Download as pdf or txt
Download as pdf or txt
You are on page 1of 11

The Estate Surveyor and Valuer, Journal of the Nigerian Institution of Estate 2012

Surveyors and Valuers. Lagos, Nigeria. Vol. 36 No 2 pp. 23- 38.

An Evaluation of the Problems of Commercial Property Management


Practice in Nigeria
By
Timothy Tunde Oladokun and Olatoye Ojo
Department of Estate Management
Obafemi Awolowo University, Ile Ife, Osun State, Nigeria
Contact author E mail: tundeoladokun@yahoo.com
Tel. No: +234 (0) 8023152198, (0)7030060097
Abstract
This paper aims to evaluate the problems of commercial property management practice in Nigeria. It seeks
to identify those factors that can significantly prevent the achievement of targeted objective of an investor,
which needs to be guided against.

Questionnaires were distributed to 270 practicing estate firms in Lagos State, Nigeria out of which 159
questionnaires (59%) were returned and found useful for the study. The study adopted the descriptive
method of percentages, mean and proportion method as well as relative importance index (RII) for analysis.
The study found that the key factors/issues perceived as problems of commercial property management in
Lagos State, in order of priority include: high rent, cumulative maintenance problems, electricity and
plumbing needs, cash flow requirements and cost of construction with positive relative importance index of
1.80, 0.98, 0.93, 0.75 and 0.65 respectively. The results of the analysis showed further that other factors
such as: Healing/cooling concerns, failure to disclose fees, lack of skill for negotiation, lack of access to
qualified attorney and improper handling of caution deposit with negative derivations of -0.58, -0.64, -0.72,
-0.74 and -0.82 respectively are considered less significant.

The study advised the professional body to develop a system that will assist members to acquire sufficient
the required capacity and client relationship for effective practice.

Keywords: Commercial, Commercial Property, Problems, Property Management.

