Legal Compliance Guidelines

Last updated: October 2025

Overview

These Legal Compliance Guidelines help hosts and guests understand their legal responsibilities when using the Paddii platform. While Paddii provides a marketplace, users are responsible for complying with all applicable laws and regulations.

Important Legal Notice

This document provides general guidance and is not legal advice. Laws vary by location and change over time. Consult with a qualified attorney or legal professional for advice specific to your situation.

1. Host Legal Responsibilities

Property Rights and Authorization

Ownership Requirements:

• Must own the property, or
• Have explicit written permission from the owner to list
• Landlord permission required for rental properties
• Body corporate/management approval for condominiums
• Executor authorization for estate properties

Required Documentation:

• Certificate of Occupancy (C of O)
• Deed of Assignment
• Governor's Consent (where applicable)
• Survey plans
• Property title documents
• Landlord consent letter (if renting)

Verification Process:

• Paddii may request documentation
• Must provide proof within 7 days when requested
• False documentation results in immediate suspension
• Regular verification for high-value properties

Zoning and Land Use Compliance

Understanding Zoning:

• Property must be zoned for intended use
• Residential zones: Typically allow residential rentals
• Commercial zones: Required for business/office use
• Mixed-use zones: Verify permitted activities
• Agricultural zones: Usually restricted to farming uses

Short-Term Rental Regulations:

• Check if your area allows short-term rentals
• Some neighborhoods prohibit stays under 30 days
• Body corporate rules may restrict rentals
• Homeowners association (HOA) approval may be required
• Registration or permits may be necessary

Commercial Use:

• Commercial properties require business licenses
• Zoning compliance for business type
• Environmental clearances if applicable
• Health department permits for food service
• Fire safety certificates

Where to Check:

• Local government planning department
• State ministry of physical planning
• Body corporate/estate management
• Homeowners association
• Property deed restrictions

2. Business Registration and Licensing

When Registration is Required

Individual Hosts:

• Casual hosting: Generally no registration needed
• Regular income: May need to register as business
• Multiple properties: Business registration recommended
• Annual income > ₦25 million: Company registration required

Property Management Companies:

• Must register with Corporate Affairs Commission (CAC)
• Business premises permit required
• Tax identification number (TIN) mandatory
• Professional indemnity insurance recommended

Required Permits and Licenses

Hospitality Permits:

• Hotel license (for multiple units operated commercially)
• Food service permit (if providing meals)
• Liquor license (if serving alcohol)
• Event venue license (for event spaces)
• Tourism development levy registration

Safety Certifications:

• Fire safety certificate (recommended for all, required for commercial)
• Electrical installation certificate
• Gas installation certificate (if applicable)
• Elevator inspection certificate (high-rise buildings)
• Pool safety compliance (if applicable)

Where to Apply:

• Corporate Affairs Commission (CAC) - Business registration
• State Ministry of Commerce - Trade permits
• Local government - Operating permits
• Fire Service - Safety certificates
• State Tourism Board - Tourism-related permits

3. Tax Compliance

Tax Obligations for Hosts

Income Tax:

• All rental income must be declared
• Included in annual personal income tax
• Corporate tax if registered as company
• Pay-As-You-Earn (PAYE) for employees

Tax Rates (Nigeria):

• Personal income: 7% - 24% (progressive)
• Company income: 30% (small companies)
• Education tax: 2% of assessable profit
• Technology levy: 1% (for certain sectors)

Value Added Tax (VAT):

• Currently 7.5% on eligible services
• Hosts earning > ₦25 million annually must register for VAT
• Accommodation services generally VAT-exempt for residential
• Commercial rentals and event spaces subject to VAT
• File monthly returns if registered

Property Tax:

• Annual property tax (Tenement rate)
• Varies by state (typically 0.25% - 0.5% of property value)
• Paid to State Internal Revenue Service
• Separate from income tax on rentals

Withholding Tax:

• May apply to rental payments
• Typically 10% on rental income
• Tenant may be required to withhold
• Credit against final tax liability

Tax Documentation

Records to Maintain:

• All rental income receipts
• Booking confirmations
• Expense receipts (repairs, maintenance, utilities)
• Property tax payments
• Bank statements
• Paddii payout records (download monthly)

Retention Period:

• Minimum 6 years
• Digital or physical copies acceptable
• Organized by tax year
• Available for audits

