The Special Adviser to Lagos State Governor on Housing, Barakat Odunuga-Bakare, has revealed that the state's monthly rental scheme is set to be implemented before the close of 2024 or early in the following year.
This announcement came during a press briefing of the Lagos State Real Estate Regulatory Authority in Ikeja, Lagos.
She said, “We all see what is being done in other climes, rents are collected monthly. Hence, we are looking and hoping that before the end of the year, or by early next year, we will be able to implement the policy of monthly rental. Also, the rental would be charged according to tenants’ earnings.
“The good part about it is that we would be test-running it first within the public sector since we can ascertain how much everybody is earning, and once we see that it works in the public sector, we can now push it out to the private sector.”
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Governor Babajide Sanwo-Olu had while emphasizing the need for a shift from the traditional yearly rental model, where tenants pay in advance, cited its inadequacy in addressing contemporary housing realities, especially in high-demand and expensive urban areas.
Proposing a monthly rental system, he aims to make housing more affordable for low- and middle-income earners burdened by the annual rent commitment.
Sanwo-Olu made this recommendation at the 10th meeting of the National Council on Lands, Housing, and Urban Development held in Lagos. He called for the formulation of a regulatory framework to facilitate the transition to the new rental system. The governor highlighted that Lagos is actively developing monthly rent modalities to accommodate residents not inclined towards the state's homeownership scheme.
He said, “In Lagos, we operate a very robust rent-to-own programme of five per cent down payment and six per cent simple interest rate payable over 10 years. We are working on another product, which is a purely rental system, where residents will pay monthly.”
The move represents a strategic effort to adapt housing policies to the evolving needs of the populace.
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