1.0 Introduction

Property management is an act of prevent and/or overcome seeming obstacles


intermediation between owners and occupies in the course of the discharge of its duties.
on issues affecting the parties arising from
ownership and occupation of buildings. It is As different from commodity, the
a conscious process of guiding and tailoring deliverable in property management is
an investment in land into profitable service. The property manager advises the
venture. Its main concern is the optimization client concerning the general client policy
of the owners investment (Scarrett, 1995). regarding cooperation and compensation and
The practice is however prone to a lot of as to the best and appropriate choice of
problems which are capable of preventing or tenants for the building. He takes decision
at best reducing the chances of realizing on the best term of lease arrangement and
anticipated investment objective. In other appropriate terms of renewal. In addition to
words, the achievement or success of the art being aware of pending or enacted changes
of nursing and directing an investment in in the zoning ordinance that might affect the
landed property with a view to obtaining market value or use of property being
maximum return is a function of how well a managed, he should be informed as rapidly
property manager is able to effectively and thoroughly as feasible about laws,
proposed legislation, government
regulations, public policies and current Property management, according to Scarett
market conditions. (1995) must be based on the terms of the
contractual agreement between the parties
Property managers seem to be of more on the one hand, on an appreciation and
relevant in the current economic interpretation of the particular owners
dispensation. The global collapse of the objective on the other hand. This thus
capital market with its attendants effects, requires a
which has not spared African countries like high degree of compliance with the
Nigeria, are seen to be compelling investors provisions and terms as well as performance
to redirect their investment ventures into real on the part of the parties. The in-ability of
estate, especially with visible foreign and any of the parties to perform fully or in part
local investments in commercial properties. his/her own part of the agreement brings
These are properties acquired for the about management problems. Management
purposes of yielding regular inflow of problems hinders effective operations of
income to investors. Commercial properties property management activities. Depending
are often relatively large and complex on the magnitude of the problems,
buildings some of which are multi-storeyed ineffective service delivery could bring
or high rise type. The complexity involved about client dissatisfaction as well as
in terms of the bigness of the structure and prevent the achievement of the owners’
diverse and multiple occupants informed the investment objective(s). The ‘expert’
need for specialized skill and training for property manager could therefore be seen to
efficient and effective service delivery. be negligent and/or incompetent if unable to
achieve the objectives of income generation
The many and varied duties of a property which is the main goal of an investment in
manager require the skills of a business commercial property.
executive, decorator, salesperson, parking
lot attendant, gardener, housekeeper,
information center, accountant, banker, The question that is likely to agitate the
doctor, lawyer, social director, psychologist, minds of commercial property investors is
marriage counselor, baby sitter, bookkeeper, whether or not real estate is an investment
rent collector, maintenance expert, security succor to many of them that have previously
officer, keeper of the keys, telephone lost huge sum of money due to the recent
operator, messenger service, and complaint collapse of the stock market? A similar
department. The manager must also be soft- question is to what degree would the
spoken, fast-moving, poised, quick-thinking, achievement of investors objective be
non-tiring, ever-available, mechanical- relative to the projected expectation. Other
minded, all-knowing and never-ailing. This questions include, to what extent would
“expert” knows how to visit without investors be encouraged to invest in
visiting, sell without selling, see without commercial real estate? What are the likely
judging, hear without repeating - and all problems that can vitiate or prevent the
without having time for an uninterrupted realization of investors’ investment
meal. The property manager has a dual objectives? What are the problems arising
responsibility: to the owner or client who is from commercial property management that
interested in the highest return from the might make the investment unattractive to
property; and to the tenants, who are investors? This paper is therefore posed to
interested in the best value for their money, evaluate the problems of commercial
including reasonable safety measures and property management practice in Lagos
compliance with fair housing laws. State, Nigeria with a view to enhancing the
practice and develop a profitable
contemporary investment medium.
The paper is structured into six sections. countries such as China with different
Section 1 provides the introduction and the business environment, the study lacked
specific aim of the paper. Section 2 provides empirical evidence and did not focus on the
a brief review of extant literature and some practice of commercial property
related past studies in the area of property management in developing countries like
management while section three describes Nigeria. The same argument can be said of
the study area. The fourth section discusses Chin and Poh (1999)’s work which
the study population, Methodology and Data examined property management industry’s
Requirement while section 5 contains the attitude in Singapore to quality.
results and the discussions of findings. The
last section contains concluding remark for In a recent study by Andrew, et al (2008),
the study. the problems that different public sector
bodies face in joint planning to develop and
share facilities and property services and
2.0 Literature Review how they overcame them were discussed.
Christudason (2008) examined the various
Dant and Lavers (1993) evaluated the duties legislations affecting common property
of commercial managing agents from management in Singapore. The author
medieval times. In a general review of examined the problems inherent in the
literature, the author traced the origin of existing system of single-tier management
General Practice Surveys and documented corporations for strata property management
the increasing complex roles of management until 2005 as a basis for a discussion of the
surveyor in the contemporary and highly solutions presented by new legislation in the
industrialized society. Tarbet (1996) form of “two/multi-tier” management
evaluated the historical view of commercial corporations. The study found that while the
property as a good hedge against inflation multi-tier system could alleviate some of the
and acknowledge that results of empirical problems existing under the single-tier
studies have, over the years, being unable to management corporation system, other
substantiate this belief. While noting the problems could arise; these include
persistency of the belief over the years, the increased operational costs, finding
author introduced a method of co-integration sufficient volunteers for the multi-tier
