Effectiveness of rent recovery strategies on residential real estate in Ibadan, Nigeria

PurposeThe upward rise of the prolonged payback period and the inability of the project to generate estimated income that has been linked with the irregular rent payments has been a major problem confronting real estate investment. Given the fact that real estate investment is a risky investment venture with a highly uncertain future stream of income, this paper examines the effectiveness of rent recovery strategies in the emerging Nigeria residential real estate practice.Design/methodology/approachThe study employed an exploratory research design. The study identified the five recovery strategies adopted by the estate surveying and valuation firms in Ibadan Metropolis, Nigeria. The study adopts a purposive sampling method to select 52 registered estate firms in the study area and a questionnaire using a five-point Likert scale was used to elicit information. The data obtained were analyzed using descriptive and inferential statistics.FindingsThe result showed that the rent recovery strategies adopted by the respondents include email approach, rent reminder notice, adequate maintenance, eviction notice and dialogue approach. The perceived top-rated strategies that could influence estimated income were dialogue and rent reminder notice. Also, the findings showed the factors that influence the choice of strategy are property type, company policy and the proportion of rent to the tenant's income.Practical implicationsThe study has an implication for real estate investors and property practitioners regarding the willingness of the investors to invest in real estate investment.Originality/valueThis paper is relevant given the fact that the rental property market is prone to risk that could impede the regular streamflow of income. This serves as a need for examination of the effectiveness of adopted rent recovery strategies as it relates to real estate property management practice and investment viability.

Warehouse development and town planning policies in the UK

PurposeThis paper offers a review of national and local planning policies towards warehouse development within the UK.Design/methodology/approachThe first sections of the paper provide a description of the simple method of enquiry and sources of information used in the paper, outlines of the main factors driving the demand for warehousing space in the UK, and of the nature, scale and operation of modern warehouses, and a short review into the limited literature published to date, on town planning and on how it has influenced warehouse development. This is followed by an examination of some of the planning issues associated with warehouse development, two mini-case studies of how these issues are perceived and played out, a discussion of some of the issues raised in this examination and the mini-case studies.FindingsTown planning policies were traditionally seen as a restraint on the development of warehousing but while current national and local planning policies make little explicit reference to warehousing, they have often been cited in support of new warehouse development because such policies emphasise the importance of supporting economic growth and fostering the conditions in which businesses can invest and expand.Research limitations/implicationsThe paper has a number of limitations, not least that its source material is drawn from the Internet, and in that no primary data were collected from warehouse developers, warehouse operators, local planning officers or local authority councillors, and that the geographical coverage was limited.Originality/valueThe paper offers an accessible review of the current town planning issues associated with warehouse development in the UK.

Normative practices of property rating in Ghana: towards improving policy on rating undeveloped urban lands in secondary cities

PurposeThe paper examined how local authorities have attempted to rate undeveloped land as a means of mobilising revenues and the challenges associated with implementing this policy guideline. It focused on current practices in terms of policy and administration, the availability of undeveloped urban land, its revenue potential, and ways to improve policy for local land taxation.Design/methodology/approachDrawing from the mixed-method approach both qualitative and quantitative data were collected. Officials of the Wa Municipal Assembly, Lands Commission, Land Use and Spatial Planning Authority were purposely selected based on their knowledge and the roles they play in property rating practice. They were interviewed to understand their perceptions and views on rating undeveloped lands. Stratified proportionate and simple random sampling methods were used to select respondents. The respondents included land and landed property owners in three selected neighbourhoods.FindingsThe paper found that there was the prevalence of undeveloped lands mainly held by speculators and individuals constrained by financial challenges to develop their parcels. The Wa Municipal Assembly is unable to implement the policy guideline on charging rent on undeveloped lands due to lack of adequate information and generally unwillingness to implement this provision. Besides, the current guideline is too prohibitive and cannot be implemented in its current form. However, there is a window of opportunity for the Assembly to build data on undeveloped lands and moderately begin the implementation of the policy guideline.Practical implicationsUrban growth in Ghana is characterised by leapfrog development with many patches of undeveloped land in and around cities. The property taxation policies largely do not focus on undeveloped land or unimproved site value. In Ghana, property rate policy on the tax base excludes undeveloped land. However, government policy guidelines prescribe the charging of rent on these lands by local authorities. This paper provides a comprehensive discussion on the revenue potential of undeveloped urban land and why local government authorities have not been able to harness this potential. The paper has therefore recommended ways local authorities can use to mobilise revenue from undeveloped urban land.Originality/valueThere is limited research in rating undeveloped urban land especially looking at it from the perspective of policy and implementation as well as current practices. The paper shed light on the prevalence of undeveloped urban land and the guidelines that exist help local governments mobilise revenue from these lands. It contributes to the understanding that local government can harness the revenue potential of undeveloped land if policy design and implemented regarding these lands is enhanced. The paper also provides a good background and framework for further studies.

