Agency and legal fees in Nigeria: who pays, and how much
On top of rent, a new tenant in Nigeria often pays an agency fee, a legal fee and sometimes a caution deposit and service charge. Being clear about each one up front avoids accusations of hidden charges and makes your property easier to let.
Not legal advice. Fee levels are market practice, not fixed by national law, and some states now regulate estate agents. Check the current rules where your property is.
The usual one-off charges
| Charge | What it pays for | Common practice |
|---|---|---|
| Agency fee | The agent who found the tenant and arranged the letting | Often around 10% of the first year’s rent, paid by the tenant |
| Legal fee | Preparing the tenancy agreement | Often around 10% of the first year’s rent, paid by the tenant |
| Caution deposit | Security against damage and unpaid bills; refundable | Often 5% to 10% of yearly rent; see our caution deposit guide |
| Service charge | Shared costs: security, waste, cleaning, generator | Set by the landlord or estate; paid yearly or monthly |
Together these can add 20% to 30% or more to the first year’s cost for a tenant. In a slow market, high one-off charges are a common reason good tenants walk away.
Worked example
A flat lets for ₦3,000,000 a year with a 10% agency fee, 10% legal fee, a ₦200,000 caution deposit and ₦300,000 service charge. The tenant’s first payment is:
- Rent: ₦3,000,000
- Agency fee: ₦300,000
- Legal fee: ₦300,000
- Caution deposit: ₦200,000
- Service charge: ₦300,000
- Total: ₦4,100,000
Regulation of agents
Lagos State has set up a regulator for real estate practitioners, and agents operating in Lagos are expected to register with it. Other states have their own rules or none. Before you hand a property to an agent, ask for their registration details and a written agreement that states their fee and who pays it.
Good practice for landlords
- List every charge, its amount and whether it is refundable in the advert or first conversation.
- Issue separate receipts for rent, deposit and fees.
- Agree in writing whether renewal attracts any fee. Charging agency or legal fees again on a simple renewal is a frequent complaint.
- Never let an agent collect more than you have agreed.
Keep the renewal simple
Renewals are where most fee disputes start. Landlord Reminder reminds you three months ahead so you can confirm the rent and any charges in writing well before the date.