What a service charge covers
In flats, serviced apartments and gated estates, the cost of shared services is split between residents as a service charge. It can cover security guards, a generator or inverter for common areas, water pumping, cleaning of stairs and grounds, refuse collection, lift maintenance and the manager's own fee.
Listings on Property Centre can show the service charge separately from the rent, with how often it is paid. A "serviced" flat usually means services are included in exchange for a service charge.
What the law says now (Lagos). The Tenancy Law of Lagos State 2011 allows a landlord to collect a service charge on top of rent. A separate receipt must be issued, and the tenant is entitled to a regular written account of how the money was spent; the figures box gives how often. The law's definition of rent leaves out charges for services and facilities, so a service charge is not rent.
What may change. The 2025 Lagos tenancy Bill keeps the written-account rule and adds that every such charge must be stated in the tenancy agreement.
Buying in an estate. Unpaid service charge can follow a property. Ask the estate or facility manager for a statement before you pay for a flat or house.
Service charge in listings. When an advertiser adds a service charge to a Property Centre listing, it is shown next to the rent with how often it is paid. Compare listings on rent plus service charge, not rent alone, because a cheaper rent with a high service charge can cost more over the year.
Differences by state
- Lagos: the 2011 law's receipt and account rules apply outside Apapa, Ikeja GRA, Ikoyi and Victoria Island.
- Abuja (FCT): no statute found on residential service charges; the tenancy agreement and estate rules govern.
- Everywhere: amounts vary widely by estate and building. The figures box shows the typical charge in Property Centre listings where enough listings report it.
What to check
- What the service charge covers, in writing, and what it leaves out (diesel is a common surprise).
- How often it is paid and whether it can change during the year.
- Who collects it: the landlord, an estate association or a facility manager.
- That you receive a separate receipt and can ask for an account of spending.
- For buyers: any arrears on the unit you are buying.
Red flags
- A charge that rises mid-year with no explanation.
- Diesel or power charges with no meter readings or accounts.
- A service charge with no list of services.
- A landlord who refuses to show how the money was spent.
Typical cost or timeline
How often a Lagos tenant is entitled to a written account of 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
Service charge vs Caution fee
| Aspect | Service charge | Caution fee |
|---|---|---|
| What it pays for | Shared services in the building or estate | A deposit against damage |
| How often | Recurring, usually yearly | Once, at the start |
| Returned at the end | No | Yes, less genuine repair costs |
| 2011 Lagos law | Separate receipt and regular written account | Separate receipt and regular written account |
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Questions
Is service charge part of rent?
No. The 2011 Lagos law defines rent so that it excludes charges for services and facilities. Service charge is a separate payment for shared services.
How much is service charge in Lagos?
It depends on the building and estate. The figures box shows the typical yearly service charge in Property Centre listings for flats for rent, by number of bedrooms.
Can my landlord increase the service charge?
Costs such as diesel change, so charges can rise, but you are entitled to a written account of how the money is spent. Check what your agreement says about changes.
What does service charge cover in an estate?
Usually security, cleaning, waste collection, water and power for shared areas, and maintenance. Ask for the list before you agree.
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
Cite this definition
"Service charge", Nigeria Property Centre Property Glossary, last checked 13 October 2026, https://nigeriapropertycentre.com/glossary/service-charge
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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