ABSTRACT

This paper examines the problems and prospect of commercial property management in
Nasarawa, Nasarawa State, Nigeria. Data for the study were obtained from property
managers in licensed Estate Surveying and Valuation Firms operating in Maiduguri
Metropolis. Thus, purposive random sampling technique adopted in selecting all the [eight
(8)] active Estate Surveying and Valuation firms and duly analysed using tables and
percentages. The challenges identified include: default in rent payment(100%), delinquency
maintenance payment/service charge by tenants (94%), insufficient information on tenants to
aid in tenant selection (90%), vacation of premises by tenants without notice (87%),
improper use of available facilities by tenants in the premises (84%), insistence on down-
ward review of rent by tenants (81%), sneaking in extra people or animals by tenants (71%),
carrying out of illegal business by tenants (68%), illegal occupation of premises by IDPs
(65%), fighting or domestic dispute among tenants (61%),constraint in inspection of premises
due to tenant behaviours (58%) and difficulty in payment of commission on part of the tenant
(39%). It is suggested that there is the need for the property manager to take enough time to
find out some basic information about the prospective tenant; and should establish and
review from time to time standards or criteria for tenant selection as the situation demands.

1
 CHAPTER ONE

INTRODUCTION

1.1 Background of the study

Property management is an act of intermediation between owners and occupies on issues

affecting the parties arising from ownership and occupation of buildings. It is a conscious

process of guiding and tailoring an investment in land into profitable venture. Its main

concern is the optimization of the owners investment (Scarrett, 1995).The practice is however

prone to a lot of problems which are capable of preventing or at best reducing the chances of

realizing anticipated investment objective. In other words, the achievement or success of the

art of nursing and directing an investment in landed property with a view to obtaining

maximum return is a function of how well a property manager is able to effectively prevent

and/or overcome seeming obstacles in the course of the discharge of its duties.

As different from commodity, the deliverable in property management is service. The

property manager advises the client concerning the general client policy regarding

cooperation and compensation and as to the best and appropriate choice of tenants for the

building. He takes decision on the best term of lease arrangement and appropriate terms of

renewal. In addition to being aware of pending or enacted changes in the zoning ordinance

that might affect the market value or use of property being managed, he should be informed

as rapidly and thoroughly as feasible about laws, proposed legislation, government

regulations, public policies and current market conditions. Property managers seem to be of

more relevant in the current economic dispensation. The global collapse of the capital market

with its attendants effects, which has not spared African countries like Nigeria, are seen to be

compelling investors to redirect their investment ventures into real estate, especially with

visible foreign and local investments in commercial properties.

2
These are properties acquired for the purposes of yielding regular inflow of income to

investors. Commercial properties are often relatively large and complex buildings some of

which are multi-storeyed or high rise type. The complexity involved in terms of the bigness

of the structure and diverse and multiple occupants informed the need for specialized skill

and training for efficient and effective service delivery.

1.2 Statement of the Problems

The many and varied duties of a property manager require the skills of a business executive,

decorator, salesperson, parking lot attendant, gardener, housekeeper, information center,

accountant, banker, doctor, lawyer, social director, psychologist, marriage counselor, baby

sitter, bookkeeper, rent collector, maintenance expert, security officer, keeper of the keys,

telephone operator, messenger service, and complaint department. available The manager

must also be soft-spoken, fast-moving, poised, quick-thinking, non-tiring, ever-, mechanical-

minded, all-knowing and never-ailing. This “expert” knows how to visit without visiting, sell

without selling, see without judging, hear without repeating - and all without having time for

an uninterrupted meal. The property manager has a dual responsibility: to the owner or client

who is interested in the highest return from the property; and to the tenants, who are

interested in the best value for their money, including reasonable safety measures and

compliance with fair housing laws.

Property management, according to Scarett (1995) must be based on the terms of the

contractual agreement between the parties on the one hand, on an appreciation and

interpretation of the particular owners objective on the other hand. This thus requires a high

degree of compliance with the provisions and terms as well as performance on the part of the

parties. The in-ability of any of the parties to perform fully or in part his/her own part of the

agreement brings about management problems. Management problems hinders effective

3
operations of property management activities. Depending on the magnitude of the problems,

ineffective service delivery could bring about client dissatisfaction as well as prevent the

achievement of the owners’ investment objective(s). The ‘expert’ property manager could

therefore be seen to be negligent and/or incompetent if unable to achieve the objectives of

income generation which is the main goal of an investment in commercial property.

