TABLE OF CONTENT
Title Page i
Table of content v
1.1 Problem of the statement
1.2 Aims and Objectives
1.3 Justification of the project
1.4 Scope of the project
1.5 Limitation of the project
2.1 Building types within project category
2.2 Brief description of users and owners of such development
2.3 Motivation for such development
2.4 Case Studies
2.7 Spatial requirement and ancillary facility
- Brief description of the site development
3.1 Physiographical characteristic
3.2 Brief description of site location
3.3 Site selection criteria
4.1 Conceptual development
4.2 Design option
4.3 Design analysis
Rent is a periodic payment paid by the tenant to the landlord for the use and enjoyment of land and landed property. For small or large-scale property developers and investors, one way to earn money from the properties they owned is to lease/rent them out to short-term tenants. Rent falls into arrears when subsisting tenants fail to pay as at when due.
If your rent is not paid the money owned is called rent arrears. Rent arrears. Rent arrears are priority debts. In property management, tenant rent arrears are almost inevitable although some precautions may be taken to avoid it. It is a global phenomenon, occurring in all parts of the world. Both developing and developed countries, (COHRE,2004).
A landlord or an estate surveyor & valuer & value who wants to terminate a tenancy an recover possession of the property from a tenant for whatever reason must observe due diligence and lawful procedure to achieve his objective. Self-Help is an extra judicial remedy to enforce or protect a right, where the landlord employs self-help, it must be lawful otherwise he will be criminally liable for his actions. (MBIE,2013; Momah, 2011; Monek, 2009).
In Nigeria and particularly in the study area, most tenants, landlord, estate surveyor and value as well as property managers have suffered untold hardship, tremendous financial loss, social stigma and various degrees of disgrace from the problems from the problems that culminated in rent arrears. The main thrust of this project is to identify and examine the causes and how to recover, strategies and method adopted for rent arrears and in order to improve upon property management generally and more specifically in Oshogbo Metropolis.
In development countries where properties are more of leasing than owning, tenants or users who early met with conditions of lease/letting often becomes defaulter as soon as they might have taken possession of the property. They consciously or unconsciously default on subsequent payment of rents and other statutory obligations leaving most properly investors with great consequence of financial loss. However, this study will consider the strategies for recovery of rent arrears amongst practicing estate surveyors and valuers in Oshogbo.
From the above problem statement are the under-listed questions that the study intend to answer.
- Why do people rent?
- What are the causes of default in rent payment?
- What are the strategy in rent arrears recovery?
The study aim to examine the rent recovery strategies in property management practice with a view to make a policy recommendation that would assist property investors and property managers on ways to reducing financial loss and to harnessing returns from property investment. To achieve this above stated aim, the objectives are to:
- Identify and examine why people rent
- Examine the causes of default in rent payment
- Identify and examine the strategies for rent arrears recovery
1.5 JUSTIFICATION OF STUDY
This is will be immense assistance to both landlord and tenant in maintaining a cordial relationship for peaceful co-existence and also to the estate surveyor and values to observe due diligence and lawful procedures.
Property management is the function of both professional and non-professional property managers i.e. Estate Surveyors and Valuers in Osogbo, Osun State.
1.7 RESEARCH LIMITATION
- Time constraint: Time serve as a constraint to the project because there is no much time to work on the project due to strike.
- Financial constraint: Insufficient fund tends to impede the efficient of the process of data collection (Internet, Interview etc)
1.8 STUDY AREA
Osogbo is the capital of Osun State, lies on coordinate 70 460 North Latitude and Longitude 40 340 East with an area of 47km sq, Osogbo shares boundary with Ikirun, Ilesa, Ede, Egbedore and Iragbiji and is easily accessible from any part of the state because of it’s central nature. It is about 48km from Ile-Ife, 32km from Ilesha, 46km from Iwo, 48km from Ikire and 46km from Ila- Orangun. The Osogbo [property market can be classified into three viz: Residential, Commercial and Industrial property markets.
The traditional centre of the city (Oja-Oba Area) comprises mainly Old Compond and Tenement house interspersed with block of flats all of high-density category. Low density ares are found in Dada Estate, Government House and also GRA.
Commercial properties consist mainly of shops, open markets and offices. Shops are generally available at all locations and neighborhoods to provide shopping facilities. They however, attract higher values at the city centres and main business district. Office refers to buildings that provide ample room spaces and facilities to support a good working condition for people. They include those occupied by private professional offices of lawyers, chartered accountants, surveyors, consultants, hospitals etc and corporate organizations like banks, insurance companies etc.
