HOUSE FOR RENT – The Abuja Experience

HOUSE FOR RENT – The Abuja Experience

By Araceli Aipoh

Finding a suitable accommodation to rent can be exciting and frustrating at the same time, most particularly when you are new to a place. While the trend in many parts of the world is to pay a month’s rent and a deposit equal to 2 months’ rent (for a total of 3 months), this is not the case in Nigeria where rents are calculated not per month but per year and, in most cases, the prospective tenant is required to pay for a minimum of two years in advance. This is to say that it’s almost near impossible to rent a house or flat or office space in Nigeria that requires you to pay less than a year’s rent advance. On top of the rent are the agency fee and lawyer’s fee equal to 10% of the total rent. And just when you think that this is all you need to pay, you find out that there are other bills to consider such as the salary of the security guard (also known as gateman) and disposal of garbage or cleaning of the premises.

Monthly versus annual rents

While paying rent for two years in advance has some advantages in favour of the tenant (you don’t have to worry about rent for the next one or two years), the disadvantages clearly outweigh the advantages, such as getting stuck to a place that may not be suitable to you, or not being able to get a refund in case of premature termination of the contract for emergency reasons such as moving to a new city or country. Finding someone to take over the unused rent is not as easy as it sounds, so unless a new tenant is found, getting a refund is nearly impossible even if you have given enough notice or you have vacated the property. 

Refunds and contracts

In many cases there are provisions in the contract that states what happens to the unused rent in case you have to vacate a house or flat after say just a few months. This becomes a big problem if you have paid for two years, therefore it is important that you to read the contract word for word, so that you can add a clause pertaining to it if it’s not clearly stated. In many cases, you don’t get a refund unless: a) you find another person to take over from you, or b) the landlord or agent immediately finds another tenant. It is a practice that new tenants (who intend to take over from you) are required by the landlord or agent to pay the whole amount (equal to one year or two years) from which you get a refund for the unused period of your contract. No new tenant often means no refund because the owner either has no intention of returning the money you have paid him or he has already spent it.

Cost of rent

As in most places, the cost of renting an apartment in Nigeria depends on the location, the size, the amenities provided, the security, the accessibility, etc. In Abuja houses for rent are most expensive in places such as Maitama, Asokoro, Garki, Wuse, Utako, Gwarinpa and Jabi. Of course, the farther you go from these major areas, the cheaper the rent. Also, it is not a secret that water and power supply anywhere in Nigeria are not constant. Expect hours of power interruption during the day that could last for days or even weeks and therefore you have to add these expenses (buying, fuelling and maintain a generator or digging your own well) to the cost. And finally, at the expiration of a two-year contract, the rent is often raised by the landlord by 30 to 50%, so tenants have to prepare for this in case they have intentions of renewing the contract for another two years.

Furnished or unfurnished

Fortunately for prospective tenants in Abuja, there is a choice whether you want to rent a furnished or unfurnished apartment. In my opinion there are more unfurnished apartments available in Abuja than the furnished ones. Furnished apartments are usually those rented by embassies, international NGOs, multi-national corporations and the likes for their staff. More often than not, they are the only ones who can afford furnished apartments anyway because the annual rent could be from $40,000 upwards for a two-bedroom flat. The furnished flats are usually located in housing estates where other amenities are provided such as a swimming pool, tennis and basketball courts, formidable fences, 24-hour security guards, and a general function area or a clubhouse. Unfurnished accommodations are those rented out to individual tenants. Everything you need to furnish and decorate a house is available in Abuja, so renting an unfurnished apartment is a good option if your budget is limited. 

Satellite Towns

Satellite towns are settlements in the outskirts of Abuja where people who cannot afford rent in the city centre live, or where they have built their own houses or set up their own business. While many people in Abuja have their workplaces in the city centre, their residences are located in the satellite towns such as Kubwa, Kuje, Karu, Suleja, Nyanya, Keffi, etc. These towns are almost always self-sustaining in the sense that they have their own schools, markets, shopping centres, clinics, hotels and other small business establishments. The state of infrastructures in the satellite towns could be deplorable in some areas. Overcrowding of houses and illegal structures could pose a problem. Although the major roads from the city centre to the satellite towns may be fully developed, inner roads and streets could be the opposite, plus there are traffic jams to consider when going and coming, so one has to put all these into consideration.

Agency services

Finding a place to rent in Abuja or any place in Nigeria does not have to be difficult. Your first points of call are referrals from your friends, colleagues, and relatives who may introduce you to their landlords or inform you of available properties in their neighbourhood. They can also introduce you to an agent they have worked with and who can be trusted. Why it is important to go through an agent is that they are the ones who can show you the availability of properties almost anywhere in Abuja. Having hired the services of an agent a couple of times, I have realised that they all have a connection one way or another, meaning that they share information among themselves. For example, if you are looking for a three-bedroom apartment, an agent you are working with can ask his colleagues not only where the available properties are located but also the price and how many years’ rent is being asked by the owner. Informants later share the agent’s fee if and when a successful deal is made. When it comes to dealing with agents (either those who work for a company or freelancers), the general rule is to be wary at all times. INSIDETRACK has compiled a list of useful and practical tips when dealing with agents in Nigeria.

Quick and easy way to find properties to rent or buy

As in most marketplaces these days, going online has become the fastest, cheapest, and most reliable way to find what you are looking for, if only to give you an idea of the current prices and availability. One example of such service provider is Vamido, a real estate marketplace for buying and renting properties (houses, flats, commercial properties, land) all around Nigeria. Vamido works with some of the top real estate agencies and the online process makes it much easier for real estate seekers to compare and find their dream house. You can sort your search according to your preferences in terms of location or type of property. Vamido is a subsidiary of the German startup incubator Rocket Internet (www.rocket-internet.de) which has launched several successful ventures in Nigeria (including Jumia, Kaymu and Carmido). As Nigeria’s online penetration is evolving incredibly quickly, Vamido may stand out as one of the best options for those interested in buying or renting properties in the country. These kind of websites are making it easier for Nigerians to find their services quicker and more efficiently.

Specific information

If you have any specific question related to this topic or about Nigeria in general, please do not hesitate to email me: araceli.aipoh@yahoo.com. Originally from the Philippines, I have lived and worked in Nigeria for more than 25 years, the last 5 years in Abuja. For more of life in Abuja, visit www.insidetrack-abuja.blogspot.com.

WANT TO USE THIS ARTICLE IN YOUR EZINE OR WEB SITE?

You can, as long as you include this complete blurb with it:: “Araceli Aipoh is an expat who has lived in Nigeria for more than 25 years.  Follow her at www.insidetrack-abuja.blogspot.com."