Property Management in Nigeria – Property management is an important part of the Real Estate industry. Property management may appear to a non-professional to comprise merely fee collection and receipt, but there are other aspects of it that require the skills of an Estate Surveyor and Valuer.
A property manager is involved in managerial decision-making and problem-solving. He also undertakes a variety of operations and tasks related to the portfolio of Real Estate assets he manages on behalf of his clients, including planning, organizing, directing, and controlling.
These include determining the best type of tenant for a certain property arrangement and executing leases, advising on insurance policies and rating assessments and ensuring that they are paid on time, and specifying both the land lord and the tenant’s maintenance obligations.
Apart from that, there are factors affecting property management in Nigeria, ranging from landlord attitudes to inflation, political and economic factors, and the unique circumstances of individual properties, to name a few.
And in this article, we will look at some factors affecting property management in Nigeria
- Consumer purchasing power
Consumer purchasing power refers to the amount of money that customers can spend on goods or services. Consumer purchasing power is linked to the Consumer Price Index, or Cost of Living Index as it is known in the United States. It shows how inflation impacts consumers’ ability to buy.
And this can influence the management of property in Nigeria as the amount a consumer can spend on a property will determine how the property will be managed.
- Cost of building materials and working capital
It’s one thing to be able to build a property. It’s another to be able to manage it. The cost of building materials in Nigeria has been on the high end over the past few years and this is greatly affecting property management in the country.
- Management practices and entrepreneurial skills
In order to make money from anything, including property management, it’s important to understand the business aspect of it. This is why entrepreneurial skill is one of the most important skills to have when it comes to property management in Nigeria.
- Levies and taxes
A levy is a court-ordered seizure of your property to pay back a tax debt. A lien is a legal claim made against property to secure payment of a tax debt, but a levy is when the property is taken to settle the debt.
What this means is that a property management will be greatly affected when the levies and taxes are in excess of thousands or even Millions of Naira.
- Access to funds in money and capital markets
Access to funds can greatly impact on the level of property management in Nigeria. Increased access to funds in money and capital markets will greatly improve property management.
- Quality Property
This is an obvious factor. If the property is not a quality one, management will definitely become a tedious task. However, with a quality property, managing the property becomes less easy. And what that implies is that quality property won’t last which will put a kink in your property management skill.
- Infrastructures support
Infrastructure support is another factor affecting property management in Nigeria. For your information, Infrastructure refers to systems or organization’s basis or framework. In computing, data flow, storage, processing, and analysis are supported by information technology infrastructure, which is made up of physical and virtual resources.
The importance of infrastructure in a residential development can’t be overstated because it’s crucial to its success. The infrastructure of a residential development is critical. Infrastructure is defined as the facilities, structures, equipment, and other physical assets that enable people to thrive as individuals and participate in economic, political, civic, family, and other activities that are crucial to their personal and society’s well-being.
Conclusion
Property Management is significant since one of the characteristics of Real Estate that sets it apart from other investment vehicles is the need to be managed. Due to the rapid rate of technical advancements or innovations, which has resulted in the construction of high-rise and high-tech structures in our cities, a qualified manager is required to deal effectively and efficiently with management issues coming from the latter. Multi-tenanted properties, such as office buildings and residential residences, offer the surveyor with the most management challenges.