Glossary Term
Service Charge
Many renters in Nigerian estates and apartment complexes encounter service charges after agreeing on rent.
These fees can significantly affect total housing costs, so understanding what they cover and how they are billed is essential before signing any agreement.
Definition
A service charge is a recurring payment collected from tenants or homeowners in estates, serviced apartments, or multi-unit residential buildings to fund shared services and facilities. In Nigeria, service charges often cover: • Estate security • Cleaning of common areas • Generator fuel for shared spaces • Water supply • Waste collection • Lift servicing • Road maintenance within estates • Facility management staff Service charges may be billed monthly or annually and should be itemized by estate managers or landlords.
Example
A tenant renting a two bedroom apartment in Lekki pays ₦3,000,000 per year in rent and an additional ₦400,000 annually as service charge for security, generator usage, and maintenance of shared areas.