WHEN SHOULD MY TENANCY COMMENCE?

INTRO:

In the course of my busy schedule last week, I had a heated argument with a sitting tenant in a property I manage. His rent will fall due on the 31st of October 2024. The bone of contention was the actual date his tenancy commenced as he was due to move out of the apartment on or before 31st October 2024.However, he accorded himself an additional one full month on the basis that he had the right to determine his tenancy after his payment has been duly acknowledged by the landlord. When I mentioned his due date as stated in the official receipt issued after he made payment, he became defensive and insisted the date mentioned was wrong. I had to remind him he was also given two weeks grace period before the commencement of his tenancy to enable outstanding works phase out completely before his move in. The points I raised were alien to him and he laughed them off.

 A tenancy starts counting once payment has been duly received and acknowledged and tenancy documentation fully executed by way of reading through the tenancy Agreement to ensure assigned responsibilities are dully stated and understood by both parties. My encounter with him prompted the research below. The article is to help clear the ambiguity over tenancy commencement and also enlighten prospective tenants over the importance of working with facts and not assumptions. Prospective tenants should be well informed and act within tenancy laws. It helps to avert negative vibes. This applies to all parties involved in the tenancy transaction. 

The best time for a tenancy to commence after a prospective tenant has made payment depends on several factors, such as legal requirements, agreement terms, property readiness, and the mutual understanding between the tenant and landlord or property manager. Here is a detailed breakdown of these factors, supported by case studies from Nigeria.

Property Readiness

Before a tenancy commences, the property must be ready for habitation. This includes ensuring that utilities like water, electricity, and other facilities agreed upon in the tenancy agreement are in good working condition. A landlord or property manager should conduct a final inspection and address any maintenance or repairs.

• Case Study 1: Lagos Mainland Property, 2019 In Lagos, a tenant paid for a 2-bedroom flat in the Yaba area in March 2019 but was unable to move in until May because the property lacked running water, and electrical installations were not completed. Despite the payment, the tenancy agreement explicitly stated that tenancy would only commence when the property was habitable. This agreement protected both parties, preventing the tenant from incurring unnecessary rent costs while the property was uninhabitable. 

• Legal Notice and Documentation

  The legal aspect of tenancy agreements in Nigeria involves completing proper documentation and providing a receipt or acknowledgment of payment. According to Nigerian tenancy laws, the landlord should issue an official receipt, while the tenant signs an agreement that includes the terms of commencement. This paperwork clarifies the start of the lease, ensuring there is no ambiguity.

  • Case Study 2: Abuja Estate, 2021 A tenant in an upscale estate in Abuja made payment for an apartment in January 2021. However, the tenancy commencement was delayed until February 2021 due to legal paperwork delays. In this case, the landlord and tenant agreed that tenancy would begin once the lease agreement was fully signed, and all documents were finalized.

  • Mutual Agreement and Flexibility

    The commencement of tenancy often hinges on a mutual agreement between the tenant and the landlord. If the property is ready and the tenant is eager to move in, the landlord may allow early access, but this should be discussed, and the terms should be put in writing. In cases where the tenant wishes to delay moving in due to personal reasons, both parties can agree on a different start date without complications.

    • Case Study 3: Port Harcourt Commercial Property, 2022 A business owner in Port Harcourt paid for a commercial space in July 2022. The landlord and tenant agreed that tenancy would commence in August due to the tenant’s need to complete interior furnishing for the business. Despite paying earlier, the flexibility in commencement helped both parties, as the tenant avoided paying rent for a period when the space was not in use.

    • ey Considerations:

      • State Tenancy Laws: Nigerian states like Lagos and Abuja have specific tenancy laws regulating notice periods, rent payments, and tenancy commencement, which must be adhered to.
      • Tenancy Agreement Terms: The written agreement should clearly define when the tenancy commences to avoid ambiguity.
      • Payment Receipts: It’s essential to issue receipts that reflect the agreed commencement date, especially when the tenant is not moving in immediately.

      Conclusion

      The best time for a tenancy to commence is when the property is ready for habitation, legal documentation is completed, and there is a mutual agreement between the tenant and landlord. Flexibility in commencement may be required, but this should always be put in writing. The three case studies from Nigeria highlight how each factor—property readiness, legal documentation, and mutual agreement—play crucial roles in determining the ideal tenancy start date.