10 Landlord Mistakes to Avoid in Nigeria (With Examples and Lessons)
Being a landlord in Nigeria can be rewarding, but it also comes with challenges. Many landlords especially in Nigeria make costly mistakes that can not only affect their rental income but also put them at risk of tenant disputes or legal problems. Whether you own a single apartment in Lagos or multiple flats in Abuja, avoiding these mistakes can save you stress and money.
Below are 10 common landlord mistakes in Nigeria with real life examples and lessons that will guide you.
1.Inabilitity or Failure to Screening Tenants Properly
Many landlords in Nigeria rush to collect rent without doing proper background checks. This often leads to renting to tenants who default or cause trouble.
Example: Mr. Tunde in Surulere rented his 2 bedroom flat to Mr. opeyemi who paid one year rent upfront. And within 3 months, neighbors started complaining about loud parties and fights. When the police got involved, the entire compound was disturbed, and it became difficult to evict Mr. opeyemi legally.
Lesson: Always ask for referees, proof of employment, or guarantors before signing an agreement.
2. Skipping a Written Rental Agreements
Handshake agreements are common but dangerous. Without a written rental agreement, landlords risk disputes they cannot win in court.
Example: A landlord in Port Harcourt accepted verbal agreements for years. When one tenant refused to leave after rent expired, the landlord had no written proof of the terms. The case dragged on in court for over 18 months.
Lesson: Always provide a signed rental agreement template with clear terms.
3. Overcharging Rent Without Market Research
Some landlords overprice their properties because of location or renovation costs. This often leads to long vacancies.
Example: Mrs. Ngozi in Lekki set her 3 bedroom flat rent at ₦4.5M, even though similar flats in the area were ₦3.5M which is 1M additional charges. Her property stayed empty for 10 months, which cost her more than if she had priced it competitively.
Lesson: Study the local market before fixing rent.
4. Ignoring Property Maintenance
Act of neglecting maintenance is one of the fastest ways to lose good tenants. Nigerian tenants expect basic amenities like water, plumbing, and electricity to function.
Example: A landlord in Enugu ignored roof leaks for two rainy seasons. Eventually, his tenants left, and he had to spend double on repairs before he could find new tenants.
Lesson: Have a maintenance checklist and inspect your property regularly.
5. Handling Tenant Late Payments Harshly
Some landlords harass tenants by locking them out or cutting their electricity. This is illegal in Nigeria and can lead to court cases.
Example: A landlord in Abuja cut off water supply to a tenant who delayed rent. The tenant sued and won damages for harassment.
Some landlords ignore taxes, only to face heavy penalties later. In Nigeria, landlords are required to declare rental income.
Example: Mr. Musa in Kano rented out 3 shops but he never declared his income. When audited by the Federal Inland Revenue Service (FIRS), he was fined and had to pay arrears.
Lesson: Learn Nigeria’s rental tax laws or consult an accountant.
7. Renting Property to Friends or Family Without Rules
Mixing family with business often causes issues. Many landlords in Nigeria allow relatives to live rent free or without agreements.
Example: A landlord in Ibadan allowed his cousin to move in without paying rent. Over time, the cousin refused to leave, and family quarrels began.
Lesson: Even with relatives, always have clear agreements.
8. Ignoring Tenant Complaints
Landlords who ignore complaints risk losing tenants and damaging their reputation.
Example: Tenants in Ajegunle Lagos apartment complained about poor drainage and Electricity. The landlord ignored them until flooding destroyed his personal property. Several tenants moved out, and he struggled to find replacements.
Lesson: Address tenant complaints promptly it builds trust.
9. Failure to Advertise Property Effectively
Some landlords rely only on word of mouth not knowing that in today’s Nigeria, many tenants search properties online on like before.
Example: A landlord in Abuja listed his house only on a neighborhood signboard. The house stayed vacant for 5 months. When he later listed it on property websites like Afrolease.com, it was rented within 2 weeks.
Lesson: Use multiple channels social media, property websites, agents, and local adverts.
