A property manager in Nigeria typically charges 5–10% of the rent collected each year on an ordinary residential letting. Short-let and furnished properties, which need day-to-day attention, are usually managed for 15–25% of revenue, and commercial property for 5–10% of annual rent or a flat fee. Finding a new tenant is commonly billed separately as a letting fee. What you should pay depends less on the headline percentage than on what the agreement says the manager must do for it.
What a property manager actually does
- Letting: advertising the property, showing it, screening applicants and preparing the tenancy agreement with a solicitor
- Rent: issuing renewal notices, collecting rent, chasing arrears and remitting the money to you with a statement
- Maintenance: taking repair calls from tenants, getting quotes, supervising artisans and servicing shared equipment such as the generator, pumps and gates
- Inspections: periodic visits, move-in and move-out condition reports, and photographs
- Bills and compliance: paying service charge and land use charge on your behalf where you ask them to
- Disputes: handling complaints, serving notices and working with your solicitor if a tenant has to be removed through the courts
If you only need a tenant found, you need a letting agent, not a manager; the one-off fees for that are in estate agent fees in Nigeria.
The three fee structures
1. A percentage of rent collected
This is the standard arrangement: 5–10% of annual rent for residential property, 15–25% of revenue for short lets, and 5–10% for commercial property. The important words are “rent collected”. The fee should be taken from rent as it comes in, not calculated on the rent written in the tenancy agreement, so a manager who fails to collect is not paid for that period. On a flat let at ₦3,500,000 a year, a fee of 8% is ₦280,000.
2. A letting fee for each new tenant
Placing a tenant is usually charged on top, typically at 5–10% of one year's rent. Remember that agents in Nigeria commonly collect an agency fee from the incoming tenant as well. A landlord who is already paying an ongoing management fee is in a strong position to have the landlord-side letting fee reduced or waived, and should say so before signing. Preparing each new or renewed tenancy agreement typically costs a further ₦20,000–₦80,000.
3. A fixed retainer
Some managers quote a flat periodic fee instead of a percentage. It suits a property where a percentage does not reflect the work: a building that is empty or under renovation, a family house that is looked after rather than let, or a simple commercial unit with one long-standing tenant. A retainer is paid whether or not rent comes in, so the agreement has to spell out the visits, reports and tasks it buys.
Management is only one line in a landlord's costs. Maintenance, service charge, land use charge, insurance and vacancy are worked through, with a net-yield example, in property management costs in Nigeria, and you can test your own figures with the rental yield calculator.
What is worth paying more for
A manager at 10% who keeps the property let, answers tenants and sends you a clear statement is cheaper than one at 5% who lets the building run down. The fee moves with the workload: several units in one block are cheaper per unit to manage than scattered single flats; an old building generates more repair calls than a new one; and a property with shared diesel, security and cleaning to organise is more work than a self-contained house. Ask each manager what is included, then compare like with like.
What should be in the management agreement
- Scope: the exact services covered by the fee, and the price of anything that is extra
- Fee basis: the percentage, that it applies to rent collected, and when it is deducted
- Letting and renewal fees: what is charged to you, and what the manager will charge the tenant
- Where the rent goes: ideally straight into an account in your name, with the manager invoicing the fee; if the manager collects, a deadline for remitting it
- Repair authority: a naira limit above which your written approval is needed, with quotes and receipts for every job
- Reporting: how often you receive a statement, an inspection report and photographs
- Tenant selection: your right to approve the tenant and the rent before an offer is accepted
- Caution deposit: who holds it and how deductions are agreed at move-out
- Term and exit: the notice period for ending the agreement and the handover of keys, files and tenant records
Your own obligations to tenants do not pass to the manager. The law on notices, rent increases and recovery of premises is summarised in the landlord guide for Nigeria and in how to evict a tenant in Nigeria.
Landlords in the diaspora
For an owner living outside Nigeria, managing a property personally is very difficult, and professional management is close to essential. The risk is that one person controls the tenants, the money and the information you receive. Reduce it with structure:
- Have rent paid into a Nigerian account in your own name, and pay the manager from it
- Use a solicitor who is independent of the manager for tenancy agreements and any notices
- If you grant a power of attorney, keep it narrow: it should not include the power to sell or charge the property
- Ask for dated photographs or video with each inspection report
- Arrange for a relative or friend to make an occasional unannounced visit
- Check the manager's registration and speak to at least two of their current landlord clients
Buying and holding property from abroad is covered more fully in buying property in Nigeria from the diaspora.
Doing it yourself
Self-management is realistic for a single property close to where you live, with a reliable tenant. The cost is your time. If that is your situation, you can list your property on Cabans and deal with enquiries directly, and see what comparable homes are asking by browsing flats for rent in Lagos.
Frequently asked questions
How much should I pay a property manager in Nigeria?
For an ordinary residential letting, the typical management fee is 5–10% of the rent collected each year. Short-let and furnished properties cost more to run and are usually managed for 15–25% of revenue. Commercial property is typically 5–10% of annual rent, sometimes a flat fee for a simple building.
Is the management fee charged on the rent agreed or the rent collected?
It should be charged on rent actually collected. A manager who cannot collect the rent does not get paid for that period. Make sure the management agreement says so in plain words.
Is the letting fee separate from the management fee?
Usually, yes. Finding and placing a new tenant is commonly charged as a separate letting fee, typically 5–10% of one year of rent. Because agents in Nigeria often collect an agency fee from the tenant as well, a landlord can negotiate the letting fee down or have it waived where the manager is already earning an ongoing management fee.
Does the management fee cover repairs?
No. The fee pays for the manager to organise and supervise repairs, not for the repairs themselves. Set a spending limit in the agreement above which the manager must get your approval, and ask for quotes and receipts for every job.
Do I need a property manager if I live abroad?
For a landlord outside Nigeria, professional management is close to essential: someone has to collect rent, respond to repairs, inspect the property and deal with tenants in person. Pair the manager with an independent solicitor, have rent paid into an account in your own name, and ask for regular written reports with photographs.
Who can act as a property manager in Nigeria?
Property management is part of the work of estate surveyors and valuers, who are registered with ESVARBON and are usually NIESV members, but many unregistered agents also offer it. For a property of real value, ask for the registration number, references from current landlord clients and a sample of their reporting.
Related guides
Property management costs in Nigeria · Landlord guide for Nigeria · Buying property from the diaspora · Rental yield in Nigeria · Estate agent fees in Nigeria
Take the next step
Keep your research practical: search for property in Lagos, compare live options for land for sale in Lagos, or list your property on Cabans to reach active buyers and renters.
Not ready yet? Get an email when new listings go up in Lagos.