The Bill to Regulate Agent Fees in Rent Transactions in Enugu Passes Second Reading

The bill for an amendment to the Landlord and Tenant Law, Cap. 101, Laws of Enugu State, 2024, has passed its second reading at the Enugu State House of Assembly. The proposed law seeks to regulate agency and legal fees in rent transactions across the state; it also aims to eliminate excessive charges imposed on prospective tenants.

Presenting the bill for a second reading on the floor of the House, the member representing Nkanu East Constituency, Hon. Anthony Okechukwu Mbah said the amendment had gained significant public support since its first reading on February 25, 2025.

He stated that calls and messages from residents, including Enugu citizens in the diaspora, had poured in, expressing concern over the financial strain caused by unregulated rent-related charges.

Hon. Mbah stressed that the bill proposes a maximum cap of 10% of the annual rent as agent and legal fees, while also abolishing caution fees, management bills, and other hidden charges imposed on tenants.

He also explained that the Enugu State Housing Corporation would be tasked with registering and regulating certified agents to bring order to the system and curb fraudulent practices.

Citing messages from his constituents, Hon. Mbah shared a case where a prospective tenant was required to pay ₦600,000 in additional charges beyond the actual rent, adding that such fees have contributed to the housing burden in the state and must be addressed through legislative action.

According to reports, the bill also prescribes penalties for offenders, including a fine of ₦500,000 or six months’ imprisonment, or both.

Hon. Mbah also reassured landlords and investors that the proposed law does not seek to interfere with rental prices but rather to create a fairer housing market for residents of Enugu. He called on his colleagues to support the bill, stressing that its passage would bring much-needed relief to tenants across the state.

Deliberating on the issue, the Sp8eaker of the State House of Assembly, Hon. Uche Ugwu referred the bill to the Committees on Housing and Foreign Investment and Judiciary, ethics, and public petition for further action, which will thereafter be taken for a public hearing.