M-u-s-t R-e-a-d....Look before you leap!! - What to look out for in tenancy agreement

The relationship between landlords and tenants is one of the most prevalent in the world. Few people actually own the property they live in. Most are tenants by compulsion and not by choice. Since, as they say, life is in stages and men are in sizes, for those who are still tenants or would be tenants there is the need for you to pay close attention to this write up. Landlords too should be more savvy in their dealings with tenants and should understand the concerns of their tenants .

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Who is a tenant? The law   defines   a tenant (paraphrase) as any person who is occupying a premises, whether by payment of rent or by the operation of law but it does not include any person claiming to be the owner of a property. Thus, every tenant has a landlord or someone who actually owns or claims to be the owner of the property under whose title or someone who has a link to him, his tenancy exists.

The relationship of landlords and tenants is based on agreement between the parties which could be in writing, verbal or by conduct. Due to the challenges associated with verbal agreement or agreement by conduct, which often lead to misunderstanding and conflicts, it is advisable to ensure that agreements are in writing and key issues are well understood by all the parties. The reality of this fact came to me forcefully through the experience of a friend of mine.

Some years ago, a friend of mine was in desperate need of accommodation in a certain part of Lagos State, Nigeria. He met an agent who introduced him to a property he liked and then took him to the landlord who asked him to sign an agreement before collecting the rent from my friend. My friend decided to pay for the property and also signed the agreement without reading it or asking someone (preferably a lawyer) to read it and explain the content. Later he shared with me how he got the property and asked me to read the agreement and share my observation. Unfortunately, this agreement contained a clause that states that rent would be increased every year at a particularly outrageous rate and other onerous conditions. My friend and I pleaded with the landlord to vary the terms because my friend did not read it before signing. Rightfully, the man insisted that agreement is agreement and that was what my friend lived with throughout his stay in that building. As they say, always read the fine print.

Although this is not an exhaustive treatment of the terms and conditions of a tenancy/lease agreement, we would like to consider some key issues that you should watch out for. Whenever you are given a tenancy agreement, ensure that you are in agreement with the commencement date of your tenancy. If your tenancy starts earlier than it should or prior to the landlord handing over possession to you then you have lost the rent for that period. Also, watch out for clauses on renewal of your tenancy and those that deal with increment in rent. Generally, you should be given an option to renew your tenancy and to express your desire to do so before the expiration of your current tenancy. Some landlords insist that each renewal is to be treated as a fresh tenancy and I have seen cases where tenants have been asked to pay for agreements and agency fees as a condition for the renewal of their tenancy.

Another issue to take note of is that of alteration, in cases where the property needs major renovations and alterations. Ensure that you comply with the landlords condition in this regards especially if there is an unwritten agreement that repairs would be converted to rent. Oftentimes, landlords rent their property on an’ as it is’ basis and whatever repairs are done is at the tenants expense. At other times, there could be special clauses in a tenancy agreement, such as one that a friend encountered, where it was stated that there should be no use of generators by the tenants. Individuals are different and I do not consider it appropriate for you to sign an agreement without reading it or allowing a professional to read it and explain the content to you before signing. Once you have signed, agreement is agreement. So, look before you leap.

- Abiodun Doherty (abiodundoherty@yahoo.com)

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