WEEK 1

INTRODUCTION TO PROPERTY MANAGEMENT (EST 223) - ND2

Understanding Property Management

Property Management
Property management involves the operation, control, maintenance, and oversight of real
estate and physical property. This includes residential, commercial, and land real estate.
The role of a property manager is to act on behalf of the property owner to preserve the
value of the property while generating income.

Types of Properties Managed by an Estate Surveyor and Valuer

Estate surveyors and valuers manage various types of properties, including:
● Residential Properties: This includes individual houses, apartments, and multi-family
homes.
● Commercial Properties: Such as office buildings, retail spaces, and shopping centers.
● Industrial Properties: Including warehouses, factories, and distribution centers.
● Special Purpose Properties: Such as schools, hospitals, and government buildings

Functions of Estate Surveyors and Valuers in Property Management

Estate surveyors and valuers perform several key functions in property management:
● Tenant Management: Screening and selecting tenants, handling tenant relations, and
resolving disputes.
● Maintenance and Repairs: Ensuring that properties are well-maintained and
conducting necessary repairs.
● Rent Collection: Collecting rent from tenants and ensuring timely payments.
● Lease Management: Drafting and managing lease agreements.
● Financial Management: Keeping detailed financial records, budgeting, and
managing property expenses.
● Compliance: Ensuring that properties comply with local laws and regulations

Problems Associated with Property Management

Managing properties comes with several challenges, particularly in Nigeria:
● Economic Factors: High inflation and fluctuating market conditions can impact
property values and rental income.
● Regulatory Issues: Navigating complex legal and regulatory requirements can be
difficult.
● Maintenance Costs: The rising cost of building materials and maintenance can strain
budgets.
● Tenant Issues: Dealing with difficult tenants and ensuring timely rent payments can
be challenging.
● Infrastructure Problems: Poor infrastructure can reduce the desirability and value of
properties
 WEEK 2
INTRODUCTION TO PROPERTY MANAGEMENT (EST 223) - ND2
Preparation of Property Management Reports to Clients

Property management report is a comprehensive document that summarises the status,

performance, and management activities of properties.
It is also a communication tool between property managers and property owners, detailing
financial transactions, property conditions, tenant information, and any issues or
improvements needed. These reports help ensure transparency, facilitate decision-making,
and provide an overview of the property's operational and financial health.

Types of Property Management Reports

Various types of property management reports cater to different needs:

● Financial Reports: These include income and expense statements, balance sheets,
and cash flow statements, providing a comprehensive financial overview.
● Operational Reports: Focus on daily operations, including account ledger reports
and maintenance logs.
● Occupancy Reports: Provide insights into occupancy rates, leasing activities, tenant
demographics, and turnover.

Preparation of Property Management Reports

Creating a detailed and accurate property management report involves several key steps:

1. Gathering Data: Collect all relevant data on the property, including financial records
(income, expenses, and cash flow), maintenance activities, tenant information, and
any ongoing or upcoming projects.
2. Organizing Information: Structure the data in a logical format. Common sections
include:
○ Executive Summary: Provides a high-level overview of the report's contents,
highlighting key points and findings.
○ Property Overview: Here, detailed information about the property is
included, such as its location, type (residential, commercial, etc.), size, and
unique features or amenities
○ Tenant Information: Details about current tenants, occupancy rates, lease
terms, and any issues related to tenants.
○ Property Condition Report: Describes the current condition of the property,
including any maintenance issues, repairs undertaken, and improvements
needed.
○ Financial Summary: Includes details such as rental income, operating
expenses, net income, and any significant financial transactions.
○ Maintenance and Operations: A summary of maintenance activities, work
orders, and operational tasks completed during the reporting period.
3. Review and Validation: Review the report for accuracy and completeness. Validate
the data to ensure it is correct and up-to-date.
4. Distribution: Share the report with property owners, typically through email or a
property management portal, or making personal delivery. Ensure that the report is
accessible to all relevant parties, including property owners, investors, and
management team members.
 WEEK 3
INTRODUCTION TO PROPERTY MANAGEMENT (EST 223) - ND2
Factors Influencing the Use and Management of Estate

Understanding the different features of an estate is crucial for effective property management.
These features can be categorised into four main areas: physical identity, economic condition,
legal status, and management character.

i. Physical Identity

The physical identity of a property refers to its tangible attributes, which include:

● Location: The geographical position of the property, which greatly influences its
value and desirability.
● Size and Layout: The dimensions and spatial arrangement of the property, including
the land area and the size of any buildings or structures on it.
● Condition: The state of repair and maintenance of the property, including any
existing wear and tear or the need for renovations.
● Design and Aesthetics: The architectural style, appearance, and design features of
the property, which can affect its appeal to potential buyers or tenants.

