In Nigeria’s rental market, many tenants walk into lease agreements without fully understanding the breakdown of costs. Beyond the rent itself, two charges often confuse: agent fees and legal fees. These are not optional charges. However, they are standard in most rental transactions, especially in urban and fast-growing cities such as Lagos, Abuja, and Port Harcourt.
When renting a property in Nigeria, it’s common to pay rent alongside other costs that go to the real estate agent and the lawyer or legal team handling the agreement. But who is responsible for these payments, and why?
Who Typically Pays the Agent Fee?
In Nigeria, tenants are usually the ones who pay the agent’s fee. This fee is a commission given to the agent who helped find and secure the property. It’s a standard practice across most states, even though there’s no official national law mandating this structure.
Agent fees often range from 5% to 10% of the annual rent. In Lagos, for instance, many agents charge exactly 10% of the rent. This fee covers the agent’s effort in showing properties, negotiating rent, and liaising between landlord and tenant. While it may feel like an extra burden, this fee is a service charge for the time and expertise the agent provides.
Tenants should always confirm the agent’s fee before starting any negotiation. Some tenants assume the landlord covers it, but this is rarely the case unless you are renting a serviced apartment or high-end property directly through a management company.
Who Handles Legal Fees and Why It Matters
Legal fees are paid for drafting and executing the tenancy agreement. This is usually done by the landlord’s legal representative. The tenant is often required to bear this cost, again typically around 5% to 10% of the rent.
The purpose of this document is to protect both parties. It spells out obligations, notice periods, penalties, and the general terms of the lease. Even though it’s drafted by the landlord’s lawyer, it’s still in your best interest as a tenant to review it properly. Where possible, you can hire your own lawyer to check the terms before signing.
Many landlords in Nigeria will not hand over the keys until the legal fees are settled. It’s treated as part of the initial payment. This is why tenants are advised to budget not just for the rent, but also for agent and legal fees.
Why It’s Important to Clarify Costs Early
One of the common problems tenants face is surprise charges. Always ask for a full breakdown before committing to a property. This should include:
- Rent
- Agent fee
- Legal fee
- Caution deposit (if applicable)
- Service charges (in serviced apartments)
Understanding the cost structure helps you avoid last-minute confusion. Some landlords also bundle legal and agent fees into a single sum, so don’t hesitate to request clarity.
Can Landlords Pay These Costs Instead?
Technically, yes. But in practice, they rarely do. In commercial property leasing, landlords sometimes absorb these costs to attract tenants. In the residential space, especially for mid-range and budget properties, tenants carry the bulk of these charges.
Some premium developers and property companies include these fees in the rent or offer zero agent commission deals. These are exceptions and not the rule.
If you’re unsure, ask upfront. If you feel the charges are too high, you can negotiate, but be realistic. Professionals also deserve fair compensation for their services.
Finally, understanding who pays for what in Nigeria’s rental market can save you both money and stress. Always ask the right questions, request a cost breakdown, and make sure you’re working with licensed agents and lawyers.
Being informed is your best protection in any real estate deal. It’s not just about paying rent. It’s about understanding every kobo attached to your rental transaction.
