The super minister in the Buhari administration, Babatunde Fashola (SAN) has stated that the prevailing manner which rent is collected in Nigeria by landlords is long overdue for an overhaul.
Speaking at a conference in Abuja recently, Fashola said, “The way we collect rent is something that must change. If we are collecting two years rent in advance from a salary that is going to be earned in arrears monthly, there’s an accounting mismatch. This is something many of us have experienced, you pay two years rent in advance money you haven’t earned.
“Something is distorted somewhere in our accounting model. We must all resolve, property owners alike, that maybe if we changed the way we collected rent alone many houses that are unoccupied, will be occupied. I am inclined to think that if we just change the payment system for housing we will accommodate a significant number of people.” he added.
It is illegal to collect two years rent upfront in Lagos, after the Tenancy law was reviewed, however many landlords still engage in the act unlawfully.
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