Property Management Agreement (Nigeria)
PROPERTY MANAGEMENT AGREEMENT
Estate Surveyors and Valuers Act, Cap E13, LFN 2004 | Lagos State Tenancy Law 2011
NIESV Standards of Professional Practice
THIS PROPERTY MANAGEMENT AGREEMENT is made this [Agreement Date]
BETWEEN:
(1) [Owner Name] of [Owner Address] ("the Owner"); AND
(2) [Manager Name] of [Manager Address], ESVARBON Reg. No. [ESVARBON Number] ("the Manager").
1. APPOINTMENT AND TERM
1.1 The Owner hereby appoints the Manager, and the Manager accepts appointment, as the exclusive property manager for the property known as [Property Address] — [Property Description], [Property State] State ("the Property").
1.2 This Agreement commences on [Start Date] and continues for an initial term of [Initial Term], subject to earlier termination in accordance with Clause 7.
2. MANAGEMENT SERVICES
2.1 The Manager shall provide the following services: (a) sourcing and vetting of tenants; (b) preparation and execution of tenancy agreements under the [Property State] State tenancy law; (c) collection of rent and issuance of receipts; (d) routine maintenance and repair coordination; (e) service charge management; (f) periodic inspection of the Property; (g) compliance with applicable NAICOM insurance renewal requirements.
2.2 The Manager shall maintain a separate client account for all funds received on behalf of the Owner and remit net income within 14 days of collection.
3. FEES
3.1 Management Fee: The Owner shall pay the Manager a management fee of [Management Fee Percent] of annual gross rent collected, payable monthly and exclusive of VAT at 7.5% under the Value Added Tax Act 2004.
3.2 Letting Fee: A letting fee of [Letting Fee Percent] of the first year's rent is payable on the introduction of each new tenant.
3.3 Maintenance Expenditure: The Manager may authorise maintenance expenditure up to [Maintenance Limit] per item without prior Owner approval. Expenditure above this limit requires written Owner consent.
4. MANAGER'S AUTHORITY
4.1 The Manager is authorised to sign tenancy agreements on behalf of the Owner for tenancies not exceeding one year, in accordance with the [Property State] State tenancy law.
4.2 The Manager shall obtain prior written Owner consent before: (a) granting any tenancy exceeding one year; (b) commencing legal proceedings; (c) carrying out any structural alterations.
5. TERMINATION
5.1 Either party may terminate this Agreement by giving [Notice Period] written notice to the other.
5.2 On termination, the Manager shall hand over to the Owner or incoming manager all keys, tenancy agreements, deposit records, and accounting records within 7 days.
6. GOVERNING LAW
6.1 This Agreement is governed by the laws of [Property State] State and Nigeria.
Owner
________________
Signature
Manager (Authorised Signatory)
________________
Signature
What Is a Property Management Agreement (Nigeria)?
A Property Management Agreement in Nigeria is a contract between a property owner (landlord or investor) and a professional property manager — typically a registered Estate Surveyor and Valuer — under which the manager undertakes day-to-day management of residential or commercial property on behalf of the owner in exchange for a management fee.
Property management services in Nigeria are regulated under the Estate Surveyors and Valuers (Registration, etc.) Act, Cap E13, Laws of the Federation of Nigeria 2004. The Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON) regulates the professional practice of estate surveying and valuation, which encompasses property management. The Nigerian Institution of Estate Surveyors and Valuers (NIESV) publishes professional practice guidelines governing the conduct of property managers, including fee scales and disclosure obligations.
Residential property management in Lagos State is subject to the Lagos State Tenancy Law 2011, which governs the relationship between landlords and tenants, notice periods, rent recovery, and permitted deductions. A property manager acting as the landlord's agent must comply with the Lagos State Tenancy Law 2011 when issuing tenancy agreements, receiving rent, or commencing recovery of premises proceedings before the Magistrates Court or High Court of Lagos State.
In the Federal Capital Territory (Abuja), residential tenancies are governed by the Recovery of Premises Act (Cap R4, LFN 2004) and the FCT Tenancy Regulation 2011. Other states including Rivers, Ogun, Oyo, and Anambra have their own Rent Control and Recovery of Premises laws that a property manager must apply when managing properties in those states.
A Property Management Agreement is distinct from an Estate Agency Agreement: a property manager has ongoing day-to-day authority and acts as the owner's agent continuously, while an estate agent's authority is typically limited to finding a tenant or buyer for a specific transaction. The Property Management Agreement should clearly delineate the scope of the manager's authority, particularly regarding expenditure limits, signing of tenancy agreements, and conduct of legal proceedings.
