Our experience in facility management shows that most landlords actually receive between 50% and 70% of the yearly rental accruable to then after the first year due to several reasons such as

• Inability of the tenant to renew due to lack of fund
• Unwillingness of the tenant to pay due to unresolved differences between the landlord and the tenant
• Deliberate delay of payment which builds up long arrears
• Eviction process such as period of quit notice
• Court processes due to unresolved differences or final eviction step
• Idle period of vacant apartment before a new tenant pays for the space
• Piecemeal rent payment which runs beyond the period

These challenges have discouraged a lot of investors from building for rental but to build and sell off. Lagos state government has enacted some laws to regulate this ugly menace but unfortunately the law seems to protect the tenants more than the landlord as opined by many real estate investors. The negative effect of this is reduction in housing development.

While we look forward to a review of the law in the interest of the landlords who invested so much to earn little or nothing, pms has developed a special package to assuage the pains of the landlords who have laboured so much to invest in real estate.

The rationale behind this package is to give the landlord two major comforts which are

• Annual bulk payment: assurance of a particular amount which is between 70% and 80% of the expected rental income from the property depending on the type of property, location, time of engagement etc.
• Specific date of payment: bulk payment of the entire amount agreed at a particular time agreed yearly instead of disjointed payments from different tenants at different times.