PROBLEM OF RENT COLLECTION AS AN ASPECT OF RESIDENTIAL PROPERTY COLLECTION
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PROBLEM OF RENT COLLECTION AS AN ASPECT OF RESIDENTIAL PROPERTY COLLECTION
ABSTRACT
Rent is a recurring payment made to the owner of a property in exchange for the use of that property. This payment is increasing in modern times due to a variety of variables such as rising commodity prices, inflation, and landlord greed.
Similarly, rent collection is hampered by a slew of issues, which frequently lead to schisms between landlords and tenants. However, these rent collecting issues can be effectively resolved, establishing a positive landlord-tenant relationship.
This study aims to accomplish this by identifying the challenges with rent collecting in residential properties in Enugu and making recommendations on how to overcome them.
Over time, the government has put in place mechanisms to make the process of collecting rent easier. These actions have taken the shape of rent control edicts, repossession of premises edicts,
and the establishment of rent courts. These laws have been established and changed by several states of the federation to solve rent collection issues unique to their state.
States like Cross-River, Kwara, Anambra, and Lagos have done so. This study will examine these regulations in order to gain a better understanding of how they might be used to address the difficulties of rent collecting in residential properties in Enugu metropolitan.
This study will focus on three neighbourhoods. They are located in Enugu metropolitan and include new Haven, Obiagu, and Achara Layout.
CHAPITRE ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Housing is one of man’s most fundamental requirements, second only to food and third only to clothes. As man progresses from one stage to the next, the need for good shelter becomes more apparent. The growing human population and advancements in technology have raised the need for homes.
This requirement has been supplied over time by developers who provide residential property and collect rent from renters. The increased demand for housing, which continues to outstrip available supply, has resulted in an increase in the rental price of property, particularly residential housing.
Housing is a basic necessity that is met by both the public and private sectors. The private sector, which is a major provider of housing, charges high rents and uses a variety of ways to collect rent.
However, challenges with rent collection in residential buildings frequently force landlords to adopt drastic steps to ensure that rent is paid. Landlords and tenants can engage in protracted court disputes that can last for years.
Both governmental and private developers have implemented measures to resolve rent collection issues. To help ensure that rent collection issues are handled effectively and with few conflicts, the government has implemented rent control edicts and rent tribunals.
Rent collecting is a method of residential property management used by both public and private housing providers. It entails the collection of an agreed-upon sum of money after a set length of time, which could be monthly, annually, or bi-annually, depending on the circumstances.
Rents received on residential property are used to manage the property and, if necessary, rehabilitate it. This helps to extend the life of the property. In order to account for inflation, rent on a property is normally subject to an increase after a set length of time.
Rent collection is the primary responsibility of the housing provider in Nigeria and Enugu city. This obligation, however, is frequently transferred to third parties who collect rent on behalf of the owner. Such delegation is typically given to Estate Agents,
caretakers, or any other person who enters into contractual agreements on behalf of the landlord for rent collection and new tenant admission. When acting on behalf of landlords, estate agents collect monthly or yearly fees. These costs are added to the tenant’s rent, raising it even more.
As a housing provider, the government has made various attempts to address the issue of rent collection in Nigeria. The government has implemented steps such as the rent control and recovery of premises edict,
as well as other comparable laws found in various states. The rent control edict has been enacted by many federation states to reflect their differences. These laws address issues such as rent fixing, collection manner, and increase.
Rent collection on government-owned residential property is less problematic than rent collection on private property. This is frequently the case because tenants believe the government has more ability and authority to evict them from their homes than private persons.
As a result, whether the rent is big or low, they easily comply with the payment of rent on time. The method by which the government collects rent from renters, which is normally through government agencies, also contributes to the reduction of problems with rent collection on government-owned residential property.
STATEMENT OF THE RESEARCH PROBLEM
The method of collecting rent on residential property is fraught with difficulties. One of these difficulties is late rent payment. Some tenants fail to pay by the agreed-upon deadline.
This could be due to their employers’ failure to pay their salary on time, an increase in rental prices, or the consequences of inflation, among other factors. Delays in rent payment frequently result in the renter being penalised
by paying more than the agreed-upon rent. It could also lead to court conflicts between the landlord and the renter, which could result in the tenant being evicted forcibly.
Another issue with rent collection is the issue of regular increase. When the period for rent increment is not defined in the ‘Tenancy Agreement,’ this circumstance may occur. This puts residents at the whim of shady landlords who can raise rent at any time.
