Appraisal of the Effect of Property Management on Property Value
Chapter One
OBJECTIVES OF THE STUDY
- To ensure that the property is kept in a good state of repairs through regular maintenance within the estate.
- To ensure that all management tools such as letting, maintenance schedule, rent collection, etc are properly articulated.
- To elongate the economic life or useful life of a property through activities that tend to remove physical, economic, and functional obsolescence.
- To identify the well-managed and neglected properties in the study area to compare their levels of income as well as state of maintenance.
- To proffer necessary measures that should be taken in remedying the identified anomalies in poorly managed properties.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
INTRODUCTION
Property assets, that is, land and buildings are a key resource for all types of organizations, including local authorities and public sectors (Gilson, 1994; Nwuba, 1994) .They are fundamental to existence of life.
The property industry in Ibadan Metropolis has been confronted with pressure due to population growth and urbanization challenge, which triggered the rising needs for both residential and commercial properties. In the metropolis, lack of strategic approach to management, the limited recognition of the value of these assets by property users and operational decision makers, gradual shift in emphasis on quality and ethics have eroded the significance of property management. This has however generated the influx of quacks?
On the account of the significant contribution that property makes to ultimate success or failure of a business and recognition of strategic importance of property to a company? Financial structure, the need for efficient and ethical management is imperative. It is important to accept the fact that from both public and private perspectives, property can be considered as having financial contribution and effect upon annual financial statements, asset base and as well as in resale values in case of privatizations of any public entities. The sustainability of property assets as source of wealth creation requires effective and creative management- physical, financial, human, information and social management.
Against this background, these property assets demand that they are professionally managed within the context of ethics, to ensure that asset value is maintained and preserved. Property market as a decision making unit (Robinson and Reed, 2003) operates within the realm of ethics and interaction of human behaviour. Ethics may be seen as the science of conduct, it involves learning what is right and doing the right thing. Ethics are principles, policies and values that serve as operational guidelines for individuals and organizations for decisions concerning what is morally right and or wrong (Nwachukwu, 2007 pp. 18 19).
However, property management is a network chain of personnel such as manager, private investors, public and corporate organization, prospective tenants, existing tenants and lawyers. The challenges in the work place, the diverse background of the employees, the impact of globalization and technology have all contributed in making the practice of ethics very difficult. Managers are increasingly finding out that in making business decisions, they select from alternatives that are neither wholly right nor wholly wrong. In such case, there is no clear moral compass to guide leaders through the complex dilemma of what is right or wrong in property management parlance.
Man, nations, regions and the world would be severely limited in development without transportation, which is a key factor for physical and economic growth (Oyesiku, 2002). Transportation systems and land use are interdependent. Indeed findings of earlier studies indicate compelling and consistent connections amongst them (Ewing and Cervero, 2001; Polzin, 2004). According to Bailey, Mokhtarian, and Littlel (2008), transportation route is part of distinct development pattern or road network and mostly described by regular street patterns as an indispensable factor of human existence, development and civilization. The route network coupled with increased transport investment result in changed levels of accessibility reflected through Cost Benefit Analysis, savings in travel time, and other benefits. These benefits are noticeable in increased catchment areas for services and facilities like shops, schools, offices, banks, and leisure activities. Road networks are observed in terms of its components of accessibility, connectivity, and traffic density, level of service, compactness, and density of particular roads.
CHAPTER THREE
RESEARCH METHODOLOGY
RESEARCH DESIGN
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to examine the appraisal of the effect of property management on property value.
SOURCES OF DATA COLLECTION
Data were collected from two main sources namely:
(i)Primary source and
(ii)Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
POPULATION OF THE STUDY
Population of a study is a group of persons or aggregate items, things the researcher is interested in getting information on the study appraisal of the effect of property management on property value. 200 land owners in Four zones of Awka urban was selected randomly by the researcher as the population of the study.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
INTRODUCTION
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY CONCLUSION AND RECOMMENDATION
INTRODUCTION
It is pertinent to note that this research was aimed at examining the appraisal of the effect of property management on property value, thus the topic “appraisal of the effect of property management on property value”.
In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges associated with property management and property value in Nigeria.
SUMMARY
The study found that most Estate Surveyors and Valuers rely on intuition in deciding the relative accessibility of arterial roads. Estate Surveyors and Valuers cannot afford to continue providing inadequate professional advice that is based on mere intuition. This is because investors in commercial properties require professional opinions on locations that will make such investment viable. The analysis showed individual levels of accessibility of the arterial roads in the study area, thereby giving developers and investors the choice of alternative sites along the roads.
The study found that highest demand for commercial property values was found along the arterial roads within the central part of the study area, where there is high rental value. This implies that high rental value shows direct relationship with demand for commercial properties in the study area. This was not unexpected as the central part of urban areas offer advantages of agglomeration of commercial activities. The findings also supports earlier works of Alonso (1964), Lean and Goodall (1977), and Di Pasquale and Wheaton (1996).
CONCLUSION
This study empirically examines the appraisal of the effect of property management on property value in Awka Metropolis, Nigeria. The factors that contribute to the extent of poor management system, which trigger the proliferation of non-professionals, such as working environment, social environment, personal values and societal value. The assessment of sub-variables under each variable appeared to be a reflection of the problem of non-compliance of estate surveyors and valuers (property managers) with the professional code of conducts. The study also established that the practice of property management can be improved.
Having identified the significance of ethics, it can be deduced that the property industry cannot continue to ignore unethical or ethical behaviour and successfully satisfying clients. Application of ethical principles is required in any activity associated with human interaction and indeed with wider interaction in the natural and man-made environment.
RECOMMENDATIONS
- This study recommends that estate surveyors and valuers (managers) should be further reminded in the principle of clients’ satisfaction (landlords and tenants) within the context of ethics, adoption and proper implementation of ethics of property management as put down by the Institution’s rules and regulations, NIESV 2005.
- An analytical mind will be required in an emerging competitive professional terrain in which other professionals are currently challenging Estate Surveyors and Valuers over their relevance. However, the study found that most Estate Surveyors and Valuers have not been actively involved in the use of scientific techniques to measure accessibility in relation to property value. The propensity of error in judgment based on intuitive decisions is very high and the best way to reduce such misjudgment is to adopt scientific techniques.
REFERENCES
- Anthony Schools Corporation (1990) “Ethics of Real Estate Code American Institute of Management, Inc. (1959)what is Management?Pp. 2-6.of Professional Conduct”, Anthony Schools,Continuity Education Series.
- Adriaanse, C.C.M. (2007), Measuring residential satisfaction: a residential environmental satisfaction scale (RESS), J Housing Built Environ, No 22, pp. 287-304.
- Alkay, E. (2009), Th e relationship between environmental quality level and housing sale prices in the Istanbul Metropolitan Area, A/Z ITU Journal of the Faculty of Architecture, Vol. 6, No 1, pp. 60-76.
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- Baumhart, A.C. (1971) “How Ethical Are Businessmen”?Harvard Business Review.Vol. XXXIX. Pp. 672
- Bailey, L., Mokhtarian, P. L., Little, A. (2008). The Broader Connection between Public Transportation, Energy Conservation and Greenhouse Gas Reduction. Report prepared as part of TCRP Project J-11/ Task 3 Transit Cooperative Research Program, Transportation Research Board submitted to American Public
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