This chapter identify the reasons that tenants default on their rent payments and also the concept of property management, the evolution of property and property management and reason why people rent an apartment. Default means failure to make required debt payments on a timely basis or to comply with other obligation or agreement (Investors words.com) rent means all periodic payments to be made to the landlord for occupancy of a dwelling unit, including. Without limitation, all reasonable and actual late fees set forth in the rental agreement (Added to NRS by 1977,1999).
2.1 PROPERTY MANAGEMENT
Property management is the operation, control and oversight of real estate as used in its most broad terms. Management indicates a need to be cared for, monitored and accountability given for its useful life and condition.
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 end item deliverables.
Property management involves the process systems and man power required to manage the lifecycle of all acquired property as defined above including acquisition,control accountability, maintenance, utilization and disposition.
ROLE OF PROPERTY MANAGEMENT
Duties of property management generally will include a minimum of these basic primary tasks.
- The full and proper screening or testing of an applicant’s credit, criminal history, rental history and ability to pay.
- Lease contracting or accepting rent legal documents approved for the area in which the property is located.
- Mitigation and remediation regarding any maintenance issues, generally within a budget within prior or conveyed consent via a limited power of Attorney legally agreed to by the property owner.
- Maintaining necessary records for tax and legal purposes.
There are many facets to this profession including managing the accounts and finances of the real estate properties and participating in or initiating litigation with tenants contractors and insurance agencies.
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 managers.
2.2 THE EVOLUTION OF PROPERTY AND PROPERTY MANAGEMENT
Definition of Property?
One definition of property is one that we might readily expect: Ownership, right of possession, enjoyment, or disposal of anything, especially of something tangible to have property in land.
This definition, as many dictionary definitions do fail to even touch the below the surface of the defined concept. In other words, it doesn’t help us to understand the footholds upon which the definition depends.
For example, Neil Meyer, a professor at the university of Idaho, might not entirely agree with the compendiary definition offered above. Neil Meyers says that “What is often referred to as property is really the access right to a stream of benefit from a given set of resources.
Another “property thinker” who actually included the Meyer’s quote in an article says that a property right are a function of what are willing to acknowledge. The limits on an owner’s action result from expectations and right of others as formally sanctioned and sustained by law.
Barlowe (1978), describes property as complicated legal concept. He said many people thought of it in terms of objects that can be owned or possessed.
In the legal sense, property does not consist of an object but a man’s right to material object.
In other hand, a property can simply defined as a subject of ownership with an exclusive bundle of right and where the connection of interest is based. From the above definition, one can describes property as the exclusive right as the exclusive right of possession, enjoying and disposing of land or bundle or right. These rights are freehold and leasehold rights.
2.3 THE CONCEPTS OF PROPERTY MANAGEMENT
The Real Estate Dictionary (2004) and Business Dictionary (2000) as cited by Kuye (2008) help the view that property management is the operation of property as a business which necessitates the performance of the following two main tasks i.e property management and investment management tasks. Property management tasks include: accounting and reporting, leasing, maintenance and repair, paying taxes, provision of utilities and insurance, remodeling rent rate setting and collection Investment Management tasks includes; acquisition and disposition, development and rehabilitation, feasibility, financing and income tax accounting.
Over the years, property management has taken a new dimension which calls for profession care and decisions (Kuye, 2008).
Therefore, it requires professionalism, competency and high degree of meticulousness. This is because the expertise and competency of the property manager are most time challenged and also because of its huge capital involved in its development. Therefore, a property manager really has to prove his competency and worth so as to justify the confidence the principal reposed in him.
Property management is one of the best sphere of real estate practice for customer service, is that the activity is essentially human management.
How has the concept of property changes from one culture to another?
In the old testaments, it is interesting to note the various rules and regulations given by the Lord to the people of Israel. Property or ownership, had a different way of “working itself out” in fact, the property that the people of Israel lived on could “moderately belong” to a family but only until a law of jubilee, laws of Aaronic ownership, country land rules, city land rules and various other “loop holes” stipulated otherwise. It can also affirmed to the children of Israel, the Lord was the only true owner and this he could deal with property management issues as he saw fit. However, it is also important to recognize that the children of Israel had to agree in their mind (anal perhaps in their hearts) that this could be a true definition of “property management” is the direction, supervision and controlling of an interest or interests in landed properties with the aim of obtaining optimum returns”. Also the bible also back up the definition up in Gen. 2:15 “Then the Lord God took the man and put him into the Garden of Eden to cultivate it and keep it” To cultivate it and keep it means to direct, control and supervise it.
2.4 WHY DO PEOPLE RENT
Renting, also known as hiring or letting is an agreement where a payment is made for the temporary use of a good, service or property owned by another.
A gross lease is when the tenant pays a flat rental amount and the landlord charges regularly incurred by the ownership.