The legal framework governing the Property Management Agreement (Nigeria) in Nigeria draws on several key statutes and regulatory bodies. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Parties executing a Property Management Agreement (Nigeria) in Nigeria should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Land Use Act 1978 (Cap. L5, LFN 2004) sets the foundational requirements.
When Do You Need a Property Management Agreement (Nigeria)?
A Property Management Agreement in Nigeria is required whenever a property owner wishes to delegate the management of residential or commercial property to a professional manager and needs to define the scope and limits of that authority.
A Property Management Agreement is required when a property owner residing abroad (diaspora investor) wishes to have their Nigerian property managed by a local professional. The agreement protects the absentee owner by defining the manager's authority, reporting obligations, and financial controls, including requirements for separate client accounts.
A Property Management Agreement is needed when a property investor owns multiple residential units or a block of flats and requires a professional manager to handle tenant selection, lease execution, rent collection, maintenance, and service charge management. Lagos State residential investors in Lekki, Victoria Island, and Ikoyi frequently appoint ESVARBON-registered firms to manage residential portfolios.
A Property Management Agreement is required when a company registered under the Companies and Allied Matters Act 2020 (CAMA 2020) owns investment property and appoints a professional manager as part of its corporate governance obligations, with the agreement recorded in the company's books and disclosed in its annual returns to the Corporate Affairs Commission (CAC).
A Property Management Agreement is needed when a landlord is in dispute with existing tenants and wishes to delegate rent recovery, notice issuance, and court proceedings under the Lagos State Tenancy Law 2011 or equivalent state law to a professional property manager with knowledge of local tenancy procedure.
A Property Management Agreement is required when a primary mortgage bank or commercial bank, regulated by the Central Bank of Nigeria (CBN), appoints a receiver-manager to manage a mortgaged property following the borrower's default, as authorised by the mortgage deed or the Mortgage Institutions Act (Cap M19, LFN 2004).
Parties in Nigeria should prepare a Property Management Agreement (Nigeria) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Property Management Agreement (Nigeria)
A valid Property Management Agreement in Nigeria must contain the following essential elements.
Parties and Authority: Full legal names and addresses of the property owner and the property management firm, with the manager's ESVARBON registration number and NIESV membership confirmation. The agreement should state whether the manager has authority to sign tenancy agreements, receive rent, and institute court proceedings on the owner's behalf — with each authority expressly granted or withheld.
Property Description: Full address, survey plan reference, Certificate of Occupancy (C of O) number, property type, number and type of units (bedrooms, offices, shops), and current occupancy status. The description should match the title documents registered at the State Land Registry.
Management Services: A detailed schedule of services to be provided, including: tenant sourcing and vetting; preparation and execution of tenancy agreements under the Lagos State Tenancy Law 2011 or applicable state law; rent collection and remittance; routine maintenance and repairs; service charge management; inspection schedules; and statutory compliance (fire safety, NAICOM insurance renewals).
Management Fee: The fee payable to the property manager, typically expressed as a percentage of annual gross rent (the NIESV scale suggests 10% for residential management and 5-8% for commercial). The agreement must state whether the fee is inclusive or exclusive of VAT at the current Value Added Tax Act 2004 rate of 7.5%, and when the fee is payable.
Expenditure Authority: A financial limit up to which the manager may authorise expenditure on maintenance and repairs without prior owner approval, and the requirement for written owner consent for expenditure above that threshold.
Accounting and Reporting: The manager's obligation to maintain separate client accounts for rent collected, provide monthly financial statements, and remit net income to the owner within a stated number of days of receipt. Under NIESV professional guidelines, client funds must be held in a separate designated account.
Termination: Notice periods for termination by either party (typically 1-3 months), and the procedure for handover of keys, documents, tenant deposits, and accounting records on termination.
Additional compliance elements for a Property Management Agreement (Nigeria) used in Nigeria include: Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Forms-legal.com provides this template as a starting point for Nigeria-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Property Management Agreement (Nigeria) (Nigeria) [Legal document template]. Forms Legal. https://forms-legal.com/nigeria/real-estate/property/property-management-agreement-nigeria
"Property Management Agreement (Nigeria) (Nigeria)." Forms Legal, 2026, https://forms-legal.com/nigeria/real-estate/property/property-management-agreement-nigeria.
