Lagos Landlords vs Agents on Commission (What’s Fair, What’s Legal in 2025)

Lagos Tenant-Landlord Law on Agent Fees (2025)

Renting in Lagos can feel like a tug-of-war. The landlord wants a clean deal, the agent wants to get paid, and the tenant just wants keys without surprise charges. Most fights start the same way, someone asks, “Who’s paying commission,” then the numbers change mid-way, then tempers rise.

If you’ve ever heard the phrase “Lagos state tenants and house owners. What does the law say?”, it’s usually because someone is trying to settle a commission argument with facts, not vibes.

This post breaks it down in plain language: why these disputes happen, what the Lagos rules say in 2025, the common tricks that inflate costs, and simple steps landlords and tenants can use to protect themselves before paying a kobo.

Why Lagos landlords and agents fight over commission (and why tenants get stuck in the middle)

Commission fights in Lagos are rarely about “greed” alone. Most times, it’s confusion mixed with poor documentation, plus a market where good apartments move fast. When everyone is rushing, people skip the boring part, clear agreements, then argue later.

A landlord may feel an agent didn’t “work” for the money. The agent may feel the landlord is trying to dodge payment after the tenant has paid rent. Then the tenant becomes the middleman, because the keys are the prize.

Another common driver is competition. Two agents can hear about the same vacancy, post it, and show it. When a tenant pays one agent, the other agent might still claim the deal. In the end, the tenant hears, “Pay again or no move-in.”

The common commission arguments: who brought the tenant, who listed the house, and who gets paid

Most commission stories in Lagos fall into three patterns:

The landlord says, “I already had someone,” and thinks the agent only “followed up.”
The agent says, “I marketed it,” meaning they sourced calls, did inspections, chased documents, and helped close.
The tenant says, “I found it online,” and wonders why an agent still wants a full fee.

In theory, commission is meant to cover the work behind the scenes: finding or matching a tenant, basic screening, arranging inspections, helping both sides agree on terms, and moving the deal to payment and handover. The problem is that many people treat commission like a random entry on a bill, not a fee tied to a clear service.

Hidden charges that cause drama: double commission, inflated percentages, and “service fees”

The loudest fights usually come from extra charges that show up late, or charges that don’t have a clear basis. The common ones include: agency fee, agreement fee, caution deposit, legal fee, inspection fee, admin fee, and “service charge.”

Some are normal in many rentals, but they are also where abuse happens. People complain about:

Double commission, where a tenant is told to pay an agent, then another “caretaker agent” appears asking for the same thing.
Inflated percentages, where someone claims 10 percent (or more) because “that’s Lagos.”
Loose service fees, where a payment is demanded without any written breakdown.

A simple rule can save stress: if you can’t explain a fee in one sentence, and write it down, pause the deal until it’s clear.

Lagos rules on agent commission in 2025: who pays, how much, and what agents must do

Lagos has been tightening how rental transactions should work, especially around agent behavior and pricing. In 2025, the rules people talk about most are straightforward: commission is capped, agents should be registered, receipts matter, and rent collected must be transferred quickly.

Here are the practical points that affect day-to-day renting:

The person who hires the agent pays the agent’s commission.
Agent commission is capped at 5 percent of one year’s rent.
Agents are expected to be registered with LASRERA (Lagos State Real Estate Regulatory Authority).
Agents must issue receipts for payments.
If an agent collects rent on a landlord’s behalf, they must remit it within 7 working days, except where the landlord gives written approval to delay.
Penalties can apply for breaking the rules, including refunding overcharges, a N1,000,000 fine, up to 2 years in jail, or both.

This doesn’t magically end arguments, but it gives you something solid to point to when someone tries to change the deal after you’ve committed.

Who should pay the agent: the person who hired them

Think of it like hiring a barber. If you called the barber, you pay. If your friend called the barber to work for them, your friend pays.

Same idea here:

Landlord hires agent: The landlord should pay commission because the agent is working for the landlord to source a tenant.
- Example: A landlord tells an agent, “Find me a tenant for this flat.” The agent finds someone, the landlord pays the agent.
Tenant hires agent: The tenant should pay commission because the agent is working for the tenant to find options, arrange viewings, and negotiate.
- Example: A tenant tells an agent, “I need a 2-bedroom in Yaba, budget X.” The agent finds listings and takes them for inspections, the tenant pays.

The fastest way to avoid drama is to agree on this in writing upfront, even if it’s a WhatsApp message that states who is paying, how much, and what it covers.

How much commission is allowed and what paperwork you should insist on

The 2025 cap many people cite is simple: agent commission should not be more than 5 percent of one year’s rent.

Quick math example: if annual rent is ₦2,000,000, then 5 percent is ₦100,000. That’s the commission cap for the year’s rent figure.

Before you pay, insist on basic proof and a clear bill. You’re not being difficult, you’re being safe.

What to ask for:

The agent’s LASRERA registration details (or proof they operate under a registered firm)
A written fee agreement (even a short message is better than nothing)
Receipts for every payment, with date and purpose
A clear breakdown of each charge (agency, agreement, caution, legal, admin)

If someone collects more than what’s allowed under the rules, that extra amount should be refunded. If a person refuses to document fees or refuses to issue receipts, treat that as a loud warning sign.

How to avoid commission problems in Lagos (simple steps for landlords and tenants)

Commission problems aren’t always scams. Sometimes they’re just messy deals. Either way, the fix is the same: slow down, confirm who hired who, and put every payment on paper.

For tenants: how to spot a bad deal before you pay

A few habits can save you months of regret:

Confirm who hired the agent, don’t assume.
If possible, ask the landlord directly, even if it’s one phone call.
Verify LASRERA registration or the company’s registration claim.
Request a written fee breakdown before any transfer.
Avoid cash, and don’t pay without receipts.
Don’t pay commission to two different people for the same unit.
Don’t pay “pressure fees” during inspection just to hold the apartment.

A WhatsApp message you can copy:

“Hi, please send your LASRERA registration (or company details) and a written breakdown of all fees (agency, agreement, caution, legal, admin). I’ll make payment only after I confirm and get a receipt for each item.”

For landlords: how to structure agent work so you don’t lose money or control

Landlords also get burned, especially when rent passes through the wrong hands or multiple agents market the same unit with no rules.

Simple steps that work:

Sign a short engagement note stating the commission rate (not above the cap), who pays, and when it’s earned.
Require receipts for every tenant payment the agent collects.
Put the rent transfer rule in writing, rent collected must be remitted within 7 working days unless you approve a delay in writing.
Keep one point of contact for the transaction, to reduce double claims.
Avoid listing the same unit with multiple agents unless you clearly define who can earn commission.

If an agent withholds money, refuses receipts, or overcharges, you can report to LASRERA and also get legal help if needed. The main thing is to keep your proof tidy from day one.

Conclusion

Most Lagos commission fights aren’t mysterious. They come from unclear hiring, unclear fees, and payments made with no written proof. The 2025 rule of thumb is plain: who hires the agent pays, and commission is capped at 5 percent of one year’s rent.

Whether you’re a tenant or a landlord, protect yourself with written terms, receipts, and verified registration. If a deal starts to feel confusing, pause it. Ask questions, request a breakdown, and confirm the agent’s status before paying. Clarity is cheaper than regret.

Lagos Tenant-Landlord Law on Agent Fees (2025)