1.3 Aim and Objectives of the Study

To achieve this main objective it focuses on following specific objectives.

i. To identify commercial property investors feelings toward the collapsing of the stock

market?

ii. To identify the achievement of investors objective be relative to the projected

expectation.

iii. To spelt out how investors are be encouraged to invest in commercial real estate.

iv. To ascertain the problems arising from commercial property management that might

make the investment unattractive to investors.

v. To identify the problems of commercial property management practice in Nasarawa,

Nasarawa State, Nigeria with a view to enhancing the practice and develop a

profitable contemporary investment medium.

1.4 Research Questions

i. Are commercial property investors encourage with the collapsing of the stock market?

ii. What degree would the achievement of investors objective be relative to the projected

expectation.

iii. To what extent would investors be encouraged to invest in commercial real estate?

4
 iv. What are the problems arising from commercial property management that might

make the investment unattractive to investors?

v. To evaluate the problems of commercial property management practice in Lagos

State, Nigeria with a view to enhancing the practice and develop a profitable

contemporary investment medium.

1.5 Significance of the Study

This research work would be of great importance and relevant as a source of information

which will guide the general public, both private and corporate individuals in quest for

commercial property in Nigeria, particularly, It will also serves as reference material to both

students and researchers alike of various institutions seeking for knowledge on the main goal

of this work.

1.6 Scope and Limitation of the Study

The scope of this study is restricted to the study of the commercial property management in

Nasarawa, Nasarawa state.

As related to this research work, the following are some of the problems encountered in the

course of the study:

Time factor: Due to the short period of time given to carry out this research coupled with the

class work, it was very hectic to make in depth research of the study.

Inadequate Finance: The poor economic condition of the country did not help matter for

instance; transportation cost is on the high side coupled with the fact that there is no enough

money to go across for data collection.

5
1.7 Operational Definition of Terms

Land: Surface and solid part of the earth or a partitionable and measurable area which is

owner or subject to ownership and on which buildings can be erected.

Use: A purpose for which something may be employed.

Commercial Property: Commercial property is buildings and land that are intended for

profit-generating activities rather than regular residential purposes.

Management: is a set of principles relating to the functions of planning, organizing,

directing and controlling, and the application of these principles in harnessing physical,

financial, human and informational resources efficiently and effectively to achieve

organizational goals.

6
 CHAPTER TWO

2.1 Introduction

The property management services sector in the real estate industry is significant or a very

useful and growing economic activity contributing to creation of wealth and generation of

employment in the society. A study conducted by Case, Quigley, and Shiller, (2005); and

Dietz, and Haurin, (2003) indicated that property management contributes not only to income

and wealth creation but also enhances societal happiness by increasing the rate of

homeownership. Property management encompasses the careful organization of individual

and material resources with the aim of achieving defined objectives in real property

investment(Aliyu, Funtua, Mammadi, Bukar, Garkuwa, and Abubakar, 2016). The individual

that provides these range of services is the property manager (Nwachukwu, 2007).

The property manager is a person or firm who operates a real estate property for a fee often

on behalf of a landlord; renders services such as, meeting an owner's investment objectives;

maintaining detailed tenancy records; ensuring adherence to lease terms; tenant liaison on a

day-to-day basis; meeting statutory obligations; and operating property on a sustainable basis

(The Royal Institution of Chartered Surveyors, 2018). They render services in both public

and private sectors on behalf of property owners(Taylor, 2014). This suggest that a property

manager carries out a wide range of discussion, negotiation and consultation with clients,

fellow professionals, allied trades, landlord/tenants, statutory authorities and the

public.Hence, they encounter numerous challenges that come with managing the portfolio in

different business situations.

7
With 1,434,149 Internally Displaced Persons (IDPs)due to Boko-Haram insurgency(IDMC,

2016), Maiduguri Metropolis of Borno State Nigeria is experiencing unprecedented

population growth. A sizeable number of these IDPs are not in government designated

camps, there are those that afford renting private residential properties, others inhabit

school’s buildings or sleep in the open. While others illegally occupying newly completed

and uncompleted structures or accommodation land belonging to private individuals within

and in the outskirts of the Metropolis. The property managers’ challenges have become even

more complex as many of the potential tenants are scared.

2.2 Meaning and Nature of Property Management

According to the Royal Institute of Chartered Surveyors Policy Review (1974)cited by

Olayonwa (2000), that property management is all facets of the use, development and

management of urban land, including the sale, purchase and letting of residential, commercial

and industrial property and management of urban estates, and advice to the client on

planning. Whilst, Yiu, Wong and Yau (2006), viewed it as a branch of the management

discipline, which emphasizes how to plan, organize, command, coordinate, and control

property-related activities such as security, cleaning, and maintenance, to the provision of

value-added services to achieve designated objectives. Similarly, Case et, al. (2005); and

Dietz, and Haurin, (2003) also indicated that property management contributes to income and

wealth creation; and that enhances societal happiness by increasing the rate of

homeownership.