In Nigeria, the physical identity of properties is highly influenced by local climate,

urbanization trends, and available infrastructure.

ii. Economic Condition

The economic condition of a property pertains to factors that impact its financial performance
and market value, such as:

● Market Value: The current price at which the property can be sold in the market,
influenced by supply and demand dynamics.
● Rental Income: The potential or actual income generated from leasing the property.
● Operating Expenses: Costs associated with the maintenance and management of the
property, including taxes, utilities, and repairs.
● Economic Trends: Broader economic conditions such as inflation, interest rates, and
economic growth, which affect property values and rental rates.

In Nigeria, economic factors like fluctuating oil prices, inflation rates, and the state of the
national economy significantly influence real estate values and investment returns.

iii. Legal Status

The legal status of a property includes all legal considerations and regulations that govern its
use, ownership, and transfer. Key aspects include:

● Title Deeds: Legal documents proving ownership and the rights associated with the
property.
● Zoning Laws: Regulations that dictate how a property can be used (residential,
commercial, industrial, etc.).
 ● Land Use Act: In Nigeria, the Land Use Act of 1978 significantly impacts property
ownership and management, giving the government control over land allocation and
use.
● Environmental Regulations: Laws and guidelines related to environmental
protection that must be adhered to when developing or using the property.

Legal status is critical in Nigeria, where issues such as land disputes and compliance with
local laws can affect property management and investment decisions

iv. Management Character

The management character of a property refers to how it is administered and overseen,

impacting its operational efficiency and financial performance. Key elements include:

● Property Management: The effectiveness of the property management team in

handling day-to-day operations, maintenance, and tenant relations.
● Maintenance Practices: The strategies and practices in place for maintaining the
property’s physical condition.
● Tenant Relations: The relationship between the property manager and tenants,
including lease agreements, rent collection, and dispute resolution.
● Administrative Systems: The systems and processes used for managing financial
records, legal documentation, and communication with stakeholders.

Effective property management in Nigeria often requires balancing local practices with
modern management techniques to ensure operational efficiency and tenant satisfaction
 WEEK 4
INTRODUCTION TO PROPERTY MANAGEMENT (EST 223) - ND2
Difference between the Management of Public and Private Estate

Private Estates are properties owned by individuals or private entities. They can include
residential buildings, commercial properties, industrial sites, and land for development. The
primary aim is often profit generation or personal use.

Public Estates are properties owned by the government or public entities and are intended to
serve the public interest. Examples include public schools, hospitals, government office
buildings, and public parks. Their focus is more on providing services to the community
rather than generating profit.

The Goals in Private and Public Property Management

● Goals in Private Property Management:

○ Profit Maximisation: Ensuring high returns on investment through rental
income, property appreciation, and effective cost management.
○ Maintenance and Value Addition: Regular maintenance and upgrades to
enhance property value and attract quality tenants.
○ Tenant Satisfaction: Providing high-quality services to retain tenants and
ensure steady income.
● Goals in Public Property Management:
○ Public Service Provision: Ensuring that properties serve the public
efficiently, such as hospitals providing healthcare or schools providing
education.
○ Sustainability and Community Development: Maintaining properties in a
way that supports long-term sustainability and benefits the community.
○ Compliance with Regulations: Adhering to government regulations and
standards to ensure safety and accessibility.

1.3 Describe the Management Functions Associated with Private and Public Properties

● Private Property Management Functions:

○ Financial Management: Budgeting, financial reporting, rent collection, and
managing expenses.
○ Maintenance and Repairs: Routine inspections, maintenance, and repairs to
keep the property in good condition.
○ Marketing and Leasing: Advertising vacancies, screening potential tenants,
and managing lease agreements.
○ Tenant Relations: Handling tenant inquiries, complaints, and ensuring tenant
satisfaction.

