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CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Enugu State Housing Development Corporation (ESHDC) is a State

Government Agency charged with the responsibility for the development, designing,

planning, construction and management of real estate properties for Enugu State. The

establishment focuses on real estate development outfits that provide comfortable,

stable, safe, secure and cost efficient housing facilities, not only in the Eastern Zone of

Nigeria, but in the entire Country. This means that the scope of their responsibility is

nationwide.

The existence of Enugu State Housing Development Corporation began in the

year 1962. Then it was called Eastern Nigerian Housing Development Corporation and

was controlled by the government of the Eastern Region of Nigeria. With the evolving

political structure of Nigeria over the years, the Eastern Nigeria Housing Development

Corporation with the creation of East Central State became East Central State Housing

Development Corporation. In the year 1976, Anambra State Housing Development

Corporation was established by Edit No. 10 and became Anambra State Housing

Development Corporation. When Enugu State was created from Anambra State, the

government of Enugu State became the owner of the present Enugu State Housing

Development Corporation. This Corporation is presently located at 21 Kingsway Road,

Enugu.

The Corporation has not relented in pursuit of its vision, to provide for the

citizens of this State and Nation with comfortable, stable, safe, secure and cost efficient

housing facilities. The Corporation has been involved in estate management roles

connected to the development, leasing, marketing and management of some housing

estates in the State, in fulfillment of their primary obligation. Such estates include Real

estate at Uwani, Riverside housing estate at Abakpa Nike and Trans-Ekulu housing

estate. The development of each estate went through several phases. Each phase was

characterized by a new set of varied house types with modifications geared towards

meeting the requirements of purchasers as well as improving the living standards of the

people. During a visit to the Corporation, it was reliably gathered from the First

Schedule officer, that the management operates two types of tenancy; long-term lease

that is, 99 years lease term and periodic tenancy which could be monthly, quarterly or

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annually. The schedule officer said that most of the properties are on long term leases

except the properties at Real Estate Uwani. The management pattern for each of the

housing estate is completely different. The Real estate, Uwani is fully managed and

maintained by Enugu State Housing Development Corporation. Housing estates at

Riverside Abakpa Nike and Trans-Ekulu, were not wholly managed and controlled by

Enugu State Housing Development Corporation. The houses in Riverside Abakpa Nike

and Trans-Ekulu housing estates are managed and maintained by the occupants while

Enugu State Housing Development Corporation Management collects ground rents.

The residential properties at Real Estate, Uwani are 108 flats and operate on periodic

tenancy.

In the year 2007, following the Enugu State Government reform programme, based

on their desire and plan to improve service delivery, the Corporation embarked on a

programme of rehabilitating the existing infrastructure in all her estates. Besides, the

information in the Corporation’s estate registry was being computerized. This required

embarking on a 30-days verification and documentation of Letters of Allocation and

Title Documents to enable them update their database. All Lessees within the

Corporation’s Property were notified by letters to report at the Enugu State Housing

Development Corporation office at 21 Kingsway Road, GRA Enugu to collect

Verification Application Form for this purpose. The Corporation has experienced some

outstanding challenges in their modus operandi in property management.

According to BuildingWealth (2008) publication, “The Governor's Corner”, it was

stated that the governor, His Excellency, Sullivan Iheanacho Chime, during his campaign

for governorship produced a “4-Point Agenda" (a blueprint for consolidation and rapid

growth for Enugu State). Here is one among the points: physical infrastructure, roads,

housing (mass middle/low cost housing), water and electricity, stressing that “housing is

a tool for economic development and poverty reduction”. “It is because of these facts

that our administration in Enugu State has decided to make housing development one of

its cardinal programmes”. “The target of this administration in housing is to ensure that

every family in the State has a house through the following programme”:

1. Fully monetize government houses to public servants on owner occupation basis.

2. Develop new middle and low income houses (a target minimum of 500 units a year,

2,000 units in 4 years), in partnership with Federal Mortgage Bank under the National

Housing Fund Scheme for sale to public servants and other contributors to the NHF.

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3. Create new estates and satellite towns with full site and services for sale to members

of the public. Finalize on-going work on existing estates, complete Loma Linda Estate

and acquired infrastructure in Golf, Michael Okpara Gardens, Zoo lane, Obukpa Layout,

Akanu Ibiam/RCC.

4. Support urban planning and master plan development to guide pattern of growth of

emerging Peri-urban satellite townships - 9th mile, Agbani, Ozalla, Obollo Afor, etc.

The Governor's aim among other things mentioned was to deliver 2,000 low and medium

income houses in 4 years but the reality of the shortage of houses in Enugu State was

alarming and his Excellency then decided to increase the target from 2,000 to 10,000

houses in 4 years.

To realize this objective, the office of the Senior Special Assistant to the Governor

was created, charged with the responsibility of charting a course for private sector

participation in housing development to support the efforts of the Enugu State Housing

Development Corporation thereby forming a triangle where Enugu State Ministry of

Lands and Housing provides land to Enugu State Housing Development Corporation and

private developers through the office of the Senior Special Assistant to the Governor on

Housing Development.

It is indisputable that Enugu State Housing Development Corporation is exposed to

increase management responsibilities in due time, based on the Governor’s housing

agenda. In order to meet up with the increasing management of residential income

properties under the control, there is need to examine the present management strategy of

Enugu State Housing Development Corporation. The trend in management of properties

under the control of the Corporation has experienced different techniques and tools

which will be reviewed in the literature survey. From the period of Eastern Nigerian

Housing Development Corporation till Anambra State Housing Development

Corporation, the management system for data processing in the property registry and

transaction was manual method of management. This manual method was the use of

filing system and typewriter to secure and process information. This method was

prevalent till the later part of nineteenth century when computer system was introduced

as a modern typing aid in the workplace. The use of manual typewriter was being

replaced with Electric typewriters which were wearisome in data management and lack

storage facilities. Further innovation in technology introduced the use of minicomputers

to assist in data administration. The applications of computers were underused due to

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1.2 STATEMENT OF THE PROBLEM

Enugu State Housing Development Corporation lacks adequate residential

income property management tool that would meet the clients demand to maintain,

preserve and update the status in value of their residential accommodations to

contemporary standard. In addition, the data processing technique which is

predominantly manual in operation makes the management technique in use very

sluggish. This is characterized by the use of file folders of leases, drawings, and file

cards and manufacturers catalogs. It exhibits limitations in efficient management

competence. Many organizations in the field of Estate Management at present adopt

computer illiteracy. The challenge to embrace the contemporary technology in computer

innovations by many organizations including the then Anambra State Housing

Development Corporation staff prompted the employers to encourage their employees to

learn the new technology in computer application to enhance their service skill.

The application of traditional management technique is partly in existence but the

use of files or folders to secure documents is predominant. Relevant document relating to

the Corporation work schedules and clientele’s credentials are mostly in soft copies

which could be insecure and exposed to high risk of misplacement. There is a gradual

progression to effective adoption of computer technology in the Corporation. Since then,

the Corporation has been experiencing the effect of this new technology from the

management initiatives. Now, there is a progress from the underused of computer

application to computer awareness in management of real estate.

Automation is a new technology for effective management. In this, computer

application and electronic devices are combined to process information promptly.

Relevant data and information relating to the transactions in residential income

management can be easily accessed. Automating the management of residential income

property of Enugu State Housing Development Corporation will redress the stagnating

conventional manual method of property management. The rapid growth in housing

development especially in the area of residential property market demands an efficient

management competence that would correspond to this rise. The current technique in

residential property management which is application of automated technology will be

emphasized in this work to address the research problems identified in the cause of the

survey.

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this basic tool for residential management. It is comprised of manila folders stuffed

with equipment lists, personnel allocation, space projection, lease expiration dates,

related forms, documents and drawing of many kinds. This system is constrained in

human speed and accuracy. Information management, property appraisal and data

processing become tedious and time consuming. Enugu State Housing Development

Corporation is selected as a public housing management outfit to assess this problem.

This work is intended to discover the causes of the existing gap and how to recover

the divide generated from these problems.

1.3 AIM OF THE STUDY

The aim of the study is to conceptualize an automated management technique that

will expedite management of Residential Income Properties to meet tenants demand.

1.4 OBJECTIVES OF THE STUDY

To examine how policies and decisions will positively influence the

management of residential income properties.

To determine a property management paradigm for efficient supervision of

residential income properties.

To examine how automated management technique will facilitate an efficient

maintenance of residential income property.

To ascertain how the application of automated management technique in

residential income properties will enhance speed and accuracy in data

processing.

To highlight the basic elements required for automating the management of

residential income properties.

1.5 RESEARCH QUESTIONS

Can policies and decisions have positive influence on the management of

residential income properties?

Can there be any property management paradigm for efficient supervision of

residential income properties?

Can an automated management technique facilitate an efficient maintenance

of residential income property?

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Can the application of automated technique in managing residential income

properties enhance speed and accuracy in data processing?

What basic elements are required for automating the management of

residential income properties?

1.6 HYPOTHESIS

The hypothesis of this research states:

HO: The use of automation techniques in Residential Income Property

Management would not significantly improve the database analysis in

Management of Residential Income Property.

H1: The use of automation techniques in Residential Income Property

Management would significantly improve the database analysis in

Management of Residential Income Property.

1.7 SIGNIFICANCE OF THE STUDY

Policies and decisions will positively guide and influence the management of

residential income properties.

An established practicable property management paradigm will steer an

efficient management of residential income properties.

An automated management technique will facilitate a well-organized

management of residential income property.

The use of automation will enhance speed and accuracy in data processing.

The rapid growth trend in residential housing development can easily be

evaluated through the application of automation techniques.

Transition from manual management method to automated technique will

speed up response to tenants demand promptly.

An understanding of the basic elements required for automating the

management of residential income properties will help to equip the personnel

with adequate operational skills and furnish the firm with the right tools.

This work will provide a referendum for future academic research in the

subject of automation as a tool for effective management of Residential

Income Property.

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1.8 SCOPE OF THE STUDY

The scope of the study covers the residential income housing management

activities of Enugu State Housing Development Corporation. Real Estate, residential

housing at Uwani will be examined to ascertain how the current management

technique addresses the work pressure of the real estate division in ESHDC; identify

the weaknesses of traditional manual management method; and initiate a

contemporary management method which is an automated management technique.

The research will also examine how the present management technique

attends to the demands of the tenants. The management technique will assess the

growing demand for maintenance on residential properties and database

administration. This technique will be examined and compared with the traditional

manual method. The tools that are prerequisite to automation such as information

procurement, human resources skill and computerization of real property data will be

given attention. The use of hardware, software and online services as components that

make up the automated technology and their applications will be examined.

Issues relating to Installation of hardware, software and program designs for

real estate management will not be considered in this work. The work will not cover

the general management of Enugu State Housing Development Corporation. It will be

restricted to the income residential properties especially at real estate, Uwani.

1.9 LIMITATION OF THE STUDY

There was scarcity of information on management policies and operation

framework of Enugu State Housing Development Corporation. The economy of their

time schedule could not offer sufficient opportunity to appraise the required

information. There were no sufficient publications to address the activities of the

Corporation with respect to policies and decision in maintenance and management of

public properties. Even when Internet was consulted, their website could not provide

required information. The accessibility of getting adequate information in relation to

the existing residential properties was not easy. The staff of the Enugu State Housing

Development Corporation found it difficult to provide the actual number of

residential properties due to difficulty in data retrieval. The Management especially

the lower cadres were reluctant in releasing information.

Some of the staff were threatened by this idea of automating the services of

their management system. The situation produced an unfriendly rapport. They

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thought that the idea may introduce downsizing of staff in the Corporation, so they

became inhospitable until explanations were offered.

