COMPARATIVE ANALYSIS OF AGENCY PRACTICE IN NIGERIA
COMPARATIVE ANALYSIS OF AGENCY PRACTICE IN NIGERIA
In our traditional society, the requirement for shelter is mostly supplied by the first alternative, owner occupancy. Actually, it discusses agency practice and the agent's duty to the principle, i.e. the landlord and his tenants.
In order to analyse the agency practice in enugu, the researcher conducted a study project around Enugu, gathering information and contributions from professionals, estate surveyors, and non-professionals via questionnaires.
The research also demonstrated several approaches of data display and analysis.Analysing and interpreting data obtained by the researcher during the course of the investigation.
Finally, these characteristics impact whether landlords charge higher or lower rents. This does not imply that the agent of a property is the precise agent charged on the property, as there are various factors that can influence agency charged.
1.3 Background of the Study
Shelter is an essential requirement in life. An individual can meet this requirement by either occupying his own (owner's occupier) property or renting another person's home. In our traditional society, the requirement for shelter is mostly supplied by the first alternative, owner occupancy.
The situation has changed as a result of the urban centre emergency. Many people are no longer considering owning property due to the difficulty in acquiring land and the high expense of building construction.
As a result, they are forced to rent other people's residences in order to meet their housing needs. As a result, two kinds of urban residents have emerged: the landlord and the tenant.
Under this system, the renter pays the landlord a set amount of money in exchange for the use of the owner's home. This amount is commonly referred to as rent.
During Nigeria's civil war from 1966 to 1970, numerous landed properties in the metropolitan districts of the old Eastern Region of Nigeria, including Enugu, were devastated. As a result, the availability of landed estates decreased dramatically following the war.
Furthermore, during the post-civil war period, an unprecedented number of rural people migrated to metropolitan areas as a result of the visible riches brought about by the oil boom.
This resulted in a high demand for the current restricted supply of landed properties. As a result, rents for landed properties climbed significantly.
This tendency has continued, resulting in “the average worker paying 30% to 40% of his salary as rent” (Oshadiya, 1985). Thus, the increase in rentals on properties has resulted in a variety in rent on properties.
Rent tends to vary in metropolitan areas due to the location advantage (for example, excellent location) that some properties have over others for commercial and residential usage.
1.2 Statement of Problem
The location of economic characteristics has been a tough subject to grasp. Although the primary goal of commercial properties is to generate financial advantages, while residential properties are to provide habitation,
shelter, and comfort, the demand for land is a reflection of the profitability or utility that may be derived from its use. The greater the benefit to be gained from a specific use, the higher the rent that the user is ready to pay for it.
Rent levels on residential and commercial properties appear to vary greatly in Enugu and throughout Nigeria.
This study aims, among other things, to determine the causes of agency practice in commercial and residential properties in Nigeria, using Ogui New Layout and G.R.A as case studies.
1.3 AIM AND OBJECTIVES OF THE STUDY
The primary goal of this study is to investigate the causes for agency practice in commercial and residential properties in order to create a tool for detecting rent difficulties in Enugu and throughout Nigeria. To reach the standard target, the following objectives will be pursued:
i) Determine the level of rent for commercial and residential properties in the research region.
ii) To identify and investigate the factors impacting the rentals charged by these properties.
iii) Determine or investigate whether the income of prospective buyers/tenants influences their decision to purchase property.
iv) Determine whether there is a disparity in agency practice between residential and commercial properties in the research area.
v) To determine the agency practice for commercial and residential properties?
3.4 Research Questions
i. What was the level of rent for commercial and residential properties in Ogui New Layout and G.R.A from 2002 to 2004?
ii. What factors influence rents moving through such business and residential properties?
iii. Does the income of prospective buyers/tenants influence their decision to purchase property?
iv. Is there a difference in the agent or rent passing rates for residential and commercial properties in the research area?
v. Among properties listed for commercial and residential use, which has a greater agency practice?
3.5 Significance of the Study
The findings of this study will be beneficial to the following groups:
To begin, tenants who are charged rent for a variety of reasons, particularly when the homes are visually similar. This will again allow investors to learn not just how occupiers think, but also why and what they consider when purchasing properties for specific uses.
Second, the broader public now understands why the rents commanded by these properties must differ.
Finally, this research will assist in determining the elements influencing commercial and residential properties, which is a necessary prerequisite for successful development, as well as inspiring students' interest in conducting additional research on the topic.
3.6 Scope of the Study
The study spans three years (2002–2004) and is limited to chosen buildings (residential and commercial) consisting of blocks of flats and tenements in Ogui New Layout and G.R.A, Enugu.
3.7 Limitations of the Study
As expected, this effort encountered various challenges throughout the data collection phase. The subject of rent passing on a property (residential or commercial) is typically regarded as classified information, which is not easily divulged to anyone, particularly researchers.
This was widely suspected to be the reason why some estate surveyors, property owners, tenants, estate firms, property companies, and even estate agents who were approached through oral interviews, discussions,
and visits found it difficult to reveal essential information. Despite being told that the exercise was strictly for academic purposes, a good number of them still harboured fears that it could be for property rating and taxation purposes.
The society also created a logistical problem. The researcher worked with a very limited budget throughout the study because frequent and repeated trips to important persons and offices cost a lot of money.
Furthermore, keep in mind that some of the interview respondents were uncooperative, repeatedly playing to the gallery in order to avoid providing the requested information.
On a general note, the researcher ensured that these bottle necks had no effect on the study's findings because the success greatly outweighed the aforementioned drawbacks.
3.8 Overview of Study
The first chapter covers the introduction to the project work. The second chapter reviews the literature, the third chapter discusses the study methods, the fourth chapter discusses data presentation, analysis, and interpretation, and the fifth chapter discusses findings recommendations and conclusions.
3.9 Definition of Relevant Terms.
RENT: According to the Universal Dictionary of the English Language (1971), rent is a recurring payment given for the use of another person's land or structures. The Economist described rent as “equal revenue from land resources.”
to the value of its marginal services provided during a productive activity” (Richfield, 1974).
In summary, rent refers to a fixed periodic payment made by a tenant to his landlord for exclusive ownership and use of leased property.
PROPERTIES: The High Court, the Court of Appeal, and the Supreme Court define property as the right to own, enjoy, and dispose of all rights and things subject to ownership.
Property is thus a legal right that expresses the link between a person, the owner, and the possession of the thing held.
According to Kilpatrick (1999), residential property is land use in which dwelling predominates over industrial and commercial areas. Housing can vary substantially between and within residential regions.
These include single-family dwellings, multi-family residences, and mobile homes.
COMMERCIAL PROPERTY: According to Malys (2012), this refers to buildings or land that will make a profit, either through capital gain or rental revenue. It consists of office buildings, industrial property, medical centres, hotels, malls, retail stores,
farmland, multifamily housing buildings, warehouses, and garages. In many states, residential property with more than a specific number of units is classified as commercial property for borrowing and tax purposes.