Paying more than the actual rent is a real estate scam carried out by some Nigerian property owners. This usually occurs when you are renewing your lease or moving into a new apartment.
In the former situation, an overcharge on the annual cost of an apartment may easily be challenged; but, in the later case, there is a good likelihood that you will continue to pay the inflated rates without discovering the truth. Most landlords rarely return the housing price to its original worth, and once this price is declared normal, the chances of getting it back are small.
Furthermore, while the price of rentals in Nigeria is at the discretion of the landlord, prospective lodgers should exercise caution before entering into any binding arrangement.
But how do you tell whether your landlord is overcharging you for rent? What steps can you take to avoid being a victim? These and other pertinent questions are addressed further below.
Factors For Determining an Overcharged House Rent
There are several pointers of overcharged rent and most of them are largely dependent on environmental factors. Spotting homes with high renting costs nowadays is a difficult call but not impossible.
Fortunately, you don’t need to be a certified real estate professional like Dennis Isong to be able to decode the common signs of this fraudulent scheme. Here are some indicators of overcharged house rent:
Most landlords in Nigeria frequently raise the cost of rent for a variety of reasons ranging from finance to area. Once your flat rent has been raised, it is your responsibility to investigate the reason for the increase and decide whether it was worthwhile.
For example, if a building is valued at N40,000 per year and the figures increase the following year as a result of multiple notable upgrades, it is prudent to comply. However, if the restored apartment fails to meet the expected standard that comes with such a high cost, you should begin negotiating with the building’s owner.
You should also meet your co-tenants and learn about their current rent. This will allow you to determine whether or not the rent increase applies exclusively to you. Furthermore, most property owners would consider making a compromise with pleasant tenants, which is where your lifestyle comes into play.
On the other hand, if you’re a prospective landlord, it’s best to talk to your neighbors about the rental rates in that region. You’ll have a clear financial picture before meeting with the landlord to negotiate.
Location of the building
Buildings in economically and commercially important areas are typically more expensive than those in less marketing-relevant locales. This is one of the reasons why apartments in Lagos and other major cities are more expensive than those in less developed areas.
Furthermore, Lagos City is home to a large number of both Nigerian and foreign landlords, but the rent they pay is not regulated, making it volatile. These renters choose their desired dwelling location depending on their monthly income, and the higher the rent, the better. As a result, rental prices on the Mainland differ from those on the Island, and vice versa.
So, being overcharged on accommodation in areas that are less economically superior can be avoided provided you have a knowledge of rent trends in that region.
The quality of infrastructural amenities offered in a location has an impact on rental prices. Buildings in areas with good road networks, steady energy supply, clean water, standard schools, a robust security setup, and an adequate waste disposal system, among other things, are generally more expensive than those in areas with fewer of these services.
When a region attracts a number of manufacturing enterprises, the cost of renting in that area tends to rise. This is due to the fact that the existence of industrial institutions attracts a huge market force to a region. This aspect is mostly driven by people’s desire for a better quality of life, and in Nigeria, places that can afford these companies typically have a rental advantage over others that cannot.
Furthermore, living near an industrial region allows you to have easy access to basic amenities while saving money on transportation. If you live in a community with fewer industrial start-ups, it’s best to assess the rental before signing an agreement.
Quality of the Apartment
Often, the condition of an apartment speaks louder than a formal bargain. Buildings with adequate ventilation, tiled flooring, plenty of space, a modernized bathroom and toilet, a closet, and other apartment facilities are often more expensive.
As a result, you should weigh the content of the apartment in advance; this way, you’ll know whether it’s worth your patronage or not.
Furthermore, the quality of dwellings varies according to geography. It’s typical to discover well-decorated flats in thriving towns and cities, which pulls most aesthete people from rural to urban areas. As a result, the prevalence of this movement is a primary cause of overcrowding, which impacts the cost of housing.
Type of Home
There are several types of apartments, and the higher their rents are, the better they are in terms of scope. As a result, renting a one-bedroom apartment is less expensive than renting a two-bedroom, three-bedroom, and so on.
More specifically, self-contained residences are better suited to families than individuals; nonetheless, renters have no restrictions on their options.
If you choose to live in a one-bedroom apartment, you should be aware of its rental value; the same goes for other sorts of structures. Even if you are more interested in luxury, make an effort to learn about the costs of renting well-furnished residences. The reason for this is that it is more difficult to identify an overcharge on costly flats than on their more cheap counterparts.
Knowing when you’re being overcharged for rent is a valuable skill to have. Accommodation is already one of an individual’s significant expenses, thus the addition of rental fraud to the scenario adds to the financial harm.
Cases of rent overcharges are common in Nigeria’s large cities, so if you plan on relocating to an apartment in one of these regions, be mindful of the bargain you negotiate with any lessor. This article explained the various hints to assist you in determining an overcharged rent.
Dennis Isong Helps Individuals Invest Right In Real Estate.For Questions On This Article Or Enquiring About Real Estate Email: Dennis@Landproperty.ng or Whatsapp/Call +2348164741041
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