ISAAC ASABOR

 

The housing market is a complex ecosystem where landlords, tenants, and property values intersect. 

Recently, tenants have been grappling with rising rents, while landlords often cite the increasing cost of building materials as justification. 

However, a closer examination reveals a paradox: many landlords own properties built years ago, yet they still raise rents.

Against the foregoing backdrop, Daily Independent Newspapers delved into the issue, hearing from both tenants and experts to shed light on the situation. 

Before exploring the tenants’perspectives, it is expedient to note thatthe rising cost of building materials has remained steady. 

 

In recent years, inflation has driven up expenses across the construction industry. Lumber, concrete, steel, and other essential materials have become more expensive. 

Despite the pandemic that induced supply chain disruptions, the recent increase in fuel price and devaluation of the Naira have further exacerbated the situation, leading to unpredictable fluctuations in costs. 

While these challenges affect new constructions, they also impact maintenance and repairs for existing buildings.

Given the foregoing, it is germane to note that landlords face a delicate balancing act.

On one hand, they seek profitability and financial stability. On the other, they have a responsibility to maintain safe and habitable living conditions for their tenants. And the reasons tension arisesrevolve around not being able to balance both. 

In fact, many landlords own properties constructed decades ago. These buildings, while sturdy, require ongoing maintenance. Roofs, plumbing, electrical systems, all need attention. 

Yet, landlords often grapple with the cost of repairs and upgrades.

Thus, to cover maintenance expenses and maintain profitability, landlords raise rents. 

They argue that the rising cost of building materials justifies these hikes. But, tenants question this logic, especially when their homes were built long before the recent material price surge.

As gathered from a parley, where Daily Independent spoke to some tenants who shared their experiences, Maria, a longtime resident at Ogba, in Lagos, said: “My apartment building wasconstructed in the 1960s. It is charming, but it is showing its age. The rent keeps going up, and I wonder why. The landlord says it is because of material costs, but I don’t see any major renovations happening.”

Nduka Carlos, a young professional, said “I moved into an older building last year. The rent was reasonable, but now it is skyrocketing. I get it, maintenance costs money. But, should not that be factored in when they bought the place?”

On the other hand, a housing expert, Mr. Carter Aigbogun, said: “Landlords face a dilemma. While they want to maximiseprofits, they must also maintain their properties. Some choose to pass the burden onto tenants. However, it isessential to strike a fair balance.”

John Mason, Property Management Consultant, said, Landlords should consider long-term investments, adding that “Upgrading aging buildings not only benefits tenants but also enhances property value. It is a win-win.”

Mason added, “However, as the housing market evolves, landlords must balance the delicate gap between profit and responsibility. While rising material costs are real, tenants deserve transparency and fairness. Perhaps it is time for a broader conversation, one that considers the needs of both parties and ensures housing remains accessible and sustainable”.

The foregoing reactions cannot be said to have being misplaced as tenants in Nigeria across various communities in Lagos, in particular, are grappling with rising rents amidst aging buildings. 

In fact, the housing crisis in Nigeria has reached a critical point, with tenants facing the double challenge of escalating rents and deteriorating buildings. 

In cities like Lagos, Abuja, and Port Harcourt, rental costs have surged significantly over the past few years. Many tenants find themselves caught in a financial squeeze as landlords demand higher rents for aging properties. The situation is particularly dire for low-income families and older adults who struggle to keep up with the rising costs.

As if rising rents were not enough, tenants also contend with aging buildings that have cracked walls, leaking roofs, faulty plumbing, and inadequate infrastructure which havecollectively remained a common issue. These deteriorating structures pose health risks and diminish the quality of life for residents.

Mrs. Mercy Adeola, a retired civil servant, has lived in the same apartment for decades. However, her rent has tripled in the last five years, leaving her financially strained. She worries about the structural integrity of the building but has limited options due to the scarcity of affordable housing.

Mr. Nelson Okon, a young professional, who recently moved to Lagos for work said, “My one-bedroom apartment, though expensive, suffers from water leaks and electrical problems. Despite paying a premium, I face uncertainty about the building’s long-term safety”.

 

On the way out from the dilemma, Mr. Gertrude Echenim, said there is need for solutions, explaining that “Tenant Advocacy will be one of the better steps that can be taken to get out of the problem”. 

This is as he explained that organisingtenant associations would go a long way in negotiating with landlords collectively, buttressing his view by saying that strength in numbers can lead to fairer rental terms and better living conditions.

In a similar view, Smart Omoragbon, an Estate Agent, says, “Authorities must enforce building codes and safety standards. Incentives for landlords to maintain and upgrade properties could alleviate the crisis, even as public-private partnerships can create more affordable housing options. Tax breaks for developers who invest in low-cost housing could make a difference”.

Also in a similar vein, Helen Megbonsaid, “There is need for the education of tenants about their rights and responsibilities. Educating tenants will empower them to demand better living conditions and hold landlords accountable”.

No doubt, the foregoing views cannot be dismissed with mere waves of the hands as the plight of tenants grappling with rising rents and aging buildings hassurprisingly become a societal concern, therefore calling for advocacy for change, prioritisation on safe housing, and working towards a more equitable future for all Nigerians .

Without a doubt, landlords in Nigeria often cite the rising cost of building materials as a reason for increasing rent on older houses. 

In fact, the surge in prices of construction materials, including cement, has significantly impacted landlords. For instance, cement prices have risen sharply in recent times, leaving landlords to argue that maintaining and renovating properties now requires more financial resources due to these higher material costs. 

This is as some landlords rely solely on rental income for their livelihood. When faced with increased expenses, they may feel compelled to pass those costs on to tenants.

In fact, landlords who invested in properties decades ago expected returns over time. To hedge against inflation and maintain profitability, they adjust rents.

Tenants, however, may view such rent hikes as unfair. They argue that the property’s age should not be the sole basis for increases, especially if amenities and services remain unchanged.

While some landlords genuinely face financial strain, others may exploit the situation to maximize profits.

In fact, some respondents engaged in a parley by Daily Independent flayed landlords’ resort to increase rent as a result of increase in prices of building materials, unanimously saying it is not justifiable as the buildings were not new. 

 

Mr. Rueben Ugiagbe, a consumer enthusiast, said, “While landlords have valid reasons related to material costs and investment, it is essential to strike a balance that considers tenants’ financial well-being and fair market practices”.