10. Not Planning for Tenant Turnover
Tenants will eventually leave when some landlords are unprepared, leading to long vacancies.
Example: Mr. Ade in Ikeja relied on one tenant for 8 years. When the tenant moved abroad, Mr. Ade had no savings for repainting or new advertising. The flat stayed empty for 6 months.
Lesson: Always budget for vacancies, repainting, and marketing when tenants move out.
Frequently Asked Questions {FAQ} on 10 Landlord Mistakes to Avoid in Nigeria
What are the most common landlord mistakes in Nigeria?
The most common landlord mistakes in Nigeria include not screening tenants properly, skipping written agreements, overcharging rent, ignoring maintenance, and handling late payments illegally.
Can a landlord lock out a tenant for not paying rent in Nigeria?
No. It is illegal for landlords in Nigeria to lock out tenants, cut electricity, or harass them for late rent. Landlords must follow due legal process, which includes issuing a quit notice and, if necessary, going to court for eviction.
Do landlords pay tax on rental income in Nigeria?
Yes. Rental income is taxable in Nigeria under the Personal Income Tax Act. Landlords must declare rental earnings to the Federal Inland Revenue Service (FIRS) and pay applicable taxes.
How should landlords in Nigeria screen tenants?
Landlords should request a guarantor, verify employment or business details, check rental history, and confirm references. Proper tenant screening helps reduce risks of rent default or property damage.
What should be included in a rental agreement in Nigeria?
A Nigerian rental agreement should clearly state rent amount, payment terms, duration, maintenance responsibilities, rules on late payments, and termination conditions. Both landlord and tenant should sign and keep a copy.
Final,
Being a landlord in Nigeria is a business, not just a side hustle. So by avoiding these common mistakes as a landlord, you can:
Keep good tenants longer.
Protect yourself legally.
Maximize rental income.
Pro Tip: Platforms like Afrolease.com provide tools, templates, and resources to help Nigerian landlords manage tenants better.
10 Landlord Mistakes to Avoid in Nigeria (With Examples and Lessons)
Being a landlord in Nigeria can be rewarding, but it also comes with challenges. Many landlords especially in Nigeria make costly mistakes that can not only affect their rental income but also put them at risk of tenant disputes or legal problems. Whether you own a single apartment in Lagos or multiple flats in Abuja, avoiding these mistakes can save you stress and money.
Below are 10 common landlord mistakes in Nigeria with real life examples and lessons that will guide you.
Table of Contents
1.Inabilitity or Failure to Screening Tenants Properly
Many landlords in Nigeria rush to collect rent without doing proper background checks. This often leads to renting to tenants who default or cause trouble.
Example:
Mr. Tunde in Surulere rented his 2 bedroom flat to Mr. opeyemi who paid one year rent upfront. And within 3 months, neighbors started complaining about loud parties and fights. When the police got involved, the entire compound was disturbed, and it became difficult to evict Mr. opeyemi legally.
Lesson: Always ask for referees, proof of employment, or guarantors before signing an agreement.
2. Skipping a Written Rental Agreements
Handshake agreements are common but dangerous. Without a written rental agreement, landlords risk disputes they cannot win in court.
Example:
A landlord in Port Harcourt accepted verbal agreements for years. When one tenant refused to leave after rent expired, the landlord had no written proof of the terms. The case dragged on in court for over 18 months.
Lesson: Always provide a signed rental agreement template with clear terms.
3. Overcharging Rent Without Market Research
Some landlords overprice their properties because of location or renovation costs. This often leads to long vacancies.
Example:
Mrs. Ngozi in Lekki set her 3 bedroom flat rent at ₦4.5M, even though similar flats in the area were ₦3.5M which is 1M additional charges. Her property stayed empty for 10 months, which cost her more than if she had priced it competitively.
Lesson: Study the local market before fixing rent.
4. Ignoring Property Maintenance
Act of neglecting maintenance is one of the fastest ways to lose good tenants. Nigerian tenants expect basic amenities like water, plumbing, and electricity to function.
