When you rent in Lagos you normally pay two one-off charges on top of the rent: an agency fee and an agreement fee, which is also called the legal fee. The agency fee goes to the estate agent who found the property and is customarily 10% of one year's rent. The agreement fee pays for the tenancy agreement and is usually quoted at 5–10% of one year's rent or as a flat sum. Both are paid once, at the start of the tenancy, and both are negotiable to a degree.
What the agency fee is, and who charges it
The agency fee is the agent's payment for finding the property, arranging viewings, handling the enquiry and negotiating with the landlord. In Lagos, as in the rest of Nigeria, it is predominantly charged to the tenant rather than the landlord. The customary rate is 10% of one year's rent; some agents quote as little as 5% and others as much as 15%, depending on the area and the value of the property.
Two things are worth knowing before you agree to it. First, some agents also charge the landlord a letting fee on the same transaction, so the agent is paid twice; a landlord who knows this can agree to reduce or waive the tenant's side. Second, where several agents stand between you and the landlord, they share one fee between them. You do not owe a separate 10% to each person in the chain. The full picture for sales, lettings and management is in estate agent fees in Nigeria.
What the agreement or legal fee is
The agreement fee pays for drafting the tenancy agreement. The document is typically prepared by the landlord's solicitor, and the tenant pays for it as part of the move-in costs. It is usually quoted at 5–10% of one year's rent. On a simple residential letting it is also common to be quoted a flat sum instead, and some agents prepare the document themselves and charge a smaller amount for it.
Some agents bundle the two charges and quote a single combined percentage, typically 15%. Whatever the structure, paying the fee entitles you to a real document: read it before you sign, ask for changes, and keep a signed copy. What the agreement should contain, and the clauses to push back on, is covered in tenancy agreements in Nigeria.
What Lagos law says about what can be demanded
The Lagos Tenancy Law 2011 is the most developed tenancy legislation in Nigeria. Under it, a landlord cannot demand more than one year's rent in advance from a new residential tenant, and the law requires a written agreement for a fixed-term tenancy. You are also entitled to a receipt for every payment you make to a landlord or an agent.
In practice, many Lagos landlords still ask for two years, and enforcement is limited, so a tenant who insists on the one-year rule may lose the property to someone who does not. The law is still useful in negotiation, and it matters for the fees: the agency and agreement fees are calculated on one year's rent, not on the total you pay in advance. Lagos State also has a Real Estate Regulatory Authority with which property practitioners are expected to register, so it is reasonable to ask an agent whether they are registered. Your wider protections are set out in tenant rights in Nigeria.
A worked move-in example
Take a flat in Ikeja advertised at ₦2,000,000 a year, with the agency fee at 10%, the legal fee at 7.5% and a caution deposit of one month's rent.
| Item | One year in advance (₦) | Two years in advance (₦) |
|---|---|---|
| Rent | 2,000,000 | 4,000,000 |
| Agency fee (10% of one year) | 200,000 | 200,000 |
| Agreement / legal fee (7.5% of one year) | 150,000 | 150,000 |
| Caution deposit (one month) | 166,667 | 166,667 |
| Total to move in | ≈ 2,516,667 | ≈ 4,516,667 |
The two fees add ₦350,000 in this example, or 17.5% of the annual rent, and they do not double when the landlord asks for a second year. Service charge in an estate is separate again. Every item is explained in move-in costs when renting in Nigeria, and the agent commission calculator will run the numbers for your own rent. To compare asking rents before you call anyone, search flats for rent in Ikeja.
How to negotiate the two fees
- Ask before you view. Get the agency fee, the agreement fee and the caution deposit stated in writing before you spend a day on inspections. Some landlords cover the agency fee themselves.
- Negotiate the agency fee first. Many agents accept 5–7.5% on larger rents or when a property has been empty for a while.
- Ask for a flat legal fee. A standard residential agreement takes the same work whether the rent is ₦800,000 or ₦8,000,000, so a fixed sum is a fair request.
- Trade, do not just ask. Prompt payment, a quick signing date or a longer commitment give the landlord and the agent a reason to move.
- Talk to the landlord at least once. A landlord who wants the flat let may agree to absorb part of the fees when the agent will not.
The same approach works on the rent itself; see how to negotiate rent in Nigeria.
Receipts and how to pay
- Pay by bank transfer, and pay the rent to the landlord's own account, or to a company account you have verified, rather than to an individual agent's personal account.
- Ask for a separate receipt for each item: rent, agency fee, agreement fee and caution deposit.
- Each receipt should name the property, the amount, the period covered and the person or firm that received the money.
- Do not pay the fees until the landlord has confirmed the letting and the agreement is ready to sign.
Red flags
- Fees before viewing. A small, clearly stated inspection charge is one thing; an agency or agreement fee demanded before you have seen the property and met the landlord or an authorised representative is another.
- An agreement fee with no agreement. If you pay for a tenancy agreement, you must receive one, signed by the landlord.
- Fees calculated on two years. The custom is a percentage of one year's rent.
- A new agency fee at renewal. No new tenant has been introduced, so no new agency fee has been earned.
- A non-refundable caution deposit. The caution deposit should be refundable, less genuine deductions.
- No receipt, or cash only. Walk away from anyone who will not document what they have been paid.
More on spotting a bad actor is in how to avoid property scams in Nigeria. Landlords who would rather reach tenants directly can list a property on Cabans.
Frequently asked questions
How much are agency and agreement fees in Lagos?
The customary agency fee in Lagos is 10% of one year of rent, with some agents quoting anywhere from 5% to 15%. The agreement or legal fee is usually quoted at 5–10% of one year of rent, or as a flat sum for a simple residential tenancy agreement. Both are one-off payments made at the start of the tenancy, not every year.
What is the difference between an agency fee and an agreement fee?
The agency fee pays the estate agent who found the property, arranged the viewings and negotiated with the landlord. The agreement fee, also called the legal fee, pays for the preparation of the tenancy agreement, normally by the solicitor acting for the landlord. They are two separate charges that are often quoted together as one percentage.
Is the agent fee paid every year in Lagos?
No. The agency fee is a one-time payment for finding and securing the property. When you renew with the same landlord there is no new introduction, so no new agency fee is due. A modest charge for preparing a renewal agreement is sometimes asked for, and you can negotiate it.
Can I negotiate the agency and agreement fees?
Yes. The agency fee is the more negotiable of the two: many agents accept 5–7.5% on larger rents or when the market is slow, and some landlords cover the fee themselves. The legal fee is harder to move, but a flat sum instead of a percentage is a reasonable request on a standard agreement.
Can a Lagos landlord demand two years of rent plus the fees?
Under the Lagos Tenancy Law 2011 a landlord cannot demand more than one year of rent in advance from a new residential tenant. Many landlords still ask for two years, and enforcement is weak, so tenants often comply to secure a property. The agency and agreement fees are calculated on one year of rent either way.
Should I get a receipt for the agency and agreement fees?
Yes. You are entitled to a receipt for every payment made to a landlord or an agent. Ask for a separate receipt for rent, agency fee, agreement fee and caution deposit, each naming the property, the amount and the person who received it, and pay by bank transfer so the payment is traceable.
Is the caution deposit the same as the agreement fee?
No. The caution deposit is a refundable sum, usually one month of rent, held by the landlord against damage or unpaid bills. The agreement fee is a non-refundable payment for preparing the tenancy agreement. Make sure the agreement records the caution deposit as refundable.
Related guides
Estate agent fees in Nigeria · Move-in costs in Nigeria · Tenant rights in Nigeria · Caution and security deposits · Ikeja area guide
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