THE PROBLEMS AND PROSPECTS OF MANAGING MULTI-TENANTED COMMERCIAL PROPERTIES IN KEFFI TOWN

THE PROBLEMS AND PROSPECTS OF MANAGING MULTI-TENANTED COMMERCIAL PROPERTIES IN KEFFI TOWN

CHAPTER ONE

INTRODUCTION

1.1       Background of 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 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.

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 manager 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 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 investments in commercial properties. These are properties acquired for the purpose of yielding regular inflow of income to investors. Commercial properties are often relatively large and complex buildings, some of which are multi-storeyed or highrise type, the complexity involved in terms of the size of the structures and  diverse and multiple occupants informed the need for specialized skill and training for efficient and effective service delivery.

The many and varied duties of a property manager require the skill of a business executive, decorator, bookkeeper, rent collector, maintenance expert, security officer and complaint department. The manager must also be soft-spoken, fast-moving, poised, quick-thinking, on-tiring, ever-available, 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 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 commercial properties are often relatively large and complex buildings; some of which are multi-storied or high rise type. These structures are often large, diverse and made up of multiple occupants. This usually creates a problem for the property manager, in the management of the property. These problems include rent default, noncompliance with the tenancy agreement and poor tenant selection. Thus this research attempts to examine the problems and prospects of managing multi-tenanted commercial properties.

1.3       Aim and objectives

This project is aimed at examining the problems and prospects of managing multi-tenanted commercial properties in keffi town. While the specific objectives are as follows:

1. To examine the property management approach in the study area.
2. To review the concept of property management and maintenance service.
3. To identify the problems associated with the management of multi-tenanted commercial property in keffi.
4. To suggest method of solving these identified problems towards achieving better management techniques.

1.4       Research question

1. What is the property management approach in the study area?
2. What is the concept of property management and maintenances service?
3. What are the problems associated with the management of multi-tenanted property?
4. 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 Turaki house shopping complex and Hassan Sadiq Shopping Plaza, keffi.

 1.7       limitation of the study

Expectedly, this work met some hindrance during the stage of visit. This may include:

1. Inadequate information might be given which may not help to proceed on the research work.
2. Inadequate finance for gathering information from one place to another.
3. Lack of corporation from the questionnaires respondents. Some may not collect questionnaires some may collect but made incomplete filling.

1.8       Definitions of operational terms

1. 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.
2. Management: is the system of directing, organizing and controlling of available human skills and financial resources to achieve a stated goal.
3. 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

Keffi town, in Nasarawa  state, . It was founded about 1800 by Abdul Zango (Abdullahi), a Fulani warrior from the north who made it the seat of a vassal emirate subject to the emir of Zaria ( a town 153 miles 246 km north). Although keffi paid tribute to Zaria throughout the 19^th century, it was constantly raided for slave; its war in the resign of Sidi Umar(1877-94), with the nearby town of Nasarawa resulted in a further payment of slaves to Zaria.

Most of the inhabitants of the traditional emirate are Gwandara people, engaged in tin and columbite mining and in farming; the chief crops are millet, sorghum, yams, and cotton. Keffi town has a teacher-training college, and it is served by a mosque and hospital.

The emirs palace stands next to the main square.keffi is located just west of a junction of local roads that give it access to Abuja, Nasarawa, the trunk highway at Akwanga, and the main railway at Lafia. Population (2006) local government area, 92,664.

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