PROBLEMS OF MANAGING COMMERCIAL PROPERTIES
ABSTRACT
This study was conducted to identify the problems of managing commercial properties using Uyo urban as a case study. the research design was a descriptive survey. A well structural questionnaire was used for data collection and administrated using simple random sampling techniques, Frequency Tables and percentage were employed to analyzed the research data. It was found that management problems leads to decrease in the talves of properties, Tenant/Owner of commercial properties pose a lot of problems to the Estate surveyor and valuer in the course of carrying out his responsibilities by refusing to pay rent as at when due, thereby affecting the benefits to be derive from the investments and also hindering effective management of the property. Base on findings the following recommendation are; hereby; made: Law should be enacted to govern the professionals and also qua.(key should be eliminated through enlightenment and there is need for the commercial properties to be managed by a trained Estate Surveyors and valuers so that the purpose for which the property is set out will be achieved.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Management refers to the technique, practice of science of controlling or that skillful or resourceful use of materials and time etc. it is the administrating or controlling, directing the business affairs of an organization (Hanks, 1985). Management signifies the executive function of planning, organizing, coordinating, controlling and supervising any industrial or business project of activity with responsibility of results.
The principal objective of property management is to maintain a property in a state to command the greatest possible net return and to protect the owners capital investment at all tarries. One unique feature of commercial properties is that they are often relatively large and complex buildings. Some of which are multi-stored or high rise type. The complexity is viewed in terms of the bigness of the structure and diverse and multiple occupants inform the need for specialized skill and training for effective and efficient service delivery. Considering the huge capital investment in their construction, it is prudent that their efficient management be of paramount importance.
Throncroft1965, upholds that problems of commercial properties are basically that of estate planning and control, and are related to legal, physical and economic facets of real properties. He went further to state the following as some of the problems that a property manager will face: collection of rent, rent review, quarrel among tenants, sub-letting of property, demand by tenant, routine inspection and tenant selection etc. other daily problems that the property manager will face or encounter are electricity, maintenance of common path etc. and some tenants find it very difficult to settle these bills.
As with all forms of public properties the management of commercial properties presents peculiar problems that demand their own solutions.
Management problem exerts a lot of pressure on estate managers. This research is aimed at high lighting the problems inherent in the management of commercial properties using Uyo urban as a case study – this is with a view to devising ways of solving the problems.
1.2 STATEMENT OF THE PROBLEM
In most cases, tenants are not always willing to pay rent and other bills attached to the occupation and those willing to pay are not doing so at the appropriate time and this in turn affects the effective management of commercial properties.
Problems arise in letting arrangement where tenancy agreement failed to mention the responsibility of the tenant and its obligations and the procedure involved in the payment of rent.
The inability of any of the parties to perform fully or in part his/her own part of the agreement brings about management problems, and management problems hinder effective operations of the property management activities. Depending on the magnitude of the problems, ineffective service delivery could bring about client dissatisfaction as well as prevent the achievement of the owner’s investment objectives. The property manager could therefore be seen to be negligent and/or incompetent if unable to achieve the objectives of income generation which is the main goal of an investment in commercial property.
1.3 AIM AND OBJECTIVE OF THE STUDY
The aim of the study is to develop an effective means of managing commercial properties.
The objectives are:
1. To examine how commercial properties are managed;
2. To review the problems normally associated with the management of commercial properties; and
3. To suggest ways and means of improving the existing methods of management.
1.4 RESEARCH QUESTIONS
The following are the research questions:
1. How are commercial properties been managed?
2. What are the problems normally associated with the management of commercial properties?
3. What are the ways and means of improving the existing methods of management?
1.5 SIGNIFICANCE OF THE STUDY
This research on completion is hoped to bring forth the effective means to be taken to solve the problems in managing commercial properties.
It will also serve as a yard stick to the relevant estate agent charged with the duty and responsibility to prevent the occurrences of management problems.
In academic field, it will serve as a reference work to students intending to embark on research in this area in future.
1.6 SCOPE OF THE STUDY
Although the study area is Uyo urban, this research shall focus mainly on the major roads from Ibom connection spanning 5 kilometers, where there is a high concentration of commercial properties. These roads are: Oron, Ikot Ekpene, Aka and Abak Roads.
1.7 THE STUDY AREA
Geographically, Uyo is a city in south-eastern Nigeria, and it is the capital state of Akwa Ibom State, major oil producing state of Nigeria. The city became a capital of Akwa Ibom state on September 23, 1987 following the creation of Akwa Ibom State from Cross River state. The city comprises of four (4) clans which are Ibiono Ibom, Etoi, Offot and Uku and is located at latitude 5.300 north and longitude 7.930East. The city is bounded in the north by Itu, east by Uruan, west by Abak and south by Nsit Ibom, Ibesikpo and Etinan Local Government Area of Akwa Ibom State.
According to the National Population Census of 2006, Uyo is estimated to be 320,250 people. The city can be accessed by road and by air via the Ibom airport also known as Akwa Ibom International Airport. Uyo is a fast growing city as the ciy boasts of some massive infrastructural growth especially with the past 10years. It has an intensive network of dual carriage roads such as NsikakEduokAvenue currently the widest road in Uyo metropolis. It is an eight lane, super highway bordered with carpet grasses, flowers, trees, and traffic light and street lights.
The major roads into the city are Oron road/airport road, Abask road, Nwaniba road, Itu road, Ikot Ekpene road and Aka road while the major roads within the city are NsikakEduok Avenue, OlusegunObasanjo Way, AtikuAbubakakar Avenue, Wellington Bassey way, Idoro road and UdoUdoma avenue, IBB way.
As a fast growing city, Uyo is a home to many notable housing districts such as the Ewet Housing Estate, Shelter Africk and other estates located in various parts of the city as well as private estate and other residential districts. The city has two major industrial estates including the Itam industrial estate. The city of Uyo is notably neat and hospitable to foreigners and its aborigines. High blow residential areas in Uyo include the prestigious Ewet Housing Estate, Shelter Afrik and a host of other choice areas in the city and its environs.
The city also boasts of public recreational areas such as the Ibom connection and the prestigious Le Merdian Ibom Hotel and Golf Resort which is still under construction, when completed will be the largest hotel in the West African region. The state has other recreational projects which are under, construction and the city also has a museum. (Source: www.google.com).
PROBLEMS OF MANAGING COMMERCIAL PROPERTIES
