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1 – 10 of over 1000
Article
Publication date: 20 June 2016

Job Taiwo Gbadegesin, Harry van der Heijden and Peter Boelhouwer

The purpose of this paper is to investigate the nature and dimension of non-compliance (defiance) with lease agreement obligations in private rental housing market between…

Abstract

Purpose

The purpose of this paper is to investigate the nature and dimension of non-compliance (defiance) with lease agreement obligations in private rental housing market between managers (agents/private rental housing providers or landlords) and end-users (tenants – rental housing consumers), with a view to identifying challenges in rental housing lease administration in Nigeria emerging rental market.

Design/methodology/approach

The quantitative data collected from practicing estate surveyor and valuers (statutorily registered agents), who manage private rental housing in their portfolios on behalf of owners and tenants, who occupy rental housing within Lagos state (the largest property market in Nigeria and West Africa). Using a theoretical model in the context of five lease agreement obligations, data collected were analyzed using descriptive and inferential statistics (one sample t-test, independent t-test and correlation).

Findings

While economic circumstances (economic factors) are considered the major vulnerable factor that cause acts of non-compliance, defiance against “covenant not- to- sublet (subletting covenant (SC))” and “prompt rental payment covenant” are the two most non-compliance attitudes (precipitation events) observed from both actors. There is correlation among all vulnerability elements and precipitating events. While a significant relationship was only observed between “SC” and all vulnerability elements on the part of agents, there is significant relationship among all the vulnerability elements and precipitating events on the part of tenants. Also, while tenants attached higher significance to all the vulnerability factors than managers, both actors attached different level of priority to precipitating events. Lastly, equitable remedies and peaceful entry are the two most adopted intervention tools.

Research limitations/implications

This paper is limited to seeking both the professional opinion of licensed/registered agents and the rental housing consumers-tenants.

Practical implications

The research points to an increasing need for the stakeholders – Estate Surveyors and Valuers Registration Board of Nigeria (a Government parastatal) and the Nigerian Institutions of Estate Surveyors and Valuers (the constituted professional body), to establish and reform the code of practice in this direction with due consideration to the factors identified in this study. Effort also should be upgraded in the intervention techniques adopted in order to improve on emerging rental market.

Originality/value

The paper explores an important aspect of lease administration in private rental housing market. It also provides platform on which the acts of defiance can be wiped out in the emerging rental market.

Details

Property Management, vol. 34 no. 3
Type: Research Article
ISSN: 0263-7472

Keywords

Open Access
Article
Publication date: 10 August 2022

Job Taiwo Gbadegesin

The purpose of this paper is to investigate how the pandemic affects tenants’ response to their lease obligations. This paper commences with examining the adopted tenant selection…

1363

Abstract

Purpose

The purpose of this paper is to investigate how the pandemic affects tenants’ response to their lease obligations. This paper commences with examining the adopted tenant selection criteria during the COVID-19 pandemic. Then, this paper statistically tests if there is a relationship between selection criteria and response on whether the pandemic has effects or not. Then, this paper investigates the specific areas of impact on tenants’ ability to adequately keep to lease agreements in the Nigerian rental market. Finally, this paper proceeds to confirm if there is a relationship between selection criteria and the aspects of tenants’ deficiencies in rental obligations because of COVID-19.

Design/methodology/approach

Survey data, backed with interviews, is elicited from practicing estate surveyors and valuers and licensed property managers in Lagos, the largest property market in Nigeria and sub-Sahara Africa. Policy solutions and implications were solicited from personnel at the ministry of housing and senior professionals in the property sector. Data were analyzed using descriptive statistics, factor analysis and computer-aided qualitative data analysis, Atlas.ti.

Findings

Tenant’s health status is now accorded a priority together with others. Numbers of tenants are challenged with keeping to the prompt-rent-payment rule. Other areas of slight breaches included livestock rearing, subletting, alteration and repair covenants. Except for tenant reputation and tenant family size, there was no significant relationship between tenant’s health status consideration and the COVID-19 effect on tenant non-compliance with lease obligation. Tenants’ non-compliance with tenancy obligations has a connection with the tenants’ affordability, reputation, ability to sign an undertaking and health conditions during the pandemic. This paper recommends rental housing policy review.

Practical implications

It is recommended that the rental policy should be reviewed to give room for rental allowance or palliatives, private rental market regulation, exploration of the national housing fund and, if possible, social housing adoption policy in Nigeria.