Financial commitments involving transiting from one locality to another in

order to distribute and recover the administered survey instruments were enormous.

This involved finances required for the acquisition of all relevant primary and

secondary data. Movements to sites where the estates are located were of great

commitment. The locations are not in one place. They are in different places. The

implication was that more time, energy and money had to be spent to undertake the

study. The two locations involved are real estate, Uwani and Enugu State Housing

Development Corporation location.

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CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 EXAMINATION OF HOW POLICIES AND DECISIONS INFLUENCE

THE MANAGEMENT OF RESIDENTIAL INCOME PROPERTIES. 2.1.1 Importance of Policies and Decisions in Management of Residential Income

Properties Lee (1988) stated that general housing policy would want to see every one housed at a standard consistent with civilized living and in an acceptable location. What constitutes an acceptable standard will depend on the standard generally attained in a country or an organisation. This agrees with Ogbuefi (2004) when it was suggested that government should attempt to achieve its fiscal policies by carrying the people’s need along. Ezenagu (1990) identified policy in relation to housing as an instrument of solving housing problems. Housing policy was defined by Ezenagu (1990) as a written document which usually comprise of specific objective, strategies and programmes aimed at solving the housing problems or meeting with the ever increasing housing needs and demand of a country. In United Kingdom, Black and Stafford (1988) would include sufficient rooms for decency, adequate cooking and washing arrangements and a normal state of repair. Grimmes (1976) endorsed that through the formulation of an efficient housing policy, several developed and some developing countries have been able to provide the bulk of their population with housing that is economic and yet meets reasonable welfare requirements. Housing policy is expected to provide the following:

Promotion of general welfare of the people, Protection of the family, Maintaining economic prosperity and Fulfillment of social ideals or equal opportunities.

The principles of estate management, are the major considerations which should guide management decisions; a survey of the types of decision made should theoretically, give a general indication of the nature of those principles. The main decisions in property management are grouped in five classes:

1. The acquisition of property. 2. The conservation or preservation of the estate. 3. The development of the estate by introducing capital and carrying out works. 4. The exploitation of the estate by running down or wasting its asset. 5. The sale of the estate and the realization of its assets.

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The work of Thorncroft (1965) involving (Turvey, 1957; Galbraith, 1929; London,

1961; and Hoagland, 1955) explained in detail that all the main decisions in estate

management are likely to be found within one of these categories, particularly the second

and third. But the wide variety of circumstances beyond the scope of this work makes the

search for principles in these categories difficult. There are other elements that must be

straightened out in the study of every decision:

1. Judgment - Where information is scarce, a decision is likely to be highly

subjective and determined by experience and attitudes which may be only

partly rational. The important thing affecting judgment is the attitude to risk

taking.

2. Consideration of the relevant facts - There must be an assembled and

alternative choice of action that can be assessed and compared. Lack of

sufficient information upon which to base management decisions has been pin-

pointed as one of the prime causes of failure in small concerns.

3. Considerable degree of expert knowledge - It is common for the professional

estate manager to be specially trained to meet the particular problems

encountered in the use and management of property either as a valuer, a

building surveyor or, more generally, as an estate manager. However, expert

assistance from lawyers, estate agents, accountants, architects, quantity

surveyors, economists, tax lawyer and others is also required for particular

problems. Many of the larger estate organizations employ such experts as their

staff, more often they will come from outside and with the increased

complexities of modern problems the number and variety of specialists will

certainly grow.

4. Principles of estate management - In practice, they are closely woven into

individual judgment and experience, but may be identified as those parts of the

total experience in estate management that are common to the generality of

situations that arise.

The aim of managing a residential income property is the ultimate goal of Enugu

State Housing Development Corporation while its policies represent the principles and

methods employed to attain them. For instance, Pitman (1953) agreed that two estates

may both aim at a high financial return, but there can be very great differences in the

policies each is prepared to employ; one may invest heavily and accept high risks while

the other may concentrate on achieving economies by attention to detail.

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The aims of an estate will normally depend upon the nature, circumstances and

attitude of the owner. A man in occupation of his estate will tend to have different

objectives to one holding it as an investment; a private estate will generally have

contrasting aims and polices to those of a public authority; and an individual owner will

manage his estate on quite different lines to a large corporation. The types of owner and

the mixture of aims and policies must be very nearly as numerous to the number of

estates. It is worth noting, however, that an estate owned by a large private corporation

will usually have more in common with one owned by a public authority, than one owned

by a small private owner. This is because the management structure is likely to be similar

between the two large bodies which will have a substantial influence on policy, whatever

the aims, the character of ownership.

Despite the great variety of owners and policies, it is possible to list the main aims

which motivate the conduct of estates. It is seldom that a single goal exists and there is

usually a mixture of aims; the manner in which these are weighed and combined is the

feature of policy which gives each estate its individual character. The chief objectives,

toward which most businesses, as well as estates, are oriented, are:

1. To Satisfy an Economic or Social Need

This is the first aim of every estate or business. Each estate has an economic

function, whether it is to provide shelter in the form of buildings, or to provide the land,

which may be, is the raison d’etre of an estate in its existing form. This consideration is

important in property development where uses have often been provided to fulfill a need

such as in hotels, housing, theatres, and amenity open space in a town centre

development – without necessarily offering the highest return on capital invested.

2. Profit

For private owners, profits, or, at least the avoidance of losses, are usually

essential. The path to making profits is by maximizing income and reducing costs. The

scope for cutting costs, however, is often limited because of the large proportion of

outgoings represented by capital charges, and hence, the importance of the development

process to estate management as a whole. The opportunities for increasing income also

are frequently restricted, especially on estates subject to lease. Care has to be taken in

making any long term arrangement to allow for the possibility of inflation and rising

costs.

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Financial returns are calculated in relation to a given period usually a year, but

often much longer where large investment which may not be fully productive for as many

as five or more years is concerned. In speaking of the “profit aims” of estate

management, it is necessary to note that they need not always be directly financial. The

enjoyment by an owner – occupier of his house or shop or factory, which would

otherwise cost him rent, is obviously a profitable return. Also, it is important to recognize

that estate management may be only subsidiary to a wider profit making activity. For

example, the shopkeeper or factory owner rarely activity regards the management of his

premises, separately from the running of his business;

3. Independence

Probably no less important than the economic rewards, are the freedom and

security that estate ownership ensures. The desire for economic and, often, political

independence afforded by owing an estate is very deeply set within human nature and

forms the basis of the typical peasant’s attitude to his land and property.

The motivation of this ideal is responsible for the working of many uneconomic

estates, in most parts of the free world and presents a problem for Government anxious to

increase the efficiency of land resources by means of land reform.

Independence is an important reason for the insistence of many large and small

firms in acquiring the freeholds of their properties instead of accepting leases; and of

course, it is the mainspring of the leasehold enfranchisement movement.

4. Prestige and Political Power

It is no coincidence that the words “estate” and “status” have the same root

meaning. For long periods of history, right up to the present in some parts of the world, a

man’s position in society is determined by the extent of his land ownership. Although

some of the prestige and most of the political power attaching to estate ownership and

management has now worn off, pride is still a potent element in the control of estates. It

gives rise to the generous treatment of tenants by landlords, who place popularity before

financial gain; it accounts for the survival of the tradition of social service and noblesse

oblige an old estates and the maintenance of high standards of improvement, amenity and

repair on many new estates. Companies, public authorities, as well as private individuals,

have regard to the fact that they are judged, to a large extent, by the way their estates are

managed and are determined that their good name should not suffer on this account even

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if the cost of maintaining high standards is uneconomic. The growth of public property

companies is often inspired by ambitions of visible success and, in this, they share the

aims of those who built up the great aristocratic estates in the past.

5. Continuity

Linked with social prestige is the wish of many estate owners to safeguard the

continuity of their estates. The concern for estates to be held intact in their ancestral

ownership accounts for the device and use of the strict settlement as a means of keeping

property within a family. This aim is now largely frustrated by Estate Duty, as far as

private owners are concerned, but it is still important in respect of companies,

corporations and even public authorities who are anxious to establish and maintain

traditions of management and control in respect of particular parcels of land.

6. Social Benefit

As an aim in estate management, serving the public interest is chiefly associated

with public authorities. However, public authorities also include commercial aims in their

policies, whilst many private owners are sensitive to the wider social aspects of managing

their estates. The increased public control of estates, in recent times, has replaced

voluntary action by statutory obligation in many respects, but there still remain

innumerable opportunities for estate policy to take account of social costs and benefits in

its actions. The estate is concerned chiefly with the interpretation and implementation of

the owner’s policies in practice. The distinctive between the policy making function and

management action, involves an almost imperceptible transition as aims are narrowed in

focus from the general to the particular. In many instances, moreover, the owner acts as

estate manager himself and there is no distinction in the operation of the separation

functions.

2.1.2 Concept and Characteristics of Properties

Property in this context refers to real property. Ring and Dasso (1985) defined

property as the right or interest of an individual in lands and chattels to the exclusive of

all others. Real property rights as supports by Dubben and Sayce (1991), includes

possession, control, enjoyment and disposition. The quality and completeness of rights

and the absence of encumbrances greatly affect the value of a specific property. Nancy

(2006) added that real property refers to the physical surface of the land, what lies below

it, what lies above it and what is permanently attached to it, as well as to the legal rights

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of real estate ownership which is often described as the bundle of legal rights. Just as

there are many areas of specialization within the real estate industry, there are many

different types of property in which to specialize. In real estate, properties could be

classified as:

Residential - All property used for housing, from small city lots to acreage, both

single family and multifamily, in urban, suburban and rural areas.

Commercial – These are business properties including offices, shopping centers

stores, theaters, hotels and parking facilities;

Industrial – These are warehouses, factories and land in industrial districts;

Agricultural – These are farms, timberland, pastureland, ranches, and orchard; or

Special purpose – They are place of worship schools, cemeteries and government

held lands

The market for each of these types of properties can be further subdivided into:

1. The sales market which involves the transfer and

2. The rental market which involves the transfer of space on lease basis

2.1.3 Income Property

Real estate is popular investment. Besides generating income and building up

equity, real estate investment can aid in sheltering an owners income against increasing

taxes and the effect of inflation and deflation (Nancy 2006). According to Ring and

Dasso (1985), income property is a realty that produces monetary income on a continuing

basis. The gross annual income for which a property can be rented serves as an index or

measure of its productivity as judge by the market. This is the point of beginning in

valuing income property. The income and expenses must be projected into the future to

ascertain the total flow of benefits to be expected by an owner-investor. Dasso and Ring

went further to explain that income property as an investment asset is held primarily for

capital appreciation rather than the production of income.

2.1.4 Residential Income Property

The concern here is primarily with income property; therefore, attention is not

given to vacant land or owner-occupied residential properties. The basic function of

management, with income properties, is to lance periodic cash flow against preservation

of value toward maximizing the rate of return on investment. Residential income property

is distinguished from other types of property by its function and attributes. Thorncroft

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(1965) described it as an investment asset in property investment project. It is identified

among various types of real estate property.

Ring and Dasso (1985) indicated that two main types of residential properties are

available for investment: the first is the cheaper kind of privately–let housing, which is

normally subject to rent control, and the second is the rather small class of luxury

accommodation, available for letting, particularly in central urban areas. Rent controlled

premises usually have low value, depending on the environment, the condition of the

building, the age status and the amenities. An economic factor, such as inflation affects

owners’ income and hampers the upkeep of the premises (Cullingworth 1963). A survey

conducted of property that lacks management and maintenance attention shows that they

loose value and attract low income.

