The Lagos State government has released N5 billion to fast track the state’s monthly rent scheme that will commence in January 2022.
The scheme will enable the government to decide to landlords how they should collect rent revenues from occupants.
The state commissioner for finance, Rabiu Olowo revealed this at a panel discussion during the Lagos Real Estate marketplace conference and exhibition held on Wednesday in Lagos.
The two-day event titled ‘Lagos: 21st Century Real Estate Investment Hub’ was organized by the Lagos State Real Estate Regulatory Authority (LASRERA).
The commissioner while speaking said the scheme was set up to support tenants and landlords regarding rent remittance.
Olowo said the first set of beneficiaries will be drawn from the formal sector, the second set will be from the informal sector and others will follow accordingly.
According to him, he said, “Following a survey, we have been able to create a model that will be launched and known as the Lagos monthly rental policy.”
“The survey reveals that a large percentage of Lagos residents finds it difficult to pay their rent on yearly basis, hence the introduction of the initiative.
You (stakeholders) have nothing to fear. You will get a better deal by joining the scheme.
“To start with, an N5 billion portfolio has been put in place to kick off the scheme.
“We welcome more support from more financial institutions to raise the bar of the portfolio for the masses to enjoy from this policy.”
Also the special adviser to the Lagos governor on housing, Toke Benson-Awoyinka added that the scheme is part of efforts to develop the real estate industry and to boost investors’ trust.
She said the scheme is similar to the rent-to-own system which is already in operation in Lagos.
According to Benson-Awoyinka, the government can dictate to landlords how they should receive rent payments from tenants.
NAN quoted “Yes, there is a way we can dictate because we have the tenancy law that has prescribes that you cannot collect more than one-year tenancy in some areas of Lagos state.”
“We also know that because of the credit system in Nigeria, we cannot enforce that monthly tenancy but create enabling environment for people to also subscribe to the scheme.
“We have put about five components together as a state government, modifying the policy and making it seamless and easily accessible by the citizens of the state.
“If pre-qualified, we know that the tenant can afford whatever rent she or he wants to pay. But if she or he is having difficulty putting big funds together, we refer them under this scheme to the financier.
“The financier also does the needful in terms of pre-qualification and gets to know who the landlord is.
“So, there are various components to this. We have the insurance, financier, the landlord, the tenant, and the legal, apart from the administrative cost of the scheme.”
Again, she noted that there is a method for existing tenants that would like to enroll in the scheme.
She added, “The scheme goes ahead to pay that yearly rent to the landlord but gives such a tenant an option of paying that rent on monthly basis after pre-qualification.”
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