0

THE IMPORTANCE OF A TENANCY AGREEMENT: RIGHTS AND RESPONSIBILITIES OF PARTIES TO A TENANCY AGREEMENT.

Articles , , , , , , ,
Tenancy Agreement

BY BARR. PETER UMAH

INTRODUCTION:

Shelter is a fundamental need for every individual. In Nigeria where there is rapid inter-state and inter-community migration in search of livelihood, housing poses a major challenge for the citizens. Since not everyone can afford the luxury of owning a house, a chunk of individuals in Nigeria rent houses for temporal stay.

Where a person decides to give his property to another individual who accepts to take possession of the property for an agreed period of time is called a tenancy. Where, thereof, a person decides to give out his property(landlord) to another who agrees to take possession of same(tenant) for an agreed period of time and such agreement in reduced into writing such is called a tenancy agreement.

A “Tenancy Agreement,” is a legal deal that sets rules for how a tenant can live in a landlord’s property for a certain time. This agreement covers things like paying of rent, looking after the property, and how the property can be used. A Tenancy Agreement is written agreement between a Landlord and his tenant which states the agreed terms and condition of the tenancy.

Tenancy agreement is very important. It provides clear terms and prevents unwarranted possession of property after expiration of tenancy and avoids arbitral increase of rent. It is good for every property owner to prepare tenancy agreement. Also, Tenants should not take possession of property without demanding for tenancy agreement and endeavor to read it carefully.

A Tenancy Agreement is not mandatory in law, and the fact that a tenancy agreement does not exist in a tenancy relationship does not mean that the Landlord and Tenant have no rights in the tenancy. Both Landlord and Tenant have something called implied rights in all Tenancy relationships whether or not a Tenancy Agreement exists. However, a Tenancy Agreement is important because it provides further protection for both the Landlord and Tenant, and it expands on the implied rights.

Who creates the Tenancy Agreement?

In Nigeria, the Tenancy Agreement is in most cases created by the Landlord or their lawyer. As the Landlord is the owner of the property, they set the terms on which they want to rent their property and present this to the Tenant. Nigeria Property Centre has developed a service for Landlords where they can create their own Tenancy Agreement

What a Tenancy Agreement should contain

There is no particular form to write the agreement but a standard tenancy agreement must contain; date, names and addresses of parties, rights and obligations or covenants and witnesses.

As a Landlord or a Tenant, you need to ensure that your Tenancy Agreement includes the following terms and information at a minimum:

  • The names and addresses of the Landlord and the Tenant
  • The address of the property
  • The start date and end date of the tenancy
  • How much the rent will be
  • Other applicable amounts including – legal fees, agency fees, security deposits, service charges/fees etc as applicable
  • The obligations of both the Landlord and the Tenant
  • An outline of bills the Tenant is responsible for

The above list is not exhaustive and in fact there are more terms that are frequently included in well-drafted Tenancy Agreements. Before renting a property, it is important that a well-drafted Tenancy Agreement is signed by both parties as it is the most important document in the tenancy relationship.

What are the major keywords in a tenancy agreement.

  1. A ‘landlord’ is the owner of the property, while a ‘tenant’ is the person renting the property. The ‘premises’ refers to the actual property being rented, like an apartment, house, or condo.
  2. The ‘term’ of the agreement is the length of the lease, such as 6 months or 1 year. A ‘renewal’ extends the original term, while a ‘termination’ ends the agreement.
  3. ‘Rent’ is the amount paid by the tenant to the landlord to occupy the premises. A ‘security deposit’ is paid upfront and may be used by the landlord for any unpaid rent or damages at the end of the lease.
  4. ‘Utilities’ like water, electricity, and gas are either included in the rent or paid separately by the tenant. ‘Fixtures’ are parts of the building like sinks, toilets, and cabinets that belong to the landlord. ‘Appliances’ such as a fridge or stove may be provided, or you may need to bring your own.

What are the Rights of the Tenant in Nigeria

As a tenant in Nigeria, you have certain rights that protect you and allow you to live comfortably in your rented property.

  • Right to Privacy

A landlord cannot enter the home of a tenant without proper notice to him. The landlord must give adequate notice before coming onto the property of the tenant. The only exceptions are in cases of emergency or where express permission to enter was given by the tenant. The Length of notice to be given in this context is usually contained in the tenancy agreement but where there is no tenancy agreement, a notice of a least 24hours is required.

  • Right to Repairs

The landlord is responsible for ensuring the property is habitable and making any necessary repairs to things like the roof, plumbing, electrical systems, etc. If something is broken or needs fixing, the landlord should be contacted in writing, requesting the necessary repairs. Failure to make repairs could be grounds to withhold rent or break the tenancy agreement.

