The Chairman of the Estate Rentals and Commission Agents Association of Nigeria (ERCAAN), Oyo State Chapter, Hon. Okekunle Mutahir Morakinyo, has warned prospective tenants against paying inspection fees to individuals claiming to be property agents, describing the practice as unacceptable within the association.
Morakinyo gave the warning during an interview with Trendx Radio News in Ibadan while responding to complaints over the activities of property agents and the rising cost of securing accommodation in the city.
According to him, prospective tenants should be cautious of agents who demand money before taking them to inspect available properties, stressing that ERCAAN does not recognise inspection fees as part of its members’ charges.
“We do not practise that in our association. We see it as OBT, “Obtained By False” pretence,” Morakinyo said.
He explained that property inspection could be regarded as part of the consultancy service provided by an agent and maintained that prospective tenants should not be charged separately for it.
Morakinyo urged house-hunters not to hand over money to unknown individuals simply because they present themselves as property agents.
Instead, he advised residents to deal with identifiable and verified members of recognised professional associations to reduce their exposure to fraud.
The ERCAAN chairman also addressed what is commonly described as the “total package”, the various charges a prospective tenant may encounter when securing accommodation.
According to Morakinyo, the package can include the actual rent, legal agreement fee, agent’s commission, caution fee and service charge.
He said an agent’s commission is typically calculated at 10 per cent, while he also described the legal agreement fee as 10 per cent, payable for the preparation and execution of tenancy documentation.
Morakinyo argued that it was therefore misleading to blame property agents alone for the total amount prospective tenants are asked to pay when renting a house.
He said the agent’s commission represents only one component of the overall charges associated with securing some properties.
Addressing rising rents across Ibadan, Morakinyo attributed much of the increase to prevailing economic conditions.
He said higher costs affecting property owners and the wider economy were contributing to increases in rental prices, rather than the activities of agents alone.
The ERCAAN chairman also addressed the responsibility for conducting background checks on prospective tenants.
According to him, where an agent has been formally appointed to manage a property on behalf of the owner, the agent may be responsible for carrying out identity and other necessary checks on prospective tenants.
However, where the agent’s role is limited to connecting a prospective tenant with a landlord and facilitating the rental transaction, Morakinyo said responsibility for verifying the tenant ultimately rests with the property owner.
He urged residents seeking accommodation in Ibadan to exercise caution, verify the identity of agents they deal with and ensure that all payments associated with a property transaction are properly documented.