Similarly, when landlords delegate their rights to agents who operate on their behalf, these agents levy service fees that are added to the rent. Tenants typically interpret this as a rent increase.
Furthermore, most landlords do not provide adequate time or even official notice of rent increases to renters. These issues result in payment delays or even denial.
A third issue is the lack of any documented agreement between landlords and tenants. When a document with data on the amount to be paid, when to pay, and to whom to pay is absent, it might cause problems when rent collection is due.
The lack of a ‘Tenancy Agreement’ may lead to arguments between the landlord and the tenants about whether rent should be paid annually or monthly, as the case may be.
Rent collection gets difficult when the property in question belongs to a family and the members disagree on who should be paid rent to. Furthermore, if the landlord and tenant are involved in a legal dispute,
the renter may refuse to pay rent until the problem is resolved. To do this, the tenant may devise a method of causing the case to linger, at which time the rent is forfeited.
Other issues with rent collection stem from ongoing inflation and increases in the cost of raw materials, which raises the cost of rent.
1.3 PURPOSE AND OBJECTIVES OF THE STUDY
The purpose of this research is to “evaluate the problems of rent collection as an aspect of residential property management in Enugu,” with the goal of offering recommendations on how to handle these issues.
The following aims will aid in accomplishing the study’s goal:
1) To ascertain the strategies used by residential property owners in Enugu metropolitan to collect rent.
2) To ascertain the government’s contribution to rent collection.
3) To detect rent collecting issues in Enugu metropolis residential properties.
4) To give recommendations on feasible solutions to the identified rent collection challenges in Enugu city.
1.4 RESEARCH QUESTIONS
During the project, the following research questions will be addressed:
1. What are the techniques of rent collection in Enugu residential properties?
2. How has the government helped in rent collection in Enugu?
3. What are the issues with collecting residential property rent in Enugu?
4. How can Enugu’s residential property rent collecting issues be resolved?
1.5 SIGNIFICANCE OF THE STUDY
This study on the evaluation of rent collecting challenges in Enugu metropolitan is especially important given the rising tide of tenancy litigation in law courts. This study will aid in the reduction of tenancy cases by identifying rent collection issues and proposing solutions to these issues.
The strain on the courts will be reduced if the number of rent-related lawsuits in court is reduced, and enough time will be dedicated to other more essential matters.
The importance of this study can also be observed in the lowering of tenant evictions by force. This will result from improved communication between landlords and tenants.
Furthermore, because rent collection is an important component of property management, this research will help property owners determine the best manner to collect rent. This will help to reduce time spent on litigation as well as valuable resources.
1.6 SCOPE OF THE STUDY
The topic of this study is issues with rent collection as a component of property management in Enugu. However, the focus would be solely on residential homes in Enugu. This is due to the fact that rent collection encompasses a wide range of property kinds,
and diving into these would make the study too broad. The research will also look into the techniques of collecting rent in Enugu’s residential properties. This will aid in recognising the issues that they include.
Furthermore, this paper examines the government’s contribution to rent collecting in the form of numerous edicts, bye-laws, and acts. Attempts will be made to identify locations
where the government’s assistance to rent collection might be used to solve rent collection challenges in Enugu metropolitan. Finally, recommendations will be given based on the study’s findings on how to alleviate the challenges of rent collecting in Enugu city.
1.8 SUMMARY OF THE STUDY
This paper examines rent collecting probes as a part of residential property management in Enugu city. In other words, efforts will be made to identify rent collecting issues as they relate to residential property.
During the study, the strategies used by landlords to collect rent for residential property will be examined in order to determine the efficacy of the strategy. To accomplish this, the researcher will conduct interviews with chosen landlords, tenants, and agents.
Furthermore, this study will assess the government’s involvement to rent collection by examining numerous rent control edicts and other rent control regulations. The study’s major goal is to assess the challenges of rent collection as an aspect of property management in Enugu city.
To assist in attaining the goal, objectives such as determining the methods of rent collecting in residential property, determining the involvement of the government to rent collection, and identifying the issues of rent collection were drafted.
Finally, this research is divided into five chapters. The first chapter discusses the study’s background, the second the literature review, and the third the research methods. The fourth chapter discusses data presentation and analysis, while the fifth part discusses recommendations and conclusions.
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