Luxury dwellings constitute quite a different investment and may be combined

with shops and other types of property in central areas. Outgoings can usually be passed

on to the tenants either directly or by means of service charges and the political risk of

rent control are not considered to be as great as with cheaper property. It is usual to grant

short leases of such premises so that rent can be revised from time to time, or to allow for

rent review. In common with all kinds of residential property, however, the responsibility

of estate management tend to be high, and though reasonably attractive as investment,

they are of little interest to those without the means of organizing their supervision and

control. The supervision and control which is a component of management contributes to

the values of residential properties. This value can be examined from the factors below:

Location: In common with all types of property, residential estates depend chiefly on

their ease of access to those locations which support related uses: areas of employment,

shopping facilities, schools, recreational open spaces of entertainment, churches and

other social amenities. Not all residential estates will depend on access to each of these to

the same extent, however, in an industrial town; places of employment will be more

important features of location than in a seaside resort where access to the sea or to areas

of natural beauty may count for more. Similarly, the importance of shopping facilities,

schools and places of entertainment will vary according to the characteristic needs of the

population in the residential area.

Accessibility is achieved either by proximity of location or by good means of

communication. The former is the more reliable from the point of view of maintaining

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value in the long term, as means of communication may be upset by external

circumstances - growing traffic congestion, the suspension of transport services or the

diversion of traffic by a public authority.

Position: The improvement of means of communication in general has tended to increase

the importance of the actual site of residential estates, as greater freedom in location

allows more selectivity as to the particular environmental area. Generally speaking the

most favoured residential positions are set in pleasant natural surroundings, preferably

somewhat sloping and wooded rather than flat and uninterestingly bare. Most essential,

however, is the exclusion of noise, unsightliness, dirt or dust that might destroy

amenities. Obviously, situations close to heavy industry, gas works, sewerage farms and

cemeteries are undesirable. At present, the primary distributor roads given over to fast

traffic in towns constitute the greater menace to residential amenities and values. An

important matter affecting the position of a residential estate is its layout. This should

achieve as far, as possible, the somewhat conflicting aims of privacy for each residential

unit with social cohesiveness of the whole. The problem is chiefly architectural but the

estate manager’s experience of the needs and wishes of the occupiers is also necessary for

good planning. The difficulties are not so great where the density of building is low and

privacy is assured, but where flats are necessary, ingenuity is required for a satisfactory

solution. Other features of the layout which have a bearing on value are the adequacy and

safety of the access roads, provision for parking and garaging vehicles, the orientation of

dwellings in respect of the sun and such vistas as the situation may have, and the

avoidance of waste or uncontrolled space that might give rise to nuisance or neglect.

Physical Characteristics: The distinctive feature of all property as a commodity is that it

has a long physical life; the design, layout and structure of housing must, therefore, be

adaptable to changing styles and fashions in order to avoid obsolescence, for this reasons,

much residential building, tends to follow a safe traditional pattern that avoids extremes

and dating. New trends towards the incorporation of central heating, labour saving

equipment and other conveniences in the house are now brining changes to domestic

architecture which has remained surprisingly little altered over centuries. In the wake of

technical improvements and higher living standards, estate managers find it necessary to

study and educate their market with regard to the physical characteristic of residential

estates and, in the case of older property, to make improvements to bring them up to

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modern standards. This trend would, of course, be more apparent if the general shortage

of housing did not make occupier less selective that they might wish to be but, as supply

comes closer to meeting demand, much more regard will have to be paid to quality

standard.

Nancy (2006) further recommends that residential income property is the wisest

initial investment for someone who wishes to buy real estate. The object of an investor

directing funds into income properties such as residential is to generate expendable

income, usually called cash flow. The cash flow is the total amount of money remaining

after all expenditures have been paid including taxes, operating cost and mortgage

payment. Cash flow produced by any given parcel of real estate is determined by at least

three factors:

1. Amount of rent received

2. Operating expenses and

3. Method of debt repayment

2.2 PROPERTY MANAGEMENT PARADIGM FOR EFFICIENT

SUPERVISION OF RESIDENTIAL INCOME PROPERTIES

This paragraph will examine the concept of management from general

background and then narrow it to estate or property management. The management under

discussion is not the literal meaning of a governing body of an organization or business,

as a board of directors; or group of employees administering and controlling an

organization, business, and so on. The management here will refer to the action of

managing; the manner of managing; the application of skill or care in the manipulation,

use, treatment, or control of things or persons, or in the conduct of an enterprise,

operation, and so on.; the administration of (a group within) an organization or

commercial enterprise.

2.2.1 Management Theory in Residential Income Properties

No one in an organization is only involved in management activities. Each person has

a technical specialty (such as accounting, finance, Real Estate or production

management) and must become proficient in the tools and techniques of these specialties.

Similarly, there are skills that are recognized as special to management and that apply to

virtually all phases of the manager’s job (Anderson 1984). A skill is the ability to

accomplish some phase of management work. Skills are learned and developed with

18

experience, training, and practice. Management skills is classified as technical human

relations, and conceptual. Technical skills are those involved in making a product or

providing a service. Katz points out that technical skill become less important, when

compared to other skills, as one moves up in the organizational hierarchy. Human

relations skills are concerned with how the manager relates to peers, superiors and

subordinates, and they are important at every organizational level. Conceptual skills are

defined as the ability to coordinate and integrate the organization’s diverse activities and

are most important at the top of the organizational hierarchy where strategic or long-term

decisions are made. Thorncroft (1965) examined management in relation to estate

management. The work of Thorncroft distinguished estate management from Business

management illustrating that in the housing department of local authority, the skills and

processes of managing the estates are quite distinct from the administration of the

department itself. The administration is directed according to the general principles of

business management. However, it is noted that estate management has the basic features

of other management activities. It was further narrated that the functions of management

remain the same whether people, assets or procedures are being directed and controlled.

Various attempts were made to classify these functions according to Fayol (1908) as

quoted by Thorncroft. Five basic functions of management concepts were conceived:

Planning, Organization, Command, Co-ordination and Control. Brech (1953) argues that

Organization cannot be properly regarded as an element of management, but rather as the

basis of its structure. Fayol’s reason for considering organization as an element of

management was based on experience with large concern where organization represent

the need to lay down correct procedures for communication and the legation of tasks. On

the other hand, the role of commanding in estate management is generally less important

than in the case of business concerns with large numbers of staff. Thorncroft (1965)

concluded that with the above description, it is possible to list the fundamental activities

of estate management as follows:

Forecasting

Planning

Commanding

Co-coordinating

Controlling

19

Forecasting in Residential Income Activities

Management involves taking decisions which affect the future, but before these can be

made, it is necessary to make allowance for the conditions that may lie ahead (Reynold

1949). For example, one of the most important factors for any economic enterprise to

consider is the future nature and level of demand for its products. The main commodity

relevant to estate management is accommodation or shelter in the form of houses, offices,

shops, factories, land and buildings of every kind. Although it is neither necessary nor

normally possible to produce raw, unimproved land, most forms of property require to be

processed, adapted or developed in some way to meet demand. Demand seldom remains

constant either in quantity or quality and successful forecasting of changes enables new

demand to be met before wider sources of supply are available, ranging the reward of

first-in-the-field profits.

Forecasts are made partly by analysis and interpretation of obtainable facts an,

partly by haunches or guesses, in which there is often an element of subconscious

analysis. Clearly, as many relevant facts as possible should be gathered before a

prediction is attempted but intelligent guessing is also essential, for where all the facts

necessary to make an accurate forecast are available, there is little opportunity of seeing

farther ahead than the rest of the market. Management, like life, is the art of drawing

sufficient conclusions from insufficient premises.

Every forecast must be based on a time horizon: short medium or long term.

Frequently, a series of forecasts is made over a number within the broad framework of

the more distant. Whatever the term, it is necessary to judge the degree of accuracy that

may be embodied in a forecast; it does not matter so much that a forecast is inaccurate, as

long as the extent of its reliability can be judged.

As a general rule, long term forecasts will be concerned with general trends and

short term forecasts with the business cycles that occur within them. This has important

implications in property development, where it may often happen that long term trends

and expectations) are seriously upset by short term shifts in economic conditions. In fact,

many of the worst investment miscalculations arise in this way. This demand has led to

considerable building activity which has been characterized by intermittent periods of

over-production due to temporary pauses in population growth.

Ogbuefi (2002) narrates that forecasting is essentially a future projection of events

based on the analysis of collected and collated information. It was further explained that

it involves delving into the past, examining the present and projecting the future. Based

20

on the concept affirmed by Ogbuefi, Anderson (1984) established that forecast is an

educated guess about the rate of industrial change, magnitude of change and impact of

particular industry forces. It is obvious that what Professor Ogbuefi regards as ‘event’ in

this context includes real estate activities in the same way as Anderson regards ‘industrial

change’. Further study on forecast within the context revealed that the newest

development in forecast is the use of “issues manager”. Issues Managers alerts

management on emerging political, social and economic trends and controversies and to

mobilize the company’s resources to deal with them.

Planning in Residential Income Activities

Residential Income properties, whatever activities it is intended to achieve will

follow the planning principles in management. Planning is usually considered the basic

management function. Planning is deciding in a future course of action for the

organization-what goals the organization will strive to achieve in both the short and the

long run, and what actions it will take to achieve these goals. Most management agrees

that the remaining four management functions serve to support the attainment of plans.

Without planning, it is difficult to determine the proper design of the organization, the

activities for which control procedures must be implemented, the kinds of individuals

who must be recruited and the training they should receive, or the proper leadership style.

According to Thorncroft (1965) planning, in this sense, is very much wider than

the formulation of proposals for estate development with which it is usually associated,

and extends to all matters of estate direction: the working out of programmes and targets

in relation to annual budgets long term investment, the raising of finance; the leasing, sale

and acquisition of property; estate organization and every other activity. Like forecasts,

plans are set against time scales and frequently long, medium and short term plans are

conceived, each related to one another and reviewed periodically, to ensure they are kept

mutually consistent.

Plans are normally classified as either strategic, that is, dealing with long term,

less important, and inexpensive problems. For example, a plan to enter the real estate

market with a new property design is a strategic plan. A plan to produce two hundred

computers a month on an assembly line is a tactical plan. Strategic and tactical planning

are essential components of the organizational system. Long term planning is only

possible where management powers are sufficient to look well into the future. This

accounts for the superiority in management of main estates held in the same control over

21

long periods over those estates which are subject to short term interests. The effectiveness

of long term planning is also strengthened when the size of the estate is large and,

therefore, less subject to the vagaries of its environment than one which is small. The

principal aims of long term planning on an estate are the to settle the priorities of the

various development schemes to be instituted over the period; to set a time-table in order

to check progress of those schemes; to determine the needs, and to allow time to make

the necessary arrangements for finance that may be required; to provide a basis against

which to consider the shortest term features of estate policy; and to establish the

framework of policy for the information and, perhaps, for consultation with the estate

staff and tenants, affected.

Commanding in Relation to Management of Residential Income Properties

This is an important element in every enterprise but has a somewhat special

application to estate management. It is concerned with creating a high morale amongst

the persons engaged in an undertaking by giving them a sense of purpose and enthusiasm

for their work. The question of leadership arises in the main however where staff are

employed and few estates have, in fact, many employees.

There is, however, another sense in which esprit de corps may exist on an estate

and this is in relation to the attitude of estate tenants to the aims and policies of the

Landlord. Where this is friendly and co-operative estate management is not only easier

but more successful than where it is apathetic or hostile. Large estates public and private

have always emphasized the need to encourage pride in the estate on the part of staff,

tenants, occupiers and all those connected with it, including outside consultants who may

be asked to advise from time to time.

Morale (or correct motivation to use the technical term) is fostered by taking

command and giving prompt and clear decision where they are required; by fairness in

the treatment of staff of tenants; by consulting, informing and encouraging all associated

with the estate so that a sense of partnership and joint endeavour is established.

