Daily Law Tips (Tip 585) by Onyekachi Umah, Esq., LLM. ACIArb(UK)

CAN A LANDLORD INCREASE RENT WITHOUT CONSENT OF HIS TENANT?

Often, Landlords unilaterally (without consulting tenants) increase rent and thereafter send “Notice of Rent Increment” to tenants. Such landlords consider tenants as mere inferior parties and as such, they (the landlords) do not need consent of tenants to increase rent.

Tenants are dismissed by landlords with comments like; “… if he cannot pay, let him pack out….” or “… it is my house and I decide how much to charge as rent.”

Well, below are the words of the learned Justices of the Court of Appeal on this issue;

“The issue of rent between the landlord and tenant is a matter of agreement. The Agreement may be express or implied. The relationship between them too is a contractual one. And being a matter of contract its term cannot be altered by either party without the agreement of the other. See Udih v. Izedonmwem (supra). Unless the landlord and the tenant are ad idem a landlord’s unilateral decision to increase the amount of rent payable will be ineffective. A unilateral increase of rent is an offer or a proposal made by the landlord. Where as in this case the tenant refuses to pay the landlord the proposed rent, it is left for the landlord who stands to gain where the new rent is accepted by the tenant, to promptly take necessary steps as required by law to terminate the tenancy. Appellant’s (Tenant’s) refusal to pay increased rent is not in anyway tantamount to an obligation to pay the increased rent. Consequently where there is no agreement on an increase in rent the status quo ought to be maintained and this means that the agreed rent should therefore subsist. See 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.”Per GALADIMA ,J.S.C ( Pp. 18-20, para. B). Quotation is from the case of COBRA LTD & ORS v. OMOLE ESTATES & INVESTMENT LTD (2000) LPELR-6809(CA)

“… I am of the humble view that the matter of rent increment 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. In Cobra Ltd vs. Omole Estate and Investment Ltd (2000) 1 NWLR (Pt. 655) 1, this Court per Galadima JCA (as he then was) following the decision in Udih vs. Izedonmwen (1990) 2 NWLR (Pt. 132) 357 at 366 has held that unless the landlord and the tenant are ad idem a landlord’s unilateral decision to increase the amount of rent payable is ineffective.” Per, AMINA AUDI WAMBAI ,J.C.A ( Pp. 35-36, paras. E-A ) Quotation is from the case of JOVINCO NIGERIA LTD & ANOR v. IBEOZIMAKO (2014) LPELR-23599(CA)

In summary, a landlord must consult with his tenant in seeking to increase rent unless there is an earlier agreement between both, authorizing the landlord to increase rent without the input/consent of his tenant. Where a tenant does not vacate a property after a unilateral increase of rent by landlord, a continued stay on property by tenant is not an acceptance of the unilaterally increased rent. A landlord should seek consent of tenant before increasing in rent and where such is denied, landlord can continue with the normal agreed rent or seek to legally evict the tenant in order to engage new and willing tenants. Simply, rent is part of tenancy agreement, cannot be forced on a tenant but must be agreed on by both landlord and tenant at all times.

My authorities are:

1. The Court of Appeal’s judgement in the case of JOVINCO NIGERIA LTD & ANOR v. IBEOZIMAKO (2014) LPELR-23599(CA)
2. The Court of Appeal’s judgement in the case of COBRA LTD & ORS v. OMOLE ESTATES & INVESTMENT LTD (2000) LPELR-6809(CA) or Cobra Ltd vs. Omole Estate and Investment Ltd (2000) 1 NWLR (Pt. 655) 1.
3. Udih v. Izedonmwen (1990) 2 NWLR (Pt. 132) 357 at 366

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