Tax Forms:

• Annual tax returns
• VAT returns (if registered)
• Withholding tax receipts
• Proof of tax payments

Deductible Expenses

Allowable Deductions:

• Mortgage interest
• Property maintenance and repairs
• Cleaning and laundry services
• Utilities (if included for guests)
• Insurance premiums
• Property management fees
• Paddii service fees
• Advertising and marketing
• Professional services (legal, accounting)
• Depreciation (on furnishings and equipment)

Non-Deductible:

• Property purchase cost (capital expense)
• Principal mortgage payments
• Personal use expenses
• Fines and penalties
• Capital improvements (depreciate instead)

4. Safety and Building Code Compliance

Structural Safety

Building Standards:

• Must meet National Building Code requirements
• Structural integrity certification for older buildings
• Regular inspection for wear and damage
• Professional assessment after earthquakes/floods
• Compliance with disability access laws (where applicable)

Fire Safety Requirements:

• Working smoke detectors (mandatory)
  • One per bedroom minimum
  • One per floor
  • Test monthly, replace batteries annually
• Fire extinguishers (highly recommended)
  • Accessible and clearly marked
  • Serviced annually
  • Guests informed of location
• Fire exits clearly marked
• Emergency evacuation plan posted
• Fire blankets in kitchens

Electrical Safety:

• Licensed electrician for installations
• Circuit breakers properly rated
• No overloaded outlets
• GFCI outlets in bathrooms and kitchens
• Regular inspection every 5 years
• Repairs by qualified professionals only

Gas Safety:

• Annual gas appliance inspection
• Carbon monoxide detectors required (if gas present)
• Proper ventilation
• Licensed gas fitter for installations
• Shut-off valves clearly marked

Health and Sanitation

Water Quality:

• Potable water supply
• Water treatment if using borehole/well
• Regular testing (annually minimum)
• Proper sewage/septic system
• No cross-contamination risks

Pest Control:

• Regular pest management
• Safe, approved pesticides only
• Advance notice to guests if treatment needed
• Professional services recommended

Hygiene Standards:

• Cleaning products that meet health standards
• Proper waste disposal
• Bathroom and kitchen sanitation
• Bedding and linen hygiene
• Air quality (mold prevention)

5. Fair Housing and Anti-Discrimination

Nigerian Constitution and Laws

Protected Characteristics:

• Race and ethnicity
• Religion
• Sex and gender
• Disability
• Pregnancy
• Age (except minors without guardian)

Prohibited Practices:

• Refusing bookings based on protected characteristics
• Different terms or conditions for different groups
• Discriminatory language in listings
• Harassment or intimidation
• Retaliation against discrimination complaints

Allowed Preferences:

• No parties or events (safety reason)
• No smoking (health and safety)
• No pets (except service animals)
• Shared space gender restrictions (if you live there)
• Age requirements (must be 18+)
• Criminal background checks (applied equally)

Service Animals

Legal Requirements:

• Must accommodate certified service animals
• Cannot charge extra fees for service animals
• Emotional support animals have different rules
• May request certification documentation
• Cannot deny based on breed or size of service animal

Guest Responsibilities:

• Provide service animal documentation if requested
• Control animal at all times
• Clean up after animal
• Liable for any damage caused

6. Data Protection and Privacy

Nigeria Data Protection Regulation (NDPR)

Data Collection:

• Only collect necessary information
• Inform guests how data will be used
• Obtain consent for marketing communications
• Secure storage of personal information
• Don't share with third parties without consent

Guest Privacy Rights:

• Access their personal data
• Request data correction
• Request data deletion (subject to legal requirements)
• Opt out of marketing
• Lodge complaints about data misuse

Security Requirements:

• Protect guest information
• Secure storage (encrypted if digital)
• Limit access to authorized personnel
• Report breaches within 72 hours
• Regular security audits

Surveillance and Recording:

• Disclose all cameras in listing
• No cameras in private spaces (bedrooms, bathrooms)
• Exterior/common area cameras must be disclosed
• Audio recording generally prohibited
• Inform guests of any monitoring

7. Insurance and Liability

Recommended Insurance Coverage

Property Insurance:

• Building structure coverage
• Contents and furnishings
• Natural disaster coverage (floods, storms)
• Fire and electrical damage
• Theft and vandalism

