Problems And Prospects Of Residential Properties Management In Nigeria; A Case Study Of Kaduna North Local Government Area

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Problems And Prospects Of Residential Properties Management In Nigeria; A Case Study Of Kaduna North Local Government Area


Abstract


Residential building has been universally accepted as the second most important essential human need after food. Housing in all its ramifications is more than mere shelter since it embraces all the social services and utilities that go to make a community or neighbourhood liveable environment. Efficient housing design is becoming increasingly imperative in Nigerian urban centres; this is because housing is an essential and fundamental component of the overall land use activities in both rural and urban centres. Besides, it has a tremendous positive influence on the health, safety and welfare (economic and social) of residents of any community. A country where the per capital income is at its lowest point, a low-income environment explains the low take home pay, which does not permit savings. It follows that where the poor manages to feed and may be, cloth himself and members of his family, he may never be able to pay his rents or own a house of his own. The study is an attempt to uncover the various problems and prospects of residential properties management in Nigeria using kaduna North Local Government Areaas a case study. Management of residential properties, not only covers rent collection, repairs and maintenance but also other aspects of good management.


Chapter One


Introduction

1.1 Background to the Study

Residential property management is emerging as a managerial science today (Kyle and Baird, 1995). It transcends beyond the role of rent collector (Li, 1997). Managing a residential property involves establishing goals, objectives and policies and implementation of strategies to achieve those goals and objectives. Singh (1994, 1996) posited that residential property management is an activity that seeks to control interests in property owner and particular purpose for which the property is held. Wong (1999) considers residential property management as the work carried out to manage and maintain the development including its facilities at the level that will retain or enhance the value of the residential property, create a safe, functional and conducive living environment for occupants, keep or restore every facility in efficient working order and in good state of repair, and project a good appearance or image for the development. Ismail (1996) regards residential property management responsibility as including all the necessary making to ensure the economic and physical vitality of residential property assets.

Residential property management is also the management of personal property, equipment, tooling and physical capital assets that are acquired and used to build, repair and maintain the residential property. Property management involves the processes, systems and manpower required to manage the life cycle of all public residential property as defined above including acquisition, control, accountability, responsibility, maintenance, utilization and disposition (Njoku, 2006). According to Ebie (2012), duties involved in residential property management generally will include a minimum of these basic primary tasks

  1. The full and proper screening or testing of an tenants/applicant’s credit, criminal history, rental history and ability to pay.
  2. Lease contracting or accepting rent using legal documents approved for the area in which the property is located.
  3. Mitigation and remediation regarding any maintenance issues, generally within a budget, with prior or conveyed consent via a Limited Power of Attorney legally agreed to by the property owner.

There are many facets to this residential property management, including managing the accounts and finances of the real estate/residential properties, and participating in or initiating litigation with tenants, contractors and insurance agencies. Litigation is at times considered a separate function, set aside for trained attorneys. Although a person will be responsible for this in his/her job description, there may be an attorney working under a property manager. Special attention is given to landlord/tenant law and most commonly evictions, non-payment, harassment, reduction of pre-arranged services, and public nuisance are legal subjects that gain the most amount of attention from residential property managers. Therefore, it is a necessity that a public residential property manager be current with applicable municipal, county, state and Federal Fair Housing laws and practices. In advanced countries, residential property management, like facility management, is increasingly facilitated by computer-aided facility management (CAFM).

However, managers of residential properties in Nigeria are faced with various kinds of problems ranging from uncooperative attitude from workers, poor maintenance and environmental condition, security and other basic infrastructures. Some managers in Nigeria have been able to cope with some of these challenges but the researcher will provide an overview about the problem and prospects of residential properties management focusing on Kaduna North Local Government Area.


1.2 Statement of the Problem

According to Bello (2008), residential property is more than a mere shelter; it includes all facilities within and around it, embracing a bundle of services which entails both product and process. Management of residential building embraces in all ramifications the maintenance and development process, be it economic, social, physical). In fact, management of these properties has been subject of focus by researcher in recent times based on the cumbersome nature of the process. The problem of poor management of residential properties is a global phenomenon and the severity of the problem differs from one nation to another. However, the researcher is seeking to examine the problems and prospects of management of residential property in Kaduna North Local Government Area.


1.3 Objectives of the Study

The following are the objectives of this study:

  1. To examine the problems of residential properties management in Kaduna North Local Government Area.
  2. To analyze the prospects of residential properties management in Kaduna North Local Government Area.
  3. To identify the solution to the problems of residential properties management in Kaduna North Local Government Area.

1.4 Research Questions

  1. What are the problems of residential properties management in Kaduna North Local Government Area?
  2. What are the prospects of residential properties management in Kaduna North Local Government Area?
  3. What is the solution to the problems of residential properties management in Kaduna North Local Government Area?

