Move-In Costs When Renting in Nigeria: Agency Fee, Legal Fee & Caution Explained

The advertised rent is never the full story in Nigeria. Before you receive keys, you will typically need to pay the full upfront rent (one or two years), an agency fee, a legal fee, and a caution deposit — sometimes all on the same day. This guide explains what each charge is, what is negotiable, and how to calculate your total move-in budget before you start viewing.

1. Upfront rent

In Nigeria, it is standard practice for landlords to demand rent one or two years in advance. Some landlords — particularly in high-demand areas — insist on two years upfront. In buyers' markets (oversupplied areas or slower economic conditions), six-month or even quarterly arrangements can sometimes be negotiated.

Standard: 1–2 years paid upfront, before moving in.
Negotiable? Yes — especially on longer lets or if you have a strong rental history and references.

2. Agency fee

The agency fee is paid to the estate agent who found and facilitated the property. It is a one-time payment — not recurring.

• Standard rate: 10% of one year's rent
• Some agents charge: 5–15% depending on area and property value
• High-value properties: May be capped at a flat fee rather than a percentage

Is it negotiable? Yes. Many agents will accept 5–7.5% on larger rents or when the market is slow. Always ask.

Who pays it? In Nigeria, the tenant typically pays the agency fee — unlike the UK where the landlord pays. Some landlords cover the agency fee themselves to attract tenants; always confirm this upfront.

3. Legal fee

A legal fee covers the solicitor's costs for drafting the tenancy agreement and other relevant documents. This is not optional on formal lets — a properly documented tenancy protects both parties.

• Standard rate: 5–10% of one year's rent
• Some landlords/agents quote: A flat fee of ₦50,000–₦200,000 for a simple residential tenancy agreement
• Higher-value properties: 10% or more, or bespoke legal drafting costs

Is it negotiable? Less so than the agency fee. Some agents bundle the legal fee into the agency fee and charge a single combined percentage (typically 15%).

4. Caution / security deposit

A caution deposit (also called a security deposit) is held by the landlord against damage or unpaid utilities at the end of the tenancy. It is refundable at checkout — less any deductions.

• Standard amount: One month's rent
• Some landlords charge: Two months' rent on furnished properties
• Short lets: May charge 20–30% of the booking value as a refundable deposit

Is it refundable? It should be. Always confirm in writing what the deduction policy is, and document the condition of the property at check-in with photos.

5. Service charge

Applicable primarily in gated estates, new developments, and apartment complexes. The service charge covers security, waste management, communal maintenance, and sometimes power supply.

• Budget estates: ₦50,000–₦150,000 per year
• Mid-tier estates: ₦200,000–₦500,000 per year
• High-end estates (Lekki, VI, Ikoyi): ₦500,000–₦2,000,000+ per year

Service charge is separate from rent and is paid either annually or quarterly. Always ask about it before agreeing to move in.

Worked example: ₦2,000,000 per year flat in Ikeja

How to reduce your move-in costs

• Negotiate one year upfront instead of two — especially in areas with oversupply or on second-year renewals.
• Ask about the agency fee before agreeing to view — some landlords cover it themselves.
• Compare listings across multiple agents — the same property sometimes appears on multiple platforms at different fee levels.
• Budget for service charge separately — it is not usually included in the stated rent price.
• Use a verified platform — platforms like Cabans show the stated rent upfront so you can filter by budget before contacting an agent.

Ready to start your search? Browse rental properties across Nigeria on Cabans — all listings include a stated annual rent so you can calculate your full move-in cost before booking a viewing.

Also useful: The complete tenant guide to renting in Nigeria covers everything from area selection to safe payment steps.