The management function of directing is often referred to by related terms, such

as coaching or motivating. In the place of Commanding, Williams (2003) classified it as

Directing. Directing is concerned with getting people to focus their attention on achieving

the organization’s objectives. The directing function is important at all levels of the

organization and includes:

22

Communicating the objectives of the organization to subordinates, including plans

and procedure that must be designed with subordinates as part of the ongoing

directing function.

Motivating subordinates to achieve the objectives or to implement the part of the

plan. Motivating subordinates can be accomplished in a variety of ways:

motivation involves factors external to the work itself, such as pay, recognition,

and peer support, as well as factors directly related to work, such as learning,

achievement, and accomplishment.

Helping subordinates when they encounter technical problems related to reaching

goals. This can be done by the manger or by peers if techniques such as team

building or group management are used.

Overcoming among subordinate and introducing change. At various times

subordinates will come into conflict about goals and the means of achieving them,

it is the mangers role to resolve these conflicts and to ensure cooperation among

subordinates. In other instances, organizational change is necessary for

effectiveness and this change must be introduced and managed correctly if it is to

succeed.

Co-ordination of the Management of Residential Income Activities

The works of Pitman (1953), Renold (1949) and Drucker (1955) explained

coordination in relation to management skill of an organization. It was described as the

function of the management which integrates efforts of the organization. This is the

process of arranging the resources of an organization, department, or job in order to

achieve objectives. When work requires the use of two or more individuals some sort of

organization is always required. As the number of people increases, organization may

remain very simple (e.g., if people are performing well-understood jobs) or very complex

(e.g., if jobs are not well understood, as in the design of a new product).

Organizing involves two processes: specialization and coordination. In order to

ensure efficiency work is done by breaking a job into separate performance components.

This ensures that individuals understand their work and become proficient in carrying it

out. Once work is specialized, through coordination problems can be controlled.

Therefore, a structure must be established to ensure that the parts of the job fit together.

Anderson (1984) came up with the following questions in management coordination;

which people must work together if the job is to successfully complete? In what sequence

23

should the entire product be assembled? Coordination is a process involving the transfer

of information between jobs and people to avoid overlap of work and to ensure that effort

and resources are balanced across the total organization specialization and coordination

must be balanced and integrated to successfully complete a task. Setting goals and

making decisions to minimize confusion and overlap are obviously necessary for

effective organizing. Interpersonal relations are equally important. Management must

communicate within the organizational units to ensure that goals and objectives are clear

and that the relationship between each unit’s work and the overall objective is well

understood. It is important to set up a system to resolve conflicts between areas that are

poorly coordinated and may, therefore, develop goals or methods that work against each

other. Finally, feedback from units concerning how they are performing and feedback to

units concerning how the whole jobs are progressing are important parts of using

communication skills.

Controlling the Management of Residential Income Properties

Drucker (1974) states that controlling as a function is the completeness of

management process. The controlling function completes the management process.

Controlling consists of three steps that directly follow the other management function:

establishing performance standards, measuring performance and comparing it to

standards, and correcting deviations. Establishing standards of performance standards are

what the manager expects from objective is the first step. Performance standards are what

the manager expects from each unit and individual in the organization. It is desirable to

make these standards as objective as possible-for example, number of units to produce,

ratio of income to investment, or expense budget limits-but this may not always be

possible. Standards for a personnel officer may be based on goals relating to employee

morale, and those for a research scientist on goals concerning creative ideas and

inventions. It is often difficult objectively state performance standards in such areas.

Regardless, the manager must have a well-defined sense of goals and performance

standards if control procedures are to be successful. Performance standards should be

developed for every level of the organization.

After standards are set, the manager must devise a system or method to measure

current performance and compare it against standards. Measurement and comparison are

equally important in this phase of the control process. Generally, the more complex and

diverse the organization is, the more complex the measuring system. For example in a

24

small organization or department of a large organization a manger’s personal

observations may be an ideal measurement tool. In complex organizations such as Real

estate firms, written reports and standardized measurement systems are used. Once

performance information is gathered it must be compared to standard. The management

by exception principle focuses on those aspects of performance that differ from what was

expected; the manager looks at the exceptions. This is the generally preferred because it

focuses on deviations (both positive and negative) and makes efficient use of a manager’s

time. The final step of control is taking action to correct deviations from the standard.

Many times this involves setting new standards and, as a result, the management

functions return to planning. In other instance, leadership or motivation tactics may be

used to ensure the achievement of objectives in the future.

Robinson (1989) stressed that controlling is not just a routine process in

management but involves anticipating problems and shaping the conduct of an estate or

business in such a way as to each the desired objectives most economically. The closer

the field of operations, however, the more detailed will be the supervision. The activities

of management find expression in two ways. Firstly, the organization structure of an

enterprise which embodies those tents that remain more or less the same whatever the

circumstances; and secondly, in the decision making processes where each action and

objectives is considered in its own terms. Laying down procedures, devising the structure

of duties and terms of routine operation, are common to all forms of management.

2.2.2 Management Requirements of Residential Income Properties

Each property type has some management requirements that are unique to it.

Residential buildings are the most commonly managed property types in our society, and

so they serve as “the standard” in our discussion. Most residential income properties

today experience one problem or the other due to management lapses. Reynold (1984)

recommends that, there is need for problem housing estates to be given close

management attention. Power (1988) blamed these problems on the failure of the housing

authorities generally, though not on equal degree, to establish and maintain close personal

contact between officials and tenants. It is believed that everything about housing

management hinges on the local manager having delegated authority and being clearly

in charge of the total housing service to the estate. This could imply meeting tenants

expectations in respect of repairs, maintenance and policing. Power (1988) supposed

that the cause is due to one key element which is traced to disappearance of

25

door-to-door rent collection. If the above statement is true, it entails that proper definition

of management and its corresponding functions should be emphasized. Thurley and

Richardson as reported by Seely (1985) outlined some of the main problem in housing

management as follows:

Communication problem between tenants and management and vice versa.

Maintenance standards are seldom clearly defined or generally recognized

Maintenance is susceptible to financial stringency and cut-back kin resources and

future plans, with problems in assessing priorities.

Difficulties in obtaining adequate control data for maintenance management.

Generally, property management is concerned with the minutiae of management. It is

dealing with the day to day matters that arise from the occupation of land or property

type. As such a detailed knowledge of the structure and law may be required, together

with an ability to deal with tenants in occupation. The building or property manager is not

specifically concerned with the performance of the property as an investment; his interest

lies in the physical maintenance of the unit and compliance with contractual and statutory

constraints (Dubben and sayce 1991).

In order to improve the effectiveness of housing management, proprietors need an

increased awareness. This can be possible through widespread moves towards

decentralization of housing managements as a means of achieving this goal (Audit

commission, 1986; Maclemann et al, 1988). Tenants should be given access to housing

staff in order to report repairs and to keep eye on the progress; the service seems to

improve tenants’ satisfactions (power, 1987). Decentralization of housing management

often seems to be accompanied by welfare orientation to the service. (Clapham 1990).

This varies from merely keeping tenants informed of what is happening to a large

degree of control over the management of their houses. Management therefore should be

examined from several concepts and definitions.

2.2.3 Estate Managers’ Functions in Management of Residential Income

Properties

Estate Description

An estate, whether residential or any form of estate is a legal entity, as described by

Denman (1958) denoting the character and quality of rights that an owner possesses in a

property and the estate management purposes. It may be regarded primarily as the unit of

control. The problems of management take their complexion, however, from the nature of

26

the individual estate, whose character has a number of facets that they may be

summarized under:

Physical identity

Economic condition;

Legal status;

Managerial character.

Physical identity: The physical features of an estate have an obvious bearing on the

problems of management. Size and shape are fundamental: the conditions of control

differ radically between, say, a smallholding of a few square yards and a ranch that may

cover several hundred square miles. Again, a compact estate of regular shape presents a

different exercise in control from one which is extended, like the estate of British

Railways, with its tentacles of land stretching throughout the country.

Economic Condition: Estate management is an economic process and the economic

features of an estate largely govern the course of management. Among the most

important are its use; whether it is held for occupation of for the rental income it yields;

the extent to which it is underdeveloped and so can profitably absorb capital investment

its income and the return this represents on financial investment in the estate; the debt

loading of the estate and the availability of further credit; and the trend towards physical

or functional obsolescence.

Legal Status: An estate presumes certain rights enforceable at law and it is this legal

character that determines the degree and quality of control ownership can mean much or

little but for practical purposes, an owner is any person, group of persons or body able to

exercise power over a property and so be concerned with its management.

The basis of management will depend in each case upon the pattern of rights,

privileges and obligations that are comprised in the estate and these must be clearly

understood if they are to be employed to maximum advantage. Rights of ownership

cannot, however, be considered in isolation. They must be viewed within the legal

framework of which they form part. Furthermore, no legal system exists in vacuo; it is

the product of various social, ethical, religious, economic, political and other pressures

which govern the choices and decisions of society as a whole. This aspect of an estate

raises deep legal and philosophical questions that cannot be ignored, for the aims and

27

characteristics of estate management have just as much effect on the nature of laws, as

these have upon estate management.

Managerial character: Each estate comprises a separate unit of control. Even though an

estate may be physically divided into a great number of parcels, as in the case of a chain

of multiple stores, where the overall direction is unified, the whole group represents a

single managerial entity. Of course, it happens where there are large or divided estates,

that some decentralization of control is necessary for efficient management. In such

cases, the direction and policy making of the estate are held by a single authority, and it is

the function of supervision that is divided for convenience. Success in these

circumstances depends upon the suitability of the estate organization: the appropriateness

of the units of management supervision; the smoothness of the command from the higher

to lower levels of the controlling hierarchy; the proper delegation of responsibility; and

the other essentials of sound business management.

The growth of large public estates, particularly those of local authorities and New

Town Corporations, is certain to attract greater attention to the managerial problems of

large estate organizations in the future. The sum of an estate’s characteristic represents its

personality and the first requirement of successful estate management is that this should

be well integrated. An estate is badly integrated, for example when economically it could

profitably absorb a high rate of capital investment but legally it is divided in such a way

that no owner has a sufficiently strong interest to risk the necessary finance; or when its

physical size is extensive but its managerial organization is incapable of exercising

proper control. Every estate characteristic is related to the estate personality as a whole

and, where this is unstable due to inherent contradictions or lack of balance, even the

most skilful.

Role of Estate Managers in Residential Income Property Management

Improvements in the standard of estate management have tended to come not

from owners managing estates on their own account, but from professional estate

managers who usually control large, rather than small estates. It has been suggested that

one of the factors that led to the reduction in the number of smallholdings and growth of

large estates, in the eighteenth and nineteenth centuries, was the superiority in estate

management of the greater landowners who could afford to employ stewards as expert

managers.

28

At the top there is the need to translate objectives into policy and to face the legal

and economic problems involved; and in the middle tier of management, the direction,

co-ordination and organization of effort is handled; and, at the operational level, there is

the function of control and supervision. Until the work of estate management became

more specialized and technically intricate, integrity was more essential in a steward than

any particular knowledge or skill, particularly as he was usually trusted with the running

of household affairs as well as the estate as a whole. The agent, on the other hand, was

responsible for the wider administrative, legal and economic problems of the estate.