Liability Insurance:

• Guest injury coverage
• Property damage by guests
• Legal defense costs
• Minimum ₦10 million recommended
• Higher coverage for event spaces/commercial

Short-Term Rental Insurance:

• Specific policies for vacation rentals
• Business interruption coverage
• Guest property protection
• Loss of income coverage
• Available from specialized insurers

Umbrella Policy:

• Extra liability coverage
• Recommended for multiple properties
• Covers gaps in other policies
• Typically ₦20-50 million coverage

Liability Limitations

Host Responsibilities:

• Maintain safe property conditions
• Warn of known hazards
• Provide working safety equipment
• Respond to safety complaints promptly
• Document property condition

Paddii's Role:

• Platform provider only
• Not liable for property issues
• Not liable for guest injuries
• Not an insurance provider
• May assist in dispute resolution

Guest Responsibilities:

• Use property safely and responsibly
• Report hazards immediately
• Follow house rules
• Supervise children
• Liable for damage caused

8. Employment and Labor Laws

When You Need to Comply

Hiring Staff:

• Cleaners
• Property managers
• Security personnel
• Maintenance workers
• Administrative support

Employment vs Contractors:

• Regular employees: Subject to labor laws
• Independent contractors: Different rules
• Proper classification important
• Penalties for misclassification

Labor Law Compliance

Required for Employees:

• Written employment contracts
• Minimum wage compliance (currently ₦30,000/month nationally)
• Pension contributions (10% from employer, 8% from employee)
• PAYE tax withholding and remittance
• Leave entitlements (annual, sick, maternity)
• Safe working conditions
• Workers' compensation insurance

Documentation:

• Employment contracts
• Time and attendance records
• Payroll records
• Tax remittances
• Pension contributions
• Leave records

Termination:

• Notice periods as per contract
• Severance pay if applicable
• Final settlement within one month
• Proper documentation
• Avoid discriminatory termination

9. Consumer Protection

Guest Rights Under Law

Nigerian Consumer Protection Council Act:

• Right to accurate information
• Right to safe accommodations
• Right to fair pricing
• Right to redress for grievances
• Protection from fraud

Host Obligations:

• Honest advertising
• Deliver as promised
• No hidden fees
• Safe and habitable conditions
• Honor bookings
• Respond to complaints

Handling Complaints:

• Respond within 24 hours
• Attempt resolution in good faith
• Document all communications
• Escalate to Paddii if needed
• May be reported to Consumer Protection Council

10. Environmental Compliance

Waste Management

Proper Disposal:

• Comply with local waste regulations
• Separate recyclables (where programs exist)
• Hazardous waste properly disposed
• No illegal dumping
• Pay waste management fees

Waste Contractors:

• Use licensed waste collectors
• Obtain receipts/documentation
• Regular collection schedule
• Proper bins and storage

Environmental Standards

Energy Efficiency:

• Energy-efficient appliances recommended
• Proper insulation
• LED lighting
• Solar power (incentives available)

Water Conservation:

• Fix leaks promptly
• Low-flow fixtures recommended
• Rainwater harvesting (bonus feature)
• Proper drainage systems

Noise Pollution:

• Comply with noise ordinances
• Quiet hours enforcement
• Soundproofing for event spaces
• Address neighbor complaints

11. Special Property Types

Event Spaces

Additional Requirements:

• Public gathering permit
• Maximum capacity certification
• Fire safety inspection
• Adequate parking
• Noise permits if needed
• Alcohol license if serving
• Health permits for catering
• Insurance for large events

Commercial Properties

Compliance Needs:

• Business use zoning
• Commercial building standards
• Accessibility requirements
• Fire safety for occupancy levels
• Environmental impact assessment (for some uses)
• Industry-specific licenses

Heritage/Historical Properties

Special Rules:

• National Commission for Museums and Monuments approval
• Restrictions on modifications
• Special building codes
• Regular inspections
• Documentation requirements

12. Dispute Resolution and Legal Action

Resolving Disputes

First Steps:

1. Direct communication with other party
2. Paddii's dispute resolution process
3. Mediation services
4. Small claims court (for amounts ≤ ₦5 million)
5. Regular court system

When to Seek Legal Help:

• Property damage disputes
• Personal injury claims
• Contract disputes
• Discrimination complaints
• Criminal matters
• Regulatory violations

