Due to the current economy, the Federal Government has encouraged landlords of private property to begin charging their tenants monthly, quarterly, or half-year fees as a method of contributing back to society.
Instead of the typical yearly and areas costs imposed on renters, Minister of Works and Housing, Babatunde Fashola, said yesterday at the opening ceremony of the 15th Abuja Housing Show, that housing owners might now charge monthly.
Most tenants owe rent or are facing eviction in the post-COVID-19 environment, according to the minister.
In comparison to those that the state or the federal government could give, Fashola said it was clear that the majority of houses available for sale or rent belonged to people and private firms.
Represented by the Minister of State for Works and Housing, Abubakar Aliyu, Fashola stressed that: “It is evident that most houses available for sale or rent belong mostly to individuals and private companies, compared to those the state or Federal Government have available.
“Therefore, many of the tenants who owe rent, who face eviction or who seek to rent or buy property due to the pandemic are dealing with private citizens or companies and less so with government agencies.
“Consequently, my recommendation for improving access and affordability in the COVID-19 era and beyond, as presented at the Federal Executive Council (FEC) meeting and which is still apt for this gathering, is for private companies and individuals to give back some of what they control to citizens in the way that the Federal Government of Nigeria (FGN) has given back to citizens some of what it controls.
“For example, in cases where the rents of businesses or some individuals are due for renewal, the private landlords can give back by accepting monthly, quarterly, or half-yearly rents, instead of one, two or three years rents in advance.
“The risk of defaults can be secured by bank guarantees or insurance bonds provided by the tenants or the employer in exchange for a direct debit mandate from the employee for the deduction of his rent from his salary to pay the landlord.
“Where rent has fallen into arrears, it is possible to emulate what the FGN did through the Central Bank of Nigeria (CBN) to reschedule payment on loans by rescheduling the payment for the tenant to more affordable terms, instead of adopting eviction.”