Landlords In Dilemma Over Tenants Inability To Pay Rent

CYRIACUS IZUEKWE

Many landlords in major cities in Nigeria especially Lagos and Abuja are presently in dilemma as the previously booming property investments have experienced a downturn because of the economic recession.

P.M.EXPRESS investigation revealed that it was not that their houses have lost value but the problem was how to collect their rents from the tenants who were owing arrears of rents and yet were demanding reduction of their rents.
P.M.EXPRESS learnt that most tenants found it difficult to pay their rents in the last two years especially in some areas where the prices were on the high side before recession set in.

It was gathered that some areas such as Okota, Festac, Ikeja, Magodo, Ogudu, Amuwo Odofin, Ajao Estate were landlords used to collect between N800,000 and N1.5m  annually, the tenants were finding it difficult to meet up with the rent payments and so they have issues with their landlords whom they asked to review the prices in view of the economic situation.

A tenant who is also a clearing agent, Donatus Ibeh said that he rented a three bedroom flat at Okota for N800,000 every year and had no problem paying the rent until his business suffered a set back. Ibeh said he had asked his landlord to reduce the rent but he refused and said the cost of maintaining the property was high.
He said since he does not want to reduce the rent, he was not also ready to pay such amount of money because he cannot maintain the payment.

A fashion designer, Caleb Michael said he had a company and was into mass production of clothes before his business suddenly dried up owing to lack of patronage.
He said he was paying N1.2m to his landlord at Amuwo Odofin but cannot cope again because his business was not flourishing as it used to.

“I cannot maintain such lifestyle, I have to relocate to an area where I can afford, though the landlord tried to reduce N200,000 from the rent against my demand of N600,000”
He said he had made his position known to the landlord but he had not responded yet.

Some of the tenants who spoke to P.M.EXPRESS said there was one problem or the other with their landlords over rent.
Mrs Ann Okonkwo said she was paying N450,000 to her landlord and she has told him that she will not be able to pay the rent, but her landlord told her to move out if she cannot pay. And she said she was already looking for another accommodation that will be cheaper.

Some of the landlords who spoke to our correspondent, like Jerry Edozie said his tenants were owing him arrears of rents and they have been pleading that he should reduce the rent while they pay the arrears gradually.
Edozie said he does not know what to do about the situation as the cost of building materials were very high.
Edozie was not the only landlords in such situation, Mary Onyebuchi said she has sent her tenants away due to rent arrears and partitioned the flats to a room and parlour apartment for tenants.
She explained that she did so because most tenants do not have money to maintain flats but they wants landlords to reduce their rents.
P.M.EXPRESS gathered that the situation was similar to that of the Federal Capital Territory, Abuja where the population kept increasing by the day.