as a long term method of testing for a long management corporations, and increased
term hedging relationship to establish that potential for conflict.
commercial property is not a consistent long
run against inflation.
Most of the empirical studies have been
Booth and Matysiak (1996) examined the limited to the traditional practice of property
role of property in pension fund pre and post management and carried out in advanced
minimum funding requirement. The study countries with dissimilar cultural and socio-
found that the role of property has declined economic climate from African countries
partly due to poor performance and also like Nigeria. Examples include Li (1997),
because there are other asset categories that Chin and Poh (1999), Han and Lim (2001),
can perform the role that property is playing. Lai (2006), Yiu, et al (2005), Blackwell
(2007) and Andrew et al (2008). A number
Li (1997) examined the opportunities and of these studies focused on examining the
problems in property management in China. principles and practice of property
The author highlighted staffing and training management (Lia, 2005). Touch Ross & Co
as major problems that could threaten (1983) and Institute of Real Estate
effective property management practice. Management (1991) provided a general
Apart from the fact that the study was direction and development guidelines for
carried out in the context of developed property management information system.
In a similar study, Han and Lim (2001) state accommodates 75% of the practicing
examined the use of computers in Singapore estate surveyors and valuers who handle the
property management companies. Blackwell management of commercial properties
(2006) investigated the relationship of (NIESV Membership Directory, 2009). The
geographical indicators (GIs) with real study area is characterized with relatively
property valuation and management. Also, big, complex and modern commercial
researchers such as Yiu, et al (2005) and Lai properties capable of being found in any
(2005) examined the study via the roles of commercial town and centre all over the
property management from an institutional world.
economies perspective and the potential
contribution of innovative property The sample is the staff /personnel of the
management to sustainable development. A registered estate surveying firms practicing
critical examination of these past studies in the metropolis and who are actively
revealed that none of them have paid involved in commercial property
detailed attention to problems of commercial management. Questionnaire was served on
property management practice. The work of 270 practicing firms of estate surveyors
Oladokun (2010) examined the preparedness (general practitioners) based in Lagos State
of Nigerian real estate practitioners for as contained by NIESV directory of
sustainable property management practice. members, 2009.
The study focused on enlightening
professionals about the global adoption of The scope of the study was restricted to the
green building as a means to ensure perception of practitioners towards their
environmental sustainability and provided daily experienced problems in the course of
measures to be adopted to embrace the property management. Respondents were
practice in African countries like Nigeria. asked to provide data on factors that are
considered significant as problems of
In summary, there is lack of empirical commercial property management in the
evidence about the problems of commercial study area.
property management practice in emerging
markets like Nigeria. The study is therefore
significant more so that the recent collapse The self- administered questionnaires as a
of the capital market now compels local and means of data collection was considered
foreign investors to re direct investment into appropriate for two main reasons. In the first
real estate. This no doubt, will build instance, it is more reliable than telephone
confidence in foreign investors who are interview and mail questionnaires. Second,
likely considering tapping the investment it permits an explanation of questions in
opportunities in the emerging Nigerian areas where some respondents may not be
market. Lastly, the result of the study is fully knowledgeable. The total number of
expected to be a guide to professionals and completed questionnaires was 159 out of
policy makers in other African countries 270. The rate of response (59%) seems
towards the development of appropriate adequate and provides a basis of discussion
framework for commercial property in the paper.
management practice.
The survey comprised there sections.
Section one asked the respondents about
3.0 The study population, themselves and their organizations.
methodology and data requirement: Questions included gender, educational and
professional affiliations. The data provide
The evaluation of problems of commercial information on the desirability of the
property management is measured in Lagos respondents for the survey.
State. The choice of Lagos is justified as the
Section two of the questionnaires posed tenant/landlord law, lack of access to
questions about the organizations’ property Attorney, lack of effective communication
management practice. Respondents were skill, lack of ability to delegate effectively)
asked to indicate their area of practice and were used in the determination of the
rate their involvement in property respondents significant index (RSI). The
management practice. Questions were also respondents were asked to rate each of the
asked about whether they are current with variables using Likert’s scale of highly
global property management practice and significant, significant, fairly significant,
how they get their current information about insignificant and very insignificant. During
property management practice. This section analysis, these ratings were assigned weight
also sought to investigate the degree of values of 5,4,3,2 and 1 respectively.
awareness of property management
problems. The RSI for each of the variables was
arrived at by dividing the summation of the
The third section asked questions about the weight value (SWV) by the total number of
respondents’ perception about factors respondents. The SWV is the addition of the
considered as problems to the management product of the numbers of responses to each
of commercial properties in Lagos State, of the variables and the weight value
Nigeria. attached to each rating (see Afon, 2007).
The RSIs thus ranged between values of 5
and 1.
Twenty Three variables extracted from
literature such as Colorado State (2008), Li The mean of the RSI distribution was also
(1997), Andrew, et al (2008) and computed. Furthermore, the deviation about
Christudason (2008): (shortage of qualified the mean of each variable, and the variance
personnel, lack of technology, lack of time, and standard deviation of the distributions
lack of management agreement, failure to were also calculated to measure the scatter
plan, failure to supervise repair work, failure about the mean (Berenson and Levine,
to disclose fee, absence of facilities, high 1996)
rent, cumulative maintenance problems,
accelerated obsolescence, improper initial
projection, improper handling of caution The main objective of this research is to
deposit, cost of construction, cash flow evaluate the perception of property
requirements, vacancy rate, practitioners in Lagos on problems of
electricity/plumbing needs, lack of skill of commercial property management.
negotiation, lack of knowledge

