CURBING THE MENACE OF HOUSE AGENTS IN ASABA

By ESV. EZEKIEL, ECHEZOLACHI O.,

Principal Consultant: Eche Ezekiel & Associates; Estate Surveyors and Valuers.

Housing is one of the basic needs of man. There are numerous reasons for which people/families change their accommodations especially as tenants; it could be for expansion, proximity to other things, financial reasons, etc.

Seeking a new accommodation in Asaba and most cities in Nigeria is gradually become a pain. House rent has become an economic nightmare for many families in Nigeria; unfortunately Asaba is ranking very in this chart. The astronomical increase in rent over the last two years, though linked to many other factors such as inflation, high cost of building materials etc has also been attributed to the activities of House Agents.

At this point, it needs to be clarified that the Estate Surveyor and Valuer is not a house agent in this context and will be referred as a Professional. He/she is a trained professional with honesty and devotion at the background of his/her dealings. A house agent on the other hand is an untrained and unhinged individual (usually only driven by economic gain), who involves in making arrangements for the sale, leasing or management of both residential and/or commercial properties.

The house agents makes up for the short supply of Real Estate Professional in playing the crucial role in facilitating property transactions by connecting buyers and sellers, guiding them through the process, and negotiating deals. They assist their clients find the right property. Whether it’s to buy, rent/lease, or invest in real estate, a good agent will have access to a wide range of property listings that matches the client’s criteria. They help save time and effort by narrowing down the options and arranging viewings of properties that meet the needs of their clients.

Essentially, they act as a liaison or intermediaries between buyers, sellers, landlords, and tenants, ensuring that all parties achieve their objectives in a fair and transparent manner. They also help their clients navigate the complexities of the real estate market for a fee or a portion of the fees popularly called ‘agency fees’.

In Nigeria, real estate agency is still an all comers affair. Unfortunately, any one whether commissioned directly by a principal or not can claim to be an agent in a real estate transaction therefore lay claim to part of the accrued agency fee.

While they may serving a genuine need in the, many have turned it into an opportunity for exploitation and this has lead to a hike in rents. Over the years, many Nigerians have had sad bitter stories to tell concerning these house agents, who in some cases display a near perfect building but end up trading properties not fit for purposes for which they were bought or leased.

Some of their notorious misdeeds in recent times includes but not limited to:

• Collection of exploitative inspection fees;
• Collection of unwarranted and overprices form money;
• Wasting of people/clients time in inspecting properties completely outside clients prescription;
• Fraudulently advertising non available houses, just to collect inspection fee;
• Acting very rude and brutish;
• Removal of ‘To Let’ boards of professionals placed on properties to make themselves sole agent of the property;
• hiking of rent/agency with their very notorious “total package”.
  Residents and house seekers in Asaba are voicing growing frustration over what they describe as arbitrary charges and rent inflation orchestrated by these unscrupulous intermediaries. These agents, often operating without formal oversight or training, are blamed for distorting property values and worsening access to affordable housing.

In many instances, these nefarious agents work hand-in-hand with landlords to exploit tenants. Some go as far as collecting rent from multiple prospective tenants for the same apartment, leaving victims stranded when they realise they have been defrauded

Such deceitful tactics waste tenants’ time and money, forcing them into compromises they never planned for. In extreme cases, some agents even collect payments for non-existent properties and abscond.

These agents are not just middlemen; they have become gatekeepers of misery. They add unnecessary costs to the process and profit shamelessly from those simply seeking shelter. There is no price control, no certification requirement, and no regulatory body holding them accountable, leaving tenants vulnerable to their schemes and adding another unjust layer to the already exorbitant cost of rent.

A typical two-bedroom unit in Asaba, once rented at ₦250,000, can now cost up to ₦1,000,000 excluding other hidden expenses that sometimes reach half the rent amount. Professional ESV collect agency fee at 10% of the rent while these house agents impose arbitrary charges without any regulatory oversight, there are cases of agents demanding between 20% to 30% as agency fees. This exploitative practice is not only unethical but also makes housing less affordable for the average Nigerian. For a country where the minimum wage remains low, asking tenants to pay such high commissions, alongside caution deposits and legal fees, is unsustainable

Agents often lie about the condition and price of houses just to get unsuspecting house seekers to pay a fee to inspect these properties. Many prospective tenants have spent a huge chunk of their money which could have used for the actual rent on transport costs and inspection fees.

To address the issues raised about house agents in Asaba and indeed in all major cities across Nigeria, a multi-pronged approach is needed, including government regulation, increased accountability, and public awareness. This includes implementing licensing and registration for agents, enforcing ethical practices, and ensuring transparency in transactions.

There must be a standardized framework to regulate agent commissions, enforce rental property valuations by landlords in rent fixing, and ensure ethical practices across the industry. Professional bodies such as the Nigerian Institution of Estate Surveyors and Valuers (NIESV) must take stronger stances against these house agents and introduce policies that make housing more accessible. Licensing and accountability should be enforced to weed out fraudulent agents who contribute to this menace. Most importantly, tenants must be empowered with clear guidelines on what they should and shouldn’t pay for when renting a property.

The Government and NIESV should embark on sensitising the public about real estate agency and attendant rules, risks and benefits; keep a register of qualified estate agency practitioners who voluntarily registered with the department; ensure protection of citizens from illegal trade practices; create a forum for affected members of society to lodge complaints against unscrupulous agents; monitor compliance with the state tenancy law and other legislation on land transaction; and prosecute agents suspected of having violated the applicable laws.