Abstract
This
study examined the landlord-tenant relationship in residential property management
in selected housing estates in Bode Thomas, Lagos. This was with a view of conducting
detailed examination of such relationship and determine if there are disputes
and their causes. The approaches that parties in disputes adopt in resolving them
and the level of responsiveness of landlord and tenant to their responsibilities
in the tenancy agreement were examined. In attaining the aim of the study, data
was obtained from primary and secondary sources included journals, textbook, unpublished
past projects, and internet. The population of residents was based on total number
of households in the three selected estates, sample was thereafter randomly selected.
Descriptive analysis were used to analyze the questionnaire. It was found that
there was no significant relationship between landlord’s response to tenants’
requests and tenants’ settlement of rent. This means that signing of tenancy
agreement by landlords is of no significant value in the dispute resolution of
landlord-tenant relationship; and that landlords do not usually comply with
tenancy agreements. It was recommended that complaints should be dealt with
internally or at a local level wherever possible and there should be set
procedures for monitoring and reviewing shortcomings in service provision so
that landlord-tenant relationship could aid investors in harnessing investments
in real estates.
CHAPTER
ONE
INTRODUCTION
1.1
BACKGROUND TO THE STUDY
Maintaining
healthy landlord-tenant relationship in a residential property is a
pre-requisite for societal advancement and growth. Good tenant employee
relations back-up by a comprehensive tenancy agreement and timely payment of rents
are required for a cordial relationship to exist between the landlord and to
also boost tenant satisfaction. Tenant relations generally deal with avoiding
and resolving issues concerning residents living in a landed property. These
issues may relate to house rents, tenancy agreements, and may result in
conflicts if not properly managed (Salleh. 2008). The relationship of
landlord and tenant may be defined as the relationship that exists between
parties to a lease. It usually arises when the owner of an estate grants,
usually by means of contract, the right to possession of his land or part of
it, to another person to hold for a specific period of time. Such a grant is
what is called a lease, demise or tenancy. The period granted is the term or
term of years. This relationship is one of tenure which means that it is for a
period which is either subject to definite limits. As a rule, the landlord
confers on the tenant the right to exclusive possession for a period which is
subject to a definite time limit, as in the cases of a lease for a term of
years, or which though indefinite can be made subject to a definite limit by
either party as in the case of a tenancy from year to year (Mohd, 2000).
The
relationship between tenants and landlords in Nigeria has reached a very
significant stage in the modern day society in Nigeria, thus there is a need to
know and review the effect of the relationship between the landlord and the
tenant on residential properties. Reviewing this, also, it is important for us
to know the position as it exists between tenant and landlord in residential
buildings prior to the legal evaluation of tenancy Law in Nigeria. More
importantly, it is also desirable for each party to know their right as
guaranteed under the various applicable laws on the subject matter. This will
ensure a peaceful co-existence between tenants and landlords in residential
buildings. However, this work focuses on the evolution and development of tenancy
law in Nigeria, with particular reference to the rent Control and Residential
Premises Edict, Law of Anambra State Nigeria 1994. The orientation of the
course is strongly practical to suit the relationships that co-exist between a
tenant and landlord in Nigeria. It will also examine the various perspective
that relates to tenancy such as standard rent payable by the tenants, the rent
review clause, option to review clause, rent book distress for rent, profit.
Further the course will also examine the compensation available for the use and
occupation of the demised premises by the tenant consequent upon the
termination of his tenancy. It will also examine security of tenure and grounds
for possession as contained under Schedule II of the rent control and Recovery
of Residential Premises Edict, Laws of Ifite, Anambra State of Nigeria 1994.
A
lease establishes the relationship of landlord and tenant and is both a
conveyance of a possessory estate in real property and a contract between the
parties. Through the lease, the tenant receives a right to legal possession of
the property in exchange for “valuable consideration” (i.e., rent)
paid to the landlord. Most leases specify the duration of the agreement, any
terms for extending the agreement and details regarding rent payments. Because
a lease is both a conveyance and a contract, two sets of duties between the
landlord and tenant arise: those that exist in relation to residential property
laws, and those that arise due to the contractual promises of the lease. Housing
codes were established to ensure that residential rental units were habitable
at the time of rental and during the tenancy. In Ifite, housing violation of
these rules may lead to eviction action or to the tenant being allowed to
withhold rent in some cases. The right to access of a residential property is
also ensured by warranties which are prescribed by common and/or statutory law.
A breach of the warranty of habitability or a covenant within the lease may
cause an eviction or allow the tenant to withhold rent. So long as these
obligations are not met by either party, this could be breach on this
relationship that is binding by factors dependent on obligation to be fulfilled
by the landlord and the tenant on his property.