  • Right to a Safe Environment

The landlord must provide proper and adequate security for the tenant. The locks and proper lighting and ensure the overall safety of the building and any common areas.

  • Right to Peaceful Enjoyment

A tenant, has the right to live in the property without unnecessary interference from the landlord or other tenants. Excessive noise, harassment, or anything that inhibits the tenant’s ability to live comfortably in the space could be addressed by contacting the landlord or local authorities.

What are the Responsibilities of the Tenant in Nigeria

As much as tenants have rights which they must enjoy, there are responsibilities which they must uphold.  Failure to do so can lead to disputes with your landlord and even eviction. These responsibilities include but not limited to:

  • Pay rent on time

Tenants must pay rent on time, typically every year, is arguably the most important responsibility. Late or non-payment can damage the tenancy relationship with the landlord and hurt your credit.

  • Maintain the property

It is the responsibility of the tenant to keep the rental unit in good condition. Perform minor repairs and maintenance, keep it clean and pest-free, and avoid damage beyond normal wear and tear. The tenant must also notify the landlord promptly about any major issues.

  • Follow the rules.

The tenant is to carefully follow all terms outlined in the tenancy agreement regarding things like noise, pets, guests, smoking, parking, etc. Failure to comply can be grounds for eviction.

  • Give Adequate Notice.

Tenants in Nigeria usually thing they are not obligated to give the landlord notice of vacation of the premises they occupy. Usually, a standard tenancy agreement contains the length of notice to be given by either party in determining the tenancy. So, the tenant is duty bound to oblige to such responsibility where he intends to vacate the property before the expiration of the tenancy. 

  • Payment of extra fees.

Where the landlord and tenants have agreed on who would pay the extra charges like utility bills and the like, the tenant is obligated to fulfil that responsibility. Extra charges like utility bills, parking, storage, or amenities. Make payments for any such fees on time as outlined in the agreement.

What are the Rights and Responsibilities of the Landlord in Nigeria

As a landlord in Nigeria, there are certain rights to protect the investment. Some of the key rights include:

  1. The right to collect rent from tenants as agreed in the tenancy agreement. Failure to pay can result in eviction. Landlords also have the right to review rent prices when renewing or extending the tenancy agreement.
  2. The right to make inspections of the property to check for any damage or needed repairs. Landlords must provide proper notice to tenants before accessing the unit.
  3. The right to make and enforce rules around the use of common areas, noise, pets, parking, and more. These rules should be clearly outlined in the tenancy agreement.
  4. The right to evict tenants who violate the terms of the tenancy agreement or fail to pay rent. Landlords must follow the proper legal procedures for eviction, including providing written notice.
  5. The responsibility to make necessary repairs and renovations to the property. Landlord must provide tenants with notice about any work to be done, except in emergency situations.
  6. The right to choose who lives in the property using screening procedures, background checks, tenant references, and tenancy agreement provisions. The landlord must have the discretion to accept or reject any applicants, as long as it’s not for discriminatory reasons.
  7. The right to charge caution deposits before tenants move in to cover any repairs needed. Deposit fees should be reasonable and must return any unused portion when the tenancy ends.
  8. the possibility of properly and adequately determining the tenancy

Conclusion. It is strongly advised that parties, especially tenants must peruse the contents of a tenancy agreement before signing same and it is advised that thy give the tenancy agreement to a lay to vet and interpret the covenants to them before moving into an apartment. This is because a breach of any connivant in the tenancy agreement may lead to an action in court against the defaulting party.

[1] Generally, section 47 of Tenancy Law of Lagos State 2011 and section 55 of Rent and Recovery of Premises

Law of Cross Rivers State, Laws of Cross Rivers State 2004;

[2] Landlord & Tenant Agreement In Nigeria +Agreement Sample Excision Of Land, — March 13, 2024

[3] Francis, M., Nigeria: Landlord & Tenant – the Right to Shelter and Statutory Protection of Tenants. Daily

independent, Lagos. (2009) [Online] Available at http://www.iut.nu/members/Africa/Nigeria_articleMarch4_2009.pdf

[4] Dabara I. et al., An Examination of the Tenancy Agreement as a Shield in Property Management in Nigeria.

(2012) International Journal of Business Administration.4(3) available from

https://www.researchgate.net/publication/265358703 a

[5]  See generally D.L, Evans, The Law of Landlord and Tenant, Butterworths Publications (1974) pp 12-13

[6] SPLINTERS NIGERIA LIMITED v. OASIS FINANCE LIMITED, Per Iyizoba, JCA, P.33, (paras. B-D).