Mobile CRM development for real estate agents

PurposeReal estate agents are professionals who need up-to-date and accurate information about their clients in order to maintain profitable and long-lasting relationships with each of them. A satisfied customer can be very valuable and profitable in the long term. This research focuses on solving the problem of the lack of a mobile Customer Relationship Management (CRM) adapted to the needs of professionals. The importance of solving this problem is related to the importance of optimizing work and resources in a highly abundant information industry.Design/methodology/approachIt was developed of a CRM for mobile devices capable of managing information about the customers and business partners of each user, which provides a set of features well defined by the professionals. These features were collected through 15 face-to-face interviews and validated with six video conference interviews with industry specialists. For the development and evaluation of this artefact was followed the DSR methodology, corresponding each interview to an iteration of this model.FindingsFrom this research resulted a selection of functionalities considered essential to the real estate agent's work. These features were successfully implemented in a mobile application that real estate agents appreciate for its simplicity and that they feel adds real value to their daily lives. Using this service, the productivity and performance of real estate agents might be improved.Originality/valueIt was verified that the mobile CRM solution developed is a desired solution by real estate agents in terms of customer portfolio management, enhancing the evolution of their relationships and monitoring professional's performance.

Bridging the gap in real estate enterprise: the impact of mentoring on entrepreneurial intentions of real estate students in Nigeria

PurposeThis study investigates the impact of mentoring on real estate students' entrepreneurial intentions with a focus on Nigeria, an emerging African economy. Specifically, the study assessed the influence of mentoring on the entrepreneurial intentions and career preferences of real estate students and analysed the influence of having a real estate mentor on the respondents' perception of the motivators and inhibitors to their entrepreneurial intentions.Design/methodology/approachThe study adopted a descriptive research approach using closed-ended questionnaires. The study population comprise final year real estate students selected from three federal universities offering Real Estate in southwest Nigeria. Total enumeration was adopted for the study. From a total population of 231 students, a response rate of 69.26%, representing 160 questionnaire were retrieved and found suitable for the analysis. Descriptive and inferential statistical techniques were employed for data analysis.FindingsThe result shows that the factor structure of the motivators for students who have real estate mentors clustered into four constructs; in order of influence are personal fulfilment/satisfaction, flexibility/financial motives, mentoring/economic influences and personal preferences/prestige and status. Meanwhile, economic/independence, personal preference/fulfilment, financial motives/self-perception and mentoring were the factor clusters influencing intention for real estate enterprise by students who have no real estate mentor. Predominant debacles across both categories of respondents relate to the lack of support and market uncertainty.Practical implicationsThere is a growing body of knowledge exploring the linkages between mentoring and the development of entrepreneurial intentions. However, scant empirical investigations have examined the impact of mentoring on real estate students, especially from the perspectives of emerging markets which are usually characterised by low economic opportunities and where issues of graduate unemployment appear endemic and yet to be appropriately resolved.Originality/valueThis study explores the implications of mentoring on the entrepreneurial intentions of real estate students' from the perspective of an emerging market.

Locked-out: generational inequalities of housing tenure and housing type

PurposeThe purpose of this paper is to first explore whether Australia and the main metropolitan areas demonstrate significant differences in tenure and property type between generational groups. Second, whether the millennial generation is more likely to rent rather than own. Third, if such variation in tenure and property type by millennials is one of individual choice and lifestyle or the impact of housing market inefficiencies.Design/methodology/approachThis paper employs a comparative research approach using secondary data from the Australian Bureau of Statistics (ABS) to consider housing tenure and type distributions across generations as well as through cross-city analysis.FindingsThe results show that home ownership is still the dominant tenure in Australia, but private rental is of increasing significance, becoming the tenure of choice for Millennials. Owner occupation is shown to remain and high and stable levels for older generations and while lower in percentage terms for Generation X; this generation exhibits the highest growth rate for ownership. Significant differences are shown in tenure patterns across Australia.Originality/valueThe significance of this paper is the focus on the analysis of generational differences in housing tenure and type, initially for Australia and subsequently by major metropolitan areas over three inter-census periods (2006, 2011 and 2016). It enhances the understanding of how policies favouring ageing in place can contradict other policies on housing affordability with specific impact on Millennials as different generations are respectively unequally locked-out and locked-in to housing wealth.

Soft skills requirements in e-complaint project team to support facilities management at Malaysian polytechnics

PurposeIn the context of the study, soft skill means identifying efficient and effective approaches for improving operation and maintenance (O&M) processes in facilities management and extending the management of building facilities and infrastructure. Applying the concept of soft skill to the O&M processes of facilities management at polytechnics in Malaysia, the paper aims to identify problems with conventional working practices in this area and to recommend potential solutions.Design/methodology/approachThe paper reviews evidence that conventional working methods generate significant problems related to paper-based forms, improper database management and flawed decision-making processes.FindingsThe paper finds that the application of the concept of soft skill reveals the need for more sophisticated management solutions in the O&M processes of facilities management.Originality/valueThe concept of soft skill will guide future improvements and developments in maintenance management systems (MMS) to fulfil requirements in this area.