1.2
STATEMENT OF THE PROBLEM
The
management of public housing by many estate owners, landlords and caretakers in
most developing countries, including Nigeria is often bedeviled by poor
maintenance, high rentals and more often than not, tenants are unsatisfied with
their dwelling units. These factors plus poor or no tenancy agreements between
landlords and tenants contribute towards the general decline of public housing
(Hegedus & Mark, 2004). Drafting of a comprehensive tenancy agreement
requires the services of a competent lawyer, who will concisely spell out the
duties and responsibilities of both the landlord and the tenant is sometimes
ignored by some landlords or not drafted at all. In the absence of a
comprehensive tenancy agreement, conflict and soar relationship between the
landlord and the tenant may arise, when one party is not satisfied with the
conduct of the other. The resultant derelict state of public housing sadly also
incubates high vandalism rates which in turn further contribute to the high
maintenance cost of residential properties. British researcher Sheena Wilson
(1979) asserts that it is often difficult to distinguish intentional forms of
damage from wear and tear, indifference, neglect and thoughtlessness in public
housing estates. Vandalism in such neighbourhoods therefore, is part of a
spectrum of behaviour which begins with very common forms of carelessness such
as dropping litter, and continues through a wide range of rough
handling—bumping prams into glass swing doors, taking short cuts through newly
planted flower beds, for example—to the stage where damage is deliberate: glass
broken by stray objects such as stones when children are playing, smashed
fittings, and dismantled fire-hoses. These are typical features in public
housing owing to various factors.
From
previous research works, it has become clear that non fulfilment of obligations
binding on relationships can have a drastic effect. For there to be a proper
conveyance of title or right to occupy in the case of a residential property by
a landlord to a tenant, there are obligations binding on both parties that must
be met (Basorun, 2012). This binding factor which is called ‘rent’ on the part
of the tenant has a bigger effect as to whether it will last long or not. On
the part of the landlord is the obligation to lease or withhold the property.
Rent as a determinant in this relationship can be a constraint due to a survey
conducted in 2011 by Dele Taiwo Associates an Estate Management firm with
offices round Nigeria. There are challenges posed by these factors. Challenges
such as eviction, withholding of a right to legal habitation of the property in
exchange for “valuable consideration” (i.e., rent) paid to the
landlord, has affected the relationship between the landlord and the tenant for
various reasons ranging from non-communication of position by the landlord in
case of renovations or non-payment of rent as at when due by the tenant. Most
tenants especially in residential properties ignore their obligation to pay
utility bills and other bills binding on them by virtue of occupying the
property. All these have played a huge role in affecting the relationship
between the landlord and the tenant especially in Ifite.
1.3
OBJECTIVES OF THE STUDY
The
main aim of the study is to critically examine the effects of landlord and
tenant relationship on residential property. Specific objectives of the study
are:
1.
To examine the extent in which landlord and tenant relationship could improve
residential properties.
2.
To examine factors that has militated against cordial relationship between
landlord and tenants.
3.
To propose ways of improving landlord and tenant relationship as to better
residential property.
1.4
RESEARCH QUESTIONS
In-order
to guide the study and achieve stated objectives for the study, the following
research questions were formulated:
1.
To what extent can landlord-tenant relationships affect residential properties?
2.
What factors militate against the cordial relationship between landlords and
tenants?
3.
What better ways can landlord-tenant relationships be enhanced?
1.5
RESEARCH HYPOTHESIS
Ho:
Landlord and Tenant relationship has no significant effect on residential
property.
Hi:
Landlord and Tenant relationship has significant effect on residential
property.
1.6
SIGNIFICANCE OF THE STUDY
Public
housing although critical and inevitable in facilitating access to decent
housing for the low income earners like students especially in cities and urban
areas, should not be taken seriously. If landlord and tenant relationship is
adequately managed, public housing is capable of supplementing the inadequacies
of market driven housing delivery systems and delivering a more inclusive
society. The management of public housing cannot be feasible if rent collection
and other residential or tenancy agreements are not properly documented and
effected. A functional rent collection and management system can be an integral
component of a responsive policy platform that facilitates sustainable delivery
and management of public housing.
This
study will therefore greatly contribute towards improving Landlord and tenant
relationships and proffer solutions to most landlord-tenant disagreements and
conflicts.
1.7
SCOPE AND LIMITATION OF THE STUDY
The
study is limited to the effects of landlord and tenant relationship on
residential property in Ifete, Anambra state, using selected residents of
school hostels as a case study.
Concerning,
limitations, time frame and financial constraints are usually the major
constraints of every research study. Tight academic schedules and financial
constraints could not enable the researcher to cover a wider geographical
location.
1.8
DEFINITION OF TERMS
Landlord/Tenant: A
landlord is the owner of a house, apartment, condominium, land
or real estate which is rented or leased to an
individual or business, who is called a tenant
Rent:
Sum of money payable by a tenant to the landlord for occupation of the
landlord’s property.
Rent
Arrears: the unpaid amount of rent that is owed
to the landlord by a tenant after occupation of the landlord’s property.
Economic
rent: sum of money payable to the landlord
for occupation of property assessed on the basis of the net expected income
after estimates of expenses are taken into account.
Market
rents: refers to sums of money payable to a
landlord by a tenant established on free market economy and particularly
determined by the forces of demand and supply
Building features:
dwelling subsystems that relate to the human habitat
Public
Housing: housing developed by a public agency
for the purpose of accommodation of the low income mainly for rental
accommodation and whose tenants are selected through established procedures.
Building quality:
the extent to which building features meet prevailing regulations and
expectations of occupants.
Social
Housing: residential accommodation mainly
for rental purposes established through state intervention mainly of a state
agency. In some countries, the state appoints or enlists non-public agencies to
provide social housing within established frameworks to ensure affordability
and targeted tenant selection.
Tenant
Satisfaction: the extent to which the tenant is
perceives and/or is convinced that their rental accommodation meets their
desires and needs which may be physical or ―soft‖ i.e. non-physical.
Decanting
site: a holding site where communities/residents are temporarily relocated
to give way for development in their residential zone in an organized manner.