How to raise rent fairly in Nigeria (and keep good tenants)
Rising costs make rent increases unavoidable, but a sudden, unexplained jump is the quickest way to lose a good tenant or end up in a dispute. A fair increase is planned months ahead, backed by reasons, and put in writing.
Not legal advice. Your tenancy agreement and state law decide when and how rent can change. Check both before you announce an increase.
Check what the agreement allows
If the agreement fixes the rent for its term, you generally cannot raise it until the term ends. If it has a rent review clause, follow it exactly: the dates, the notice and any cap it sets. If it says nothing, the usual time to change rent is at renewal.
Work out a number you can justify
Before you name a figure, gather the evidence a reasonable tenant would accept:
- Comparable rents for similar properties on the same street or estate, from agents or listings.
- Your costs: service charges, estate dues, repairs, insurance and tax that have gone up since the last review.
- Improvements you have made, such as a new borehole, solar inverter or repainting.
- Inflation since the rent was last set.
Weigh that against what it costs to replace a tenant: weeks or months empty, agency fees, repairs and the risk of a worse tenant. Keeping a reliable tenant at a slightly lower increase is often the better deal.
Worked example
A two-bedroom flat in Lagos is let at ₦2,400,000 a year. Similar flats nearby now let for about ₦2,800,000, and the service charge has risen by ₦120,000 a year.
| Option | New yearly rent | Increase | Per month |
|---|---|---|---|
| Match the market | ₦2,800,000 | 16.7% | ₦233,333 |
| Cover costs plus a modest rise | ₦2,640,000 | 10% | ₦220,000 |
| Phase it over two years | ₦2,600,000, then ₦2,800,000 | 8.3%, then 7.7% | ₦216,667, then ₦233,333 |
Presenting the evidence and a phased option gives the tenant a reason to agree instead of searching elsewhere. The rent calculator converts any yearly figure into monthly and weekly amounts.
Give plenty of notice
Tell the tenant at least three months before renewal, and for yearly tenancies ideally earlier. They need time to budget, and you need time to find a new tenant if they decline. If you might end the tenancy rather than renew, remember that a yearly tenancy in Lagos generally needs six months’ notice to quit.
Put it in writing
A short, polite letter works best. Include:
- The current rent and the new rent, and the date the new rent starts.
- The main reasons, briefly.
- Any phased or alternative option you are offering.
- The date you need their answer by.
- An invitation to discuss it.
When you agree terms, record them in a signed renewal or an addendum to the tenancy agreement, and issue receipts at the new rate.
What to avoid
- Announcing a new rent when the tenant has already paid, or days before renewal.
- Demanding more advance rent than your state’s law allows along with the increase.
- Cutting services or making threats to push an increase through.
- Verbal-only agreements that become arguments a year later.
Start early, every year
Landlord Reminder alerts you three months before each renewal, the right moment to review the rent and start the conversation.