Renting a home in Lagos these days feels like signing up for a premium subscription you didn’t bargain for. Prices are climbing faster than fuel after subsidy removal, and for most people, the real shock isn’t just the annual rent, it’s the stack of extra fees you have to pay before you even get the keys. Between high demand, limited supply, and all the “hidden” charges landlords pile on, moving into a Lagos home can easily feel like running a marathon with your wallet tied to a rock.
So why is rent still going up? Urban migration keeps the demand high while housing supply struggles to catch up. Landlords are also facing rising costs for estate maintenance, security, water, repairs, generator fuel, and, of course, inflation doesn’t help, making building materials and services more expensive.
This article will break down all the fees you’ll likely face, explain why they exist, and offer possible solutions to those unnecessary fees while renting in Lagos.
The Real Cost of Renting in Nigeria (It’s Never Just the Rent)
In Nigeria, when a landlord says “the rent is ₦1.5 million,” what they actually mean is “come with courage, full savings, and maybe a prayer warrior.” Because rent is just the headline. The real story is hidden inside the fees. Let’s break down the various fees that make up your rent.
Service Charge: The Fee You Should Actually Pay Attention To
If there’s any fee tenants should take seriously, it’s the service charge. This covers security, cleaning of common areas, power for shared spaces, waste disposal, and general estate maintenance.
The problem is not paying the service charge. The problem is paying for it without clarity. Some tenants pay hefty service charges only to still fetch water, fix generators, and settle security themselves. Before paying, tenants should ask what exactly the service charge covers and how often services are delivered. If the estate looks tired, quiet, and dusty, the service charge should not be loud.
We have written an article on “5 Essential Facility Management Questions to Ask Your Landlord Before Renting an Apartment in Lagos“. This is a great source for more information.
Legal Fee: Small Job, Big Bill
Ironically, legal fees are often the least important part of a regular residential rent, yet they’re among the most controversial. For a standard tenancy, the agreement is usually a template document with basic terms. No courtroom appearance. No complex negotiations. No dramatic legal battles.
Yet tenants are often charged a fixed percentage of the rent that feels like the lawyer personally built the house.
Agency Fees: The Double Wahala
Agency fees are where things often get interesting. The agent helps you find the house, collects a fixed percentage of the rent, then disappears like a network during rain.
Caution Fee: The “We’ll Get Back to You” Money
The caution fee is supposed to cover damages, but only in theory. In reality, it’s the fee that goes on a long journey and sometimes forgets the way back. Many tenants never get their caution fee refunded, even after leaving the apartment cleaner than they found it.
Practical Solutions That Can Actually Work
Legal fees
The first issue to address is legal fees. Ideally, legal fees should be negotiated, not imposed, and in principle, should be borne by the landlord, since the landlord is the party engaging the lawyer in the first place.
That said, we recognize that in practice, many rental transactions pass most liabilities and costs to the tenant. Since this remains the case, a fairer approach is for landlords and tenants to agree on a reasonable flat legal fee for standard residential rentals based on the complexity of the agreement rather than a percentage of the annual rent.
Transparency in what the fee covers makes this easier and fairer for everyone.
Agency fee
The same logic applies to agency fees. These fees should always be open to negotiation. Rather than charging a fixed percentage of rent, landlords and tenants should agree on a flat agency fee that reflects the actual scope of work involved.
A flat, clearly defined fee structure promotes fairness, transparency, and trust, making the rental process smoother for everyone.
Service charges
It should come with accountability. Property managers should provide clear breakdowns of what the fee covers and how often services are delivered. Periodic reports or updates would build trust and justify the cost. If services aren’t delivered, tenants should have the right to question or renegotiate.
Caution Fees
Caution fees need a structure. One practical solution is placing caution fees in a dedicated escrow or investment account with a reputable bank. This allows the money to remain untouched, properly documented, and even earn interest over the tenancy period. At exit, deductions can be made fairly if needed, and the balance returned promptly. This protects both landlord and tenant.
Renting in Nigeria doesn’t have to feel like a financial ambush. With better structure, negotiation, and accountability, tenants can pay what is fair, landlords can protect their properties, and everyone can breathe.
Some Additional Honorable Mention
While fee negotiation helps individual tenants, long-term improvement requires systemic solutions. Increased government investment in mass housing and affordable estates would significantly expand supply and reduce pressure on private rental markets.
Clear rental regulations and standardized fee structures can also improve transparency, protect tenants, and promote fairness across the sector. In addition, the adoption of digital property management systems like Est8plus enables better communication, clearer record-keeping, and more accountable property management, ensuring that fees are properly explained, tracked, and justified.
Final Thoughts
Rent in Nigeria is high because of multiple overlapping costs, limited housing supply, and outdated practices. While market prices may be difficult to control, tenants can reduce the burden by negotiating fees, understanding what each charge covers, and insisting on transparency.