Example:
A landlord in Enugu ignored roof leaks for two rainy seasons. Eventually, his tenants left, and he had to spend double on repairs before he could find new tenants.
Lesson: Have a maintenance checklist and inspect your property regularly.
5. Handling Tenant Late Payments Harshly
Some landlords harass tenants by locking them out or cutting their electricity. This is illegal in Nigeria and can lead to court cases.
Example:
A landlord in Abuja cut off water supply to a tenant who delayed rent. The tenant sued and won damages for harassment.
Lesson: Always handle late payments legally through notices, mediation, or court.
6. Not Paying your Rental Income Tax
Some landlords ignore taxes, only to face heavy penalties later. In Nigeria, landlords are required to declare rental income.
Example:
Mr. Musa in Kano rented out 3 shops but he never declared his income. When audited by the Federal Inland Revenue Service (FIRS), he was fined and had to pay arrears.
Lesson: Learn Nigeria’s rental tax laws or consult an accountant.
7. Renting Property to Friends or Family Without Rules
Mixing family with business often causes issues. Many landlords in Nigeria allow relatives to live rent free or without agreements.
Example:
A landlord in Ibadan allowed his cousin to move in without paying rent. Over time, the cousin refused to leave, and family quarrels began.
Lesson: Even with relatives, always have clear agreements.
8. Ignoring Tenant Complaints
Landlords who ignore complaints risk losing tenants and damaging their reputation.
Example:
Tenants in Ajegunle Lagos apartment complained about poor drainage and Electricity. The landlord ignored them until flooding destroyed his personal property. Several tenants moved out, and he struggled to find replacements.
Lesson: Address tenant complaints promptly it builds trust.
9. Failure to Advertise Property Effectively
Some landlords rely only on word of mouth not knowing that in today’s Nigeria, many tenants search properties online on like before.
Example:
A landlord in Abuja listed his house only on a neighborhood signboard. The house stayed vacant for 5 months. When he later listed it on property websites like Afrolease.com, it was rented within 2 weeks.
Lesson: Use multiple channels social media, property websites, agents, and local adverts.
10. Not Planning for Tenant Turnover
Tenants will eventually leave when some landlords are unprepared, leading to long vacancies.
Example:
Mr. Ade in Ikeja relied on one tenant for 8 years. When the tenant moved abroad, Mr. Ade had no savings for repainting or new advertising. The flat stayed empty for 6 months.
Lesson: Always budget for vacancies, repainting, and marketing when tenants move out.
Frequently Asked Questions {FAQ} on 10 Landlord Mistakes to Avoid in Nigeria
What are the most common landlord mistakes in Nigeria?
The most common landlord mistakes in Nigeria include not screening tenants properly, skipping written agreements, overcharging rent, ignoring maintenance, and handling late payments illegally.
Can a landlord lock out a tenant for not paying rent in Nigeria?
No. It is illegal for landlords in Nigeria to lock out tenants, cut electricity, or harass them for late rent. Landlords must follow due legal process, which includes issuing a quit notice and, if necessary, going to court for eviction.
Do landlords pay tax on rental income in Nigeria?
Yes. Rental income is taxable in Nigeria under the Personal Income Tax Act. Landlords must declare rental earnings to the Federal Inland Revenue Service (FIRS) and pay applicable taxes.
How should landlords in Nigeria screen tenants?
Landlords should request a guarantor, verify employment or business details, check rental history, and confirm references. Proper tenant screening helps reduce risks of rent default or property damage.
What should be included in a rental agreement in Nigeria?
A Nigerian rental agreement should clearly state rent amount, payment terms, duration, maintenance responsibilities, rules on late payments, and termination conditions. Both landlord and tenant should sign and keep a copy.
Final,
Being a landlord in Nigeria is a business, not just a side hustle. So by avoiding these common mistakes as a landlord, you can:
Keep good tenants longer.
Protect yourself legally.
Maximize rental income.
Pro Tip: Platforms like Afrolease.com provide tools, templates, and resources to help Nigerian landlords manage tenants better.
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