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Despite the economic situation of the country, and the efforts of the Lagos State Government to discourage the collection of two years rent in Lagos, landlords have doggedly persisted in their demand for two years rent for the following reasons;

Investment purposes: The first reason is that most Landlords demand two year rent because they need the lump sum of money for investment purposes. A year’s rent might not be enough to invest so most landlords insist on two years.

To attract committed tenants: Most landlords believe that a two year lease shows that the individual is serious and willing to commit to their property by committing to stay longer. So most landlords put a two year rent in other to attract people who are financially buoyant, and have plans of staying for a longer period of time.

Peace of mind: Renting a property takes a lot of time. Some properties stay vacant for about 6 months or more in some cases. A two year lease gives the landlord peace of mind that their property will not be vacant for the next two years.

Despite the advantages, a two year lease may pose some problems for landlords. Some of the common problems include;

Difficulty in vacating troublesome tenants: If a tenant is troublesome for example, the landlord may have to bear with such a tenant for a period of two years when their rent expires before he can vacate such person. This could be a sour period that would require patience on the part of the landlord to bear until their rent is due. This is the reason why you should employ the services of a certified real estate agency like RE/MAX when looking for a tenant or a property. Our experts ensure that due diligence is taken and potential clients are screened thoroughly.

Difficulty in yearly rent increment: A two year rent also makes it tough for a landlord to raise the rent. This may only be possible if the landlord puts a clause in the agreement that rent would be increased at a certain percentage after the first year, of which many potential tenants would decline. Otherwise, the landlord would only be able to increase the rent every two years instead of every year.

Property might remain vacant for longer: Taking the economic situation of the country into consideration, not many people have lump sum of money to pay a two year rent, as a result it might take longer to find someone to rent the property. Thus, the property might remain vacant for longer.
As opposed to common believe, a two year contract has some benefits to the tenant. Some of these benefits include;

Stall rent increment: Most notably, the tenant will benefit because the landlord cannot increase the rent until after two years.

Better deal on the long run: In return for promising to stay a two year term, a tenant could save a reasonable amount of money on the long run. Filling a vacancy can be stressful for landlords – they have to paint the walls, clean, fix damages, etc. which can cause serious financial strain in between tenants. Sometimes the risk of not finding a new resident quickly is enough for your landlord to offer you a less expensive rental rate than what you would get with a one-year lease.

Stall the stress of packing: The best thing about signing a two-year lease: You won’t have to go through the painstaking process of packing and moving all of your stuff again for at least two years.

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The Senior Special Assistant to the Governor on Media and Communication, Dr. Muyideen Akorede, said during a media briefing in Ilorin that Governor Abdulfatah Ahmed made the call after the state security council meeting.

Ahmed particularly urged landlords and homeowners to verify the identities of potential tenants by taking copies of their travel passports and other identity documents before renting out their properties to them.

He stated that landlords and homeowners who failed to carry out these measures risked exposing themselves and their premises to criminal proceedings should their tenants be found by security agencies to be involved in unlawful activities.

The governor also said the state government had reviewed the current security situation in the North Eastern part of the country and its impact on the people in the area, who had consequently become internally displaced due to the crises.

He said that on the basis of the Kwara’s location as a border state and as the gateway between the North and the South, the government had considered the possible influx of internally displaced persons into the state and subsequently set up a committee to urgently review the situation.

According to him, the committee is headed by the Deputy Governor, Mr. Peter Kisira.

He added that the committee would work out modalities and put structures in place for managing the possible influx of IDPs into the state in view of the security implications as well as the potential pressures on social and physical infrastructure in the state.

PUNCH.