Originality/value

This paper draws policymakers’ attention to the need to prepare for the future safety net that caters to citizenry welfare in challenging times.

Details

Journal of Facilities Management , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1472-5967

Keywords

Article
Publication date: 1 February 2013

Malcolm Dowden and Emma Humphreys

Difficult economic and trading conditions make lease break options a point of significant legal tension between commercial landlords and tenants. For a tenant, the ability to…

1209

Abstract

Purpose

Difficult economic and trading conditions make lease break options a point of significant legal tension between commercial landlords and tenants. For a tenant, the ability to break a lease provides a means of controlling costs and an exit from liabilities. For landlords, the loss of a tenant's covenant means an immediate adverse effect on the reversionary value of the property. The purpose of this paper is to examine recent English court rulings to highlight the need for strict compliance with break conditions if a tenant is to succeed in ending its liabilities.

Design/methodology/approach

The paper discusses recent rulings to assess the extent to which judicial interpretation of break clauses continues to favour landlords, and whether landlords' conduct in negotiations or correspondence leading up to the exercise of a tenant's break option might engage concepts such as estoppel to bind the landlord to a particular level of compliance or breach.

Findings

The paper concludes that the English court continues to apply a strict approach to compliance with break conditions, and that it remains the tenant's responsibility both to determine what needs to be done by way of compliance and to ensure that those steps are taken.

Originality/value

The authors place the most recent rulings on the perennially vexed issue of compliance with break conditions into a broader context, demonstrating that the judicial approach remains firmly based on the principle that a break option is negotiated for the tenant's benefit, and that any conditions precedent to exercise are highly likely to be construed against the tenant who agreed to a break conditional on anything other than service of notice.

Details

Journal of Property Investment & Finance, vol. 31 no. 1
Type: Research Article
ISSN: 1463-578X

Keywords

Article
Publication date: 3 February 2012

Job Taiwo Gbadegesin and Olatoye Ojo

Management factors of recalcitrant tenants in residential premises have become central concerns of many private residential property owners in Ibadan metropolis. The purpose of…

Abstract

Purpose

Management factors of recalcitrant tenants in residential premises have become central concerns of many private residential property owners in Ibadan metropolis. The purpose of this paper is to investigate the causes and dimension of the phenomena so as to prevent the loss of rent and encourage investment in rental housing in the city.

Design/methodology/approach

The study elicited data through personal and direct administration of questionnaires on 51 estate surveying and valuation firms. The data collected included companies' profiles, years of property management experience, properties in their management portfolio, tenants' selection, category of recalcitrant tenants, handling techniques and influencing factors.

Findings

Results indicated that act of non‐compliance and adherence to ethics of property management by estate surveyors and valuers (managers) in the area constitutes a major cause of recalcitrant tenants. Also, estate surveyors and valuers disregard some relevant factors while selecting tenants to fill vacancies such as police report, family factor, rental arrears, maintenance culture, personal/family crisis and mental illness/addiction. These, among others, consequently affect the objectives of investing in rental properties in the metropolis.

Practical implications

The study recommends strict compliance to ethics (rules and regulations) put down in the constitution of NIESV (2005). Also estate surveyors and valuers (managers) should be encouraged to attend mandatory continuing professional development (MCPD). Lease/tenancy agreement should be clearly reached, documented and implemented. All transactions in residential property management should be executed at “arm's length” with transparency without bias.

Research limitations/implications

Future research is needed to undertake statistical references through a comprehensive survey of all types of tenant: private/public tenants, commercial properties tenants and agricultural land tenants in Ibadan land.

Originality/value

The study helps to identity categories of recalcitrant tenants in residential properties, the rental residential properties occupied, causes of recalcitrance and treatment approaches of recalcitrant tenants.

Details

Property Management, vol. 30 no. 1
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 21 August 2007

Michael Jayne, David Mackmin and Paul Syms

The purpose of this research is to review the response of professionals involved in the letting and management of industrial buildings to the implementation of Part IIA of the…

1449

Abstract

Purpose

The purpose of this research is to review the response of professionals involved in the letting and management of industrial buildings to the implementation of Part IIA of the Environmental Protection Act, 1990 which, has imposed a regime of “strict liability”, in terms of contamination, has implications for the owners, occupiers and managers of such properties and may be affecting rental and capital values of industrial premises. This research explores the current awareness of all parties to these changes.

