How caution fees are refunded
A caution fee is paid once, when you move in. The landlord or agent holds it while you live in the property. When the tenancy ends, the landlord inspects the property and should return the deposit, minus the cost of fixing damage beyond normal wear.
The amount is set by the landlord and is often quoted as a share of the yearly rent. Short lets also take a caution deposit, usually returned soon after check-out.
What the law says now (Lagos). The Tenancy Law of Lagos State 2011 recognises a security deposit taken to cover damage and repairs. The landlord must give a separate receipt for it, and the tenant is entitled to a regular written account of how money paid for deposits and service charges was spent. The figures box gives how often. The 2011 law does not spell out a refund rule or set an amount.
What may change. The 2025 Lagos tenancy Bill would make the deposit refundable at the end of the tenancy, less documented repair costs. It is not law yet.
What happens in practice. Many agents and landlords treat "caution" as theirs to keep, which is the main source of disputes. A written agreement that says the deposit is refundable, plus photos at move-in, gives you the strongest position.
Differences by state
- Lagos: the 2011 law's receipt and account rules apply, except in Apapa, Ikeja GRA, Ikoyi and Victoria Island, where the law does not apply.
- Abuja (FCT) and other states: we found no statute dealing with caution deposits. The tenancy agreement governs.
- Short lets everywhere: the deposit is part of the booking terms set by the host or manager.
What to check
- The agreement says the caution fee is refundable, and on what conditions.
- You get a separate receipt that names it as a caution or security deposit.
- You take dated photos or a written condition report when you move in.
- You know who holds the money: the landlord, the agent or a facility manager.
- How long after moving out it will be returned, written into the agreement.
Red flags
- An agent who calls the deposit "non-refundable".
- No receipt, or a receipt that lumps the caution fee in with rent or fees.
- Deductions with no evidence of damage or repair costs.
- Being asked for a new caution fee at renewal when the old one is still held.
Typical cost or timeline
How often a Lagos tenant is entitled to a written account of deposit and service-charge spending (Tenancy Law 2011)
6 months (at least once every)
As of October 2026
Lagos State Government (via Policy Vault Africa) Law Global Hub LawPadi
Proposed, not yet law
The Lagos State Tenancy and Recovery of Premises Bill 2025 would make a caution or security deposit refundable at the end of the tenancy, less documented repair costs, and require all such charges to be stated in the tenancy agreement.
Status: passed second reading on 10 July 2025 and referred to the House Committee on Housing; reported at committee stage in May 2026 and still pending in September 2026. No third reading or governor's assent reported (confirmed 13 October 2026).
Caution fee vs Agency fee
| Aspect | Caution fee | Agency fee |
|---|---|---|
| What it is | A deposit against damage | Payment for the agent's work |
| Who holds it | The landlord or their agent | The agent keeps it |
| Returned at the end | Yes, less genuine repair costs | No |
| Covered in the 2011 Lagos law | Yes: separate receipt and regular written account | No percentage; says whoever engages a professional for the tenancy agreement pays them |
Find property
- Flats for rent in Lagos
- Apartments for rent in Abuja
- Short let apartments in Lagos
- The New Lagos Tenancy Law in Detail
Questions
Is caution fee refundable in Nigeria?
It is meant to be. The 2011 Lagos law treats it as a deposit against damage, and the 2025 Bill would make the refund explicit. Make sure your agreement says it is refundable.
How much is caution fee in Lagos?
No law sets an amount. Landlords set it, often as a share of the yearly rent, so agree the amount and the refund terms in writing before you pay.
How do I get my caution fee back?
Leave the property in the condition you found it, apart from normal wear, and ask in writing for the refund with your receipt and move-in photos. If the landlord refuses without evidence of damage, you can complain to LASRERA in Lagos or take the matter to a mediation centre or court.
What is the difference between caution fee and agency fee?
A caution fee is your money held against damage and should come back. An agency fee pays the agent and does not.
Can a landlord use the caution fee as my last rent?
Only if you both agree in writing. A deposit is for damage, so do not assume it will be offset against rent.
Related terms
Sources
- 1. Tenancy Law of Lagos State 2011 (Law No. 14 of 2011), Official Gazette No. 37 Vol. 44 Lagos State Government (via Policy Vault Africa) · checked 13 October 2026
- 2. Section 10, Tenancy Law of Lagos State 2011 Law Global Hub · checked 13 October 2026
- 3. 10 things Lagosians should know about the Lagos Tenancy Law LawPadi · checked 13 October 2026
- 4. Lagos State Tenancy and Recovery of Premises Bill 2025 (draft) Lagos State House of Assembly · checked 13 October 2026
- 5. What new Lagos tenancy bill means for landlords, tenants and agents, and why it matters (30 Nov 2025) Premium Times · checked 13 October 2026
Cite this definition
"Caution fee", Nigeria Property Centre Property Glossary, last checked 13 October 2026, https://nigeriapropertycentre.com/glossary/caution-fee
You may reuse this definition under CC BY 4.0 with credit to Nigeria Property Centre and a link to this page.
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