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author = {{Forms Legal}},
title = {Property Management Agreement (Nigeria) (Nigeria)},
year = {2026},
howpublished = {\url{https://forms-legal.com/nigeria/real-estate/property/property-management-agreement-nigeria}},
note = {Free legal document template. Based on Land Use Act 1978 (Cap. L5, LFN 2004)}
}
Frequently Asked Questions
The Nigerian Institution of Estate Surveyors and Valuers (NIESV) publishes a Scale of Professional Fees that provides guidance on property management charges. For residential property management, the NIESV scale typically recommends a management fee of 10% of annual gross rent, covering tenant sourcing, lease preparation, rent collection, and routine maintenance coordination. For commercial property management (offices, shopping centres, warehouses), fees typically range from 5% to 8% of annual gross rent, reflecting higher management complexity. In addition to the ongoing management fee, a separate letting fee — typically equivalent to 10% of one year's rent — is charged on sourcing each new tenant, covering tenant vetting, agreement preparation, and key handover. Value Added Tax at 7.5% under the Value Added Tax Act 2004 applies to all professional fees charged by ESVARBON-registered firms. Fees are negotiable between owner and manager and may differ from NIESV guidance, but NIESV-registered firms are expected to apply professional standards in their billing regardless of the agreed fee level.
A property manager in Nigeria can sign tenancy agreements on behalf of the landlord only if expressly authorised to do so under the terms of the Property Management Agreement or under a separate Power of Attorney granted by the landlord. The Lagos State Tenancy Law 2011 and equivalent state tenancy laws require that tenancy agreements be executed by the landlord or a duly authorised agent. An agent signing without written authority may not bind the landlord, and a tenant could challenge the validity of the tenancy and resist recovery of premises proceedings on that basis. For short-term tenancies not exceeding one year, a simple written authority in the management agreement is generally sufficient. For tenancies exceeding three years — which must be by deed under the Conveyancing Act 1881 or equivalent state law and require governor's consent under Section 22 of the Land Use Act 1978 — the manager requires a formal Power of Attorney registered at the relevant State Land Registry. The agreement should clearly state the tenancy terms and rent levels within which the manager may act without seeking further owner approval.
Under the Lagos State Tenancy Law 2011, a landlord — acting directly or through a property manager — has the following principal obligations. The landlord must provide the tenant with a written tenancy agreement at the commencement of the tenancy under Section 4 of the Tenancy Law. The landlord must keep the structure and exterior of the premises in repair under Section 12, including the roof, external walls, foundations, and service installations (water, drainage, gas, electricity). The landlord must give advance rent demands of at least 90 days before the due date under Section 7, and cannot accept more than one year's rent in advance from a sitting tenant under Section 6. To recover possession, the landlord must give statutory notice under Sections 13-16 of the Tenancy Law: typically 7 days' notice for weekly tenancies, 1 month for monthly tenancies, 3 months for quarterly tenancies, and 6 months for yearly tenancies. Recovery of premises without following these procedures constitutes unlawful eviction under Section 38 of the Tenancy Law, which attracts civil liability and potential criminal prosecution before the Magistrates Court of Lagos State.
Under a Property Management Agreement in Nigeria, the property manager collects rent from tenants — typically by bank transfer to a dedicated client account — and remits the net amount to the property owner after deducting the agreed management fee, any authorised maintenance expenditure, and applicable VAT on the fee. The NIESV Professional Practice Guidelines require ESVARBON-registered managers to hold client funds in a separate designated client account, kept distinct from the manager's own business account, to prevent misappropriation. The agreement should specify the remittance frequency (monthly or quarterly), the bank account details for remittance, and the documentation to be provided — including rental receipts issued to tenants under the Lagos State Tenancy Law 2011 and a monthly income and expenditure statement. Many property management agreements in Nigeria require the manager to account using a standardised income statement format and to produce annual accounts reconciling rent received, fees deducted, maintenance costs, and net owner distributions. Where the manager fails to remit, the owner may terminate the agreement and report the matter to NIESV or ESVARBON for professional disciplinary action.
A Property Management Agreement in Nigeria can be terminated early by either party subject to the terms of the agreement and general contract law under the general principles of Nigerian contract law (derived from the common law as received through the Interpretation Act and applicable in Nigeria). Most agreements specify a minimum notice period for termination — typically 1 to 3 months — during which the manager continues to perform services and collect fees. Early termination without adequate notice by the owner may entitle the manager to damages equivalent to the management fees that would have been earned during the notice period, calculated on the basis of the current annualised rent roll. Early termination by the manager without adequate notice may entitle the owner to damages for breach, particularly if the termination results in vacant property, loss of tenants, or maintenance failures. The agreement should also address what happens to tenant deposits held by the manager at termination, requiring transfer to the new manager or directly to the owner within a stated number of days. A liquidated damages clause specifying compensation for early termination by either party provides certainty and avoids prolonged disputes before the Nigerian courts.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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