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Wednesday, October 9, 2024

Rent Increment Without Tenant’s Consent Is Unlawful

UNIVERSALLY, housing and accommodation form part of the basic needs of man.

Even birds have nests as their homes. The need for man to have access to decent accommodation, be it private or commercial therefore, cannot be overemphasized.

Be that as it may, not everybody owns a house and this inevitably has led to many citizens becoming tenants to those fortunate enough to be landlords.

Even some landlords at one time or the other find themselves being tenants to others due to either change in fortunes or migration from one locality to the other especially in search of greener pastures.

One issue that has more often than not precipitated disputes and may continue to do so between landlords and tenants particularly in our cities, is the question of increment by landlord of amount paid as rent especially when such upward review is unilaterally done.

Even when tenancy agreement clearly stipulates the manner and time for rent increase, some landlords still violate such terms of agreement with reckless abandon by wilfully operating outside it.

Worse still, in the absence of tenancy agreement, tenants are almost always slammed with letters of rent increase from landlords informing them of increase in rent which the tenants should pay unfailingly or pack out of the premises.

In the eye of the law, this act of unilateral increase in rent is illegal.

This is because landlord and tenant’s relationship is contractual in nature and terms of contract can only be reviewed by the parties arriving at a consensus.

Indeed, unilateral rent increase operates merely as an offer from the landlord which the tenant is at liberty to accept or reject.

If accepted, the increase in rent becomes operative but if rejected by the tenant,the increase becomes of no effect and the statusquo remains.

The only option left to the aggrieved landlord is to seek legal remedy to terminate the tenancy and make room for prospective tenants who may accept the rent increase.

This is the position of the law and as a matter of fact courts have in a plethora of cases deprecated unilateral increase in rent by landlords.

For example, in Udih vs. Izedonmwen (1990) 2 NWLR (Pt. 132) 357, where the landlord unilaterally increased the rent from ₦50 to N500 per month, the court held that a unilateral increase of rent remains no more than an offer or proposal and where the tenant refuses to pay the landlord’s proposed rent, all the landlord needs do is to take necessary legal steps to terminate the tenancy.

This principle of law was further given eloquent expression in Jovinco Nigeria Ltd & Anor v Ibeozimako (2014) LPELR-23599(CA).

Again, in the case of COBRA LTD & ORS v. OMOLE ESTATES & INVESTMENT LTD (2000) LPELR-6809(CA) Galadima J.C.A (as he then was) has this to say: “I am of the humble view that the matter of rent must be supported by an agreement to that effect. The landlord-tenant relationship and issue of rent payable by a tenant to a landlord being one of a contract, the landlord cannot unilaterally alter the terms of the agreement, to increase the rent”

It is important to note that a tenant’s refusal to pay the increased rent is not in any way tantamount to an obligation to pay the increased rent.

What could be gleaned from the above therefore is that where there is no agreement on an increase in rent, the status quo remains as only the agreed rent subsists.  This has been adumbrated in cases including Are v. Ipaye (1990) 2 NWLR (Pt. 132) P.298 at 313 G-H; Mba- Ezev-Okufo (1990) 2 NWLR (Pt.135) P.787 at 795 F-G

Furthermore, in the case of JOVINCO NIGERIA LTD & ANOR v. IBEOZIMAKO (supra)  (at pages 35-36, paras. E-A)     the court held that absence of a consensus between landlord and tenant with regards to rent increase renders such a unilateral rent increase inoperative and of no moment.

It is therefore, worrisome and indeed illegal for a landlord to resort to self-help to evict tenants over failure or refusal to pay unilaterally increased rent. Such acts could make the landlord liable to payment of exemplary and aggravated damages to an aggrieved tenant.

Technically therefore, the landlord needs the consent of the tenant to make a rent Increase operative and effective.

This is in tandem with the law and principles of contract which requires parties to contract to always reach a consensus before varying any of the terms of the contract.

Indeed, if this simple position of the law is appreciated and adhered to by  landlords and tenants, a preponderance of tenancy dusputes in our courts today will be minimized.

Similarly, the acrimony and mutual mistrust generated between parties sequel to tenancy disputes will not have arisen.

To be on the safe side of the law, it is advisable to always consult a lawyer before taking  any steps in a tenancy matter .

It is wise and in the interest of justice as well as the benefit of parties to operate within the ambit of the law.

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