Simplified Legal Perspective on the Possible Liabilities in the Short-let Industry.
By Oreoluwa Ati-John.
Short-let accommodations have become increasingly popular in Nigeria in recent years, but there are several legal liabilities that landlords and tenants should be aware of:
For Landlords:
- Taxation: Landlords who earn income from short-term rentals are required to pay tax on their rental income. Failure to do so may result in penalties and legal action by the tax authorities.
- Safety and Security: Landlords have a duty of care to ensure that their property is safe for guests to occupy. This includes providing secure locks, adequate fire safety measures, and ensuring that the property is free from hazards such as faulty wiring.
- Contractual Obligations: Landlords must ensure that they have a valid tenancy agreement in place with their guests, which outlines the terms and conditions of the rental. Failure to comply with the terms of the agreement may result in legal action by the tenant.
- Property Damage: Landlords may be held liable for any damage caused by their tenants during their stay. It is important for landlords to carry out regular inspections of their property to identify any damage and take appropriate action to rectify it.
For Tenants:
- Payment Obligations: Tenants are required to pay the agreed rent and any other fees outlined in the tenancy agreement. Failure to do so may result in legal action by the landlord.
- Property Damage: Tenants may be held liable for any damage caused to the property during their stay. It is important for tenants to report any damage to the landlord as soon as possible and to take reasonable steps to prevent any further damage.
- Contractual Obligations: Tenants must comply with the terms and conditions of the tenancy agreement. Failure to do so may result in legal action by the landlord.
- Safety and Security: Tenants have a responsibility to ensure that they do not pose a risk to themselves or others while staying in the property. This includes following safety instructions provided by the landlord and ensuring that the property is secure at all times.
The relevant laws that guide short-let rentals in Nigeria include:
The Lagos State Hotel Licensing Law: This law requires that any individual or organization that provides temporary accommodation to guests in Lagos State must obtain a license from the Lagos State Ministry of Tourism, Arts and Culture. This law applies to short-let accommodations, including apartments and villas.
The Lagos State Hotel Occupancy and Restaurant Consumption Law: This law requires that operators of short-let rentals must register with the Lagos State Hotel and Tourism Licensing Authority. The registration requires operators to provide details of the property, including the number of rooms, and amenities provided.
Safety and Security: Landlords have a duty of care to ensure that their property is safe for guests to occupy. This includes providing secure locks, adequate fire safety measures, and ensuring that the property is free from hazards such as faulty wiring.
Contractual Obligations: Landlords must ensure that they have a valid tenancy agreement in place with their guests, which outlines the terms and conditions of the rental. Failure to comply with the terms of the agreement may result in legal action by the tenant.
Privacy: Landlords must ensure that they respect the privacy of their guests during their stay. This includes ensuring that the property is free from surveillance cameras or any other devices that may infringe on the privacy of the guests.
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