If the landlord demands a 2 year rent and it is 600k per year,that would make the sum of 2 year rent be 1.2m
Now the question is this ''Does this mean that the agent will be paid 10% of 1.2m or 10% of 600k?This question is Important because an agent Fee is 10% of the deal Please clear my doubts''
I am wondering........Isn't the tenant paying the whole two year sum at once?If it is so,then the agent gets 10 percent of the two year rent... If the agent decides to collect 10 percent of 600k times two,that would be 20 percent.
Now my question is this...who will pay the ten percent to the agent?The Landlord or the tenant?
And then,what is this about agreement fee?Is it the same thing as caution fee which you get back when you move out?
All I can tell you is that "caution fee" does not work in Nigeria.
ReplyDeleteThe agent gets 10% of the whole deal and turns to you and milk you dry. There is not regulation or regulatory body to agent and landlord matter in Nigeria unlike in most developed and developing country. But how about those sisis wey dey use atu pay rent, which one agents go collect?
Is the tenant that pays the 10%...o,agency fee in lagos no be beans,those people make it hard for people
ReplyDeletein obio/akpor in ph the tenant pays the money to the landlord then the landlord pays the agent fee to the agent and rent is paid yearly
ReplyDeletewhere I stay no caution fee you spoil anything you do the repairs
but in owerri they collect form money in student's area which goes to the lodge president or caretaker
#GOAT™
The tenant pays rent to the landlord and pays ten percent of the rent being the agent fee to the agent.
DeleteIn some instances, the agent fee is negotiable. That's what I've noticed.
Praise thy Lord! Danny wrote more than a line today😆😆😆
DeleteI even wish lagos state government can do something about all these unnecessary charges. it is killing
ReplyDeleteAgreement fee is not same as caution fee.
ReplyDeleteLet me narrate my experience over the weekend.
I went to an agent to check for a house for someone around Ebute meta and environ.
I had to register with 3000 naira as against the 5000 he requested for.
We checked 3 houses. One uncompleted one around Abeokuta/ Jebba street in Oyingbo area. It was like all those barrack house (flats with too many tenants occupying different size of flat) developed by Alayes. I saw about 7 of them or there about in front of the uncompleted building. The size of the single room was okay. But I did not like the fact that it was uncompleted because as far as I'm concerned, anybody can have access to the building claiming to be a laborer, supervisor or something.
I checked another one at Apapa road, but it was a 3 storey building where you and the fence will struggle for space. The rooms are like cubicle and again, a barrack house, new building though.
The 3rd one we checked at Odaliki Street off Apapa road, was not new but under renovation. I liked it, the size and the privacy the person will enjoy. But, at the junction of the street, there is a big building like a moat for Lagos State waste management, the street lokked like one that will be flooded once it rains, and again there is a gutter between this particular building and the next. The water there is dirty and stagnant, I think it will breed mosquitoes. And the street looked generally dirty.
Please is anyone here familiar with Odaliki street, Off Apapa road not far from Mobil filling station/bus stop? I need to confirm all I noticed there over the weekend. Thanks.
All that you noticed about Odaliki street is right. We lived at thomas street ( the styreet after Odaliki) for a few years and my conclusion is that Apapa road is not a place to live especially when they start their fights and robbery unannounced.
DeleteThanks anon.
DeleteFor a room sef contain, the agent said it will cost 300k and pay for one and half years at 450k and also pay agant and commission 150k.
ReplyDelete150k😳. His a thief.
DeleteThey charge more than 10% most times.we need it regulated really.
ReplyDeleteProfessionally, agency fee & agreement ought to be @5% each. Agency fee is paid to the agent while agreement goes to the landlord. And whether the rent is paid for 100 years, it's still 5% of the total rent payable.
ReplyDeleteAgreement fees is not the same as caution fee. The former is nonrefundable while the latter is refundable should you wish to leave the property.
These days, the property market is being flooded with quacks (persons who are not trained and duly registered Estate Surveyors & Valuers) who charge 10%, it's wrong.
Infact, some quacks don't even put a percentage on it. You'll just hear 50k for agency and agreement each. Rent of 200k/annum, you'll now pay 100k for both fees making it 300k, that's totally wrong.
Just like what I experienced over the weekend
DeleteIn Ilorin,you can rent a room of 50k and agent will say his money is 30k. Oga na you build the house?? Very irritating thing. In Abuja then,agent takes 10% of rent. That's still reasonable instead of just calling an amount. I don't know if its still obtainable there
DeleteHere I know you pay your rent n d landlord pays d agent who brought u.
ReplyDeleteNot so here oo, we pay rent, then pay agent fee come pay lawyer fee join. Most times, the landlord is both the agent and lawyer. He will eat "thank you" come still chop "very much" join. If you don't want to pay, you go. So sad
DeleteHere I know you pay your rent n d landlord pays d agent who brought u.
ReplyDeleteNa wa o
DeleteIdeally, the landlord isnt suppose to collect 2 years rent... and the agent fee is 10% of rent, then legal is 10% while caution is the refundable. these days, some agent want to charge 2 years agent fee and this is absolutely wrong, this is Nigeria where every nonsense seems normal..
