How to pay your rent monthly with Moni

Renting a house in Nigeria can be one of the most expensive things you could ever do with your money. Finance experts say your rent should be 30% of your annual income only but if you’ve tried to stick to this formula in Nigeria, how much success will you have?

Take Kewe for example. She is an MUA assistant working for one of the best Beauty Agencies in Lagos. Her monthly take home is N250,000 and she does her side gigs sometimes that get her about N50,000 monthly. In a good year, her annual income is N3.6 Million. 30% of that annual income is N1,080,000. She needs to find a house within this budget. Unlike other countries, rent is an annual expense in Nigeria and if you’re in Lagos, you’ll meet landlords who only take two-year rent at a go.

Another issue Kewe would face is that she needs additional money because there’s an agency fee, agreement fee and service charges which are about 10% of the rent. She’ll need about 1.3 million for the rent.

Most houses in Nigeria also aren’t furnished or even built like homes. You’ll need to build cabinets, bring in wardrobes, paint, buy furniture, set up bathrooms and so on. So, let’s say an additional N200,000 if she’s being prudent and frugal. That’s N1.5 Million which is already about 50% of her annual income.

The real worry isn’t even all these obstacles we’ve highlighted. The real question is what kind of house can she get with 1 million naira? Where would the house be located? What kind of social amenities would the environment have? What about safety? What about electricity and access to a good hospital?

When you’re renting a house in Nigeria, it’s not only about moving into a new apartment. It’s a carefully thought-out, thoroughly planned and deeply curated experience. You are not only renting an apartment. You’re looking for a better experience than you currently have wherever it is you are. There’s always a push — more light, cleaner water, safer environment, big girl life, tech bro space. You’re paying for a better life experience.

A better rent payment plan for Nigerians

The need for a better payment plan for rent in Nigeria has become increasingly urgent in recent years. With a rising population, limited affordable housing options, and a challenging economic climate, many Nigerians find themselves struggling to meet their yearly rent obligations. The traditional system of annual or bi-annual lump-sum payments can be a significant burden for those living on low incomes or irregular earnings, often resulting in missed payments, debt, and even eviction.

To address this issue, several innovative payment plans have emerged in Nigeria, aimed at providing greater flexibility and affordability for renters. One such option is the monthly payment plan, which allows tenants to pay their rent in smaller, more manageable installments, rather than in a lump sum. This can help to reduce financial stress and improve the likelihood of timely payments.

Another option is the?rent-to-own scheme, which allows tenants to gradually purchase the property they are renting over a specified period. This can be an attractive option for those who are unable to afford a large upfront payment but are looking to own their own home in the long run.

In addition to these alternative payment plans, technology has also played a significant role in improving rent payment options in Nigeria. Online payment platforms and mobile apps have made it easier for renters to make payments from anywhere, at any time, and have helped to reduce the need for physical cash transactions, which can be risky and inconvenient.

With Moni’s RNPL (Rent Now, Pay Later) product, you can move into your new home without breaking the bank. Moni allows you to pay your rent over 12 months in monthly instalments, providing you with a more affordable way to rent. RNPL is a game-changer for many Nigerians who are struggling to keep up with the rising cost of rent. By breaking down the rental fee into monthly, more manageable amounts, Moni makes renting accessible to a wider range of people.

Take Kewe, for instance, who needs to pay a staggering N1.3 million in rent. But with Moni, all she needs is a 25% deposit — a mere N325,000 — and we’ll take care of the rest.

This payment method gives Kewe the freedom to use the rest of her funds for her business and personal needs.

How does the RNPL product work?

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