With the recent focus on regulation and sanity in the Lagos State real estate sector, the Estate Rent and Commission Agents Association of Nigeria (ERCAAN) has been quite active, especially concerning its efforts to reform and professionalise the industry.
The Estate Rent and Commission Agents Association of Nigeria (ERCAAN) is making significant strides towards unifying its ranks and collaborating with government agencies to curb fraudulent practices and bring sanity to the real estate sector, especially in high-demand areas like Lagos.
Unification After 20 Years of Division:
A New Dawn: Perhaps the most significant recent development is ERCAAN’s successful reconciliation and unification after over 20 years of internal leadership tussles and bickering. This monumental achievement means the association will now operate as a single, unified body.
Impact of Disunity: Leaders within ERCAAN openly admitted that this prolonged division hindered the association’s growth, encouraged indiscipline, and contributed to sharp practices within the industry. The newfound unity is seen as a crucial step towards effective self-regulation.
Caretaker/Electoral Committee: Following the reconciliation, a nine-man Caretaker/Electoral Committee was inaugurated to conduct elections for executives across various states, thereby signalling a push for structured and legitimate leadership nationwide.
Collaboration with Lagos State Government on Rent Reforms and Regulations:
Supporting Monthly Rent Payments: ERCAAN has publicly pledged its full support for the Lagos State Government’s new rent payment policy, which aims to allow tenants to pay rent monthly, quarterly, or yearly, with a cap of one year in advance.
ERCAAN President, Mr. Godwin Alenkhe, assured the government of the association’s commitment to upholding industry standards and promoting this reform.
Cracking Down on High Agency Fees: ERCAAN is actively engaging with the Lagos State Real Estate Regulatory Authority (LASRERA) and Community Development Associations (CDAs) to enforce the cap on agency fees (0-10%) and combat other illegal charges. ERCAAN attributes abnormal increases in agency fees to unregistered agents and greedy landlords, and it is working to distance itself from such practices.
Weeding Out Quacks: A core mission of ERCAAN, which has gained renewed focus with its unification, is to weed out fraudulent and unregistered agents from the industry. It was stressed that the public should patronise only duly registered agents and report any suspicious activities. Education and training of members are key parts of this strategy.
Joint Stakeholder Engagements: ERCAAN has been part of several strategic stakeholder engagement meetings with the Lagos State Ministry of Housing and LASRERA. These meetings aim to strengthen working relationships, curb arbitrary rent charges, promote best practices, and increase public awareness.
Promoting the cause of affordable housing and transparency.
Subsidised Confiscated Properties: In order to effectively address Nigeria’s housing shortage, ERCAAN recently recommended that, if handled transparently, the 753 properties seized from former CBN Governor Godwin Emefiele be put up for auction at reduced prices. The body even proposed that members of credible real estate associations like ERCAAN be appointed as lead agents for such sales.
Call for Government Intervention: ERCAAN continues to call on both state and federal governments to actively intervene by providing more affordable housing for low-income earners, seeing it as a crucial step to check the excesses of “Shylock landlords” and bridge the housing gap.
Clarifying Agent’s Role in Rent Hikes: ERCAAN has been vocal in clarifying that agents are often not responsible for the frequent rent hikes, but rather some landlords dictate these increments. They aim to educate the public on the various factors influencing rent.
