Managing Residential Property: Solutions from Estate Surveyors and Valuers

Udo Emmanuel Sunday

Introduction

Real‑estate investment is often seen as the simplest route to wealth, offering a secure source of income. Investing in property ties up scarce resources with the expectation of future capital gains, rental income, or utility. Those gains can only be realised when the property is managed properly. Property letting has become a key function of the Estate Surveyor, especially in difficult economic times when reaching a wider market is essential to secure timely lettings at competitive rents.

The Estate Surveyor’s primary role is to facilitate the transfer of ownership of real property, whether through short‑term leases or outright sales.

This article critically examines post‑letting problems and proposes viable solutions and recommendations.

Challenges of Property Management

A Surveyor who accepts a property for management assumes significant responsibilities, as defined by the authority granted in their appointment.

Letting Surveyors often rush to close more deals, sometimes overlooking important details before handing the property over to the management team.

Post‑letting issues in multi‑tenanted residential buildings are numerous and require professional handling. These include, but are not limited to:

Rent Collection and Default

Rent payment is a tenant’s primary obligation, yet this is not always observed in our country. While it is usually easy to collect the first one or two years’ rent in advance, subsequent payments often become problematic. During our management experience, many tenants struggle to renew their rent, leading to frequent “notice to quit” issuances.

Lease Agreement

Tenants often delay signing lease agreements, using the time to avoid accepting responsibility for repairs and payment of service charges, utilities, etc.

Design Problems

Design defects arise when landlords fail to seek professional advice during construction. These defects create functional obsolescence and management challenges for the Surveyor, affecting parking, facilities, toilets, staircases, ventilation, and more.

Maintenance/Repair Responsibilities

Landlords sometimes neglect their repair obligations, passing the burden to tenants, who in turn find it difficult to pay rent and maintain the property.

The Service Charge Administration

As properties become more complex, expectations of landlords and tenants evolve. Owners aim to recover the full cost of services while tenants seek reasonable enjoyment at a fair cost. Typical service charge items include:

* Security services

* Emergency/security lighting for common areas

* Payment of general and water rates

* Repair and maintenance of standby generators

* Cleaning of common areas

* Management costs of the services

Possible Solutions and Approaches

Several approaches can address the challenges outlined above:

Rent Collection and Default

At the outset, the managing Surveyor should conduct thorough enquiries about the tenant’s occupation and workplace to confirm their ability to pay rent. Demand notices should be sent six months before rent expiry, with reminders at three months and one month.

Lease Agreement

The lease should be prepared and executed by both parties before tenancy commences and before keys are handed over.

Design Problems

The Estate Surveyor and Valuer should be involved at the design stage to advise on material selection, sustainability, durability, and long‑term cost.

Maintenance/Repair Responsibilities

The lease should clearly state the obligations of landlord and tenant, and a maintenance schedule should be established. A portion of the rent may be earmarked for emergency repairs.

Service Charge Administration

For multi‑occupancy properties, services must meet the satisfaction of both owners and tenants. This includes determining and collecting maintenance funds or service charges, provisioning for future replacements of lifts, generators, pumps, etc., and ensuring timely payment of tenement, general, and water rates.

Other management functions include reviewing and advising on redevelopment, refurbishment, re‑adaptation, disposals, acquisitions, and conservation; maintaining a property register with comprehensive data; selecting tenants; negotiating terms; ensuring proper documentation; obtaining required consents; enforcing covenants; and advising on adequate insurance.

Proposed Recommendations

Effective management is crucial to any investment’s success. Professional management, particularly by a well‑trained Estate Surveyor and Valuer, is essential to address post‑letting problems in commercial properties. Innovations in tenant selection, rent collection, and maintenance planning are urgently needed.

Recommendations

Root causes of post‑letting problems lie more with landlords and tenants than with the Surveyor. Nonetheless, the following measures can mitigate these issues:

Preparation of Offer Contract

The managing Surveyor should draft an offer contract at lease commencement, outlining conditions to be met, and obtain acceptance before finalising the lease.

Managerial Autonomy

The Surveyor should be granted full authority to manage the property without undue interference from the landlord.

Involving Property Managers at Design Stage

Successful management requires consideration from the outset. The property manager should collaborate with the investor and users during design to address long‑term needs.

Promotion of Alternative Dispute Resolution (ADR)

Landlords and tenants should be educated about their responsibilities. Disputes are best resolved through ADR rather than litigation or forceful eviction. Arbitration offers a quicker, less formal process that better handles technical issues and fosters a cordial landlord‑tenant relationship.

Use of Computers

Computerisation is vital for maintaining an active property database, aiding planning and budget preparation. Detailed records of day‑to‑day repairs, routine and planned maintenance form the basis of an efficient maintenance system. A policy of periodic inspection and early defect rectification can reduce repair costs.

Conclusion

Property management is intricate, encompassing property, people, accounting, and finance. The expertise of an Estate Surveyor and Valuer is indispensable for effective management.