Design/methodology/approach

The study reported in this paper examines current practices in the UK and identifies areas where changes may be required, or be desirable, in order to arrive at recommendations as to “best practice”. The work was undertaken in three phases, a questionnaire survey involving leasing and managing agents, real estate owners, lawyers and bankers; a consultation stage with representative organisations including the Royal Institution of Chartered Surveyors (RICS), the Environment Agency, British Property Federation, British Bankers Association, British Insurance Association, the Law Society and the Confederation of British Industry (CBI) and interviews with a representative sample of persons from the survey. This paper reports on the questionnaire survey phase.

Findings

The research identifies considerable variation in how professionals are responding to current environmental legislation. Many seem to leave “environmental” matters to the lawyers, or to rely on standard lease terms. The paper suggests areas for improving best practice.

Research limitations/implications

The research was primarily concerned with aspects of lease management rather than with valuation but it has identified the need for further research in areas such as rent determination and assignment pricing.

Originality/value

The research has identified areas of practice in need of review by professionals in this field from which conclusions as to “best practice” have been drawn.

Details

Property Management, vol. 25 no. 4
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 28 April 2014

Patrick T.I. Lam, Edwin H.W. Chan, Ann T.W. Yu, Wynn C.N. Cam and Jack S. Yu

This paper aims to investigate how unique features of built facilities would affect the application of greenhouse gas (GHG) emissions trading, and to explore what adaptive…

1177

Abstract

Purpose

This paper aims to investigate how unique features of built facilities would affect the application of greenhouse gas (GHG) emissions trading, and to explore what adaptive measures may be taken for emissions trading to be applied to the built environment. Emissions trading is a financial tool to encourage GHG emissions reduction in various industries. As the building sector is responsible for a large amount of GHG emissions, it is valuable to explore the application of emissions trading in built facilities.

Design/methodology/approach

The analysis is based on a comparative study reviewing the current emissions trading schemes (ETSs) in Australia, Japan and the UK covering the building industry, and to evaluate the approaches adopted by the schemes to tackle the problems related to buildings and facilities management.

Findings

The research findings reveal that the small energy savings of individual building units, the large variety of energy-saving technologies and the split incentives and diverse interests of building owners and tenants would be the barriers hindering the development of emissions trading. To overcome these barriers, an ETS should allow its participants to group individual energy savings, lower the complexity of monitoring and reporting approaches and allow owners and tenants to benefit from emissions trading.

Originality/value

This article provides a comprehensive overview of the current emissions trading practices in the built environment. Besides, it raises the attention and consciousness of policymakers to the need that building characteristics and facilities management should be taken into consideration when designing an ETS for the building sector.

Details

Facilities, vol. 32 no. 7/8
Type: Research Article
ISSN: 0263-2772

Keywords

Article
Publication date: 27 January 2021

Emily Walsh

This paper aims to analyse the extent to which recent changes in the law, most notably the Homes (Fitness for Human Habitation) Act 2018 and proposals for changes in tenant

Abstract

Purpose

This paper aims to analyse the extent to which recent changes in the law, most notably the Homes (Fitness for Human Habitation) Act 2018 and proposals for changes in tenant redress, will help tenants living in the private rented sector (PRS) with issues of disrepair and poor living conditions.

Design/methodology/approach

It applies theoretical scholarship on procedural justice, to two proposals for reform, namely, compulsory membership of redress schemes and a new housing court or use of the first-Tier Tribunal for claims relating to disrepair.

Findings

The Homes (Fitness for Human Habitation) Act 2018 will not provide decent private rented homes without increased security of tenure and a requirement for inspection prior to letting. Tenants should have the right to a fit home at the time of moving in and a cheap and relatively fast method of redress when things go wrong. A combination of compulsory licencing, membership of an ombudsman scheme and either the transfer of disrepair cases to the first-tier tribunal or a new housing court would provide the best overall solution for tenants with regard to repair and condition.

Originality/value

This study contributes to the important scholarship on procedural justice and applies it to ongoing current debates regarding disrepair in the PRS.

