Monthly Rent Payment in Lagos is Great News

I personally believe if Lagos is able to implement the Monthly Rental System, it’s a great step in the right direction.

Two reasons I feel this way are:
1. Affordable housing for the masses
2. Better investment opportunities in real estate

Speaking of affordable housing for the masses, the average cost of a decent one bedroom apartment in Lagos is 400 thousand Naira while Minimum wage in Nigeria is 30 thousand Naira per month which in turn amounts to 360 thousand Naira.

This simply means the cost of a decent accommodation for an unmarried Nigerian is more than the yearly minimum wage.
It’s no wonder a lot of people struggle to pay their house rents.

The situation is not only terrible for the tenants but also for the landlords who have to put up with a lot of defaulting tenants.

With a monthly payment system and proper planning, this problem is going to be solved to a great degree.

Those who cannot afford to pay Yearly Rent can start paying monthly while those who prefer to pay annually can pay as they desire.
As for Real Estate investors, I feel it’s a great development because it gives room for more growth for Real Estate professionals.

Let’s take for example Property Managers. This gives them more room for business growth. To understand this point, I will paint a scenario to you. For example, you want to get into the Shortlet Aspect of the Real Estate Industry; This development gives an Avenue for an easy entrance.

This simply means to get into the industry, you do not need as much capital as is required if you were paying yearly rent. It means for a start, your initial high capital will be for your interior design and just a months rent. This helps in cutting down your expenses drastically and the result will be your capital not being tied down for too long on Rent. Yes you have some good investment on your interior design but you can factor that into your monthly expenditure before determining profit and in a period of 24 months, you should be able to recover your investment before serious depreciation sets in.

There are so many ways this development can benefit Lagos Residents, business owners and the Real Estate industry at large, so once again I must say kudos to the Government for working on implementing this.