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However it must be noted that inasmuch the property reverts to the Landlord, there is still a laid down procedure for recovering this property from the Tenant. The Landlord may, not on his own, and without employing statutorily provided means, evict the Tenant from the property. Indeed it has been alleged by some quarters that the laws for recovery of premises tend to be more protective of the Tenant, than the Landlord; however it important to note that an eviction that is in compliance with the statutorily employed means will not prevent an employer from repossessing his property.

Before a Landlord can recover possession of his premises from a Tenant, the tenancy must first be determined. Termination of tenancy may be through any of the following ways:

Notice to quit

This is a statutory requirement for termination of all forms of periodic tenancies. It will also be used where even though the tenancy is for a certain term, the Agreement provides that it be issued. It must contain the description of the premises, its location, the commencement and expiration of the Tenancy. The length of this notice and its content is dependent on the length of the tenancy in question.Section 13(1)Tenancy Law 2011 of Lagos State, whichprovides for the length of notice as follows:

a) Tenant-at-will:one week notice.

b) Monthly tenant: one month notice.

c) Quarterly tenant: three months notice.

d) Half yearly tenant: three months notice.

e) Yearly tenant: Six months notice (half a year).

A notice to quite may be issued either by the landlord or by his solicitor or agent, who must be authorized in writing. The length of the notice to quit should be such that it will expire on the eve of the anniversary of the tenancy. As soon as the term of the tenancy has been determined by a notice to quit, and the Tenant fails to hand over possession, the Landlord or his agent may then issue a 7-day notice of the Owner’s intention to recover possession.

Notice of Owner’s Intention to Recover Possession

This is a 7-day notice to the Tenant, of the Landlord’s intention to proceed to recover possession on a date not less than seven days from the date of the notice. This notice must state the grounds and particulars of the claim. Where the Tenant is arrears of rent for six (6) months in the case of a monthly tenancy, or for one year in the case of a quarterly or half-yearly tenancy, the tenancy shall lapse and the Court shall make an order for possession and arrears of rent upon proof of the arrears by the Landlord.

Effluxion or expiration of term granted (for fixed tenancies)

Where the tenancy is for a fixed or certain period, it determines automatically at the expiration of the term, and no formal steps are needed to put it to an end. Where the Landlord intends to proceed to Court to recover possession, he shall then issue a seven-day notice as described above. Please note however that where the Agreement stipulates that a notice shall be given then it must be issued,providedthat it is not less than the statutory prescribed time.

Please note that the notices must be served personally on the Tenant, or delivered to an adult at the premises. Where the Tenant cannot be found, it may also be delivered to the premises by courier where the Tenant cannot be found, provided that the courier supplies proof of delivery.

Institution of proceedings to recover possession

Where the notice issued to the Tenant has expired, and the Tenant has failed to surrender possession, the Landlord my file a claim for recovery of possession at either the Magistrate Court or the High Court closest to the premises. The Landlord must prove grounds such as arrears of rent, breach of any covenants of the Agreement, that the premises is being used for immoral or illegal purposes, the premises has been abandoned, the premises is unsafe and dangerous or that the conduct of the Tenant or a person living with him constitutes intolerable nuisance. The Landlord can also recover possession on the grounds that the premises is required by the Landlord for personal use or that the premises requires substantial repair. The Landlord may not need to prove any of the above where the requisite notices were properly issued, and the content and length of notice are in line with statutory requirements.

Frustration

This is usually provided for under the force majeure clause. The doctrine of frustration provides that, where after a contract has been entered into, and for some reason, it subsequently becomes impossible for one party to perform their obligations, due to supervening events beyond his control, then the contract has been frustrated. The consequence is that the parties are discharged from the performance of their contract. The Supreme Court in Araka v Mornier Construction Co. (Nig) Ltd has held that the doctrine of frustration may in certain circumstances apply to leases. In that case, the period of the lease coincided with the Nigerian Civil War, and the government ordered that all expatriates leave the area. At the end of the war, the Landlord claimed rent for the period, and the Tenant contended that the government order frustrated the tenancy. The Supreme Court held that the tenancy was frustrated by the war and the Landlord was not entitled to the rent claimed.

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HMOs, generally rented to young professionals and key workers, are intrinsically geared towards maximising rental income by letting each room on an individual basis, according to the report from Platinum Property Partners.

According to Propertywire.com, research for PPP has shown that compared to capital gains, rental income for all types of BTL is by far the most dependable and stable source of return on investment. The firm says that HMOs landlords are therefore best positioned to absorb the higher mortgage costs caused by an interest rate rise, an event which the Bank of England has indicated will take place in early 2016.

It explained that the profits of a standard buy to let investment can be wiped out by a three per cent rise in interest rates, assuming mortgage rates increase by the same amount, as gross rental income is not sufficient to cope with higher mortgage interest repayments.

Even although HMO landlords pay for all household bills, the fact that the property generates a much higher gross rental income means that these costs are easily absorbed. The analysis suggests that the maximisation of income from a given size of property by creating extra rooms and renting them to multiple tenants means HMOs can generate rental income that is up to four times higher than the rents achieved in a standard buy to property.

Previous analysis carried out by PPP has shown that rental income is a far more stable and dependable source of return than capital gains, dispelling the myth that the success of any buy to let investment is mostly about rising house prices.

From 2010 to 2012, investors operating in both the standard BTL and professional HMO market were sustaining capital losses. It was only in 2013 and 2014 that capital gains began to recover but in contrast, rental income consistently increased throughout the same period for both asset classes, albeit at a much higher rate for HMOs, the report says.

It also points out that the best way that landlords can ensure their investment can cope with an interest rate rise, and any other unexpected costs, is by planning ahead and having a good understanding of the financial performance of their portfolio.
Research carried out by PPP in 2014 showed that a severe lack of research and poor planning is preventing many buy to let investors from maximising their income. A quarter of buy to let investors sought no advice and carried out no research before making their property purchases and a staggering 93 per cent had no five year plan for their investment.

Separate research by PPP shows that landlords are also prone to miscalculating their returns. Some 12 per cent landlords do not take any costs into consideration when calculating the financial performance of their buy to let portfolio. In addition, one in four landlords pay mortgage interest but do not take this into account.

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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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