MANAGEMENT OF MULTI TENANTED PROPERTIES AND ITS ASSOCIATED PROBLEMS IN OSHOGBO, OSUN STATE
ABSTRACT
It is a broad knowledge that one of the features of property management which distinguishes it from other form of investment portfolio is a serious requirement of management in recent time. This peculiar management function has continuously undergo tremendous transformation brought about by the agglomeration of estate and massive involvement in property, by a number of land dealers, agencies and financial institution. This research work is aim at examining the management of multi tenanted properties and its associated problems in oshogbo, osun state. To achieve this aim relevant literature in the topic were review sample techniques was use to administered structural questionnaire on the sampling size of 46 respondents. The relevant data collected were analyzed using frequency and percentage. The major findings of the study, shows that there is share of responsibility between the landlord and tenants. Which are the external repairs is done by the landlord, while the internal repairs is done by tenants. The landlords undertake routine inspection of the property on quarterly basis. From the research findings there is general no provision of additional facilities to be paid as service charge by tenants. It was however; recommend that the landlord should provide potable water to the shopping complex and fence, entrance gate so that those hawkers that stand by the front view of the shops to sell should be scrapped out to provide enough space for parking.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF STUDY
It is a broad knowledge that one of the feature of property management which distinguishes it from other forms of investment portfolio, is a serious requirement of management in recent times this peculiar management function has continuously undergo tremendous transformation brought about by the agglomeration of estate and massive involvement in property by a number of land dealers, agencies and financial institutions
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 in to profitable venture. Its main concern is the optimization of the owner’s investment Scarrttet (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 objectives. In other words, the achievement or success of the art of nursing and directing 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.
Property manager seem to be of more relevant in the current economic dispensations. The global collapse of the capital market with its attendants effects, which has not spare African countries like Nigeria, are seen to be compelling investors to redirect their investment ventures in to real estate, especially with visible foreign and local investment in commercial properties. These are properties acquired for the purpose of yielding regular inflation of income to investors. Most commercial properties are often relatively large and complex buildings, some of which are multi-storied or highrise type, the complexity involved in terms of the size of the structures, diverse and multiple occupants informed the need for specialized skill and training for efficient and effective service delivery.
Property management, according to Scarrett (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 objectives 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. In performing this function, the management surveyor encounters problem in the management of different type of properties. This dissertation will look in to the management strategies adopted in commercial properties. Its problems, prospects of commercial properties and to suggest possible solution to those problems. In conclusion , there is urgent need to identify the problems of managing multi-tenanted properties unless there is of attitudes as to scope, functionality, style and mode of the property construction and eventual management, that we need not only to build what is management. Nigeria will be making history and destroying it immediately thereafter. A country that goes on building structure but fails to effectively manage them burns its wealth and resources in a future it is a country with pride.
1.2 STATEMENT OF PROBLEM
Most properties are often relatively large and complex buildings; some of which are multi-storied or high rise type. These structure is often large diverse and made up of multiple occupants. The property manager encounters problem in the management of different type of properties. These problems include rent default, noncompliance with the tenancy agreement and poor tenant selection, thus the crux of this research.
1.3 AIM AND OBJECTIVES
This project is aimed at examine the management of multi tenanted properties and its associated problems in Oshogbo, Osun State
While the specific objectives are as follows:
- To review the concept of property management and maintenance service.
- To examine the property management approach in the study area.
- To identify the problems associated with the management of multi-tenanted commercial property in Ibadan.
- To suggest method of solving these identified problems towards achieving better management techniques.
1.4 RESEARCH QUESTION
- What is the concept of property management and maintenances service?
- What is the property management approach in the study area?
- What are the problems associated with the management of multi-tenanted property?
- What are the ways of solving these identified problems towards achieving better management techniques?
1.5 SIGNIFICANCE OF THE STUDY
The finding of this study will be of benefit to the following:
Student in estate management and valuation, investors and researcher alike. It will also serve as a frame work for efficient property management, thus enhancing adequate return on the investment.
1.6 SCOPE OF THE STUDY
To make a meaningful approach and critical analysis of work of the nature, one has to put in to consideration, the area of coverage. Which the research would cover thereafter, this research is based on the problems and prospects of managing multi-tenanted commercial properties with particular reference to some shopping complex in Ibadan Metropolis.
1.7 LIMITATION OF THE STUDY
Expectedly, this work met some hindrance during the stage of visit. This may include:
- Inadequate finance for gathering information from one place to another.
- Inadequate information might be given which may not help to proceed on the research work.
- Lack of corporation from the questionnaires respondents. Some may not collect questionnaires some may collect but made incomplete filling.
1.8 DEFINITION OF OPRETIONAL TERMS
- Management: is the system of directing, organizing and controlling of available human skills and financial resources to achieve a stated goal.
- Commercial property: this refers to properties mainly developed and used for maximize rental income / profit. They are built to provide accommodation for business accommodation e.g. shops, offices, show rooms etc.
- Property: in relation to real estate, property is legal entity denoting the character and quality of right that an individual has or possess in a property to claim ownership of it.
1.9 BACKGROUND OF THE STUDY AREA
The early history of Osogbo is essentially the legendary account of the spirit-world; it is the history of the early people whom we call the spirits and fairies. This is in line with Yoruba traditions, which use mythical stories to explain the origins of the ruling families of an early Yoruba state.
Osogbo according to Yoruba oral history had been founded as early as Oduduwa period. Oso-igbo, the goddess of Osun River, was the Queen and original founder of Osogbo. She was credited with many important achievements, which helped to establish the settlement.
Osogbo the capital of Osun lies on coordinates 7°46′ North 4°34′East with an area of 47kmsq. According to the 2006 Population and Housing Commission Census, the city has a population of 156,694 people. 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 Ife, 32km from Ilesa, 46km from Iwo, 48km from Ikire and 46km from Ila-Orangun.
Osogbo is a commercial and industrial centre. This started in 1907, when the British Cotton Growing Association sited an industry for growing and ginning of cotton. The Nigerian Tobacco Company (NTC) built its first factory in Osogbo. In this same year, a major turning point for the city which helped in its industrial and commercial development occurred. The railway tracks were constructed linking it to other parts of Northern Nigeria. This attracted people from far and near.
The Ataoja of Osogbo is the traditional title of the King and he is the political and spiritual heads of Obas and Chiefs in Osogbo and Olorunda Local Government Areas.
Osogbo is famous for the annual Osun Osogbo Festival which attracts tourists from different part of the world.