Furthermore, Aliyu et, al. (2016) viewed property management as the careful organization of

individual and material resources with the aim of attaining defined objectives in real property

investment. It is seen by Macey (1982) as the application of skill in caring for the property,

its surroundings and amenities and in developing a sound relationship between landlord and

8
tenant and between tenants themselves in order that the estate, as well as the individual

houses, may give the fullest value to both the landlord and the tenants. Upholding this view,

Oladokun and Ojo (2011) viewed it as an undertaking that involves diligence, commitment

and special skills for its practice, but its effective utilization also ensures the optimization of

the investment return to the owner. Effective property management is therefore difficult to

realize without consideration of a professional; in the light of the current development and

growth of urban centres and government policies on landed property issues in Nigeria that led

to the introduction of certain technical and legal challenges.

Hence, there is the need for well trained and experienced specialists for greater efficiency in

property management.

2.3 The Property Manager

A property can be managed by the owner, but technically the owner will not be addressed as

property manager (Udechukwu and Johnson, 2016). This assertion is confirmed from the

description given by the Royal Institution of Chartered Surveyors (2018), that the property

manager is a person or organization who operates a real estate property for a fee often on

behalf of a landlord; renders services such as, meeting an owner's investment objectives;

maintaining detailed tenancy records; ensuring adherence to lease terms; tenant liaison on a

day-to-day basis; meeting statutory obligations; and operating property on a sustainable basis.

In other words, the manager is responsible for the selling, leasing, transferring and operating

of real estate property. They act as links between different individuals involved with the real

estate industry and ensure hitch-free operations and transfers of real estate in both public and

private sectors (Taylor, 2014). Therefore, the` property manager carries out a wide range of

discussion, negotiation and consultation with clients, fellow professionals, allied trades,

landlord/tenants, statutory authorities and the public.

9
2.4 Functions of Property Manager

Professional property managers work as an operative of an owner of large properties or as an

independent manager for a number of owners. This saddled with them a primary

responsibility to the landlord and a secondary responsibility to the tenant (Udechukwu and

Johnson, 2016). The managers’ relationship with the landlord and tenant go a long way in

establishing their (landlord and tenant) expectations to the lease as both will pursue and

expect a number of rights and benefits (Modu, Ibrahim and Habib, 2010). This assertion is

similar to Udechukwu and Johnson (2016), which noted that the property manager’s foremost

priority is ensuring that the specific real estate property is handled and managed as effectively

as possible; and that responsible for managing other property workers to aid them in

completing their duties.

From the foregoing, the property managers’ duties as the agent of the owner can be

categorized under four different responsibilities: management of the physical site,

management of personnel, management of funds and accounts, and management of leasing

activities and tenant services. Although, these responsibilities are geared towards preservation

and increasing the value of the property, achieving it presents different challenges to the

property manager. This is because property managers operate in a dynamic environment that

is influenced by globalization, technological changes, laws and regulatory standards and

sometimes insurgency. It is in this vain that Drucker (2001) and Montana and Charnov

(2008) observed that the challenges facing by the property manager are a natural part of the

process of managing and are in most time situational, effective responses to such challenges

will often depend on the prevailing situation.

However, there exists no prior research in the literature that addresses the general challenges

of property manager with respect to tenants’ attitude in security threatened environment of a

10
developing economy like Nigeria. A closely related paper is the work of Gbadegesin and Ojo

(2011), who assessed the ethics extant in the practice of property management within

metropolitan Ibadan of Nigeria and established the necessity to shift the practice emphasis on

quality and ethical conduct; and that the statutorily recognized property managers are still

lagging behind in implementing necessary qualitative management approaches. Olawande

(2011) examined real estate investment through proper tenant selection in Nigeria and

suggests that an application of a scorecard will reduce the incidence of bad tenancy and

enable investors to derive value from investment in real estate. Oladokun and Ojo (2011)

seeks to identify the factors that are responsible for the incursion of non-professionals into

property management practice in Nigeria and found out that the contributory factors in their

perceived order of importance include high income derivable from property management

practice, provision of unsatisfactory and less than standard service by estate surveyors, lack

of confidence by clients on the estate surveyor to evict erring tenants and shortage of

qualified personnel properties; and that there is money to be made by high-quality companies

providing services for lower quality buildings.

