Looking at the housing issues presently in Nigeria, it is safe to say that some Lagos landlords are taking the piss. They blame the outrageous rent increase on inflation, leaving tenants questioning who to blame.
Really, who should the tenants blame? If you think renting a house in Abuja or Port Harcourt is bad, you haven’t tried Lagos. This city used to be the most sought-after location for houses in Nigeria and is now a no-go zone. Now, renting a decent home is more difficult than finding a needle in a haystack.
Rent aside, the structure of some of these houses is not different from a security guard post. The facilities are nothing to write home about. and also, the cost for these dramatic “homes” will break your bank.
Within the past five years, rent has gone up by 91%, rendering some Nigerians helpless and homeless. Besides having to think about the inflation in foodstuffs, many Nigerians now have to put rent into the equation.
So then what’s the way forward with this ongoing crisis?
Despite the chaos in this city, we still need a decent place to live. Knowing how to navigate all the renting experiences will help us pick the right home for us and our loved ones. That is why we prepared this guide, where you learn about the costs of a house in Lagos, the right budget for rent, how to save for rent and the role of Ajo+ in all of these.
What is the Average Cost of Renting a Home in Lagos?
Although there are many cities in Nigeria where rent is cheaper, Lagos is the land flowing with milk and honey. That is why many people troop in day by day, looking for either milk or honey.
If you are a newbie in Lagos (Johnny just come) or you have been in Lagos all your life, there are important things you need to know about the average rent here.
Rent in Lagos is dependent on the part of Lagos you want to stay in. Rent on the Lagos mainland is cheaper than on Lagos Island, and by extension, the standard of living is also cheaper.
For areas like Surulere, Yaba, and Maryland, house rent for a one-bedroom flat ranges from N 700,000 to N 2 million without agent fees and legal fees. In high-brow areas on the mainland like Ikeja and Iyana Ipaja, a two-bedroom apartment goes for between N2 million and N8 million. While in neighbourhoods like Ikorodu and Oshodi-isolo, a two-bedroom apartment goes between N400,000 and N600,000.
In some parts of the island, the story is almost the same. Rent for a one-room apartment in Lekki and Ajah still goes between N700,000 and N1.5 million, while rent for a two-bedroom flat ranges between N2 million and N4 million.
However, for places like Ikoyi, rent is no joke. The average rent for a 2-bedroom apartment goes up to N15 million.
Reasons Why Renting a Home is Difficult in Lagos
There are a lot of reasons why renting in Lagos can also be a bit difficult. And here is why:
- Most landlords want upfront payments of up to two years of rent before you can move in. I know it sounds ridiculous. For a one-bedroom flat with N700,000 rent, you will have to pay N1.4 million before you can move in. And this does not include agent fees. You can’t blame them, though. Old tenants have scorned them by running away with their money.
- Another reason is the agent's involvement. Some agents can be very funny. They will take you to bad houses and try to sell them. There is also the issue of costs for house inspections.
- Inflation and the costs of building materials have also affected rent in Lagos. With each passing month, rent keeps increasing.
These might seem daunting, but understanding them can help you plan for the right house. You will be able to budget for your rent and pick the right agents.
Things to Consider When Renting a House in Lagos
House rent is just one part of the equation. There are other things to look out for when picking a home:
1. Decide if you want the house to be close to work or if you want a bigger space. This is important because offices and big businesses are located in highbrow areas.
Housing in these areas is more likely to be more expensive than in other places and, most times, have smaller spaces. For instance, houses in Yaba, a commercial area, are more expensive and smaller than those in Ikorodu.
2. The next item to consider is your budget. How much can you afford for rent? Fortunately, we looked at this in more detail later in this article.
3. You should consider transportation. How far is your office from the neighbourhood? How much does it cost to get there? How far is the market or church from the neighbourhood?
4. Check the basic amenities in the house, like the availability of water and electricity. Also, check the toilet facilities and the kitchen, the condition of the house, the environment, and the technology embedded in the house, like electronic locks.
5. You should also find out what the other living expenses are associated with it. Are you paying a security levy or your electricity and water bills? Find out if it is something that you can sustain based on your income.
Bonus point: Schedule your house inspection when it's rainy season. Thank me later
How Much Should You Budget For Rent?
Before choosing a place to call home, you should determine how much you want to spend on rent.
If you earn N1.2 million a year and pay N1.5 million in rent, you will be swimming in debt. This is the mistake most of us make. We rent a place we can barely afford and spend all our income, trying to keep the roof over our heads.
There are ways to figure out the right budget for your rent. There is the income-rent rule.
Income-Rent Rule
This is an unspoken rule that is popular among Nigerians, especially Lagosians. When researching for this article, many people spoke about how this rule helped them save money on rent and helped them meet their financial goals.
And the rule is simple: your yearly rent should be either two or three months of your salary or income.
For example, if you earn N400,000 monthly, your house rent should be between N800,000 and N1.2 million. The rule is so easy to apply.
You will be able to pay your rent and still have money left over to cover other living expenses if you follow these rules. You also have enough for savings and investments.
The rules don’t apply to people in Lagos, but anyone with an income can use them to figure out the best budget for rent.
Tips on How to Save for Rent In Nigeria
After picking the right budget based on your income, the next step is saving for rent. Monthly saving for your rent is the best way to go. This way, you don’t have to run around when it is rent month. For example, you can save N100,000 monthly to pay your N1.2 million rent.
Aside from setting money aside monthly for rent, some tips also help you save money on rent. Here they are:
- Choose an affordable place based on your pocket.
- Use the income-rent ratio (rule) to decide the amount of money you want to use for rent.
- Find out if you can sublease an apartment from your friends and family at a cheaper rate.
- Try dealing with landlords directly instead of through agents so you can avoid agency fees.
- Consider getting roommates or renting a bigger apartment with friends or family.
How To Save for Your Next House Rent With The Ajo+ Feature On Jollof+
It will not be enough to simply put money aside for rent, you might be tempted to spend it. That is where the Ajo+ feature on Jollof+ comes in.
Monthly savings, limited withdrawals, automatic saving, 16.5% p.a net on your savings, insured by NDIC and licensed by CBN, the Ajo+ plan on Jollof+ is one of the best tools that can help you on your rent journey.
The beautiful thing about this feature is that it is easy to set up. You can do that in these steps.
- Open your Jollof+ and click on savings.
- Click on Ajo+ and then create a savings target.
- Name the target Rent and put your rent amount.
- Set a payback date that coincides with the day you want to pay your rent.
- Click on Proceed and you are set
To set up your automatic savings from your account, do these steps:
- Just click on the rent target you have created.
- Scroll down and click on Autosave settings.
- Fill in the details of the autosave amount and frequency
- Select a start and end date.
- Select a source from which the money will be deducted. I will suggest your debit card.
- Choose a debit card
- Click on 'Set up Autosave’ and you are done.
In the End
Finding the right home can significantly impact your life. I know renting in Lagos can feel overwhelming, but understanding how it works can help ease the stress and make the process smoother. You are not alone, and preparation can truly make a difference.
Sources
Rent in Lagos increase by 91% in 5 years
