When it comes to buying property in Lagos or renting, most people focus only on the advertised price. The reality is that beyond rent or purchase cost, there are hidden expenses that can quickly eat into your budget.
Understanding these hidden costs upfront will save you from financial surprises and ensure your real estate investment in Lagos is sustainable.
1. Service charges and Maintenance fees
In most Lagos estates and apartment complexes, service charges are non-negotiable. They cover security, cleaning, waste disposal (LAWMA), power supply, and general maintenance.
While they seem small compared to the main rent or purchase cost, these fees can run into hundreds of thousands of naira annually. Always confirm the exact amount and what it covers before committing.
2. Legal, Agency, Damages and Miscellaneous Fees
For renters, agency and legal fees plus damages can reach up to 60% of annual rent. Buyers also face costs like lawyers’ fees, land documentation, and agency commissions. These are not optional.
3. Infrastructure Gaps
Many Lagos neighbourhoods lack good roads, flowing drainage, clean water, or adequate power supply. In such cases, residents often contribute privately for repairs, generators, or alternative power solutions like inverters and solar systems. For buyers, this could also mean funding boreholes or water treatment systems if the area lacks clean water. These costs may not be obvious during your initial inspection.
4. Renovation and Hidden Repairs
That ‘good deal’ you find may reveal hidden costs once you move in: leakages, faulty plumbing, poor electrical wiring. For buyers, budgeting for renovations in Lagos properties is a must. Renters, too, may end up fixing what landlords refuse to cover.
5. Location-based Premium
The true cost of living in Lagos isn’t just rent or purchase. For instance, a ‘cheaper’ apartment on the Island might come with higher toll fees, flood risk during rainy days, and costlier service charges. Meanwhile, some properties on the Mainland offer a better balance between rent, commuting, and living costs.
Final Thoughts
In Lagos, the price tag is only part of the story. From service charges and hidden levies to rainy season flood risks and infrastructure gaps, many factors can affect your comfort and financial stability.
Whether you’re a buyer or renter, asking the right questions and working with experts will save you from unpleasant surprises and help you secure a profitable real estate investment in Lagos that matches your budget and long-term goals.