From the above review, most of the studies dwelled on a certain aspect of property

management there exists no prior research in the literature that addresses the general

challenges to effective property management in a volatile environment such as Maiduguri

Metropolis where there is high demand for properties as a result of influx of IDPs from other

local government areas of the state due to the activities of Boko Haram insurgents.

Similarly, Oladokun and Aluko (2014) examined dispute resolution in corporate multi-

tenanted property management in Lagos International Trade Fair Complex, Nigeria and found

out that there often existed disputes and when it occurs, the common reaction is for them to

alert other users of the building; and that the methods of dispute resolution adopted are

arbitration, mediation, conciliation and litigation but the most commonly adopted method is

11
arbitration. Another related study is the work of Taylor (2014) which investigated the

experiences of property managers operating in the small open economy of Jamaica. The focus

of the paper was to provide insights into the nature of management challenges experienced by

property managers and their responses to those challenges. Li (2014) conducted a study on

the value of property management services and found out that property management does add

value, especially to older and more dilapidated

2.5 Commercial Property Management

Dant and Lavers (1993) evaluated the duties of commercial managing agents from medieval

times. In a general review of literature, the author traced the origin of General Practice

Surveys and documented he increasing complex roles of management surveyor in the

contemporary and highly industrialized society. Tarbet (1996) evaluated the historical view

of commercial property as a good hedge against inflation and acknowledge that results of

empirical studies have, over the years, being unable to substantiate this belief. While noting

the persistency of the belief over the years, the author introduced a method of co-integration

as a long term method of testing for a long term hedging relationship to establish that

commercial property is not a consistent long run against inflation. Booth and Matysiak (1996)

examined the role of property in pension fund pre and post minimum funding requirement.

The study found that the role of property has declined partly due to poor performance and

also because there are other asset categories that can perform the role that property is playing.

Li (1997) examined the opportunities and problems in property management in China. The

author highlighted staffing and training as major problems that could threaten effective

property management practice. Apart from the fact that the study was carried out in the

context of developed countries such as China with different business environment, the study

lacked empirical evidence and did not focus on the practice of commercial property

12
management in developing countries like Nigeria. The same argument can be said of Chin

and Poh (1999)’s work which examined property management industry’s attitude in

Singapore to quality. In a recent study by Andrew, et al (2008),the problems that different

public sector bodies face in joint planning to develop and share facilities and property

services and how they overcame them were discussed. Christudason (2008) examined the

various legislations affecting common property management in Singapore. The author

examined the problems inherent in the existing system of single-tier management

corporations for strata property management until 2005 as a basis for a discussion of the

solutions presented by new legislation in the form of “two/multi-tier” management

corporations. The study found that while the multi-tier system could alleviate some of the

problems existing under the single-tier management corporation system, other problems

could arise; these include increased operational costs, finding sufficient volunteers for the

multi-tier management corporations, and increased potential for conflict.

2.6 Challenges of Commercial Property Management

Commercial property can be an excellent investment, but the responsibilities involved are

substantial. An individual would need to have a great deal of time and possess a wide range

of multi-faceted skills to handle all aspects of property management in an effective manner

that minimizes associated costs. The many difficulties have driven countless commercial

property owners to discover the benefits of hiring reliable property management services. The

following are just a few of the challenges of do-it-yourself commercial property management.

Finances

The numerous financial aspects of managing commercial property include figuring out the

amount of rent to charge. A great deal of research is needed to strike the perfect balance

13
between maximizing profits and keeping the vacancy rate low. Handling the finances also

involves marketing expenses, paying maintenance costs, and other considerations.

Real Estate Investment Laws

It’s essential to become familiar with applicable local, state, and federal real estate

investment laws. Failure to comply with tax and other regulatory requirements could lead to

costly penalties and fees. There are many different types of regulations, such as fair housing

issues, including considerations for individuals with disabilities. Staying on the right side of

the law involves knowledge, compliance, and taking timely actions.

Screening Tenants

There are potential risks involved in choosing tenants for your property. Leasing your

commercial property to the best tenants will save you time, money, and countless headaches.

Tenant screening isn’t always easy, however. Making the mistake of approving one tenant

who isn’t a good fit can have a long-term effect. It can be extremely difficult to terminate a

lease agreement early and take back your space.

Tenant Retention

The primary reason to get tenant screening right is, arguably, the fact that tenant turnover is

costly. The goal is to have a high level of tenant retention. But how is that achieved? Superior

service is required, to keep tenants satisfied and to ensure that they want to stay.

