations of both parties.

The bill aims to establish the Federal Capital Territory Rent Regulation and Tenants’ Protection Authority, which would investigate complaints, monitor compliance, facilitate dispute resolution and order refunds of unlawful rental payments.

If the authority finds that a tenant paid rent in violation of the proposed law, it may order a refund of the unlawful amount within 30 days of serving the order.

The bill proposes fines of between N500,000 and N5 million for individuals convicted of knowingly violating the restriction on advance rent payments, while corporate offenders would face fines ranging from N5 million to N20 million.

The proposed law also provides for a fine of up to N1 million for anyone convicted of failing to comply with a valid compliance notice issued by the authority.

Tenants and landlords would retain the right to seek judicial redress, while anyone dissatisfied with the authority’s decisions could appeal to the FCT high court within 30 days.

Last year, the parliament proposed capping rent increases nationwide at 20 percent and urged the federal government to enforce the measure, but the resolution has not been verifiably implemented.

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