4.0 Data Analysis and Interpretation - Most (89%) of the respondents are
HND/B.Sc holders in estate
4.1 Respondent background management. The remaining
information respondents were OND holders 6%
and M. Sc. Holders at 5%.
The research population were comprised of:
- Most (72%) respondents
- Respondents surveyed were 39%
organizations that have up to five
managers, 39 % graduate estate
corporate/registered professionals.
surveyor, 16% estate assistants.
Others 17% and 11% have between
- All respondents were graduate
6 and 10 as well as above 10
members.
professionals respectively.
4.2 Professional Qualification of Respondents

Information ware sought from the respondents about their professional status and year of
professional qualification. Table 1 contains the results of the responses

Table 1.0
Professional Qualification of Respondents
Real Estate Practitioners Percentage

Professional qualification ANIVS 22%


Probationer 51%
Fellows 28%
Year of Professional Qualification <5 44%
6-10 28%
11-15 22%
>15 6%

Source: Field Survey, 2010

Professional qualifications were reported by year of professional qualifications of the


respondents with 22% Associate, Nigerian respondents also revealed that the highest
Institution of Estate Surveyors and Valuers responses is for less that 5 years with 44%,
(ANIVS membership), 51% probationers of followed by professionals with between 6
Nigerian Institution of Estate Surveyors and and 10 years at 28%. The remaining
Valuers (NIESV) and 28% Fellow, Nigerian responses are 22% for between 11 and 15
Institution of Estate Surveyors and Valuers years while the respondents with more than
(FNIVS). Results of the questions on the 15 years are 6%.

4.3 Respondents Currency of them with the ability to avoid problems and
Property Management Knowledge
enhance efficient delivery of property
management service. This is measured in the
The study sought to evaluate how current
number and/or conferences and seminars
the respondents are with global property
they attend. Table 3 contains the result.
management knowledge which could equip
Table 2.0
Conferences Attended
No of Conferences Percentage

1-5 61%
6-10 78%
More than 10 11%

Source: Field Survey, 2010


The respondents responded that they conferences/seminars on property
constantly update their property management.
management knowledge and are familiar
with current global practice. This they The participation of the respondents in
achieve by attending conferences and conferences/seminars is an indication of
seminars. Within the last five (5) years, 61% their willingness and readiness to be at
indicated that they have attended up to five breast with global trends and practices. The
local and international conferences on tendency is for better awareness of the
property management issues; 28% indicated global property management challenges and
that they have attended between 6 and 10 possible solutions for avoiding and/or
local and international conferences while the overcoming them.
remaining 11% have attended more than ten

4.4 Awareness of Property managing properties and how often it is. The
Management problems results are contained in Table 3.
The respondents were asked if they ever
come across problems in the course of

Table 3.0
Awareness of Property Management problems
No of Conferences Percentage

Very Often 44%


Often 22%
Not Often 28%
Indifferent 6%

Source: Field Survey, 2010

The respondents were also asked if they are problems, with ‘very often’ as response. The
aware of problems of commercial property second category indicated that the
management and what they are. All the frequency of management problems is
respondents indicated different degrees of ‘often’ followed by 22% who experience
awareness level. The highest category, 44% problems occasionally. The least response of
are frequently confronted with management 6% are indifferent to the question.