Managing Vendors

A fact of life with commercial property is that maintenance and repairs are needed. The

amount of work involved is often overwhelming. An owner who handles property

management must deal with the constant demands of vendor management of various types of

needed services.

14
.

2.7 Empirical study

Most of the empirical studies have been limited to the traditional practice of property

management and carried out in advanced countries with dissimilar cultural and socio-

economic climate from African countries like Nigeria. Examples include Li (1997),Chin and

Poh (1999), Han and Lim (2001),Lai (2006), Yiu, et al (2005), Blackwell(2007) and Andrew

et al (2008). A number of these studies focused on examining the principles and practice of

property management (Lia, 2005). Touch Ross & Co(1983) and Institute of Real Estate

Management (1991) provided a general direction and development guidelines for property

management information system.

In a similar study, Han and Lim (2001) examined the use of computers in Singapore property

management companies. Blackwell (2006) investigated the relationship of geographical

indicators (GIs) with real property valuation and management. Also, researchers such as Yiu,

et al (2005) and Lai(2005) examined the study via the roles of property management from an

institutional economies perspective and the potential contribution of innovative property

management to sustainable development. A critical examination of these past studies revealed

that none of them have paid detailed attention to problems of commercial property

management practice. The work of Oladokun (2010) examined the preparedness of Nigerian

real estate practitioners for sustainable property management practice. The study focused on

enlightening professionals about the global adoption of green building as a means to ensure

environmental sustainability and provided measures to be adopted to embrace the practice in

African countries like Nigeria.

15
In summary, there is lack of empirical evidence about the problems of commercial property

management practice in emerging markets like Nigeria. The study is therefore significant

more so that the recent collapse of the capital market now compels local and foreign investors

to re direct investment into real estate. This no doubt, will build confidence in foreign

investors who are likely considering tapping the investment opportunities in the emerging

Nigerian market. Lastly, the result of the study is expected to be a guide to professionals and

policy makers in other African countries towards the development of appropriate framework

for commercial property management practice.

16
 CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Introduction

The methodology used in attaining the stated aim and objectives of the study was described

in this section. To examined relevant methodological approaches adopted in the study. The

main focus was on the target population, sample size, sampling techniques, data collection

instrument, method of data analysis and presentation. The essence of this is to have an

understanding of data collection process as providing basis for data collection and

presentation.

3.2 Research Design

In the course of this study, the researcher adopted the survey research design. The survey

research method was employed because it involves collection of data to objectively describe

the existing effects of slum on commercial property management. Thus, it is aimed at

determining the nature of the effects of slum as they affect commercial property management

as at the time of investigation. This design adopted as instruments of data collection,

observation, questionnaires and interviews.

3.3 Area of Study

This study covers the problems and prospect of commercial property management in

Nasarawa, Nasarawa State.

17
3.4 Population and sample size

The target population comprises of registered Estate Surveying and Valuation Firms

operating in Maiduguri Metropolis. This is because the Estate Surveyors and Valuers Act No

24 of 1975empowered Estate surveyors and valuers to manage property in Nigeria.

3.5 Sampling Technique

hus, purposive random sampling technique adopted in selecting all the senior staff including

the head of practice of each of the eight (8) active Estate Surveying and Valuation firms in

Nasarawa, Nasarawa state. The choice for this sampling technique is not unconnected with

the number of existing firms in the study area and to ensure obtaining adequate information

to assist in a better understanding of the phenomenon under study. Out of the forty (40)

questionnaires administered, thirty-one (31) were able to retrieve and this represented 78% of

the total questionnaire administered which is considered adequate for the study. The collected

data were then analyzed using tables and percentages.

3.6 Instrument of Data Collection

Various methods where use in collecting data for this research work, method used are shown

below

1. Questionnaire: questionnaire were designed to address the issues of community

conflict and real estate property.

2. Personal interview: interview sessions were held with the community head,

citizens, private property developers, and finally occupancies. It is worth

mentioning that interview as were responsible for the bulk of detailed information

of this project work.

3. Research into books, publications and other relevant materials

18
3.7 Method of Data Analysis

Data collected from this research is presented in statistical tables. This descriptive method

helps in understanding the phenomenon.

19
 CHAPTER FOUR

DATA ANALYSIS AND PRESENTATION

4.1 Introduction

This chapter aim at analysis data collected from the respondents and direct interview gotten

from the research. The section focuses on the data analysis of the work and presentation.

4.2 Data Analysis

Demographic information of respondents

This implies that most of the firms had the required years of practice that will guaranteed

reliability of data sought for this study.

