UNDERSTANDING TENANCIES AND RECOVERY OF PREMISES IN NIGERIA PT.1
Tenancies are legal relationships existing between a Landlord and Tenant, where in exchange for consideration known as rent, the Tenant obtains from the landlord a legal right of occupancy over a residential or commercial property for a stated period of time.
Types of Tenancies obtainable in Nigeria
Tenancies are distinguished based on their purpose, duration, and method of establishment. Here, we briefly explain five basic types of tenancies in Nigeria, which include:
- Statutory Tenancies:
A statutory tenant is one who after his contractual tenancy expires, retains possession of the property against the wishes of the landlord, who may be seeking to evict the said tenant. This means that even after the stated period of time of the tenancy has ended, the Landlord is not allowed by law to evict the tenant. A statutory tenancy is not created by agreement between the parties but by operation of law.
- Fixed-term Tenancies:
A tenancy for a fixed term is simply one that is for a certain period of time. A fixed-term tenancy expires when the time period is up or is terminated by the landlord through a forfeiture process if a tenant violates a stated or implicit term of the tenancy.
- Periodic Tenancies:
PA periodic tenancy is a tenancy that lasts for a specific time. Instances of this type of tenancy include monthly tenancies, quarterly tenancies, half a year (6 months), or yearly tenancies. A periodic tenancy is frequently renewed at the end of the term by paying rent for a new one.
- Service Tenancies:
These are tenancies that exist as employment benefits where the tenant’s employment terms and work description make accommodation provisions very necessary e.g. Barracks.
- Tenancies at will:
Simply put, a tenant at will is one for whom the landlord gives permission to use a property for a period of time that may not be certain. In this type of tenancy, there is usually no written tenancy agreement that stipulates the terms of the tenancy or the duration for which the tenancy relationship would exist.
The basic knowledge of how tenancies in Nigeria are carried out aids the parties involved to decipher what option works best for them. In this series, we’ll delve into the basics of tenancies, the various types, and the process of recovery of premises in Nigeria.