1.5 Significance of the Study

The following are the significance of this study:

  1. The outcome of this study will educate the general public on the problems and prospects of managing residential properties in Nigeria emphasizing on its proper management and some other management challenges which will form a guide for estate managers in decision making.
  2. This research will also serve as a resource base to other scholars and researchers interested in carrying out further research in this field subsequently, if applied will go to an extent to provide new explanation to the topic.

1.6 Scope / Limitations of the Study

The scope of this study on the problems and prospects of residential properties management in Kaduna North Local Government Area will cover all the basic problems faced by managers in effective maintenance of both the infrastructure and finances generated on residential property.

Limitation of Study
Financial constraint

Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint

The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.


1.7 Definition of Terms

Management:

The process of dealing with or controlling things or people.

Residential:

Designed for people to live in.

Property:

A thing or things belonging to someone; possessions collectively.


1.8 Overview of the Study

This research work is presented in five (5) chapters in accordance with the standard presentation of research work.

  • Chapter one contains the introduction which include; background of the study, statement of the problem, aim and objectives of study, research questions, significance of study, scope of study and overview of the study.
  • Chapter two deals with review of related literature.
  • Chapter three dwelt on research methodology which include; brief description of the study area, research design, sources of data, population of the study, sample size and sampling technique, instrument of data collection, validity of instrument, reliability of instrument and method of data presentation and analysis.
  • Chapter four consists of data presentation and analysis while
  • Chapter five is the summary of findings, recommendations and conclusion.

Chapter Five


Summary Conclusion and Recommendation

5.1 Introduction

It is pertinent to note that this research was to examine the challenges and future situation of residential properties management. Thus the topic “problems and prospects of residential properties management in Nigeria”.
In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges associated with present and future challenges of residential properties management in Nigeria.


5.2 Summary

The findings of the study include the following:

  1. It was revealed that a lot of repair requests are often neglected at the initial stage until the problem has deteriorated to a level where repairs will involve large sums of money. At this stage, landlords find it difficult to bear the cost of effecting repairs.
  2. The use of inferior building materials during construction causes a lot of problem on the building
  3. Quite a number of residential properties especially the multi-tenanted low-income yielding ones lack basic amenities.
  4. Lack of fair rent to cover maintenance cost and non-periodic rent review to arrest the effect of galloping inflation in the economy poses a lot of problem for the property manager.
  5. It was discovered that many landlords who reduce construction cost do not have thought for future maintenance.
  6. A case section of multi-tenanted low income yielding property owners prefer to manage their properties themselves. This is because of the low income generated from these properties.
  7. Most landlords in a bid to recover some money spent in their building through rent collection and agency always let the properties out themselves before seeking the services of a property manager.
  8. Estate Surveyors and Valuers who are also project managers are not involved right from the initial stage of a project.

5.3 Conclusion

It is relevant to conclude that the Nigerian Institution of Estate Surveyors and Valuers should mount an intensive awareness campaign to educate Nigerians on the duties and services provided by members of her noble profession. The misconception that property management is merely rent collection and can be carried out by anybody should be corrected. Many Nigerians equate Estate Surveyors with quack local agents whose duties end in letting rooms, parlour and shop spaces. Property management practices are not widely known and therefore not sought for or employed. Management and maintenance problems become less if the services of a property manager are employed at the initial stage of development as he can render useful advice from the onset. Finally, property management and maintenance is as important as property development as the lack of it eventually diminishes the national housing stock, apart from constituting a waste of scare economic resources.


5.4 Recommendation

From the findings, the following recommendations are made to facilitate the management and maintenance of

multi-tenanted low-income yielding residential properties.
Landlords should ensure that good and superior building materials should be used so that it can withstand the climate conditions and soil type.

The general practice in property letting in Nigeria leaves the responsibility for all repairs of structural nature, including external painting to the landlord. However, as we have seen the fact that the rents from these properties sometimes are unable to cover the cost of such maintenance, makes it impossible for such landlords to live up to their responsibilities.

Qualified professionals should be employed in the construction of building and also there should be a strict supervision of the artisans. This may be costly in the short run, but the long term benefits cannot be quantified. In Nigeria, the theory of sinking fund seems to be an academic exercise only. Landlords should be advised and encouraged to imbibe the practice of setting aside part of their rental income in a separate maintenance account for the sole purpose of carrying out repairs on their buildings in same manner that service charge funds are operated.
Estate Surveyors and Valuers should take up the management and maintenance of multi-tenanted low-income yielding residential properties with enthusiasm not minding the meager returns from it. It will help to block the avenues for quacks.


Problems And Prospects Of Residential Properties Management In Nigeria; A Case Study Of Kaduna North Local Government Area


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