Table 1: Educational qualification of respondents

Qualification Response Percentage (%)

National Diploma 2 6

Higher National Diploma 20 65

Bachelor Degree 7 23

Master Degree 1 6

Total 30 100

Source: field Survey, 2019

One of the most important profiles of the respondent was educational qualification (Table 1),

a sizeable number (65%) of the respondents holds Higher National Diploma (HND), while

23% possessed Bachelor degree as highest qualification.Similarly,77% of the respondents are

associate members of the Nigerian Institution of Estate Surveyors and Valuers

20
Table 2: Professional status of respondents

Qualification Response Percentage (%)

Probatiner 7 23

ANIVS 23 77

FNIVS 0 0

Total 30 100

Source: field Survey, 2019

This suggests that the respondents obtained the requisite academic and professional

qualifications that will enable them to effectively provide the required answers to the

questions in the survey and validates the reliability of the data obtained for the study.

Moreover, as the Estate Surveyors and Valuers Act No 24 of 1975 empowered Practicing

Estate surveyors and valuers to manage property in Nigeria, many firms are fully involved in

property management practice. For instance, 52% of the firms surveyed involved in property

management practice.

Table 3: Firms area of specialization/professional practice

Specialization/professional Response Percentage (%)

practice

Property Management 16 52

Facilitates Management 4 6

Property Valuation 3 3

Estate Agency 7 23

Total 30 100

Source: Field Survey 2019

21
These areas of specialization was chosen as a result of the firms’ frequency in rendering of

these services in the study area. In addition to firms’ involvement in property management,

majority of the firms were established over ten (10) years. For instance, 3% indicated

practicing for over twenty years, 29% indicated sixteen to twenty years,39% indicated eleven

to fifteen years of practice, while 23% and 6% indicated six to seven and one to five years of

practice respectively.

Table 5: Types of property in firms’ management portfolio

Property type Response Percentage (%)

Residential 15 48

Commercial (shop/shopping 10 32

complex)

Accommodation 3 10

Industrial 2 23

Public Properties 1 3

Total 30 100

Source: field Survey, 2019

Table 5 revealed the common types of properties under the firms’ management portfolio and

the level of involvement in property management. For instance, 48% of the sampled firms

indicated that residential property recorded the highest in their management portfolio. This is

followed by shops/shopping complex, industrial properties and public properties (32%, 10%,

7% and 3%) respectively.

22
Table 6: Challenges of Property manager with respect to tenants’ attitudes

Challenges Yes Percentage No Percentage

(%) (%) (%) (%)

Delinquency maintenance payment/service 29 94 1 6

charge by tenants

Default in rent payment 30 0 0 0

Illegal occupation of premises by IDPs 20 65 11 35

Insistence on rent review (decrease) by tenants 25 81 6 19

Constraint in inspection of premises due to 18 58 13 42

tenant behaviours

Difficulty in payment of commission on part of 12 39 19 61

the tenant

Insufficient information on tenants (for tenant 28 90 3 10

selection)

Sneaking in extra people or animals by tenants 22 71 9 29

Fighting or domestic dispute among tenants 19 61 12 39

Carrying out illegal business by tenants 21 68 10 32

Improper use of available facilities by tenants 26 84 5 16

in the premises

Vacation of premises by tenants without notice 27 87 4 13

Source: Field Survey, 2019

The study sought to find out the challenges to problem and prospect of commercial property

management in Nasarawa, Nasarawa State, Nigeria. Questions were put to the respondents in

order to determine those challenges. Although, the list contained in the questionnaire is not

23
exhaustive of the entire range of the challenges, it covered the most significant number of

challenges to effective property management. The responses obtained as shown in Table 6

reveals that default in rent payment (100%) is the most challenging factor. This is not

unconnected with the economic situation of the study area as crippled by the kidnappers

insurgents and the class of the existing tenants. The implication of this is that since one of the

objectives for letting a property is to earn income in way of rent, where this is not attainable

as at when due, the investment goal of the property investor is defeated and that there will

always be future maintenance problems. Similarly, twenty-nine (29) respondents representing

94% are of the view that delinquency maintenance payment/service charge by tenants is also

a challenge to the property manager. This findings collaborates earlier findings by Taylor

(2013) which revealed that among the major challenges of the property manager is

delinquency in maintenance payments. The consequential effect of this is gradual setting in of

obsolescence as there will always be future maintenance problems.

