Tenancy Agreements in Nigeria: What You Need to Know
Whether you are a landlord or a tenant, it is important to have a tenancy agreement in place when renting a property in Nigeria. This legal document outlines the terms and conditions of the rental agreement and can protect both parties in case of any disputes or issues that may arise during the tenancy.
Here are some key things to know about tenancy agreements in Nigeria:
1. Types of Tenancy Agreements
In Nigeria, there are two types of tenancy agreements: oral and written. Oral agreements are not recognized by law and are not advisable as they can lead to misunderstandings. It is recommended to have a written tenancy agreement to clearly outline the terms and conditions of the rental agreement.
2. Key Terms in a Tenancy Agreement
Some key terms that should be included in a tenancy agreement in Nigeria include the duration of the tenancy, the rent amount and payment terms, the purpose of the property (residential or commercial), and any restrictions on the use of the property (such as no pets or no smoking).
3. Security Deposits
Landlords in Nigeria often require tenants to pay a security deposit, which is usually equal to one or two months’ rent. This deposit is meant to cover any damage to the property or unpaid rent at the end of the tenancy. The deposit should be clearly stated in the tenancy agreement, along with the conditions for its return.
4. Rent Increases
Landlords have the right to increase rent during the tenancy period, but it must be done in accordance with the terms of the tenancy agreement. The agreement should state the frequency and amount of any rent increases, and the landlord must provide adequate notice before implementing any changes.
5. Termination of Tenancy
The tenancy agreement should also outline the conditions for terminating the rental agreement. This includes the notice period required by either party, the conditions under which the landlord can terminate the agreement, and the procedure for returning any security deposit.
6. Third-Party Guarantors
Some landlords may require a third-party guarantor, such as a family member or friend, to sign the tenancy agreement. This person agrees to take responsibility for the rent payments if the tenant is unable to pay.
In conclusion, a tenancy agreement is an essential document for any rental agreement in Nigeria. It outlines the terms and conditions of the rental agreement and protects both parties in case of any disputes or issues that may arise during the tenancy. If you are a landlord or tenant, it is recommended to seek professional legal advice to ensure that your tenancy agreement is legally binding and enforceable.