What is a service charge, and who pays it?
A service charge is a regular payment for the shared services in a building or estate, such as security, cleaning, waste collection, water and generator power. In Nigeria the tenant usually pays it, on top of rent, to the landlord or the estate’s facility manager. It varies widely, so ask what it covers and how often it is paid before you agree to a home.
What a service charge usually covers
- Security guards and gate staff
- Cleaning and maintenance of shared areas, like stairs, corridors and compounds
- Waste collection
- Water supply and pumping
- Diesel and maintenance for a shared generator
- Estate roads, lighting and drainage
Not every building has all of these. A block with a shared generator and 24-hour security will charge more than one without.
Who pays it
The tenant usually pays the service charge, because the tenant uses the services. It is separate from rent and is often paid yearly or quarterly to the landlord or to a facility manager who runs the estate. Your tenancy agreement should say who pays it, how much, and how often.
What to ask before you agree
- What exactly does it cover? Ask for a breakdown.
- How much is it, and is it paid yearly, quarterly or monthly?
- Who collects it, and will you get a receipt?
- Can it go up during your tenancy, and with how much notice?
- Is diesel included, or charged separately when fuel prices rise?
Service charges on Vaqnt
Landlords set the service charge, and it is shown on every listing so you know the full cost of a home before you apply. It is paid in the app with your other move-in costs before you get your keys. Vaqnt adds no fees of its own to it.
Common questions
What is a service charge in Nigeria?
A regular payment for shared services in a building or estate, such as security, cleaning, waste collection, water and generator power.
Does the tenant or the landlord pay the service charge?
Usually the tenant, on top of rent. Your tenancy agreement should say who pays it, how much and how often.
Is a service charge part of the rent?
No. It is a separate payment for shared services, often collected by the landlord or the estate’s facility manager.
Can a service charge go up?
It can, for example when diesel prices rise. Ask how increases are decided and how much notice you get before you agree to the home.