Lagos is one of the fastest growing cities in Africa. Apart from being the hub for entertainment and the likes, it also houses famous actors, musicians, and comedians.
Lagos may be the smallest state in Nigeria based on landmass but it has the highest number of residents.
Since Covid 19, house rentals in Lagos have sky-rocketed about 20%. Due to the effects of this, Landlords have increased their rent over their properties.
Lagos is divided into two sections and it includes Mainland and Island.
The island is considered as the hub for the rich and affluent, hence it is more expensive while there are some places on the mainland, such as Ikeja, Magodo, Ilupeju, that are also expensive.
But one of the biggest surprises renters in Lagos are beginning to learn, is the true cost of renting an apartment. Many times, the cost of the apartment is usually higher than the amount that is it was listed for.
Hence the need for this topic; when looking for an apartment in Lagos, you must factor in some hidden charges. This will help you set up your budget so that there are no surprises when you eventually make your choice.
Here are some hidden charges you should know about rental properties;
- Agency Fee
This is the fee you pay to the agent who facilitated the renting process for you. The fee is not usually fixed (some collect as much 15% of the total cost of house). But understand that the more expensive the house is, or its location, the more the agent/Agency fee.
- Agreement fee
This is the fee you pay after you have agreed to rent the apartment space. It is usually created by the owner of the property and it is disbursed at his own digression.
This commission is also created by the owner of the property and it is usually used to settle the agent/agents who helped you secure the space.
- Damages/ Caution Deposit:
This is money paid to the Landlord for damages that the tenant may incur on the property while living there. If there were no damages made, the money is supposed to be returned, when leaving the apartment.
- Service Charge
This is the fee you pay for services rendered in some properties, services rendered varies and it includes, water, power, waste disposal, security, This cost is included in the rent and varies by property.
- Hidden Costs and Benefits
These are the additional living expenses, costs or benefits a prospective tenant will incur by choosing to live in a specific place in Lagos.
Hidden cost like the cost of commuting from your new house to your work, how close is your kid’s school to the new property? How safe and secure is your new neighbourhood?
These costs can add up and make a significant impact on personal finances in the long run, like factoring them into your choice at the start can save you lots of money and hassle.