The inability of most tenants to pay rent, as a result of the current economic hardship, has caused strained relationships between landlords and tenants.
There are escalating court cases over issues of rent defaults.
Residential tenants are significantly impaired by rent defaults which piled up as a result of setbacks to their businesses and economic hardship, thereby, forcing employees, artisans, self-employed individuals to pile up rent debts.
These have prompted property owners to make hard choices on the type of tenants to give their property. Some of the landlords have to deal with their own mortgage and insurance payments too.
Checks showed that the most affected by these debts are commercial landlords of event centres, restaurants and clubs. Hence, some landlords are exploring eviction moratoriums from courts over certain residential tenants and small business owners who rent spaces.
The recent development is coming on the heels of rent inflation spike, escalating cost of living, economic hardship and price shocks which doubles majorly on food, market prices, utility and essential bills.
The hope of paying rents by defaulters dimmed completely as the prices of major building materials, notably, cement and iron rods, are rising persistently as more markets are shutting down, forcing low income families to struggle to eat for survival.
The cost-of-living crisis in Nigeria is escalating and, in more ways than one, it is impacting on health, finances and access to basic needs of individuals, organisations and families with expectations and obligations no longer being met.
On account of growing poverty among citizens, job losses and shrinking income arising from bad economy, defaulting tenants are now facing the risk of losing their accommodation anytime soon.
According to the past president of International Real Estate Federation (FIABCI), Mr. Chudi Ubosi, virtually every location and commercial development type are affected by rent default. ‘The fact is that the adverse effects is hitting every business, so all businesses are reviewing strategy on their operations as income is negatively impacted.’
Ubosi said there is no discrimination in the industry, rather, real estate professionals reject tenants that do not meet the ‘diligent standards’ of the property owner.