4.5 Practitioners’ Perception of lack of technology, lack of time, lack of


Problems of Commercial Property management agreement, failure to plan,
Management by Proportion failure to supervise repair work, failure to
Method disclose fee, absence of facilities, high rent,
cumulative maintenance problems,
The practitioners’ perception of accelerated obsolescence, improper initial
management problems was assessed. This is projection, improper handling of caution
through the RSI (respondents’ significance deposit, cost of construction, cash flow
index) computed for each of the following requirements, vacancy rate,
attributes: shortage of qualified personnel, electricity/plumbing needs, lack of skill of
negotiation, lack of knowledge of problems of commercial property
tenant/landlord law, lack of access to management in developing countries like
Attorney, lack of effective communication Nigeria. Table 4 reveals the results. The
skill, lack of ability to delegate effectively) most important problem is high rent
(Colorado State, 2008; Li, 1997; Andrew, chargeable on properties followed by
et al, 2008 and Christudason, 2008). The cumulative maintenance problems and
respondents were asked to rate their thirdly electricity/plumbing needs. Tenants
perception of management problems who are made to pay rents that are
identified in the literature. To calculate the considered too high as at the time of taking
index, the ratings “highly significant” possession naturally become difficult while
“significant”, “fairly significant”, in occupation and often tend to be
“insignificant” and “very insignificant” is, uncooperative. Since such tenants are
respectively assigned a value of 5,4,3,2 and compelled to pay the initial high rents as a
1. The total weighted value (SWV) for each means of meeting their needs they tend to be
attribute is obtained through the summation difficult and hence pose major management
of the product of the number of responses problems. They often refuse to pay
for each rating to an attribute and the subsequent rents and where they pay, rents
respective weight value. This is expressed are not paid as at when due.
mathematically as:
The second most important factor
SWV = Σ5 PiVi, considered as posing management problems
i =1 is cumulative maintenance problems. This
Where SWV is the summated total weight arises where a tenant comes into possession
value, Pi the number of respondents rating without the landlord effecting repairs left
an attribute i, and Vi the weight assigned behind by the immediate past tenant. When
attribute i The RSI to each attribute is such a tenant bear the cost of repairs on his
arrived by dividing the SWV by the own, he apparently continues in occupation
summation of the respondents to each of the not being happy and automatically tends to
five ratings of an attribute. This is expressed be unnecessarily difficult.
mathematically as:
The third high ranked factor is closely
RSI = SWV related to the above. Where
Σ i = 1Pi electricity/plumbing needs of a tenant is not
5
Where RSI is the respondents’ significant met owing to inherited accumulated bills,
index and Pi as defined previously. the result is that the tenant becomes difficult
and will likely put up behaviors that will
The closer the RSI of an attribute is to five, make property management unattractive.
the higher the perceived respondents’
perception. The RSI obtained for each of Other high ranked factors are cash flow
the identified variable management problem requirements and high cost of construction.
is as presented in Table 4. Also shown in Where property agents do not meet up with
the table is the average CSI denoted by CSI agreed time for rent disbursement; this
for each factor. This is obtained by summing generates rancour and distrust with the
up the RSI for each attribute and dividing it property owner. Also, where the time and
by the number of the identified attributes (n frequency of rent collections are at variance
= 23). Thus, the aggregate perception (RSI) with the landlords’ expectation, unsmoothen
for management problems is 2.93. relationship result and subsequently leads to
management problems.

