How Diaspora Investors Can Earn Rental Income in Lagos Hands-Free
Laide Matthews · 21 April 2026 · 4 min read
Last reviewed: 29 September 2026
TL;DR: The Lagos State Tenancy Law of 2011 still governs rentals: agency and legal fees are each capped at 10% of rent, eviction requires proper notice and a court order, and landlords can't just change locks or throw out tenants. A new Tenancy Bill before the House of Assembly (as of 2026) proposes tougher caps — 5% agency fees and limits on advance rent — but it isn't law yet. Know the current law; watch the bill.
This is general guidance, not legal advice — confirm with your lawyer.
Lagos runs on rentals. More than half of property searches in the state are for rentals, and most landlord-tenant wars I see started with someone not knowing the law. Here's what both sides need to know.
Until the new bill passes, the Lagos State Tenancy Law, 2011 is the rulebook. Its key provisions:
Fee caps. Section 4 caps agency fees at 10% of the total rent — and separately caps legal fees (for preparing the agreement) at 10%. Combined, no tenancy should cost you more than 20% in agency plus legal fees. LASRERA (the Lagos State Real Estate Regulatory Authority) actively enforces this and has recovered hundreds of millions of naira from fraudulent agents.
No self-help eviction. A landlord cannot change the locks, remove the roof, disconnect utilities, or throw a tenant's belongings out — no matter how much rent is owed. Eviction requires proper notices and a court order. Anything else is illegal.
Notice periods. The law sets minimum notice periods before a tenancy can be terminated — these scale with the tenancy type (a yearly tenant gets longer notice than a monthly one). Your tenancy agreement should reflect them.
Rent control scope. The law's full protections apply to most residential tenancies, though certain high-value and special premises have different treatment. Your lawyer can confirm how your specific property is classified.
As of 2026, a new Lagos State Tenancy and Recovery of Premises Bill is before the House of Assembly at committee stage. Its headline proposals:
If passed, this bill reshapes the economics of renting in Lagos — particularly the brutal upfront costs (two years' rent plus 20% fees) that lock so many people out of decent housing. But committee stage isn't law. Operate under the 2011 law until that changes.
What is the current tenancy law in Lagos? The Lagos State Tenancy Law, 2011 — covering fee caps (10% agency, 10% legal), notice requirements, eviction procedures, and landlord-tenant rights. A replacement bill is before the House of Assembly as of 2026 but hasn't been passed.
Can a landlord increase rent arbitrarily in Lagos? Under the 2011 law, rent reviews should follow the agreement's terms with proper notice. The proposed new bill aims to curb arbitrary increases more aggressively. Either way, increases mid-tenancy without agreement terms supporting them are disputable — get legal advice.
Can a landlord evict a tenant without going to court in Lagos? No. Self-help eviction — changing locks, removing belongings, disconnecting utilities — is illegal regardless of how much rent is owed. Eviction requires proper statutory notices followed by a court order.
What is LASRERA? The Lagos State Real Estate Regulatory Authority — the body regulating estate agents and real estate practice in the state. It enforces fee caps, pursues fraudulent operators, and is the agency to report sharp practices to.
When will the new Lagos tenancy bill become law? As of 2026 it's at committee stage in the House of Assembly. There's no guaranteed timeline — bills can stall. I'll update this guide when it passes.
About the author
Laide MatthewsLagos Real Estate Consultant
Laide Matthews is a Lagos real estate consultant with a degree in Estate Management from Obafemi Awolowo University and experience across property sales, acquisition, leasing, management and advisory since 2019. Through BuyRentLagos, he writes about the questions that shape better property decisions in Lagos.
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