Details

Journal of Property, Planning and Environmental Law, vol. 13 no. 1
Type: Research Article
ISSN: 2514-9407

Keywords

Article
Publication date: 9 May 2008

Howard Cooke and Simon Woodhead

The purpose of this paper is to look at the problem caused by the operation of break clauses contained in commercial leases – a predominantly UK phenomenon, a consequence of…

1194

Abstract

Purpose

The purpose of this paper is to look at the problem caused by the operation of break clauses contained in commercial leases – a predominantly UK phenomenon, a consequence of longer lease terms.

Design/methodology/approach

The pitfalls that can befall a corporate occupier are numerous and the authors of this paper share some of their recent experiences to highlight issues that can arise and how a Corporate Real Estate Manager or advisor can avoid or minimise those risks.

Findings

For corporate occupiers, the operation of a break clause can be fraught with difficulty and its successful implementation requires a strategy to be put in place well in advance of the break date.

Originality/value

The paper shows how turmoil in the wider financial market could make the flexibility that breaks offer very important to certain businesses.

Details

Journal of Corporate Real Estate, vol. 10 no. 2
Type: Research Article
ISSN: 1463-001X

Keywords

Article
Publication date: 1 June 2010

Mohd Nazali Mohd Noor, Michael Pitt, George Hunter and Matthew Tucker

The RICS code of practice “Service Charges in Commercial Property” was introduced in 2007 with the intention to promote best practice guidelines in the provision and management of…

1320

Abstract

Purpose

The RICS code of practice “Service Charges in Commercial Property” was introduced in 2007 with the intention to promote best practice guidelines in the provision and management of commercial service charges. The paper seeks to review the compliance of the code after two years from its inception.

Design/methodology/approach

The research employs comprehensive literature reviews and documental analysis through a number of publications retrieved from electronic databases, reports, journals, books, and other relevant secondary information. A critical review of the materials gathered is carried out in understanding the key recommendations as set within the RICS code against the current practice.

Findings

Huge gaps are identified between the RICS against existing practice involving several key headings such as transparency, value for money, communication, and responsiveness.

Research limitations/implications

Since the code was only introduced in 2006, limited sources of data available prevents comprehensive results, underlining further discussions on the effectiveness of the code in resolving the critical commercial service charges aspects within the real estate industry.

Practical implications

While the paper intends to raise awareness among the commercial properties stakeholders, recommendations that are made in the paper can be utilised to minimise the gap that exists between the guidelines and the actual implementation by harnessing concerted efforts among the stakeholders in commercial property industry.

Originality/value

This paper provides an in‐depth snapshot of the RICS code of practice to commercial service charges and the progress that has been made towards the application of the guidelines since it was introduced in 2006.

Details

Journal of Corporate Real Estate, vol. 12 no. 2
Type: Research Article
ISSN: 1463-001X

Keywords

Article
Publication date: 1 May 2020

Sarah Louise Sayce and Syeda Marjia Hossain

The paper investigates the initial impacts on asset management and valuation practice of the Minimum Energy Efficiency Standard (MEES) introduced in England and Wales from April…

Abstract

Purpose

The paper investigates the initial impacts on asset management and valuation practice of the Minimum Energy Efficiency Standard (MEES) introduced in England and Wales from April 2018 for new lettings.

Design/methodology/approach

The paper reports findings from a small-scale pilot study of valuers, asset managers, lawyers and building consultants. Interviews were conducted over the summer of 2019 and explored the impact on practice and market values and perceived links to the carbon reduction agenda. Data were analysed thematically manually and using NVivo software.

Findings

Participants welcomed MEES but many had doubts about the use of energy performance certificates (EPCs) as the appropriate baseline measure. Compliance was perceived as too easy; further, enforcement is not occurring. Vanguard investors have aligned portfolios for carbon reduction; others have not. Lease practices are changing with landlords seeking greater control over tenant behaviours. Valuers reported that whilst MEES consideration is embedded in due diligence processes, there is limited value impact.

Research limitations/implications

The study is limited by its small-scale and that the MEES regulations are not yet fully implemented. However, the research provides early findings and lays out recommendations for future research by identifying areas in which the regulations are/are not proving effective to date.

Practical implications

The findings will inform investors, consultants and policy makers.

Social implications

Achieving energy efficiency in buildings is critical to driving down carbon emission; it also has economic and social benefits through cost savings and reducing fuel poverty.

Originality/value

Believed to be the first post-implementation qualitative study of MEES.

Details

Journal of Property Investment & Finance, vol. 38 no. 5
Type: Research Article
ISSN: 1463-578X

Keywords

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