The total cost of renting a flat in Lagos in the first year is about 126% of the annual rent: the rent, a 10% agency fee, an agreement or legal fee of around 7.5%, and a refundable caution deposit of one month's rent. In the second year it falls back to the rent alone, because the two fees are paid once and the deposit carries over. The three worked examples below show the arithmetic for a self-contain, a 2-bedroom flat and a 3-bedroom flat.
The assumptions behind every example
- Rent: one year paid in advance.
- Agency fee: 10% of one year's rent, the customary rate.
- Agreement / legal fee: 7.5% of one year's rent, the middle of the usual 5–10%.
- Caution deposit: one month's rent, refundable.
- Service charge: not included. It applies mainly in estates and serviced blocks, and is billed separately from rent.
What each of these charges is, and how far each can be negotiated, is covered in move-in costs when renting in Nigeria and agency and agreement fees in Lagos. The rents used are indicative annual figures chosen from inside the ranges in the Cabans area guides; they are illustrations, not quotes for a particular property.
Example 1: a self-contain in Yaba at ₦300,000 a year
Indicative annual rent in Yaba is ₦150,000–₦350,000 for a self-contained home, so ₦300,000 sits towards the upper end. The Yaba area guide has the detail on the district.
| Item | Arithmetic | Year one (₦) | Year two (₦) |
|---|---|---|---|
| Rent | One year | 300,000 | 300,000 |
| Agency fee | 10% × 300,000 | 30,000 | 0 |
| Agreement / legal fee | 7.5% × 300,000 | 22,500 | 0 |
| Caution deposit | 300,000 ÷ 12 | 25,000 | 0 |
| Total | 377,500 | 300,000 |
On a small rent, watch the legal fee. Where it is quoted as a flat sum rather than a percentage, the flat sum can come out higher than the ₦22,500 shown here, so ask for it to be calculated as a percentage or reduced to match. Compare asking rents among self-contain units for rent in Lagos.
Example 2: a 2-bedroom flat in Gbagada at ₦1,500,000 a year
The indicative annual rent for a 2-bedroom flat in Gbagada is ₦900,000–₦2,000,000. See the Gbagada area guide for how that varies across the district.
| Item | Arithmetic | Year one (₦) | Year two (₦) |
|---|---|---|---|
| Rent | One year | 1,500,000 | 1,500,000 |
| Agency fee | 10% × 1,500,000 | 150,000 | 0 |
| Agreement / legal fee | 7.5% × 1,500,000 | 112,500 | 0 |
| Caution deposit | 1,500,000 ÷ 12 | 125,000 | 0 |
| Total | 1,887,500 | 1,500,000 |
If the landlord asks for two years in advance, the day-one bill becomes ₦1,887,500 plus a second ₦1,500,000, which is ₦3,387,500, and nothing further is due in year two. The fees and the deposit do not change, because they are worked out on one year's rent. Bear in mind that under the Lagos Tenancy Law 2011 a landlord cannot demand more than one year's rent in advance from a new residential tenant, even though many still ask. You can search flats for rent in Gbagada to compare.
Example 3: a 3-bedroom flat in Ikeja at ₦3,000,000 a year
The indicative annual rent for a 3-bedroom flat in Ikeja is ₦2,000,000–₦5,000,000, with serviced blocks and the GRA above the middle of that range. The Ikeja area guide breaks the district down.
| Item | Arithmetic | Year one (₦) | Year two (₦) |
|---|---|---|---|
| Rent | One year | 3,000,000 | 3,000,000 |
| Agency fee | 10% × 3,000,000 | 300,000 | 0 |
| Agreement / legal fee | 7.5% × 3,000,000 | 225,000 | 0 |
| Caution deposit | 3,000,000 ÷ 12 | 250,000 | 0 |
| Total | 3,775,000 | 3,000,000 |
At this level the percentages turn into real money, and negotiation pays. An agency fee agreed at 7.5% instead of 10% is ₦225,000 rather than ₦300,000, a saving of ₦75,000, and a flat legal fee is a fair request on a standard agreement. A 3-bedroom flat is also more likely to sit in a block with a service charge, so ask for that figure before you compare one flat with another. Browse flats for rent in Ikeja.
Year one against year two, side by side
| Example | Year one (₦) | Year two (₦) | Two-year total (₦) | Of which refundable (₦) |
|---|---|---|---|---|
| Self-contain, Yaba | 377,500 | 300,000 | 677,500 | 25,000 |
| 2-bedroom flat, Gbagada | 1,887,500 | 1,500,000 | 3,387,500 | 125,000 |
| 3-bedroom flat, Ikeja | 3,775,000 | 3,000,000 | 6,775,000 | 250,000 |
In every case the one-off, non-refundable cost of moving is 17.5% of a year's rent: ₦52,500, ₦262,500 and ₦525,000 respectively. That is the real price of changing home, and the reason a tenant who stays a second year pays noticeably less per year than one who moves every twelve months.
What can change the year-two figure
- A rent increase. The landlord may propose a higher rent at renewal. If the Ikeja flat went up by 10%, year two would be ₦3,300,000 rather than ₦3,000,000. How to respond is covered in how to negotiate rent in Nigeria.
- A renewal agreement charge. A modest sum for preparing a renewal agreement is sometimes asked for, and is negotiable.
- A new agency fee. None is due. No new tenant has been introduced, so no agency fee has been earned at renewal.
- The caution deposit. It stays with the landlord until you leave, and then comes back less genuine deductions. See the caution fee explained.
To run the same sums on your own rent, use the agent commission calculator. Landlords setting a rent with these totals in mind can list a property on Cabans.
Frequently asked questions
How much do I need in total to rent a flat in Lagos?
Budget roughly 126% of one year of rent for the first year: the rent itself, a 10% agency fee, an agreement or legal fee of about 7.5%, and a refundable caution deposit of one month of rent, which is about 8.3%. On a flat at ₦1,500,000 a year that comes to ₦1,887,500. Service charge, where there is one, is extra.
Why is the second year cheaper than the first?
The agency fee and the agreement fee are one-off payments made at the start of the tenancy, and the caution deposit you paid carries over. In year two you pay the rent, plus any service charge. If the landlord raises the rent at renewal, the new rent is the year-two figure.
Do the agency and agreement fees double if I pay two years of rent?
No. Both fees are calculated on one year of rent, however many years you pay in advance. Paying two years up front doubles the rent portion of the bill and leaves the fees and the caution deposit unchanged.
Is the caution deposit part of the cost of renting?
It is part of the cash you need on the day, but it is not a cost if you get it back. It is a refundable deposit held against damage and unpaid bills. The examples here show it separately so you can see both the cash needed and the true cost.
What else should I budget for beyond these figures?
Service charge in an estate or a serviced block, which is separate from rent. Beyond the tenancy itself, allow for moving, an electricity meter top-up, any fittings the flat lacks, and fuel or inverter costs where the power supply is poor. None of these is paid to the landlord or the agent as part of the letting.
Can I reduce the first-year total?
Yes. The agency fee is the most negotiable item: many agents accept 5–7.5% on larger rents or when the market is slow, and some landlords cover it themselves. A flat legal fee instead of a percentage helps on higher rents, and the rent itself can often be negotiated before you agree to anything.
Related guides
Move-in costs in Nigeria · Agency and agreement fees in Lagos · Estate agent fees in Nigeria · What a tenancy receipt must contain · Lagos area guides
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