THE COMPARATIVE ANALYSIS OF AGENCY PRACTICE IN NIGERIA (CASE STUDY OF ENUGU STATE)
In our traditional society, the need for shelter is mainly met through the first alternative that is owner occupation.Actually, it talks about agency practice and the of the agents duty towards the principal known as the landlord and his tenants. In analysis the agency practice in Enugu in researcher carried out a research work around Enugu and got information and contribution from professionals Estate surveyors and non-professional through questionnaires. The project also highlighted the various methods of data presentation and analysis.analysis and interpretation of the data collected by the researcher in the course of carrying out the research. In conclusion these factors determine the increase or decrease in rent charged by landlords. From this, it is not possible to say that the agent of a property is the exact agent charged on the property because there are several factors that can affect agency charged.
- BACKGROUND OF THE STUDY
Shelter is a basic necessity in life. An individual can satisfy this need by either occupying his own (owner’s occupier) property or renting another person’s property. In our traditional society, the need for shelter is mainly met through the first alternative that is owner occupation. With the emergency of urban centers’, the situation has changed. Many people are no longer about to own property because of the difficulty in the acquisition of land and the high cost of building construction. Therefore, they are left with the alternative of renting other people’s properties in order to satisfy their need for shelter. Consequently two classes of urban resident have emerged, the landlord and the tenant under this arrangement the tenant pays to the landlord a certain amount of money in consideration for his use of the landlord’s house. This amount is popularly known as rent.
During the civil war the Nigeria that is 1966 to 1970 many landed properties in the urban areas of the former Eastern Region of Nigeria, including Enugu, were destroyed. Consequently, there was a sharp decline in the supply of landed properties after the war. Furthermore, the post – civil war period witnessed an unprecedented number of the rural population trooping into the urban centres due to the conspicuous prosperity brought about in the urban area by the oil boom. This resulted to high demand for the existing limited supply of landed properties. Consequent upon these, rent for landed properties increased considerably. This trend has continued with the effect that “the average worker is paying 30% to 40% of his salary as rent” (Oshadiya, 1985). Thus the increase in rents on the properties has led to the variation of rent on properties. In urban area due to location advantage (for example prime location) which some properties offer above others for commercial and residential uses, rent tend to very on account of the type of use which a property can offer.
1.2 STATEMENT OF PROBLEM
Location of economic properties has been a difficult concept to understand. Although the primary objective of commercial properties is the derivation of financial gains, while that of residential properties is for habitation, shelter and comfort, the demand for land is a reflection of the profitability or utility derivable from its use. The greater the benefit to be obtained from a particular use, the higher the rent that the user will be willing to pay for it. There appear to be wide ranging differences in the levels of rent passing on residential and commercial properties in Enugu and Nigeria generally. This research is seeking among other things to find out the causes of agency practice in commercial and residential properties in Nigeria, Ogui New Layout and G.R.A as a case study.
1.3 AIM AND OBJECTIVES OF THE STUDY
The main aim of this research is to examine the reasons for agency practice in commercial and residential properties with a view to provide tool to be used in catching issues related to rent on these properties in Enugu and Nigeria generally. To achieve the standard goal, the following objectives are to be pursued;
- To identify the level of rents for commercial and residential properties in the study area.
- To ascertain and examine the factors influencing the rents being commanded by these properties.
- To determine or examine whether the income of prospective buyers/tenants affect their decision to acquire properties.
- To ascertain if there is disparity in agency practice for residential and commercial properties in the study area.
To find out the agency practice between commercial and residential properties?