● Public Property Management Functions:

○ Facility Management: Ensuring that public facilities are safe, functional, and
well-maintained.
○ Service Delivery: Overseeing the provision of public services such as
education, healthcare, and recreation.
○ Budget Management: Efficient use of public funds, cost control, and
financial accountability.
○ Regulatory Compliance: Ensuring properties comply with all relevant laws
and regulations.
 WEEK 5
INTRODUCTION TO PROPERTY MANAGEMENT (EST 223) - ND2
Landlord - Tenant Relationship

Criteria for Selection of Tenants

Tenant selection criteria are written standards that you use to evaluate each prospect’s
qualification as a tenant. Usually in the property market, tenants are usually selected after the
following criterias have been satisfied. These criterias include:
● Verifying rental applications: Ensure all information provided by the tenant is
accurate and complete, checking for honesty and consistency in the application.
● Confirming identity: Verify the tenant’s identity through government-issued
identification to prevent fraud and confirm the applicant's legitimacy.
● Going over occupancy guidelines: Review how many people will be living in the
property to ensure compliance with local housing regulations and property capacity
limits.
● Investigating rental history: Examine the tenant’s past rental experiences, checking
for issues like evictions or late payments, to gauge reliability.
● Validating employment and income: Confirm the tenant’s job status and income to
ensure they can afford rent and other living expenses.
● Talking with personal references: Contact personal references to get insight into the
tenant’s character, reliability, and lifestyle habits.
● Dealing with guarantors: If the tenant has a guarantor, verify the guarantor’s
financial ability to cover rent in case of tenant default.
● Making your final decision: Consider all gathered information to determine if the
tenant meets your standards for reliability and financial stability.

Duties and Obligations of Landlords and Tenants

Duties and Obligations of Tenant:

1. To pay the said rent at the time and in the manner aforesaid without delay or any form
of prompting..
2. To pay all taxes, rates, tenement rates, assessment, duties, outgoing charges now or
hereafter imposed on the demised premises or on the tenant in respect thereof
3. To pay all charges for electricity on the demised premises during the term
4. To keep and maintain the demised premises and the fixtures thereto in good and
tenantable repair and condition, reasonable wear and tear generally accepted.
5. To allow and permit the Landlord and its agents and workmen during this tenancy
after giving adequate notice to the Tenant to enter and inspect the demised premises
upon giving 48 hours due notice.
6. Not to assign, sublet in any way or manner or part with the possession of the Demised
Premises or any part thereof or to maintain unhealthy population in the Demised
Premises.
7. Not to do or permit to be erected on the premises or any part thereof any new erection
or allow any alteration or addition to the said premises without the prior written
consent of the Landlord first sought and obtained and to restore such approved and/or
permitted alterations or additions to its original state prior to sooner determination of
the tenancy.
8. Not to maim, do or permit to be done any injury, act on any of the walls, POP
ceilings, floors or partitions of the Demised Premises or any part thereof.
9. To insure and keep insured at all times throughout the duration of the terms hereby
granted, the demised premises against fire, storm, flood tornado or any act of God
with a reputable insurance company with the Landlord noted as first loss payee and to
produce evidence of same to the landlord upon giving 48 hours notice.
10. Not to hold or permit to be held any sale or auction or meetings that will offend the
constitutional provisions of Peaceable Associations or Assembly on the demised
premises.
11. Not to install on the demised premises heavy equipment that may cause pollution or
untold hardship to neighbours or structurally deface the Demised Premises.
12. To comply with the environmental sanitation laws, rules and regulations of the Local,
State and Federal Government and be liable for any failure to comply.
13. To maintain the premises in good and tenantable state, clearing and dislodging of
septic tank and soak-away pits serving the premises, prompt replacement of any
damaged fittings ranging from the GMP Windows, Security Doors, Ceiling (with the
approval of the Landlord) et cetera and the general cleaning of the Demised Premises.
14. At the expiration or sooner determination of the tenancy, the Tenant shall peacefully
yield up and surrender the demised premises to the Landlord in good and tenantable
repair(s) and condition(s) with any additions thereto (except tenant’s fixtures) in such
 state of repair, conditions, order and preservation as shall be in accordance with this
agreement.
15. The tenant hereby indemnifies the Landlord against any loss that may occur or cost
that may be incurred in granting this tenancy as a result of the Tenant’s inability
negligent act or omission to comply with any Community, Street, Local, State or
Federal obligations legally imposed on tenants within the area

Duties and Obligations of Landlord:

1. That the tenant paying the agreed rent and performing and observing all the
obligations on its part under this agreement shall peaceably hold and enjoy the said
premises during the tenancy without any interruption or disturbances by the landlord
or any person rightfully claiming to act on its behalf or in trust for it.
2. To keep the demised premises structurally sound, wind and watertight except for fair
wear and tear which shall be the duty of the tenant to maintain.
3. To observe all his portion of the covenants contained in this Tenancy Agreement.
4. To pay all rates and taxes payable in respect of the premises.
5. To do all outside and structural repairs to the premises provided the repairs are not the
result of negligent acts of the Tenant.