By Obike Ukoh
The Ebonyi State House of Assembly recently passed a Bill for Law to regulate house rents and the activities of estate agents.
The Assembly is following in the footsteps of the Lagos State House of Assembly, which on Aug. 5, 2011, passed a similar bill into law. The bill was subsequently signed into law by the governor on Aug. 24, 2011.
Like the Lagos law, the Ebonyi legislation was designed to check the activities of ‘Shylock’ landlords, who were exploiting the system and taking advantage of ‘desperate’ tenants.
The Ebonyi legislation, titled “The Ebonyi State Sale of Scraps, House Rent and Agent Fees Regulation Law, 2026,” when signed into law by Gov. Ogbonna Nwifuru, will empower the government to standardise house rents and check excesses of landlords and agents.
The legislation also stipulates that landlords who obtain possession of accommodation through fraud, misrepresentation or concealment of material facts commit an offence punishable by up to two years’ imprisonment.
It further stipulates that agency fees should not be more than two per cent of the gross amount of a property transaction.
When the law becomes operational, landlords are required to comply with standard rents prescribed by the governor for applicable categories of accommodation.
The law also requires all estate agents operating in the state capital to register with the Ministry of Capital City in order to promote transparency and professionalism in property transactions.
House Leader, Kingsley Ikoro, who presented the bill, said the legislation was designed to check exploitative practices in the housing sector.
“This legislation is very important to us as a people because it will help check exploitative practices in the housing sector,” Mr Ikoro said.
Even though the government proposed the law as part of the solution to check escalating house rent, it has consistently reiterated its commitment to address Ebonyi’s housing deficit, unofficially put at 200,000.
Even before now, the government has stressed that part of the measure to address the housing deficit is the building of housing units in different parts of the State.
The housing projects are located across the state, while the government is equally collaborating with the Federal Government to ensure that the housing needs of the people are actualized.
Mr Abia Onyike, a former Commissioner for Information in Ebonyi, who spoke on the housing deficit,stressed that surrounding communities to Abakaliki, the Ebonyi capital, should be encouraged to embark on aggressive building of houses in order to address the problem of housing shortages in Abakaliki.
In addition, he said that the state government and the thirteen local government councils should build more estates to solve the housing problem in the state.
“I believe that the bill by the Ebonyi State House of Assembly, if signed into law, would go along way to regulate the activities of agents and landlords.
“The private sector must complement the government’s efforts by embarking on mass housing projects,’’ Onyike a former Deputy National President, Nigeria Union of Journalists, stressed.
A labour leader, Mr Leonard Nkah, who reacted, said that it may not be possible to control house rents, but controlling the unwarranted exploitation of house or residency seekers by the so called agents is possible.
“Before now, what we know is 10 per cent agency fee, but today, I don’t know how landlords have allowed apartment or shop seekers to pay agents almost 50 per cent of the actual rent as agency fees.
“A task force must be set up to follow up any law made to save the poor and the so-called middle class from exploitation,’’ Nkah, former President, Nigeria Union of Local Government Employees (NULGE), Ebonyi chapter, noted.
On his part, Mr Brown Chibuike, Managing Director of Brown Connection, a PoS outfit, commended the government for coming to the rescue of the people.
He said that the method adopted by agents and landlords in Abakaliki is very awkward.
“In an accommodation that costs N700,0000, new tenants are forced to pay as high as N1,000,000.
“The balance of N300,000 is treated as agency fee, caution fee and agreement fee.’’
Chibuike commended the proposed government’s intervention, stressing that an enforceable mechanism should be put in place.
Other residents of Ebonyi also expressed mixed reactions to the passage of the bill by the House of Assembly on rents and agency fees.
A tenant, Mr Dennis Oyibe, welcomed the proposed regulation of rents and agency fees, saying it would protect tenants from excessive charges and arbitrary increases in house rents.
Oyibe urged the state government to ensure that the implementation of the law would be fair to both landlords and tenants, while providing effective mechanisms for resolving disputes.
Another resident, Mr Anderson Ukele, said the regulation of agency fees would reduce the financial burden on people searching for accommodation, particularly low-income earners who often pay multiple charges before securing houses.
A landlady, Mrs Onyekachi Chukwu, urged the government to consult property owners before implementing the provisions of the law, saying landlords also face rising costs of building materials, maintenance and other expenses.
Chukwu said reasonable regulation would be acceptable if it took into account prevailing economic realities and protected landlords from unnecessary restrictions.
An estate agent, Mr Simon Orugbala, called for clarity on the proposed agency fees, saying proper guidelines would help distinguish genuine estate practitioners from individuals who exploit prospective tenants.
He urged the government to engage estate agents and other stakeholders in the implementation process to ensure that the law achieved its intended objectives.
Analysts and stakeholders who commented on Ebonyi State Government’s move to regulate house rents queried if Ebonyi will succeed where Lagos State Government failed.
With commitment and firmness, analysts believe that Ebonyi will succeed where others failed. They also say that Ebonyi is moving on the right path by showing commitment to building estates across the state.
Encouraging and empowering people to build their own houses remains the solution to addressing the housing deficit.
On this, the Legend Nelson Mandela had this to say: in the introduction to his book, Long Walk to Freedom, about his house in Orlando, West Soweto: “It was the opposite of grand, but it was my first true home of my own and I was mightily proud.
“ A man is not a man until he has a house of his own.’’
Without doubt, Ebonyi will succeed; the government and critical stakeholders should assist the majority of the people to own their personal houses, so that they qualify as men in the Prism of the Great Mandela.
Obike Ukoh, ex-Deputy Editor-In-Chief, News Agency of Nigeria (NAN)
