PROBLEMS AND PROSPECTS OF MANAGING MULTI – TENANTED COMMERCIAL PROPERTIES IN ABUJA

PROBLEMS AND PROSPECTS OF MANAGING MULTI – TENANTED COMMERCIAL PROPERTIES IN ABUJA

(A CASE STUDY OF ISREAL PLAZA ADEMOLA ADETOKUNBO CRESCENT WUSE II ABUJA)

ABSTRACT

Property management is an act of mediating between owner of the properties and user or occupiers of the properties. It is a conscious process of guiding and toiling investment on landed property for profit able venture. The practice of property of management is often prone to a lot of problems which are capable of preventing or reducing at best. The chance of realizing anticipated investment objective. The research work examines the problems and prospects of managing multi – tenanted commercial property. The project reviewed the concept of property management and maintenance, the approaches to property management in the study area. To gain insight into the subject matter of the study,Questionnaire was designed and administered to 45 respondents. Analysis of the information collected showered that the maintenance of the properties is shared between the tenants and the property owners. External repairs work is carried out by the landlord while internal repairs by the tenants. No provision is made for additional service in the property to paid by the tenants as services charge. It was however, recommended that the landlord should provide put able water to the shopping plaza and they should provide service that meets the tenant needs and desire is important to retain present tenant and secure new tenants.

CHAPTER ONE

1.1       INTRODUCTION

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 Abuja with particular emphasis on Israel Plaza Ademola Adetokunbo crescent Wuse II, Abuja. While the specific objectives were 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 of Israel Plaza in Abuja
4. To suggest methods of solving these identified problems towards achieving better management techniques

1.4       Research Questions

1. What is the property management approaching strategies adopted in the study area?
2. What is the concept of property management and maintenances service?
3. What are the problems associated within the management of the Israel Plaza property?
4. How could the identified problems be solved?

1.5       Significance of the study

When strategies for better management of property are improved, landlord, estate managers, tenant’s etc. may adopt and integrate such strategies in planning and executing their various functions. The finding of this study will bring about efficient management of commercial properties that will boost the financial return on the property to the owner. It also hopes that the study will bring about peaceful resolution between tenant to tenant and tenant to landlord.

1.6       Scope of the study

The scope of this project is mainly concerned with multi-tenanted commercial property to identify the problems and prospect of the property, which is located at Ademola Adetokunbo Crescent Wuse II Abuja.

 1.7       Limitations of the study

For a meaningful approach and critical analysis of a work of this nature one has to put into consideration the limited time and materials and confined to a specified area.

The researcher worked with a very light budget throughout the period of study as the frequent and repeated visits to relevant persons and offices entailed quite some money.

Moreover, also recall that some of the interview respondents were not co-operative as they kept on playing to the gallery as a means of avoiding supplying the required information.

On a general note however, the researcher ensured that these bottle-necks never affected the findings of this study since the success for outweighed the hindrances as enumerated. As earlier stressed, the project will mainly focus attention on management of Israel Plaza Commercial property.

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

The land now called Abuja was originally the south-western part of the ancient Habe (Hausa) kingdom of Zazzau (Zaria). It was populated for centuries by several semi-independent tribes. The largest of the tribes was Gbagyi (Gwari) followed by the Koro and a few other smaller tribes. In early 1800’s when Zaria fell to Fulani invaders, Muhammed Makau fled south with some followers and his brothers – Abuja and Kwaka. Abu ja full name of the king was Abubakar Abu was his nick name. by some accouns his fair complexion earned him the nickname ja which  means red or fair – skinned in Hausa. He become known as Abu-ja meaning Abu the red or Abubakar the fair one other sources say that the ja is a shortened form of Isnaku Jatau, his father’s name king Abubakar founded the Kingdom of Abuja.

Abuja become a major commercial center where goods were exchanged by long distance traders.

There are six Area councils in the federal capital territory, each subdivided into wards headed by local councils. The minister of the Federal Capital Territory is the overall leader and is appointed by the president of Nigeria.

Abuja is the capital city of Nigeria. It is located in the center of Nigeria, it is located in the center of Nigeria, within the Federal Capital Territory (FCT). Abuja is a planned city, and was built mainly in the 1980s.

It officially became nigeria’s capital on 12 December 1991, replacing Lagos at the 2006 census, the city of Abuja had a population of 776,298.

Israel Plaza is owned by Frankdiowo Nigeria Limited, Israel Plaza is located at a prime location bounded in the north by Ahmadu Bello Way and by the south with Kolda Street way. The Israel Plaza is facing a major way popularly known as Ademola Adetokunbo Crescent at Nitel junction Wuse II F.C.T Abuja.