To provide this service, there are many independence professional firms which,

although often specializing in one particular aspect of estate management, such as the

sale or leasing of properties, valuations for rating or tax purposes or building surveying,

are able to deal with the complete range of normal problems. Because specialization is

increasing, there is a need for expertise in management as the means of controlling

improved knowledge and techniques. Estate management is no longer a simple matter of

arranging routines, it is the dynamic process of calculating, planning, and controlling the

use of land and the resources connected with it, in the light of a central strategy:

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29

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Market Organization

As there is no formal organization bringing buyers and sellers together, there is a

need for agents engaged professionally in the marketing of properties to provide this

service, as well as to give advice on the problems that arise in dealing with property. As a

rule, the principal services offered by an estate agent are:

Knowledge and experience of the Market

Contacts in the Property Market

Skill in Advertising and Negotiation

Estate Agent Co-operation

Auction and Tenders

Other Advice

Property Market Information

The principal need of estate management is not to be kept in daily touch with the

property market, but to be kept informed of the main factors at work there. The important

items of market intelligence are the conditions of demand and supply, the price levels and

their trends, the availability of credit, the interest rates payable on loans and the rate of

return expected by the market on equity investments. In addition, it is helpful if details of

estate ownership can be obtained so that possible sources of future supply to the property

market can be taken into account. This kind of information is needed more by estate

managers, who have the responsibility of forward planning, than market operators and

30

estate agents, who are chiefly interested in short-term fluctuations. The main avenues of

information open to the estate manager are:

Offer Records

Professional Advice

Press Reports

Estate Agents’ Reports

Building Society and Finance Institution Reports

Information from Public Sources

Reports on Special Markets

Ratcliffe as quoted by Kirkwood (1984) enumerates the traditional routines of property

managers as:

Preparation and interpretation of leases

Action under leases.

Rent collection.

Insurance.

Maintenance.

Lumley (2000) stated that property managers whether in-house or outsourced; supervise

property for owners’ financial benefits. They provide executive oversight of services that

usually include:

A pre-takeover of inspection of the property, outlining what is expected and

making proposals.

Finding and screening of tenants, showing apartments and securing and verifying

rental applications. Management then selects tenants from the applications taken

and checked references, and negotiates and executes leases.

Designing and implementing tenants’ retention programme and assuring an

ongoing positive relationship with tenants. Goodwill with tenants can make or

break an investment. Management will also evict offensive tenants when

necessary.

Advertising as needed with local newspaper and rental magazines. Depending on

the location of the property, management will also look at other venues for

advertisement based on response, effectiveness, and cost.

Performing normal duties of property management, including oversight on

procedures regarding tenants moving out, identifying any problem the tenant

31

leave behind, providing for regular apartment cleaning between tenants and

making inspection with new tenants.

Supervising property rent collection and bookkeeping, including the handling of

property receipts, journal entries, record of accounts, bank deposit delinquent

accounts; keeping an account summary of tenant activities and detailed monthly

reports of all expenditures and billings including monthly report/annual budget

reports.

Collecting rents and security deposits, with funds forwarded either to the

investors’ specific business account for rents in that particular property or to the

escrow account for that property.

Supervising property maintenance, ensuring that properties are inspected weekly,

and that any vacant units are brought into the immediate condition of possession;

supervising on-site resident managers as needed.

Keeping up adequate records. Having the right property management forms helps

to keep you organized with proper records. Prescribed form letters to tenants can

address number of problems, saving the time of writing letters for each different

tenant problem.

Insurance, tax analysis, and management. Company will provide necessary

certified accounting personnel and negotiate insurance packages, keep pertinent

insurance up to date, and uphold fire safety and security regulations.

Increasing cash flow by being aware of the market trends that allow for

adjustment of rents and minimizing expenses in relation to work required.

Being responsible for the property compliance with the government and

environmental regulations.

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32

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2.2.4 Management of Residential Income Property as Public Estates

The issues relating to management of residential income properties as public

estates were examined from authors’ input. In addition to the explanation offered by

Thorncroft (1965), Anderson (1962) agrees that apart from ownership, public estates

have little attributes in common: they vary in size, character, management, organization

and, to a surprising degree, in policy objectives. Neither is the extent of public control

and accountability the same for them all. For management purposes, land and buildings

in ownership are divided into separate units which have, in many ways, the features of

independent estates. In each case, the managing authority must refer back to the elected

representatives for major decisions on policy, such as capital investment and so forth but

as the processes of management become more specialized, political control often tends to

become more difficult. This is particularly so in respect of quasi-public estates where

ultimate authority rests upon a coalition of private and public interests.

Brech (1969) contributes that the first distinction in the management of public

estates is between those that are responsible to the organs of government and those that

are controlled by local authorities. The former have land interest throughout the country

and are often obliged to decentralize control through regional and area offices; the later

on the other hand constitute a large number of autonomous bodies, each with

landholdings generally restricted to their administrative area. The second line of

distinction in public landholdings which is employed to form manageable estates follows

chiefly the areas of function: each public service or quasi-public service uses the property

asset allocated to it to carry out its functions, in the same way as other business

enterprises. Each government and local authority department and each public body where

it is crown Estate, a hospital board, a nationalized industry or corporation, manages its

estates as part of its primary purpose but this division of estates is often modified by the

centralization of estate advice and services through the Ministry of works and public

buildings and other estate departments, which have an important effect on day-to-day

supervision and management.

33

From the management point of view, Rowles (1959) consented that, public estates

represent a very large number of separate units, some of which may have much more in

common with private estates than with one another. Because land in public ownership is

not divided to suit management convenience, many of the estate units are either too large,

or too small for optimum control. But as with private estates, it is the functional needs of

each unit rather than its estate management requirements that dictate the characteristics

and organization of property supervision. The public ownership of land does not simplify

management control, therefore, except in so far as it tends, in some cases, to create larger

estates which can be more efficiently managed than would be the case under multiple

private ownership.

As far as estate management is concerned, the principal features that distinguish

the different public estates are the major policy objectives of the functions to which they

are committed. These constitute, directly or indirectly, the chief aims of estate

management and unlike private estates where the chief aim is usually the maximum

profitable return, they vary between three main objectives:

1. The provision of a direct public service;

2. The provision of an indirect social service;

3. The provision of a commercial return for the public exchequer.

Quite frequently, a combination of all these aims in various degree of priority forms the

basis of policy.

Direct public services

As a basis of policy, this is equivalent to the private estate that is held entirely

subsidiary to a business purpose. But whereas the ultimate aim of the private business

concern is usually profitability, the objective of the public estate is a public service. In

this category may be included all public property in direct use for public purposes such as

defence, education or health. The estate function is usually limited to day-to-day

management and maintenance to ensure that the properties can used to optimum effect.

Nevertheless, it is the duty of the estate manger to point out the potential value of

the assets in his care, so that if a way can be found to serve the main purpose of the estate

while at the same time economizing in the use o land and buildings a higher return may

be achieve. Changes in techniques or operation may make it possible to release certain

parts of the holding from operational use, as for example, the moderisation of railways

which has enabled large areas of railway land to be sold or leased. Occasionally, a

34

profitable subsidiary use can be found for public land such as agricultural lettings of

controlled by the ministry of defence or advertisement hoardings on public buildings. The

decision whether public estates can be yielded to revenue earning purposes in this way,

however, will always remain with the functional or operational authority, to whom estate

advice is made available on the maximum potential of the estate assets.

Indirect social service

These are public estates which are developed and let with the prime object of

achieving a social purpose. Typical are local authority housing estates which provide

living accommodation of a reasonable standard at rents that predominantly lower income

tenants can afford. The relationship between poor environmental conditions and poor

health, low working efficiency and high levels of delinquency has long been recognized

and housing, as a public service, has been established for over half a century. More

recently, public authorities have created the New Towns for the dispersal of population;

industrial estates for the diversification of industry, and other premises for letting, to

accomplish various social ends.

In a few cases, the rents charge for these properties is nominal and the

management of the estate may be counted a direct public service. More commonly, rents

are charge very roughly on the basis of what the tenant can afford and the difference

between this and an economic rent represents the element of social aid. Estate

management is not greatly different from the supervision and control of estates by private

landlords, except in so far as social considerations applies.

2.2.5 Commercially Managed Residential Properties

Whereas estate designed to provide a social help a limited group of the

community, commercially managed estates serve the public as a whole, by earning an

income which goes to meet the cost of public expenditure. The purpose of these estates is

to maximize the financial return consistent with proper regard for the interest of tenants,

adjoining owners, employees and others directly concerned with the estate. The Crown

Estate, which will be considered as a representative of commercially managed public

estates, sums up its aim; “The policy of the commissioner, on behalf of the Authority,

remains that of a good landlord able to take a long- term view in the betterment of his

estate”.

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2.2.6 Local Authority Housing

The aims of management in respect of these estates are not confined to making a

commercial return but are centered upon providing living accommodation of a reasonable

standard at rents the tenants can afford. Because it is not economic to supply new housing

on such basis a subsidy is usually required, made up partly from the National Exchequer

and partly from the local authority’s own rate income. Older stocks of housing, which

were built when capital cost were much lower, are often capable of being let at rents

which show a profit that may also be used to subsidize new accommodation.

This composite financial basis makes it necessary for management policy to hold

balance between the interest of the various contributors; the tenants of both new and old

housing; the ratepayers to the local authority; and the taxpayers at large. These

considerations affect the entire span of estate management, from the type of

accommodation to be provided, to whom it should be let, the rent policy and the broad

lines of management supervision. In addition, the multiple responsibility of local

authority housing also affects the organization pattern upon which it is managed.

Unlike the Crown Estate, whose commissioners have only a general direction

from parliament, the officers responsible for the management of local authority estates

are more closely lined to the elected body in which the public have vested power. Almost

all local authorities with housing estates appoint a special committee to watch over this

aspect off their affairs; those that do not, make housing an important part of the work of

one of its other major committees. The committee lays down the broad lines of policy

which the council’s officer responsible for housing management puts into effect. With

many smaller local authorities, it is common for the officers to report back to the

committee for instructions on almost all matters outside routine management: the grant of

letting, the execution of all but minor repairs, the recovery of possession and so forth. In

larger authorities, however, the officers are generally given much wider powers of

discretion.

As housing estate become larger, an increasing number of local authorities have

specialized housing departments and those without them usually have a section within

another department entirely responsible for housing management. The functions of the

housing department will normally include:

Advice to the Architect by providing new accommodation on the type of dwelling

needed and features required for the planning and layout of estates, based on

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management experience as to the needs of the tenants and the requirements of

control and maintenance.

Administration of the list of applications seeking housing and the selection of

tenants on the basis of need, as reflected by the number of “point” gained in the

system of priorities that may be in operation.

The effecting of new lettings.

The arrangement of transfers and exchanges of tenants between dwellings, in

order to ensure that accommodation is used to the fullest capacity.

The organization of rent collection.

The maintenance of the physical fabric of the estates and the services provided.

The day-to-day supervision of the estates and their amenities.

Housing welfare, especially in respect of older and disabled tenants.

Not all of these functions may be performed by the Housing department, however,

even where there is one: new developments are often entirely in the hands of the

Architect or Engineer; rent collections are frequently organized by the Treasurer (House

agents); and the carrying out and sometimes the ordering of repairs may be undertaken by

the Engineers or works Department. It is usually desirable for all the functions connected

with housing management to be in the hands of the Housing Department but when this is

not possible, it is normally convenient to divide management functions between those

which are concerned with the “structure” of the estate and those which are concerned

with “personal relations” with tenants. Thus, questions of maintenance and repairs may

be left to the works Department, while letting, rent collections, and other responsibility

involving tenants’ welfare are entirely controlled by the Housing Department.