Court System

Small Claims Court:

• Fast, informal process
• No lawyer required
• Maximum claim: ₦5 million
• Available in most states
• Lower filing fees

Magistrate/High Court:

• Larger claims
• More formal procedures
• Legal representation recommended
• Longer timelines
• Higher costs

Alternative Dispute Resolution:

• Mediation
• Arbitration
• Conciliation
• Often faster and cheaper
• Binding agreements possible

13. Compliance Checklist

Before Listing

• [ ] Verify legal right to list property
• [ ] Check zoning compliance
• [ ] Obtain necessary permits and licenses
• [ ] Review building code requirements
• [ ] Install required safety equipment
• [ ] Obtain appropriate insurance
• [ ] Register business (if applicable)
• [ ] Get tax identification number
• [ ] Review fair housing laws
• [ ] Create compliant house rules
• [ ] Prepare required documentation

Ongoing Compliance

• [ ] File tax returns on time
• [ ] Pay property taxes
• [ ] Renew licenses and permits
• [ ] Maintain insurance coverage
• [ ] Keep financial records
• [ ] Test safety equipment monthly
• [ ] Annual inspections (gas, electrical)
• [ ] Update documentation as needed
• [ ] Stay informed of law changes
• [ ] Comply with neighbor agreements

When Issues Arise

• [ ] Document everything
• [ ] Consult legal professional
• [ ] Notify insurance company
• [ ] Report to Paddii support
• [ ] Preserve evidence
• [ ] Communicate with affected parties
• [ ] Follow official procedures
• [ ] Keep records of all actions

14. Resources and Support

Government Agencies

Federal:

• Corporate Affairs Commission (CAC) - www.cac.gov.ng
• Federal Inland Revenue Service (FIRS) - www.firs.gov.ng
• Nigerian Tourism Development Corporation (NTDC)
• Standards Organisation of Nigeria (SON)

State/Local:

• State Internal Revenue Service (tax)
• State Ministry of Physical Planning (zoning)
• Local Government (permits and licenses)
• State Fire Service
• State Environmental Protection Agency

Professional Services

Recommended Consultations:

• Real estate attorney (property law)
• Tax accountant (tax planning)
• Insurance broker (coverage advice)
• Property inspector (safety compliance)
• Business consultant (registration and licensing)

Industry Associations:

• Real Estate Developers Association of Nigeria (REDAN)
• Nigerian Institution of Estate Surveyors and Valuers (NIESV)
• Hotel and Tourism Association

Educational Resources

• Paddii Help Center: help.paddii.com
• Host webinars: Legal compliance updates
• Government websites: Official legal information
• Professional associations: Industry best practices

15. Staying Compliant

Regular Reviews

Quarterly:

• Review tax obligations
• Update business licenses
• Check insurance coverage
• Review safety equipment
• Update financial records

Annually:

• File tax returns
• Renew permits and licenses
• Professional property inspection
• Legal compliance audit
• Review and update house rules

As Needed:

• When laws change
• When property changes
• When expanding operations
• After incidents or complaints
• When notified by authorities

Staying Informed

Monitor Changes:

• Subscribe to government bulletins
• Join host communities
• Attend Paddii webinars
• Follow legal blogs/updates
• Professional association newsletters

When in Doubt:

• Consult legal professional
• Contact relevant government agency
• Reach out to Paddii support
• Seek professional advice
• Better safe than sorry

Important Disclaimers

Legal Disclaimer

• This guide is for informational purposes only
• Not a substitute for legal advice
• Laws vary by location and change frequently
• Consult qualified professionals for your situation
• Paddii is not a legal advisor
• Users responsible for their own compliance

Compliance Benefits

• Avoid fines and penalties
• Protect yourself legally
• Build trust with guests
• Qualify for insurance claims
• Peace of mind
• Professional reputation
• Sustainable hosting business

Contact Us

Questions about legal compliance?

• Email: legal@paddii.com
• Host Support: Available 24/7
• Help Center: docs.paddii.com
• Legal Referrals: We can connect you with attorneys

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Note: While we strive to provide accurate information, this guide should not be relied upon as legal advice. Always consult with qualified legal and tax professionals regarding your specific situation.

Compliance protects you, your guests, and helps create a trustworthy marketplace for everyone.