The respondents were asked to rank on a 5 Respondents perceived property


point likert scale what they considered are management problems favoured those
aspects of property management activities being considered broadly representative of
that affect tenancy or occupation. The mid property managers.
ranked factors are property managers’
failure to plan, lack of ability to delegate The respondents are knowledgeable about
effectively lack of appropriate technology property management activities. Majority
for operations, failure to devote sufficient attend seminars and continuous professional
time to property management activities, development (CPD) which afford them the
absence of management agreement between opportunity to be kept abreast with global
the client and the property manager and practices. Nevertheless, there is high
failure to supervise repair work and relate to indication that the respondents have a
the competence of the managing agent. number of problems that bedevil their
practice. A large proportion of the
The lower ranked problems – failure to practicing estate surveyors acknowledged
disclose fee and lack of access to competent this fact and admitted that they come across
attorney- relate to the effective inter- problems in the course of their practice.
relationship between the managing agent
and the client. This finding reinforces a The respondents perception of what
belief that property management as an art constitute management problems in the
ensures smooth relationship among study area revealed a range of factors that
occupants of the building and between the individually or collectively affect the
client and the managing agent. practice. The highest ranked factors are
those that relate to the occupation of the
The key factors/issues perceived as building by tenants. Problems are created by
problems of commercial property tenants who overstretched their financial
management in Lagos State, in order of budget to meet their accommodation needs,
priority include: high rent, cumulative as they are often not being able to sustain
maintenance problems, electricity and the payment of subsequent rents. Also,
plumbing needs, cash flow requirements and tenants who are compelled to groan under
cost of construction with mean figures of the burden of accumulated
4.11, 3.91, 3.86, 3.68 and 3.57 respectively. maintenance/repair works, unsettled bills
and plumbing problems are problematic
On the other hand, other factors such as: during the period of their tenancy. A
heating/cooling concerns, failure to disclose national economic empowerment policy that
fees, lack of skill for negotiation, lack of will improve the income of the citizens is a
access to qualified attorney and improper mean to making it possible for prospective
handling of caution deposit with negative tenants to pay for the accommodation of
derivations of 2.35, 2.20, 2.19, 2.11and 2.11 their choice. The professional body should
respectively are considered less significant. strive for the enactment of regulations that
will compel tenants to perform their terminal
obligations. This will prevent the occurrence
5.0 Conclusion of tenants vacating properties without
restoring defects.
The research aims to provide useful
information about the key commercial The mid ranked factors are those that
property management problems encountered demonstrated the competence and ability of
by practicing estate surveyors in Lagos the practitioners. Some practitioners, who
State, Nigeria. The estate surveyors are the are negligent with their responsibilities and
professionals, who by virtue of training and missed out what they need to do to capture
legal requirements, undertake property the tenancy relationship suffer some set
management services and have therefore backs in the course of property management.
Also, lack of modern technology and
competent assistants for effective delivery of Dant, M.J. and Laves, A.P. (1993), "Duties of
services results in management problems. Commercial Property Managing Agents",
The professional body has the challenge of Property Management, Vol. 3 Iss: 4, pp.27
constant training and re training of its – 31.
Heather Tarbert (1996), Is Commercial Property
members for contemporary professional
a Hedge Against Inflation?: A
practice. Cointegration Approach, Journal of
Property Finance, Vol. 7, Issue:1
The least ranked factors are those that relate Han, S.S. and Lim, L.Y., (2001), Computers in
to effective client relationship. Practitioners Property Management Companies, A
should cultivate the habit of prompt Case Study of Singapore. Property
disbursement of rents and proper financial Management. 19(5), 433-441.
accountability. This will earn him the
confidence of his client. Institute of Real Estate Management (1991)
Principles of Real Estate Management.
IREM, Chicago, IL.
References:
Andrew, A., Donald G., Pitt M., and Tucker M., Lai, L.W. (2006), Private Property Rights,
(2008), Collaboration in Property and Culture, Property Management and
Facilities Management: The Sustainable development. Property
Experience of the Grampian Public Management. 24(2), 71-96.
Sector Property Group, Property
Management. 26 ( 5), 310-318. Li, L. H. (1997), Property Management in China:
Opportunities and problems. Property
Baldwin, G., (1994), Property Management in Management. 15(1), 6- 11.
Hong Kong: An Overview. Property
Management. 12(4), 18-23. MCB Okoro, R.C., 2005. Proper Terminologies in Use
University Press, 0263-7472. for Describing Different Residential
Properties that can be Managed by an
Blackwell, M., (2007), The Relationship of Estate Surveyor and Valuer. The
Geographical Indications with Property Nigerian Institution of Estate Surveyor
Valuation and Management. Property and Valuer Journal. 28( 2), 45-47.
Management. 25(2), 193-203.
Oladokun, T.T. (2010), Sustainable Property
Booth, Philip and Matysiak, George (1996), Management Practice in Nigeria. In
Commercial Property Investment and the Rameezdeen, R., Senaratne, S., and
Pensions Act 1995, Journal of Property Finance, Sandanayake, Y.G., ed. International
Vol. 7, Issue 3, Research Conference on Sustainability
Christudason, A. (2008), Legislations Affecting in Built Environment, Colombo, Sri
Common Property Management in Lanka, pp157-165.
Singapore, Confusion or Solution
through Fragmentation. Property Scarret, D. (1995), Property Asset Management,
Management. 26(3), 207-219. E & FN SPON, London.
Chin, L. and Poh, L. K., (1999). Implementing Touche Ross (1993), Profiting from
Quality in property Management; The Opportunities – A New Market for
Case of Singapore. Property Tourism. Touche Ross, London.
Management. 17(4) 310-321.
Thoncroft, M. (1976), Principles of Estate
Colorado State (2008): Real Estate Manual[Onli Management, London: The Estate
ne]. Available from: gazette Ltd, London.
www.dora.co.us/realstate/manual/manu
al _2008/ch 21_propert_ Yiu, C., Wong, S.K., Yau, Y. (2006), Property
management_leases.(accessed 28 Management as Property Rights
January, 2009). Government: Exclusion and Internal
Conflict Resolution. Property Management.
24 (2), 87-97.
Table 4: RESPONDENTS’ PERCEPTION OF MANAGEMENT PROBLEMS
Management Very Insignificant Fairly Significant Highly Mean Ranking RSI
problems significant Significant significant