Furthermore, twenty (28) respondents representing 90% indicated that insufficient

information on tenants to aid in tenant selection remains a challenge to the manager. The

implication of this is that insufficient information on tenant may lead to unruliness on part of

the tenant as soon as they take possession of the accommodation units. Another challenge

indicated by twenty-seven (27) respondents representing 87% is vacation of premises by

tenants without notice. This may also be attributed to insufficient information on tenants. In

addition to vacation of premises by tenants without notice is the issue of improper use of

available facilities by tenants in the premises (84%). This is not unconnected with the

background of some of the tenants. Some of these tenants came in to the study area as a result

of kidnappers insurgency in the rural areas as observed during the field survey. This however

implies that there will be improper use of the facilities by these category of tenants as they

24
may not be familiar with some of these facilities which in the long run affects the functional

and economic ability of the property.

Insistence on down-ward review of rent by tenants (81%) is another challenge to the property

manager. This response is not different from the views sought during the interview held with

some landlords. The economic recession and activities of the insurgents in the study area has

immensely contributed to this review pressure. This poses a challenge to the manager as the

income from the property may not be enough to ensure smooth running of the property. In the

same vein, sneaking in extra people or animals by tenants (71%) is another challenge noted

by the respondents. This finding is in agreement with the physical inspection of properties

carried out, where relatives and all sort of domesticated animals belonging to tenants were

found loitering the premises. This implies that more pressure will be exerted to the available

facilities and create nuisance to the immediate neighbours.

The results of the study also revealed that 68%carrying out unauthorized business. This is

also a constraint to effective property management as indicated by the respondents. This view

is similar to the findings sought during personal observation and physical inspection of

properties. For instance, some grinding machines and power generators belonging to tenants

were seen in some of the properties. The implication of this is nuisance and noise pollution to

the immediate neighbours which may eventually lead to lose of existing and potential tenants.

Illegal occupation of premises by IDPs (65%) is also indicated by the respondents as a

challenge. This is also consistent with the personal observation made during the field survey

where a sizeable number of these IDPs were seen illegally occupying newly completed and

uncompleted structures or accommodation land belonging to private individuals. The

implication of this is that the manager may lose income and incur additional cost of

repair/maintenance as pressure would be exerted to the available facilities.

25
Other challenges indicated by the respondents include: fighting or domestic dispute among

tenants (61%),constraint in inspection of premises due to tenant behaviours (58%) and

difficulty in payment of commission on part of the tenant (39%). These findings are

consistent with the outcome of past studies by Olawande (2011),Udechukwu and Johnson

(2016), Modu et, al. (2010) and Taylor (2014) on the challenges of property manager which

show that the manager encounter challenges such as dispute among tenants, constraint in

getting access to the premises for inspection and problem of payment of fees.

4.2 Discussion of findings

The respondents were asked to rank on a 5point likert scale what they considered are

problems of commercial property management in developing countries like Nigeria. The

most important problem is high rent chargeable on properties followed by cumulative

maintenance problems and thirdly electricity/plumbing needs. Tenants who are made to pay

rents that are considered too high as at the time of taking possession naturally become

difficult while in occupation and often tend to be uncooperative. Since such tenants are

compelled to pay the initial high rents as a means of meeting their needs they tend to be

difficult and hence pose major management problems. They often refuse to pay subsequent

rents and where they pay, rents are not paid as at when due. The second most important factor

considered as posing management problems is cumulative maintenance problems. This arises

where a tenant comes into possession without the landlord effecting repairs left behind by the

immediate past tenant. When such a tenant bear the cost of repairs on his own, he apparently

continues in occupation not being happy and automatically tends to be unnecessarily difficult.

The third high ranked factor is closely related to the above. Where electricity/plumbing needs

of a tenant is not met owing to inherited accumulated bills, the result is that the tenant

becomes difficult and will likely put up behaviors that will make property management

unattractive. Other high ranked factors are cash flow requirements and high cost of

26
construction. Where property agents do not meet up with agreed time for rent disbursement;

this generates rancor and distrust with the property owner. Also, where the time and

frequency of rent collections are at variance with the landlords’ expectation, unsmoothen

relationship result and subsequently leads to management problems.

27
 CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Introduction

The attempt in this Chapter is to draw inferences from the data analysis and elucidate the

findings using a format that is constructive and beneficial for policy implementations. This is

followed by recommendations and concluding comments, while attempt is also made towards

identifying opportunities for future research.

5.2 Conclusion

As the property management services sector in the real estate industry contributes to creation

of wealth and generation of employment in the society, the study showed a number of

challenges face by the property manager. Most of these challenges attributed to low

perception of tenancy/lease agreement issues of the property management on part of the

tenants. This is because as the study revealed many of the potential tenants are IDPs from the

Kidnappers insurgency affected areas of the state and are always desperate in securing

accommodation heedless to proper understanding of the tenancy/lease conditions. The

consequential effect of this is loss of income and increasing maintenance cost to the property

manager. Therefore, the objective of the investment is defeated if proper measures are not put

in place.