Willingness of the owners in the integrated development to establish the subsidiary management corporation

PurposeThe increasing number of strata property in Malaysia promotes the different usages of development under the integrated development, which comprise the different usages of owner groups. These owner groups may not enjoy all the common properties in the integrated development. Therefore, the purpose of this research is to identify the important to designate the limited common property for the owners who have the exclusive benefit on it. However, the establishment of the subsidiary management corporation and limited common property is less popular in Malaysia.Design/methodology/approachHence, research should be carried out to identify the importance of the establishment of the subsidiary management corporation and enhancement for the establishment of subsidiary management corporation to increase the willingness of the owner to establish the subsidiary management corporation. Collective Action Theory likewise assists to increase the willingness of the owner in the establishment of the subsidiary management corporation. A sum of 100 owners in the integrated development and 187 stratified property professionals are the respondents in this research, by applying the random sampling method.FindingsResults indicate the problems that occur in the integrated development is the complexity management in integrated development, followed by the usages of the common property. Therefore, Collective Action Theory could ensure the effectiveness of the establishment of the subsidiary management corporation in the aspect of social rights, resources, governance groups and participants.Originality/valueThis paper provided an overview of the management circumstance in the integrated development of Malaysia and discussed some effective enhancements to promote the sustainable formation of the subsidiary management corporation or two-tier management corporations.

Collective action components of low-cost housing: an empirical analysis using Ostrom's SES framework

PurposeTo date, low-cost housing held under the common-property regime is faced with various collective action or management issues in relation to common facilities. Understanding and unpacking key collective action components in a multi-dimensional and systematic fashion that help explain the status quo of the complex low-cost housing management is crucial, particularly in identifying potential factors contributing to the suboptimal self-governing outcome. Therefore, the purpose of this paper is to investigate the collective action of low-cost housing in Malaysia using Ostrom's institutional analysis development and social-ecological system framework (IAD-SES framework) as a theoretical framework.Design/methodology/approachFirst, a mixed-method research design was adopted where issues relating to the management of common properties of low-cost housing were identified in the Malaysian context. Second, the components of Ostrom's IAD framework relevant to collective action were identified. Third, after interviewing six experts in the housing industry via semi-structured interviews, two more components (historical development/adaptability to new environment and ethnicity) were added to the questionnaire survey. From here, 633 respondents who lived in four low-cost housings in Kuala Lumpur from 1,598 households were surveyed in 2012. We then merged the IAD framework with the SES framework. Factor analysis and Cronbach's alpha analysis were conducted to uncover the underlying variables and the social ecological clusters that they belonged.FindingsWith average Cronbach's alpha of 0.83, the seven key SES components identified are able to cumulatively explain 71% variance of local collective action components. Based on the cumulative percentage explained, the top five key SES components are as follows: context (social, economic and political settings); ethnicity; outcome; resource system; and users characteristics.Originality/valueThis study identifies key components related to the collective action issues of low-cost housing management, where two additional components were also suggested to be added to the SES framework. Apart from the theoretical contribution, the study, serving as insights and potential solutions, is also of practical significance to the existing management practices of low-cost housing in Malaysia where policymakers and management corporations may prioritize primary SES components, helping them govern common properties more efficiently.

Institutional investor management of Australian healthcare property assets as a pandemic-proof asset class

PurposeAs the prolonged effect of the COVID-19 pandemic has materially impacted investment returns significantly, it is more crucial than ever for institutional investors to redefine their property portfolios using assets with better investment management potential and meaningful diversification benefits. The “alternative asset revolution” is gaining traction in the property investment space internationally among institutional investors due to the shifting investment attitudes towards the alternative property sectors. Australia's $205bn healthcare property sector is at the forefront of this revolution due to its societal significance, as well as its attractive investment qualities. This paper investigates the institutional investor management of the Australian healthcare property sector via both the direct and listed channels and empirically analyses its investment attributes.Design/methodology/approachUsing the unique Morgan Stanley Capital International/Property Council of Australia quarterly data set for Australian direct healthcare property over 2006–2020, the risk-adjusted performance and portfolio diversification potential direct healthcare property and listed healthcare were assessed. A constrained mean-variance portfolio optimisation framework was used to develop a six-asset portfolio scenario to analyse the portfolio added-value benefits of both direct healthcare property and listed healthcare in a mixed-asset investment strategy. A similar set of analysis was performed using the post-global financial crisis (GFC) quarterly time series of 2009–2020 to investigate the healthcare asset class' performance dynamics in the post-GFC investment timeframe.FindingsThe results indicate that direct healthcare property and listed healthcare offer two key advantages for institutional investors in managing their property portfolios: (1) a stable yet superior risk-adjusted performance and (2) significant portfolio diversification potential in managing their property portfolios. Importantly, both direct healthcare property and listed healthcare provided valuable contributions in strengthening an investment portfolio's performance. The post-GFC sub-period analysis revealed a consistent conclusion regarding the healthcare asset class's performance attributes.Originality/valueThis is the first research that provides an independent empirical examination of the strategic importance of Australian healthcare property as a maturing alternative property sector that can serve both investment and environmental, social and governance goals of investors. This research presents a positive investment prognosis for the Australian healthcare property sector to achieve its institutionalised status as a mainstream asset class of the future.