Lagos discloses monthly rent payment terms, project starts with formal sector – Nairametrics
The Lagos State government has indicated the terms of launching a monthly rent payment program, which is expected to start in the state very soon.
The new initiative, which is a social investment program launched by the state government, will significantly ease the burden of paying annual rent for residents of Lagos.
This disclosure was made by the Lagos State Governor’s Special Advisor for Housing, Ms. Toke Benson-Awoyinka, during a discussion on rental policies at the Second Lagos Real Estate Market Conference and Exhibitions which just took place at the Eko Hotel and Suites, Victoria Island, Lagos.
Benson-Awoyinka explained that tenants interested in the program must be able to meet certain requirements, including the ability to make payments on a monthly basis, noting that the program will start with those in the formal sector with monthly income, after which the sector will be integrated.
She said that while landlords will receive their annual rent payment up front, tenants will no longer have the burden of paying a huge amount of money annually.
What the Lagos State Governor’s Special Advisor on Housing Says
Benson-Awoyinka said tenants can use the savings from the annual payment to make other forms of investment or to pay for school fees.
She said, “Tenants can therefore use the annual payment for other forms of investment or for the payment of tuition fees because the burden of paying the annual rent is completely removed from them. So it is a win-win social investment program, it is good and it is commendable.
“We thank the Governor of Lagos State and the entire cabinet for this wonderful initiative and I pray that the program is not only a success, but that it becomes a point of reference in Lagos.”
What the Lagos State Commissioner for Finance says
Speaking at the event, Lagos State Commissioner for Finance, Dr Rabiu Olowo, said the initiative was part of the current administration’s resilience policy, noting that the government of l The state had conducted a rental survey and found that 88% of tenants would prefer to pay their rent monthly.
Olowo said: “We had to continue this by working with different relevant stakeholders and now we have a model that will work and allow Lagosians to pay their rent on a monthly basis. Landlords have nothing to lose because they will continue to collect their rent each year and their risk of default is zero. ”
He said the program will start with the formal sector to enable them to minimize risk, saying: “As a ministry, we are already studying the informal sector to integrate them into this program, but we must first start with the formal sector to enable us to minimize the level of risk.
“It’s easier for us to check how much those in the formal sector earn and for us to know what we will get and how we will get it. When we do, we will expand into the informal sector. There is an insurance pack that helps us manage all risks. We have a data plan that will help us spot failures. ”
He noted that the government is working with stakeholders, especially financial institutions, noting that the platform of the program is a social investment for the benefit of citizens and residents of Lagos and not a lucrative business.
Nobleserve Capital Management Managing Director / CEO Mr. Korede Adeyemi described the initiative as a market platform that talks about social impact.
He said: “With what we do, each landlord will receive their rent annually and tenants will at the same time have the ability to pay their rent on a monthly basis. This platform will be demand driven due to the convenience of payment. People will be able to log into the platform to search for homes. ”
According to him, the initiative is a robust system that takes care of everyone and is designed to clean up the price of Lagos homes in terms of rental rates, noting that a similar property in the same area in the state of Lagos can go the same or lower.
Charles Anthony LLP managing partner Mr. Charles Adeosun-Phillips said it was a welfare program and a win-win program for homeowners, the government, financial institutions and all relevant stakeholders.