ReplyDeleteAgency fee is usually 10% of rent paid and is paid by the tenant. Legal fee is also 10% paid by tenant for prepartion of the tenancy agreement to be signed by both parties (Landlord and tenant) while caution deposit is also paid by tenant to either his landlord or agent(if he/she is managing the property). This caution is however refundable(if you know your right oo) at anypoint you are leaving the house and all the fixtures/fittings in the house are in good shape.
ReplyDeletePls has anyone ever collected caution deposit after moving out?
DeletePlease the government need to look into this matter seriously. Especially here in Lagos state where the agents charge an outrageous amount of fee, for a room self con that the rent might be 150k per year they will bill you 40k for agent fee then another 4ok for damages to the landlord. Seriously is frustrating.
ReplyDeleteTenants pay the agents. My own we pay all to the landlord. He has his agents, so he pays them.
ReplyDeleteOur church we paid the landlady then paid agents their own 10%
The one i don't understand is lawyer fees
ReplyDeleteThe agent gets 10% for agent fee and then another 10% for agreement.that is for a rent of 1.2m ,120k for agent fee and another 120 for agreement fee. So all will be 240k plus 1.2=1.440k but some greedy agent collect 2 years for agent fee and 2 years for agreement. In that case you will be ask to pay 240 for agent fee and another 240 for agreement fee plus caution fee between 50-150k. So you see why moving to a new house is very expensive In Lagos . I relocated to a new apartment last year and I paid over 600k for agent and agreement fee for a rent of 1.6m. That is aside caution and service charge o.changing apartment can be very stressful in Lagos. Even after telling agents what you want and you budget they still take you to ridiculous places. I wish the government can intervene on this but what you you expect from a govt that has woefully failed in term of provide suitable accommodation for its populace
ReplyDeleteFor 2months iv been trying to check a flat or a nice 4 blocks of 3bed in surulere for a client(purchase),my eyes has seen!!
ReplyDeleteU hear 30m last for a flat,25m for block of flats that needs to be torn apart to rebuid🙄,I got tired at a point and deceived myself that I could check the choice areas and ask😂it was a waste of time so I realized except u know someone who knows landlords,ud have to part with some money that was not necessary,all the houses seen so far was def not worth the prices,still searching.......!!
Here in Obio-Akpor, each time we pay rent we remit 10% to the caretaker. Been living in same house since 2011. The agent that assisted us was not recognized by the landlord so we on our own paid him 5% of the first year rent though we paid two years rent.
ReplyDeletethe government cannot regulate what it does not own. if government provides accomodation just like south africa, agents will not thrive.
ReplyDeleteordinarily, the agent collects about 10 percent or 5 percent of the agency fee, depending on the rental fee. agreement fee is given to the lawyer to draft a lease agreement for both the tenant and the landlord.
ReplyDeleteSometime ago an agent took me to a nice looking shop I wanted to rent. The landlady asked for her own agency fee of 10% which was quite different from caution fee and tenancy agreement. I asked her if she was d one that brought me to see d shop. She said that's how she does her own. I almost abused her but for her age. Some of these people have no joy at all
ReplyDeleteOrdinary Ibadan here, got accommodation for 200k, agent collected 60k, that's like 30%
ReplyDeleteIf you go through a property management company eg Jide Taiwo and Co, you'll pay NGN 780,000.00 for a flat of NGN 600,000.00 Per annum {see below} :
ReplyDeleteRent: NGN 600,000.00
Agency fee: 10% ie NGN 60,000.00
Agreement: 10% ie NGN 60,000.00
RCD: 10% ie NGN 60,000.00
Total: NGN 780,000.00
Out of the rent {NGN 600,000.00}, the property management company will remove 10% {ie NGN 60,000.00} as management fees. The landlord will receive NGN 540,000.00.
A. The agreement fee {paid by you} is the cost of drawing up a legal agreement between you and the landlord.
B. The agency fee {also paid by you} covers their cost of advertising the apartment, transportation, etc.
C. "RCD" is short for 'Refundable Caution Deposit'. It is more locally known as or called 'caution fee' or 'damages'. This fee is the amount that you have to deposit with the property management company {not landlord}. It's to cover any damages by you when you are moving out eg you broke some louvers etc. As the name implies, it is supposed to be refundable. If the damage(s) is/are minor, you'll get some change back.
Now to your questions:
Q1. If the landlord demands a 2 year rent and it is 600k per year, that would make the sum of 2 year rent be 1.2m. Now the question is this ''Does this mean that the agent will be paid 10% of 1.2m or 10% of 600k?This question is Important because an agent Fee is 10% of the deal Please clear my doubts''
Now, if the landlord decides to take two years in advance {ie NGN 1,200,000.00}, the property management company should receive 10% of that two years rent {ie NGN 120,000.00} as MANAGEMENT FEE. The reason is because the company has been contracted to manage the property for two years.
Although property management companies can act as agents, agents are rarely property managers.
If an agent takes you to a property where the owner wants two years in advance, then wahala dey, because he might also ask for 10% of the two years rent. Although this, I believe, can be negotiated.
Q2. Now my question is this...who will pay the ten percent to the agent?The Landlord or the tenant?
Agency fee is paid by you, the tenant. Management fee is paid by the landlord.
Q3. And then, what is this about agreement fee? Is it the same thing as caution fee which you get back when you move out?
The agreement fee is the cost of drawing up a legal agreement between you and the landlord. It is to be
paid by you. It is different from 'caution fee' which is a deposit in case you damage anything during your stay.