Finding a house to rent in Lagos can be very tiring. People spend weeks, sometimes months, searching for somewhere they can afford. It has to be close enough to work, reasonably accessible and somewhere that will not turn transportation into another daily problem. After all that searching, when you finally find a house that looks good and the rent falls within your budget, you may think the difficult part is over. Then you ask the agent one question. What is the total package? That is where the calculation changes completely.

We took a brief look at some of the houses being advertised across Lagos, and, to be fair, the difference between the advertised rent and the actual amount required to move in was not always dramatic. A mini flat in Ikorodu, for instance, was advertised for ₦450,000 a year, with a total package of ₦600,000. In Abijo GRA, Ajah, another mini flat advertised for ₦1 million came with a total package of ₦1.3 million. Those additional costs are significant, but they are still some distance from doubling the advertised rent.

Then we came across another ₦1 million house in Ajah. The rent was ₦1 million. Agency was another ₦150,000, legal fee was ₦150,000, caution fee was ₦250,000, while the service charge was another ₦250,000. By the time everything was added up, anyone taking the house would need ₦1.8 million upfront. That is ₦800,000 on top of the advertised rent. Suddenly, the amount written on the advert has almost doubled.

Table 1: A snapshot of Lagos rental listings reviewed on Nigeria Property Centre, showing the gap between advertised rent and the total move-in cost. 

To find out if these extra costs were common, we spoke with people who have rented homes themselves. Lanre Balogun spent about four months looking for a place in Ikeja, Ogba, and Agege. When he rented his apartment in 2023, the rent was ₦550,000, but he ended up paying ₦800,000 in total. More recently, he saw a mini flat in Ikeja for ₦2.5 million, but with all the extra fees, the total came to ₦3.8 million. This included ₦500,000 for the agency, ₦500,000 for the agreement fee, and ₦300,000 as caution.

Lanre explained that house hunting can become more expensive when several agents are involved. In his experience, one agent might introduce a property, then pass it to another, and soon several agents are advertising the same place. By the time you’re ready to pay, a few people may want a share of the fees. He now asks for the total package upfront before he even starts pursuing any property. And listening to his experience, you begin to wonder how these different charges are actually supposed to work. How much is an agent supposed to charge? And if several agents are involved in the same transaction, is the tenant really expected to pay each of them separately?

To get some answers, we spoke with Barrister Nimat Amzat, a property lawyer. She said agency fees are usually about 10 per cent of the rent, and for more expensive places, you can sometimes negotiate a lower fee. If several agents are involved, they are not each supposed to charge the tenant 10 per cent. Instead, the main agent collects the commission and shares it with the others. In Lanre’s case, though, the agency fee alone was 20 per cent of the rent, and the agreement fee was also 20 per cent, plus a ₦300,000 caution fee.

So What Are Tenants Really Paying For?

There are rules around some of these charges. The Lagos State Estate Agency Regulatory Authority (LASRERA) Law provides that agency fees for letting and lease transactions should be 10 per cent of the total rent collected. The law also draws a distinction between the work of estate agents and that of legal practitioners. Estate agents are not expected to prepare the legal documents for a tenancy transaction. Tenancy agreements are to be prepared by legal practitioners, with the law providing that the professional fee should not exceed 10 per cent of the total consideration. That means some of the additional costs attached to renting are not simply arbitrary charges. There are recognised professional services behind agency work and the preparation of tenancy agreements. The question is whether the amounts being demanded from tenants always stay within those boundaries.

There are also other charges, like caution fees. Barrister Amzat said these fees are intended to protect the landlord if the property is damaged beyond normal wear and tear. Whether tenants get this money back depends on the tenancy agreement and the condition of the property when they leave. The law is not very clear on this point. In 2025, the Lagos State Government admitted that caution fees are not clearly covered under the current tenancy law and said it is reviewing the issue. There are also service charges, inspection fees, and other extra payments. These costs can vary widely from one property to another, and not all of them are clearly recognised or regulated under Lagos law. That means not every extra charge is automatically illegal. The main problem is a lack of transparency. Tenants might expect to pay about 20 per cent more for legal and agency fees, but it’s the other charges that often surprise them. A ₦1 million house can quickly turn into ₦1.3 million, ₦1.5 million, or even ₦1.8 million before you can move in.

That’s why we reached out to the Lagos State Real Estate Regulatory Authority (LASRERA), which oversees estate agency practices. We asked how these charges are tracked and what happens when agents request fees outside the rules. We didn’t get a reply before publishing, but their guidelines say agency fees for letting should not be more than 10 per cent and recommend using registered agents. Still, the rules don’t always make things clearer for tenants. Fees are often bundled together, with little detail about what each payment is for, who gets it, or if it’s refundable. By the time tenants start asking questions, they may have already spent money on transport, inspections, and forms. 

For people already dealing with rising living costs, these extra charges can make a property too expensive or force them to settle for something less ideal. The problem isn’t just that a ₦1 million house can end up costing ₦1.8 million. The true cost of renting is often hidden behind the advertised price, so tenants don’t know what they’ll really pay until it’s too late. Agency, legal, caution, and service fees might all be valid, but tenants should see these costs upfront and know who gets paid, what each fee covers, and if any part is refundable. Without clear information, a place that seems affordable can turn out to be out of reach after tenants have already spent time and money searching.

References

• Lagos State Government. (2011). Tenancy Law 2011 (Law No. 14 of 2011). Lagos State Ministry of Justice. Read the Tenancy Law 2011
• Lagos State Government. (2021). Lagos State Real Estate Regulatory Authority Law, 2021. Read the Lagos State Real Estate Regulatory Authority Law 2021
• Lagos State Government. (2025, May 10). LASG goes tough on landlords/agents for arbitrary increases in house rents. Lagos State Government
• Lagos State Government. (2025, June 18). LASRERA partners chairmen of LG/LCDAs to reduce agency, legal fees in Lagos real estate sector. Lagos State Government

Interviews

• Nimat Amzat. (2026, September 2). Property Lawyer. Personal interview.
• Lanre Balogun.  (2026, September 1). Lagos resident and tenant. Personal interview.

Property Listings

• Nigeria Property Centre. (n.d.). Newly built 6 units of mini flats with good facilities, Igbopa, Igbogbo, Ikorodu. Advertised rent: ₦450,000; total package: ₦600,000. Property Ref. 3635874. View property listing
• Nigeria Property Centre. (n.d.). Luxury mini flat, Greenville Estate, Badore, Ajah. Advertised rent: ₦1,000,000; total package: ₦1,800,000, including agency fee of ₦150,000, legal fee of ₦150,000, caution fee of ₦250,000 and service charge of ₦250,000. Property Ref. 3518475. View property listing
• Nigeria Property Centre. (n.d.). Brand new mini flat with POP finishing, Abijo GRA, Ajah. Advertised rent: ₦1,000,000; total package: ₦1,300,000, including legal fee of ₦100,000, agency fee of ₦100,000 and caution fee of ₦100,000. Property Ref. 3538694. View property listing
• Nigeria Property Centre. (n.d.). Mini flat in fenced and gated compound, Prosperity Estate, Igbogbo, Ikorodu. Advertised rent: ₦1,300,000; total package: ₦1,650,000, including agency fee of ₦150,000, legal fee of ₦100,000 and caution fee of ₦100,000. Property Ref. 3649777. View property listing