Most of the management problems encountered on local authority estates are not

different from those of private estates. There are a number of exceptions, however, and

even when the problems are similar, the approach is often different. The principal

problems are:

The type and nature of new accommodation

The priorities for applicants for letting

Rents

Estate supervision

Maximum use of accommodation

Maintenance

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2.2.7 Management of New Residential Income Accommodation

The Housing Manager which is regarded in this work as property manager, called

in to advice in the planning of new estates has first to consider the needs of the tenants

likely to occupy them. This is rather a different question from that of judging potential

demand, which is the primary concern of a private estate manger. The new

accommodation may be required primary for household with young families (as was

usually the case in the immediate post-war years) or for rehousing predominant elder

people from a slum clearance areas; whatever the prime need, however, a certain amount

of variety is essential so that the property does not suffer obsolescence when needs

change. It is also necessary to see that the new dwelling have all the essential amenities

and to some extent look forward to future standards which are likely to be higher than

those currently acceptable. Most council estates built in the immediate post-war years, for

example, suffer badly from insufficient provision for motor vehicles both in respect of

garages and parking space. Many of the kitchens, also, are too small to take washing

machines and other domestic equipment now regarded as standard.

Another common problem in planning is that of overcoming the disadvantages of flats. A considerable part of local authority housing is carried out in urban areas where multi-storey flats are necessary to achieve the densities required. Whatever their advantage, these have considerable disadvantages for households with young families and the architect and housing manager must ensure that living conditions are made as convenient and comfortable as possible. When the architect has produced his plans, the housing manager will usually be asked to comment, in doing this, he will first satisfy himself that the proposal contains no hidden dangers: high windows openable by young children; wide stairwells with climbable baluster rails; blind corners on roads where children might play; and other menaces to safety. Secondly, he will look at the plans to ensure that they are not likely to give rise to expensive maintenance or difficulties in supervision and control. And finally, he will be conscious of cost. An expensive scheme must either be paid for by higher rents or by supplementation from the rates, neither of which can be accepted lightly, and so the interests of economy are certainly no less rigorous than in the case of private estates.

It may be argued, in fact, that cost considerations have been respected too much in the past, for it is a common criticism that pre-war council estates are too often uniform, dull, cramped and poorly designed. Quite possibly it is still true that insufficient allowance is made for future and higher standards of living but, given the necessity of expanding the

38

number of dwellings as quickly as possible with limited resources, the situation is largely unavoidable.

2.2.8 Residential Income Property Letting Because local authority housing is let at rents below the market level, demand

tends to be in excess of supply and it is necessary to resort to physical rationing on the basis of need. Although the principles upon which priorities are given to applicant for new lettings are generally the same, the manner in which each local authority implements them differs. The factors normally taken into account are:

homelessness, overcrowding insanitary conditions, ill-health and, less commonly, period of residence in the local authority are and time of waiting for

rehousing. These circumstances are qualified by giving points, and accommodation is offered first to the applicants who have the greatest number. Of course, for each type of accommodation there is a separate schedule of points demand and for certain types of dwellings many more points may be required to secure a letting than for others. Indeed, it is by observing at what level of points accommodation of different categories is awarded, that the housing manger can determine what class of property is most needed.

The weakness of point systems is obvious. The first difficulty is in respect of publicity: in order that the system may be seen to be fair it is desirable that the way it operates should be known, it will be open to applicants to mis-represent their position in the way calculated to score maximum points. One of the most difficult aspects of administering the lettings allocation system is the checking of statements and circumstances of applicants and ignorance of the exact way in which it works is usually essential to prevent abuse. The other major problem relating to local authority points schemes for letting, is that they tend to favour applicants with a history of association with the local authority’s area; not only does this discriminate against person forced to live away from their home districts, but it can also lead to immobility of the working population.

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2.2.9 Residential Income Property Rents

The business aspect of local authority housing is focused on balancing the

Housing Revenue Account. Although Exchequer subsidies and contributions from the

Rate Fund help to balance the account, the Housing Manager must carry a substantial part

of the cost burden on the rents. It is also a long accepted principle that no one should be

excluded from a council tenancy because of inability to pay the rent. Under these

conditions, rents have to be fixed on a basis that does not disqualify persons of the lowest

income but, at the same time, produces sufficient revenue not to overburden the rates.

Some of the larger local authorities feel they are able to overcome this difficulty

by having a sufficiently large pool of accommodation so that range of rents is sufficient

to meet all income levels and still provide adequate revenue. Smaller authorities,

however, find it necessary to operate some kind of differential rent scheme whereby rents

are fixed by references to the tenant’s ability to pay as well (or, in some cases, instead of)

the standard of accommodation occupied. These schemes result in similar dwellings

being let at different rents but they do allow for the necessary flexibility to charge low

rents in case of need.

Differential rent schemes vary considerably in detail but fall into six main types.

Rebate schemes where reductions are made in the basic subsidized rent in case of

need.

Surcharge schemes where additions are made to the basic rent where the tenant’s

circumstances justify it.

Combined rebate and surcharge schemes;

Differential rent schemes where rents is assessed purely according to income;

Estate differentiation (i.e the provision of high and low rented estates)

Additional earner and/or lodger charges, to the basic rent.

Each types of scheme have advantage and difficulties and the one selected will

depend largely upon the particular conditions facing the local authority. There are,

however, many local authorities that oppose differential rent schemes on principal: their

dislike is chiefly in respect of the “means test” element and the difficulties and

embarrassment caused by probing into tenants’ circumstances. Despite these problems,

however, it is likely that differential rent schemes will maintains and, probably, advance

their importance in local authority housing.

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2.2.10 Automated Resident Online Rent Payment

Resident Pay offers a simple and affordable way for property managers to collect

and record rent payments online. With Resident Pay, residents pay rent by credit card or

electronic cheque right from their community website. Offering this valuable

convenience to residents also creates significant benefits for managers. Resident Pay

simplifies rent collection, reduces delinquency and trips to the bank, and integrates fully

with the property management software. Managers can eliminate transaction expenses by

passing a convenience fee on to residents who use the service. Managing can be effectual

with automation if so many management processes that can be handled online through

Resident Works. When a payment is made or entered online, the accounting is

automatically updated, so a manager, owner, or investor can have access to real time data.

Flynn comments that what is valued most about resident portals is the online rent-

payment feature. Rental payments on the web site are important to the company’s

accounting systems. Residents pay directly from their bank accounts. Sawyer, remarked

that what is valuable about resident portals is the internet marketing opportunity. "The

Internet is a very viable part of marketing apartment communities in this day and age,"

said Sue Cazier President of Rema Inc. "Even for smaller properties, it is very important

to be on the Internet. Cazier, asserts that one of the most important considerations in

selecting a vendor is the level of service from its staff. Resident Portal program allow

residents to apply for apartments, pay rent and submit work orders online, said Cazier.

Prospects also have the convenience of being able to pay their deposits online.

2.2.11 Residential Income Property Supervision

In this respect, there is little difference from private estates of comparable

property. The handlings of disputes between tenants, the care of common parts and day-

to-day supervision are all the same, irrespective of ownership. In one particular however,

local authority housing mangers have a special responsibility and that is in regard to

unsatisfactory tenants. On private estate these can always be evicted in the last resort and

no further responsibility remains; a local authority cannot discharge its burden quite so

easily as an eviction from one of its estates can merely throw a heavier load onto its

welfare services.

The chief forms of tenant delinquency are arrears of rent, failure to care for the

property and nuisance to other tenants. The housing manger’s chief task is to prevent, if

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possible, any of these problems reaching such a dimension that eviction is the only

solution. To do this, care is taken to ensure that rental arrears do not mount up; these

destructive tenants are put into older properties where they can do least harm; and that

tenant likely to be a nuisance as far as possible isolated. Some large local authorities try

to handle their unsatisfactory tenants by segregation on special estates, but in general on

social welfare officer regard this course as unsatisfactory because it diminishes the

prospects of reforming the tenants by contact with good neighbours.

2.3 AN EXAMINATION OF HOW AUTOMATED MANAGEMENT

TECHNIQUE WILL FACILITATE AN EFFICIENT MAINTENANCE OF

RESIDENTIAL INCOME PROPERTY.

2.3.1 Maintenance of Residential Income Properties

According to Clifton (1974), it was observed that too often property managers are

not among the members of design team when a new building is planned but his wide

knowledge of problems of buildings in use would justify his inclusion. The contribution

which the property manager would make is often discovered to improve the usefulness of

the completed building and increase the flexibility of use, thus enhancing the prospect of

finding and keeping a tenant or tenants. The property manager should be able to make

significant suggestions regarding materials and layout. Such suggestions affect capital

and rental values and the cost of maintenance procedures. Maintenance of properties

simply means to embark on a work in order to keep, restore or improve every property,

that is, every part of a building, its service and surrounds to a currently accepted standard

and to sustain the utility and value of the property. The committee on building

maintenance defines acceptable standard to mean that which sustains the utilities and

value of the property and this is found to include some degree of improvement over the

life of the building as acceptable comfort and as amenities standard rise. Maintenance is a

complex and multifaceted activity which until recently has attracted the attention of the

British standard. Neglect of property maintenance has accumulation of results with

rapidly increasing deterioration of fabric and finishes of a building accompanied by

harmful effect on the components and the occupants. It is highly desirable but hardly

feasible to produce a building that is maintenance free, although much can be done at

design stage to reduce the amount of subsequent maintenance work. All elements of

building deteriorate at a greater or lesser rate depending on materials and methods of

construction, environmental conditions and the use of the building (Seeley 1965).

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It is obvious that the quality of maintenance and property management has a

profound impact on resident relations. Highly trained maintenance professionals ensure

that home and community is continuously maintained to its maximum level of quality,

ardency and beauty. Maintenance starts as the builder leaves the site. Design, materials,

relationship, function, use and their interrelationship will determine the amount of

maintenance during the lifetime of the building. The building fabric has to satisfy

different user needs.

Maintenance and repair, one of the building maintenance and operations subtasks

(Cotts 1998), is based on the concept that there are benefits in taking care of built assets

to avoid suffering from a malfunction. All built assets gradually loose their performance

ability from the time of installation, though at differing speeds. The deterioration rate

typically depends on materials, construction means and methods, usage, climatic effects,

or geographic conditions. Ideally, the required maintenance tasks begin at the same time

the building is built and carries on throughout the building’s life. This task can, in theory,

optimize expenditures and maximize facilities’ value. The maintenance plan is typically

based on the fundamental aims and objectives of the organization that owns or occupies

the building (Arditi and Nawakorawit 1999b; Vanier 2001). Some organizations plan to

temporarily occupy a facility; while others intend to stay in the same building for a long

period of time.

A maintenance program is necessary for numerous reasons. Basically,

maintenance work can and will increase the life of a building and its support systems.

The study of IBM buildings in the United Kingdom confirms that even poor maintenance

could prevent premature failures of some building components (Kincaid 1994). Building

maintenance helps ensure safety and sanitary conditions, as well as continually meet the

designed functions (Wireman 1998). Maintenance also helps make the building

acceptable for sociological and psychological reasons.

Anderson proposed that maintenance concepts can be classified into six different schools

of thought as follows (Anderson 2001):

2.3.2 Maintenance Concept

1. The Process School: This school considers maintenance as a series of processes that

can be modelled based on various aspects of maintenance management. The defined

model is then used to: audit the maintenance process; teach the maintenance theory; and

43

research to improve maintenance process. An example of process school is Production

Control.

2. The Mathematical School: This school approach is to define and express the

maintenance problem in the form of a mathematical relationship. Typically, this school is

concerned with finding a quantitative solution, especially economic optimization, to

maintenance management problems. An example of process school is Operational

Research Theory.

3. The Reliability School: The Reliability School focuses its maintenance strategies on

items that tend to cause problems. The maintenance plan is a result of the component’s

prior analysis (before the event) to avoid perceived mandatory or economic failure

consequences. Some examples of reliability maintenance are Reliability Centered

Maintenance (RCM), Failure Modes and Effects, and Criticality Analysis (FMECA).