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Responsibility to Adhere to Safety Codes

As a landlord, it is your responsibility to adhere to all local, state and federal safety codes for your property. You may learn some of these codes the hard way if you have a property inspection and your property fails. These codes may vary greatly depending on the state, and even the town, that your property is located in. Some examples of safety codes are:

• You must know how many smoke detectors are required per apartment/floor and whether they must be hard wired.
• Similarly, you must know how many carbon monoxide detectors are required.
• You need to be educated about lead paint safety regulations. You must know how to remedy lead paint hazards according to the EPA’s guidelines, and also be licensed to do so or hire a licensed professional.
• You must know how to remedy mold in your property, especially toxic mold. The EPA has some tips on how to handle mold.
• You need to know the requirements for banisters and proper lighting in stairwells.
• You should know if there is a maximum number of people per bedroom or a maximum of “X” amount of people per “X” amount of square feet.
• Whether you must use fire retardant paint in areas such as stairwells.
• If you must install safety guards on second floor windows.
• Understand weather related laws. In areas where snow fall is likely, many cities have safety codes requiring walkways to be salted and shoveled within a certain amount of time by the end of a snow storm, such as two hours after the snowfall has ended.

Maintain the Proper Insurance

As a landlord, it is in your best interest to maintain the correct amount of insurance on your property. If you have a mortgage on the property, your lender will often require you to obtain certain types of insurance. This is to protect them in case of damage to your property, such as from fires, floods, or even a ‘slip and fall’ claim.

First, you must check your homeowners insurance policy. Many homeowners insurance policies do not cover renting. If not, you need, at the very least, to obtain basic landlord property insurance, which is insurance for the physical structure you rent out.

Basic insurance plus contents will cover your possessions in the building, such as tools or appliances. It will not cover the tenants’ possessions. Tenants will need to obtain separate renters insurance to cover their belongings and liability.

Other types of insurance to consider are water coverage, fire coverage, flood coverage, coverage from natural disasters, insurance to cover lawsuits and legal fees and even insurance to cover lost rental income due to situations like fires or natural disasters.

In addition, you may want to consider getting an umbrella insurance policy, which is an extra liability coverage. It can protect you from claims that may not be covered by your other liability insurance such as from libel, slander or lawsuits. It can also protect you when you have reached your coverage limit from your other insurance policies.

Pay Mortgage

If you have taken out a mortgage on your property or a private loan to in order to buy your property, you are responsible for paying this loan back according to the set payment schedule agreed upon. If a mortgage payment is more than 30 days late, it will negatively impact your credit score. If you continually miss mortgage payments, you may face foreclosure.

Responsibility to Pay Taxes

Whether you are an owner occupant of the property you are renting out or have a stand alone rental property, you are responsible for paying property taxes to the government. You will also have to pay taxes on the income you receive from collecting rent. However, as a landlord or property owner, there are numerous tax deductions you can take advantage of. These deductions include interest on mortgage payments or credit cards used for the property, depreciation, insurance premiums, repairs and even property taxes.

Pay Utilities

Often, a tenant is responsible for paying their own utilities, such is the case with most condos and single family homes. However, if you are a landlord who is responsible for paying the utilities for your property, whether it be one utility or all, you must make sure you do so. Failure to pay the utility bill means your tenants won’t have water, heat or electricity. This could be considered a violation of the lease as you are not providing essential services that you have agreed to provide and you could face legal action.

Landlords Must Perform Property Maintenance

As a landlord, you have a responsibility to perform regular maintenance on your property. This includes preventative maintenance such as exterminating regularly and checking to make sure all smoke detectors and carbon monoxide detectors are in working order. It also includes weekly maintenance such as sweeping all common areas, cleaning out rain gutters, picking up trash and putting out garbage and recycling according to your town’s collection schedule.

Perform Repairs

You must not only perform preventative maintenance, but you must also perform repairs on your property. This includes small repairs such as fixing doors coming off of their hinges or unclogging a shower drain. It also includes large repairs such as replacing a roof or rewiring electric. Of course, if you are not skilled in areas such as plumbing or electric, it is best to hire a licensed professional who will make sure the work is done properly and according to code.

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