Enugu assembly considers bill to abolish caution fees, regulate tenancy charges

The Enugu house of assembly has introduced a bill to abolish caution fees and regulate agency charges and legal fees paid by tenants in the state.

The bill, sponsored by Okey Mbah, the member representing Nkanu east state constituency, passed the first reading on Tuesday during the plenary session.

The proposed legislation follows complaints by Enugu residents over the rising exploitation of tenants by landlords in the state.

The bill, when passed into law, will have offenders pay a fine of N500,000 or serve a prison term of six months or both, as it seeks to put a cap on the payment of legal and agent fees at 10 percent.

“With effect from the commencement of this law and notwithstanding any provisions in other enactments, agent fees chargeable for procuring any accommodation in the state shall not exceed 10 percent of rent by the prospective,” the bill reads in part.

“No tenant shall be caused to pay any further premium in acquiring any accommodation except a legal fee payable to a qualified legal practitioner for the purpose of preparing the landlord and tenant agreement, and such fee shall not exceed 10 percent of the rent.”

The bill also seeks to checkmate the injustice faced by tenants, including forced, irregular, and fraudulent ejection, by establishing a legally defined duration for eviction and other relevant notices.

It also intends to ensure that anyone with intentions to operate as a land agent or property manager will be properly certified by the relevant agency.

“Enugu State Housing Development Corporation, through its managing director, shall see to it that any person who intends to operate as an agent in the state shall apply to the corporation to obtain a permit, and this permit shall be subject to renewal annually,” the proposed bill added.

Speaking with journalists after the plenary session, Mbah said the bill was in tandem with the “earnest desires of the people and residents of Enugu state.”

The lawmaker said he had no doubt that the bill would get the majority support of the house.