4. The Quality School: This school is heavily influenced by the Deming cycle paradigm

(Plan-Do-Check-Act) and aims to ensure the highest quality product/service with limited

waste. Some examples of this school are Total Product Maintenance (TPM), Total

Quality Maintenance (TQMain), and Situational Maintenance (Riis, Luxhoj et al. 1997).

5. The Condition-Based School: The school objectives are to identify and measure

parameters that can detect the beginning of failures. Examples of condition-based

maintenance processes are Predictive Maintenance or Just-in-Time maintenance.

6. The Work Management School: This school regards maintenance management as a

process of planning, organizing, and controlling maintenance work. These processes

include preparing, producing schedules, allocating work, and measuring. An example of

the Work Management School is Computer Maintenance Management System (CMMS).

2.3.3 Cost Saving Type of Maintenance

Building maintenance can be classified as “planned” and “unplanned”, according

to the BS 3811, as shown in Figure 2.1 (Seeley 1987). Planned maintenance is organized

and carried out with forethought, while unplanned maintenance is performed on an as-

needed basis. Building maintenance can also be categorized as “predictable” and

“avoidable”. While predictable maintenance is similar to planned maintenance, avoidable

maintenance is to rectify failures caused by poor design, faulty materials, or incorrect

installation.

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Cotts (1998) claims that the numerous maintenance strategies can be classified into one

of six general categories below (Seeley 1987; Kaiser 1989; Cotts 1998; Magee 1998;

Wireman 1998):

1. Inspect and Repair Only As Necessary: The work is intended to restore an item to a

required function performance state after a failure has occurred.

2. Breakdown/Emergency Maintenance: It is an unplanned work that needs immediate

attention to avoid serious consequences.

3. Cyclical/Routine Maintenance: Scheduled work performed at a pre-determined interval

of time, numbers of operations, mileage, etc., or a request of a non-emergency nature to

restore a system to its original capacity (Vanier 2001).

4. Preventive Maintenance (PM): This is a planned and controlled program involving a

periodic inspection, test, and analysis for potential breakdowns, in order to reduce the

potential premature failure of an item.

5. Predictive Maintenance: Involves monitoring the component performances to detect

any signs leading to a failure. The goal is to ensure that any impeding failure is detected

before it occurs. Once detected, the wear component will be tracked closely and a

replacement is scheduled before it fails during an operation (Wireman 1998).

6. Replace/Revamp/Renovate/Modification: Involves repair/replace projects that arise as a

result of the end of the components’ service life.

2.3.4 Maintenance Plans

Cartlidge (1973) agrees that maintenance plans should be comprehensive and

systematic encompassing both short and medium term consideration. The programmes

should be based on sound knowledge of building and have regard to the following:

The life of the building

The standard to be achieved

The financial implications

Responsibility for maintenance

Financial policy

2.3.5 Maintenance Operation

Effective housing maintenance housing maintenance requires the correct

diagnosis of defects and implementation of the correct remedy with measures, all

based on a sound technical knowledge. Contrariwise there can be an additional waste

45

of materials, labour and money since the work will have to be done again. We need more

uniformity in the method of resorting maintenance date and greater feedback of

information of information on the performance of materials and running cost of buildings

in particular. The increased use of maintenance manuals and more regular maintenance

inspections and schemes of parried maintenance will assist in producing more efficient

maintenance. Effective maintenance control requires the formulation of sound plans,

recording of performance, comparison of performance with the plans and taking of action

where appropriate. There is also need to make better use of available resources.

Power (1987) contended that poor housing conditions, vandalism, lack of

effective response to maintenance requests, etc, can be vastly improved if maintenances

is carried out at local level. This conclusion was at, after many years working on the

Estate priority project for the department of Environment and the Welsh officer, UK.

Lee (1976) narrated that the work necessary to combat progressive deterioration

takes the following forms:

a. Patching, involving the more or less regular replacement of small parts or areas.

b. Replacement of whole elements of components because they are:

Functionally unsatisfactory;

Incur high maintenance and running costs and

Are aesthetically unacceptable

c. Preservation of protective coatings either for the purpose of extending the life of the

protected materials or to maintain appearance.

d. Cleaning which, although often regarded as separate activity, has important

maintenance implication in arresting deterioration and preserving appearance.

Harper (1985) states that maintenance is made up of three separate components:

Servicing

Servicing is described to be cleaning and day-to-day maintenance. The task here

depend on the agreement reached by landlord/tenant about sweeping of floors; weekly

polishing, windows washed monthly. Floors swept every six months, painting for

decoration and protection every four years.

Rectification

Rectification work arises from shortcoming in design, inherent faults in or

unsuitability of components, damages of goods in transit or installation and incorrect

assembly. Rectification represents a fruitful point at which to reduce the cost of

46

maintenance, because it is unavoidable. All that is necessary is to ensure that components

and materials are suitable for their purpose and are correctly installed.

Replacement

Maintenance can also demand renovation. This consists of work done to restore a

structure, services and equipment by a major overhaul to the original design and

specification or to improve on the original design. This may include limited additions and

extensions to the original building.

2.3.6 Computerizing Maintenance of Residential Income Property for Automation

The potential for computer development in the field of property maintenance is

certainly greater than for any other aspect of estate management. Computers have already

been widely used for rent accounting and as property maintenance management has been

very limited. The reason for this is very simple; the most straight forward processes get

computerized first. Rent accounting systems and property data-bases present no great

difficulty for the systems analyst; property maintenance, on the hand, is less well defined

as a process and there is little universally accepted procedure. In addition, as Ratcliff

pointed out, property maintenance is regarded as a rather ordinary area of professional

practice and, consequently, has attracted less attention than other areas of land

administration.

The importance of property maintenance cannot be overstated, however, as the

Committee on Building Maintenance (1972) has stated, the process is important not just

because of the size of expenditure involved but also because it is vital to make the most

effective use of the nation’s building stock. Seeley (1976) puts it:

“The maintenance of the built environment affects everyone continually, for it is on the

state of our homes, offices and factories that we depend not only for our own comfort, but

for our economic survival”.

Possibly the most pertinent issue as was disclosed, associated with property

maintenance is the question of how to bring about significant increases in productivity.

This sector of the construction industry is notorious for its inability to effect

improvements in its overall performance. The reasons for this are quite straight forward.

First, by the very nature of the work, maintenance is heavily labour-intensive, with few

opportunities to introduce mechanization. Second, the industry is characterized by a

multitude of small operators with neither the incentive nor the capital to invest in labour-

saving devices. As it is difficult to envisage any appreciable change in either of these

47

factors in the foreseeable future, it is necessary to look elsewhere for methods of

improving the productivity of the maintenance industry. Hence, it is suggested here that

the use of computers as aids to the management of maintenance could provide one

method of reducing inefficiency in this sector of this sector of the housing industry. Even

if mechanization of the actual maintenance processes is problematic, at least it can be

comprehensively applied to the task of managing maintenance.

In order to appreciate the potential for computer application within the field of

maintenance management, it is necessary to examine existing manual practices and the

problems and shortcomings associated with them. It is also appropriate to consider the

aims of maintenance and the formulation of maintenance strategy. Only after careful

consideration of these matters is it possible to identify the extent to which automation can

be applied as aids to the management of maintenance.

The aims and objectives of maintenance spring directly from the obligations

associated with property ownership. Such obligations may be classified in the following

way:

Contractual

Social

Statutory

Financial

Contractual maintenance obligations normally arise from the landlord and tenant

relationship and are delineated within the terms and conditions of the tenancy. Social

obligations are more difficult to define, as they essentially reflect society’s attitude to

property ownership, which has a tendency to change over time. Because certain social

obligations are not fulfilled by a minority of property owners it is necessary to establish

statutory obligations. Finally, obligations arise from the fact that many properties are

viewed as investments. Here maintenance is required to preserve, or even enhance, the

earning capacity of a building.

From these general maintenance obligations it is possible to extract more specific

objectives:

Establish and maintain an information system on all relevant aspects of the

property concerned (eg building construction/materials/condition).

Establish regular cycles for inspection, redecoration and repair.

Respond promptly to defects and failures.

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Make the most effective use of the resources available (i.e. labour, materials

and equipment).

Comply with all relevant statutory and contractual obligations.

Analyse historic data to determine if changes in policy or methods of

operation would be beneficial.

Even from just a cursory examination of these objectives it is evident that the

automation can play a substantial part in the process of maintenance management.

Specifically, the following can be undertaken:

The establishment of property maintenance data-bases containing information

on all relevant aspects of an organisation’s property maintenance system.

Exploitation of the computer’s diary properties for programmed maintenance

and inspection and redecoration cycles.

The rapid production of orders for contractors and ‘in-house’ maintenance

departments. Here the word-processing capabilities of the computer can be

exploited with the use of standard phraseology, letter and orders.

The monitoring of progress once orders have been issued. Again the

diary/calendar facilities of the computer can be utilized.

The extensive analysis of historic maintenance data for the purposes of

budgetary control, policy review and design feedback.

The key element throughout is information; and it is this aspect of manual

systems that is most lacking. As Pettitt (1981) has described, under manually operated

systems the methods used to record and store information can range from simple file

systems to the more sophisticated house record card systems. With the former,

maintenance details are recorded on the appropriate house files together with all other

correspondence. Consequently, information retrieval, particularly for the purposes of

analysis, is extremely problematic. As an alternative, the various proprietary card systems

that are available are designed to speed up the process of information retrieval.

Nevertheless, in-depth analysis can still be a tedious activity, and also card systems only

permit limited cross-referencing and flexibility. The computer, on the other hand, permits

the rapid storage, retrieval and analysis of information, as well as enabling much more

flexible data-bases to be established.

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2.3.7 Automated Maintenance Request of Residential Properties – Online

Resident Portal contains maintenance management tools that automate the work

order process, creating an efficient way for property managers to respond to resident

requests for maintenance. Apartment maintenance system allows for easy submission,

tracking, and prioritizing of maintenance requests and takes the hassle out of daily

maintenance request processing by reducing phone calls and walk-ins.

Using Resident Portal, apartment maintenance requests are made online at any

time via the apartment community web site. Residents need only logon to the apartment

community web site and submit the request. Residents may detail the problem, provide

permission for maintenance personnel to enter their unit, and even provide pet alerts as

part of the request submission process

Resident Portal maintenance management tools allow both residents and property

managers to easily view the status of open work orders, as well as allowing maintenance

personnel to leave comments on the status of apartment work orders in progress.

Maintenance request submissions may be viewed and processed by on-site maintenance

personnel and mobile devices. http://www.propertysolutions.com/Home/Prospect_Portal

The Resident Portal apartment maintenance system prompts the resident to specify

the level of seriousness of the problem (high, medium, or low). This allows maintenance

personnel to determine priority for more efficient work order scheduling.

Residents could go to website to view pictures of your property, submit applications, pay

rent, request for maintenance online. When a payment is made or entered online, the

accounting is automatically updated online. Professional property management can be a

stressful and complicated job, but through Resident Portal, Resident Pay, and Resident

works, Property Solutions has lifted the weight of property management off of many

managers’ shoulders, and given residents the simplicity and convenience they desire

Goldshine, noted that there are advantages of making your real-time rental

information instantly available to prospects on the Internet. A resident portal is a

community web site that allows residents to accomplish a whole host of functions:

Paying rent,

Signing up for and paying utilities,

Placing work orders,

Reading the community newsletter,

Reserving a party room and even

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Meeting their neighbors at any time they choose and without the need to

interact directly with site staff.

