The Lagos State government has raised optimism that the monthly rent payment policy set to commence in January 2022 will greatly ease the burden of yearly payment on accommodation for tenants, just as landlords will get their annual payment of house rent upfront.
Toke Benson-Awoyinka,special adviser to Governor Babajide Sanwo-Olu on housing, stated this during a discussion on rental policies at the just concluded second Lagos real estate marketplace conference themed: “Lagos: 21st Century Real Estate Investment Hub,” held at the Eko Hotels & Suites, Victoria Island.
According to Benson-Awoyinka, the new monthly rent policy, which the state government is set to support with a N5 billion portfolio, will enable tenants to pay monthly rent for properties built by the Lagos State government through the rent-a-home platform, as well as for houses owned by private landlords.
She also noted that the development is a social investment initiative that will benefit the landlords as they have their rent guaranteed, while tenants will no longer have to worry over spending huge amounts of money on rent.
“Tenants can therefore use their huge money for other forms of investments or for payment of school fees as the burden of payment of yearly rent is taken away from them completely. So, it is a win-win social investment scheme,” she said.
The special adviser also stated that the scheme will begin with workers in the formal sector with qualifications of a monthly income and capacity to make rent payments on a monthly basis, noting that tenants in the informal sector will be included once the scheme starts running effectively, provided they meet up with payment capacity requirements.
Commenting on the realisation that the state cannot enforce monthly rent collection on private landlords, she said asides the administrative aspect, the state government has put together five components, including: insurance, financiers, landlords, tenants and legal entities, to “midwife” the policy and ensure it is easily acceptable by all citizens in the state.