1.1 BACKGROUND OF
rent arrears and treatment of difficult tenants has been identified as a major
set-back in property management. These aspects of management functions are
being confronted with many problems because rent payment depends mostly on
income earn from business carried out in the property. These earning and income
are usually affected by changing economic condition and personal circumstances
of tenants which cannot be predicted and out of control of tenants, the
managing agents and the landlord.
topic no doubt has drawn priority attention in several seminars, symposia and
even in one of the annual general conference of the Nigeria institution of the
Estate Surveyors and valuers all with the view to arriving at a lasting
solution to the problem. And as all efforts are being channeled towards the
eradication of this incident in the property industry. More cases of the rent
default by demands .continue to discourage the efforts.
urge to write on this topic started when we visit one estate surveyor and
valuer called Ajilex property which is located at “itakogun” area of Ilesa, he
had so many properties on his hand with concern was the property that was
located at No. 36 Oke Opo GRA at Ilesa. The tenants was arrears of rent for
over four years, and him remit all his rent arrears to the property owner,
knowing the legal implication of litigation which will not be in the interest
of their client they continued by the way of dialogue to a point that the
landlord decided to take the matter to the point that the landlord decide to
take the matter to the court and it dragged him for more than two years before
the matter was pulled out of the court for amicably settlement.
was a result of the parties unanimously appointing an arbitrator to the matter.
The arbitrator’s judgment was accepted by the parties. In this judgment he made
the tenant to see the reason why the rent arrears should be paid to the
was equally agreed that the arrears should be paid installment to enable the
tenant to cope with the payment, with this issue of arrears treated, the
landlord agreed to carry out his obligations effectively. The decision on the
mode of payment took time before it was resolved. The landlord who claimed that
he has lost so much money within the period of arrears and court actions would
prefer the total sum paid to him at once. However this request was not granted
by the arbitrator instead he made the landlord to understand why he should
accept the quarterly payment.
so, drastic action cannot be taken to enforce payment of rent on lease hold
property unlike chattels which can be taken away by the owner from the person
to whom it is hired for a failure to meet the agreed obligation. Rental payment
on leasehold is in respect of right of use, possession and enjoyment conferred
on the tenants and act in respect of tangible thing. There is usually a
complicated legal relationship between the landlord and the tenants. There actions
to enforce payment and recovery of rents must follow due process of law. This
takes time and may fail if a landlord fails to meet contracted obligation
towards a tenant.
of payment of rent through eviction of tenants by landlords id often mitigated
by government social policy on some kinds of landed properties. There are
legislation a s regards security of failure, tenants are protected from forcible ejection and lease for failure.
Government owned and managed properties have added problem of need to get
political support for its management policy and action. Political climate and
influence may not permit the manager of government owned properties to take
appropriate action as decision is usually centralized.
efficiency in recovery of rents on leasehold properties depends on efficient
management based on good lease term and effective control.
It has been observed that in recent
times rental defaults on leasehold properties are on the increase.
This development has been agitating the
minds of several interested groups including property investors and their
agents. This paper is set out to study that causes of default in rent payment
and prefer solutions.
The aim of this dissertation is to
examine the possible ways of recovering of rent arrears and treatment of
The objectives are:
To examine the root cause of default in
To examine the prevailing method of
investigate the issue of difficult tenants
make recommendation in eliminating problems identified.
The study was successfully carried out
by using information from relevant publications, especially the Journals,
magazine and seminar papers and through the use of textbook which provides a
good background for theoretical and conceptual issues discussed. The source of
the data will be both primary and secondary.
The study covers the recovery rent
arrears and how difficulties tenants should be treated. To do this, the method
of rent recovery and dealing with difficulties tenants were looked into with
specific reference to select properties in Ilesa, Osun State.
OF THE STUDY
The only presumed or perceived
limitation of this study is the shortest time, nevertheless everything
pertaining to the recovery rent arrears and treatment of difficult tenants
would be fully exercised.