5.3 Recommendations

The following recommendations has been made based on the findings of the study:-

i. Having information on tenant is significant as the possession and occupation of the

property. Hence there is the need for the property manager to take enough time to find

28
 out some basic information about the tenant. This will assist in curtailing problems

to do with lease in the future.

ii. In addition to obtaining tenant information, standards or criteria for tenant selection

must be established and strictly adhered to and should be reviewed from time to time

as situation demands.

iii. Public enlightenment campaign should be embark on by the state branches of the

Nigerian Institution of Estate surveyors and Valuers on what constitute a

tenancy/lease agreement and the need to employ the services of the property manager

or real estate agents on any matter regarding land and landed properties through mass

media. This will go a long way in assisting both the tenants and landlords to

understand their rights and obligations in tenancy/lease agreement.

iv. There is the need for the enforcement of attendance of Mandatory Continuous

Professional Development programmes for property managers as a strategy to

enhance improved professional practice in the study area and the country at large.

29
 REFERENCES

Abubakar, B. (2017). Origin and Meaning of Maiduguri. Retrieved from:

https://www.researchgate.net/publication/318215165. (Accessed: 28/05/2018).

Aliyu, A.A., Funtua, H.A., Mamadi, A., Bukar, B.G., Garkuwa, I. A. and Abubakar, M.M.
(2016) Management Problems Associated with Multi-Tenanted High-Rise
Commercial Buildings in Kaduna Metropolis, Nigeria.Civil and Environmental
Research 8(1), 114-123

Case, K.E., Quigley, J.M. and Shiller, R.J. (2005). Comparing wealth effects: the stock
market versus the housing market. Advances in Macroeconomics, 5 (1), 1-32

Dietz, R. and Haurin, D. (2003). The social and private micro-level consequences of
homeownership. Journal of Urban Economics, 54 (3), 401-450.

Gbadegesin, J. T. and Ojo, O. (2011). An Appraisal of Property Management Practice in

Metropolitan Ibadan, Nigeria. The Built & Human Environment Review, 4 (1), 12-17

Internal Displacement Monitoring Centre (IDMC). (2016). Nigeria IDP Figures Analysis.
Retrieved from: http://www.internal-displacement.org/sub-saharan-
africa/nigeria/figures-analysis. Accessed: 18/03/2018.

Li, J. (2014). The value of property management services: an experiment. Property

Management, 32 (3), 213- 223

Macey, J. (1982). Housing Management. London: The Estate Gazette Ltd

Modu, M.A., Ibrahim, B. S. and Habib, G. A. (2010). Challenges in Residential Property

Leases in Borno State (A case study of Maiduguri Metropolis). Northeast
Journal of Empirical Research and Review, 2 (2), 7-12.

Montana, P.J. and Charnov, B.H. (2008). Management, (4th ed.,) Barron’s Educational Series
Inc, New York, NY.

Nwachukwu, C.C. (2007) Management Theory and Practice. Africana First Publishers
Limited, Nigeria

30
Oladokun, T. T. and Aluko, B. T. (2014). Dispute resolution in corporate multi-tenanted
property management: a case study. Journal of Corporate Real Estate, 16(1),
22-32

Oladokun, T.T. and Ojo, O. (2011). Incursion of non-professionals into property

management practice in Nigeria Property Management, 29 (3), 305-320

Olawande, O. A. (2011). Harnessing real estate investment through proper tenant selection in
Nigeria. Property Management, 29 (4), 383-397

Olayonwa, G.O. (2000). Property Management principles and practice. Iwo: Debo Publishing
Company

Opara, U. E. (1989). Landed Property Management and Maintenance Prospects and

Problems. The Estate Surveyor and Valuer, 13 (1), 60-64

RICS (2018) Property Management. Retrieved from:http://www.rics.org/ng/tag/property-

management/. Accessed:14/02/2018.

Taylor, P.C. (2014). Management challenges and responses: Experiences of property

managers operating in the small open economy of Jamaica. Property Management,
32 (1), 16-27

Udechukwu, C. E. and Johnson, O.O. (2016). Real property management. Lagos. Chika
Books & Prints

Yiu, C.Y., Wong, S.K. and Yau, Y. (2006). Property management as property rights
governance: Exclusion and internal conflict resolution. Property Management,
24 (2), 87-97

31
32