Shortage of 35 (22%) 70 (44%) 17(11%) - 37 (23%) 2.58 16 -


qualified personnel 0.35
Lack of Technology 35 (22%) 27 (17&) 45(28%) 17 (11%) 35 (22%) 2.93 11 0.00
Lack of Time 62 (39%) 35 (22%) 08 (5%) 27 (17%) 27 (17%) 2.55 17 -
0.38
Lack of Manag 35 (22%) 45 (28%) 35 (22%) 35 (22%) 22 (17%)
ement Agreement
Failure to Plan 35 (22%) 35 (22%) 35 (22%) 52 (33%) 20 (12%) 3.14 7 0.21
Failure to Supervise 55 (34%) 17(11%) 17(11%) 53 (33%) 17(11%) 2.78 13 -
Repair Work 0.18
Failure to disclose 60 (38%) 37 (23%) 35 (22%0 10 (6%) 17(11%) 2,29 20 -
fee 0.64
Absence of 06 (5%) 17 (11%) 52 (33%) 35 (22%) 45 (28%) 3.54 6 0.61
Facilities
High rent - 8 (5%) 45 (28%) 27 (17%) 79 (50%) 4.11 1 11.18
Cumulative - 35 (22%0 17 (11%) 35 (22%) 72 (45%) 3.91 2 0.98
Maintenance
problems
Accelerated 20 (12%) 52 (33%) 17 (11%) 35 (22%) 35 (22%) 3.08 9 0.15
Obsolescence
Improper initial 29 (18%) 52 (33%) 62 (39%) 8 (5%) 8 (5%) 2.51 18 -
Projection 0.42
Improper Handling 62 (39%) 53 (33%) 17 (11%) 19 (12%) 8 (5%) 2.11 23 -
of Caution Deposit 0.82
Cost of Construction 8 (5%) 19 (11%) 45 (28%) 53 (33%) 35(22%) 3.57 5 0.64
Cash flow 8 (5%) 8 (5%) 45 (28%) 63 (39%) 35 (22%) 3.68 4 0.75
requirements
Vacancy Rate 35 (22%) 45 (28%) 45 (28%) 17 (11%) 17 (11%) 2.6 12 =
0.33
Heating/Cooling 45 (28%) 53 (33%) 35 (22%) 8 (5%) 18 (11%) 2.35 19 -
Concerns 0.58
Electricity/Plumbing 8 (5%) 17 (11%) 27 (17%) 45 (28%) 62 (39%) 3.86 3 0.93
Needs
Lack of Skill of 62 (39%) 45 (28%) 17 (11%) 27 (17%) 8 (5%) 2.21 21 -
Negotiation 0.72
Lack of Knowledge 35 ((22%) 52 (33%) 10 (6%) 10 (6%) 52 (33%) 2.94 10 0.01
Tenant/Landlord
Law
Lack of Access to 52 (33%) 52 (33%) 25 (16%) 25 (16%) 3 (2%) 2.19 22 -
Attorney 0.74
Lack of Effective 44 (28%) 34 (22%) 27 (17% 27 (17%) 27 (17%) 2.74 14 -
Communication 0.19
skill
Lack of Ability to 10 (6) 52 (33%) 35 (22%) 27 (17%) 27 (17%) 3.11 8 0.18
Delegate Effectively

You might also like