According to Fong commented that rent payments and utility sign-ups are the two

key functions that have recently speeded up the use of community web sites. Smillie,

pointed out that most management firms today understand the importance of marketing

their properties online to prospective renters. Management firms who do not do so may

find it increasingly difficult to keep residents happy. David Cardwell added that, at the

National Multi Housing Council, the growing acceptance of resident portals "is simply a

reflection of demographics and the nation’s use of the Internet”. If your residents are

online, you have to be, too.

2.4 ASCERTAINING HOW APPLICATION OF AUTOMATED

MANAGEMENT TECHNIQUE IN RESIDENTIAL INCOME

PROPERTIES WILL ENHANCE SPEED AND ACCURACY IN DATA

PROCESSING.

2.4.1 Computerizing Residential Income Property as Component of Automation

Kirkwood (1984) accounts that Estate management as in residential income

property offers greater opportunities for computer application than perhaps any other area

in urban land administration. This is because many of the basic processes involved in

managing property are ideally suited for computerization:

The establishment and maintenance of accurate property data-bases;

the preparation of estate accounts; and,

the monitoring of diary dates;

All these activities can be undertaken more effectively and more efficiently using a

computer rather than using traditional manual means. Kirkwood (1984) agreed that

computerization of estate management will make ease the following functions as the

routine function of property manager is processed through computer.

Preparation and interpretation of leases

The establishment and maintenance of property data bases.

Identification of diary dates.

Estate management accounts

Rent and rates accounting

service charge accounting

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Insurance

Value Added Tax

Property Maintenance

establishment of maintenance data bases

programmed maintenance

production of orders

monitoring of progress

analysis of data

Budgetary control.

By examining these more closely it is possible to identify the estate management

activities that can more effectively and more efficiently be carried out using a computer.

2.4.2 The Preparation and Interpretation of Leases in Residential Income

Property

Both the preparation of leases and their subsequent interpretation require the availability

of accurate information. In the case of lease preparation the sources of information are

diverse; the surveyor’s own files; outside sources such as solicitors and planning

departments; and, in most cases, additional on-site survey work. The interpretation of

leases, on the other hand, necessitates reference to the lease document as the main source

of information. However, additional sources of information are normally consulted to

check the accuracy of the lease.

In certain circumstances surveyors only require the barest details of what is in a

lease; and a welcome development in recent years is the practice of placing particulars at

the front of the lease document. Significantly, this is also the type of information and the

level of detail that is normally stored on computer-based files.

The following list, although not fully comprehensive, does give an indication of

the range of information required for lease preparation and interpretation purposes:

1. The Property

Address

Type of use

Site area/floor area

Gross value/ rateable value

Type of construction

Special features/services

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Date constructed

Date of alterations/ refurbishments

2. The Landlord

Name and title

Addresses

registered office

rent

Correspondence

Service of notice

Telephone number (s)

Landlord’s title to the property

Date acquired

Purchase price/premium

Rent

Rent review dates

Method of rent review

3. The Tenant

Name and title

Addresses

registered office

correspondence

service of notice

Telephone number (s)

Names and addresses of referees

Name and address of solicitor

4. The Lease

Date created

Lease term

Commencement date

Termination date

Definitions

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Rent

amount or method of computation

rent review dates

rent commencement date

rent-free period

Tenant’s obligations

outgoings

repairs

- internal

- external

- structural

decorations

- internal

- external

upkeep

- drains/sewers

- fixtures and fittings

responsibility for common parts

user clause

right to assignment

right to sublet

landlord’ right of entry

insurance

extent and type of cover

sum insured

name and address of insurance company

date for renewal of premium

service charge

method of computation

method of apportionment

right to alter

right to termination on destruction

statutory requirements

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payment of fees

town planning matters

special covenants

provisos

landlord’s covenants

quiet enjoyment

headlease rents

insurance

shop premises

covenant to construct shop front/fit out

covenant to trade

opening hours

The question that arises in relation to the above information is how much of it to

store on computer? Although technically there is no reason why the whole of a lease

cannot be stored on computer, at present there are sound reasons for not doing this:

First, there are more cost effective methods of storage available (e.g. microfiche) and

second, it would reduce the efficiency of computer operation (e.g. search times would be

slower). Consequently, in practice several storage media are used together in order to

exploit the full potential of each method. It is worth considering the advantages and

disadvantages of each. The main alternatives are paper, microfiche and electronic media.

2.4.3 Comparative Assessment of Computerizing the Management of Residential

Income Property

The traditional paper-based filing system has one important advantage that is

often underestimated; it can be seen to physically exist. This provides subtle reassurance

for those using the system. There is some comfort to be gained from being able to

physically search through a set of files rather than grope through an electronic data-base.

However, my own view is that this attitude will change over time. Already there is a

generation growing up who are more at ease in front of a visual display unit than a set of

box files. This generation appreciates the speed with which information can be extracted

from an electronically-based system; speed which comes not just from the performance

of the hardware but also from the variety of search routines provided by the software.

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Another feature of paper-based files which is advantageous is the range of types

of information that can be stored on them. Thus, they can contain correspondence, maps,

drawings, notes, proforms etc. It is not readily appreciated that much of this information

cannot at present readily be stored on computer. Correspondence, for example, can much

more easily be placed on a physical filing system.

The disadvantages, however, of relying solely on paper-based files are the amount

of storage space they need and the slow retrieval times to gain access to information.

Hence, in practice a combination of electronic and physical media is often employed to

provide the ‘best of both worlds’. The basic data are recorded on the computer (eg names,

addresses, lease commencement dates etc.) and the bulkier material (eg correspondence,

lease etc.) is stored on paper. To overcome some of the problems associated with physical

storage media, microfilm and microfiche are sometimes used.

Apart from the speed of access and the small area of storage required, electronic

filing systems have other distinct advantages. Prime amongst these is the facility within

the software for checking the validity of any data entered. For example, if lease

commencement and termination dates are to be entered, the program can check that the

latter falls after the former. In addition, as information is updated, the old information

will automatically be deleted; provided the program has been written correctly! With a

paper-based file, on the other hand, both out-of-date and up-to-date information may be

held at the same time. Obviously there is always the danger that this will lead to mistakes.

Another reason for preferring electronic storage is that information can be copied

quickly and cheaply to provide back-up files for security purposes. Duplicate copies of

information held on computer should be regularly up-dated and then stored at a separate

location (i.e. a different building) from the originals, to minimize the effect of any loss

from fire damage or indeed, industrial sabotage.

Finally, if information is stored on computer one further advantage that follows is

that it can be sent to, or demanded by, other offices via the telecommunications network.

Data held physically, on the other hand, must either be copied or then posted or be

transcribed for transmission via, say, Telex or Teletex.

There are clearly strong arguments in favour of placing a large amount of estate

management information on computer. However, surveyors would be well advised to

consider the alternative, particularly as the ultimate source of information for the

purposes of lease interpretation is the lease itself. Data stored on computer can form the

first point of reference; it can be accessed quickly; and, it can be presented to the

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surveyor in a form that demands action (e.g. rent review dates). For the purposes of

interpretation, however, there is not substitute for the actual wording of the lease.

2.4.4 Lease Operation in Computerized Management of Income Properties

During the life of a lease the property manager may be required to take action as a

result of either;

Breaches of covenant; or

The passage of time (i.e. the arrival of certain due dates).

In order to monitor whether the lease covenants are being observed the property manager

must make reference to the actual lease. Although an outline of the contents of a lease

can be stored on computer, this information will fall far short of the detail required for

making decisions on what action to take. Nevertheless, if basic information is stored on

computer it can fulfill the useful function of alerting the property manager to any

breaches of covenant. From a glance at the computer display it is possible to determine,

in broad terms, the obligations of both the landlord and the tenant. If further information

or clarification is required, then reference can be made to the lease itself.

Perhaps the most useful facility provided by the computer is in relation to

specified diary dates (e.g. rent review dates). It is relatively straight forward to include in

the software, procedures for checking the current date against specified diary dates, to

determine if actions is required. Once the routines have been written into the software

and the diary dates have been recorded the checking process is activated normally by the

user entering the current date. For example, when the computer is switched on, one of the

first things the user will be asked to do is to enter that particular day’s date. Thus, before

any other operations are undertaken, the property manager will be presented with a

notification of any action outstanding on leases. This will appear repeatedly each time the

computer is used until the property manager indicates that action has been taken.

The benefits of this facility should not be underestimated. In recent years, for

example, a large amount of litigation has been devoted to the question of whether “time is

of the essence” in relation to the service of notice for rent review. The property

manager’s professional reputation is at stake, and every effort should be made to ensure

that all diary dates are acted upon. The computer can provide the thoroughness and

accuracy needed in this matter.

Diary dates are most likely to arise in respect of the following aspects of leases:

Rent reviews

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Lease termination

Options

Insurance

Inspections

Redecoration

Some of these dates will be specified in the lease (e.g. the date for notice of a rent

review); others arise from estate management policy (e.g. the frequency with which

properties are inspected); and, finally, certain dates will be significant because of

legislative provisions which specifies that the landlord’s notices to terminate a business

tenancy must be served between twelve and six months before the date specified for the

termination of the current tenancy).

Consequently, a good deal of care must go into the preparation of a computerized

estate management system if all these dates are to be picked up. The property manager

has a responsibility to provide the systems analyst with clearly presented, comprehensive

and accurate information so that he or she can effectively perform the tasks they have

been employed to do; namely, prepare a computer-based system that will relieve the

property manager of some of the burdens of estate management.

2.4.5 Computerized Estate Management Accounts for Residential Income

Properties

The paramount importance of accuracy in financial matters is one of the main

justifications for using computers to undertake estate management accounting tasks,

provided the programs have been correctly written.

In addition to the virtues of accuracy and speed, however, there is one other

feature of computers that is relevant for estate accounting (or, indeed, any type of

accounting); that is their facility to present information in a legible and meaningful

manner. Given the dismal decline in handwriting standards since the arrival of the ball-

point pen; there is much to be said for the legibility of computer output. Furthermore, the

computer permits greater flexibility and imagination in respect of layout. Hence, accounts

can be laid out in a way that most clearly shows the information. If, at a later date,

changes in layout are required, then these can be incorporated without undue difficulty.

For ease of analysis, estate management accounting may be grouped under three

headings:

Rent and rates.

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Service charges.

Value Added Tax.

Rent and rates accounting.

At the heart of any estate management accounting system are the procedures for

dealing with rent and rates. In the past these tedious procedures were undertaken by hand.

However, as soon as they were available, mechanical aids were employed to minimize

the accounting burden. A whole host of rent and rate accounting functions can now be

undertaken with more speed. Amongst the many functions that can now be undertaken

automatically the following are the most important:

Recording daily cash transactions;

Recording bank transactions;

Automatic posting of rents to tenants’ accounts;

Issuing of rent demands automatically;

Production of tenants’ statements;

Analysis of rent arrears;

Issuing of arrears notices automatically;

Computation or rates payable;

Production of clients’ statements;

Analysis of all payments;

Analysis of all expenditure;

Production of full ledger statements; and

Calculation of agents’ commission.

Because of the number of different accounting systems that are used in practice, with

each estate manager or surveyor having their own personal peculiarities, it is impossible

to draw up the perfect specification for a computer system. This is the main problem that

software houses face when they attempt to design estate management packages that mean

“all things to all men”. Each surveying firm or estates department does it differently. The

fundamentals may be the same but it is the detail that causes problems for the

programmer. Apart from providing the type of facilities listed above, a rent and rate

accounting system should at least meet the following requirements:

The system should be capable of incorporating a wide variety of rent accounting

periods. For example, all of the following are used in practice:

Weekly;

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Fortnightly;

Monthly;

Bi-monthly;

Quarterly;

Half-yearly; and,

Yearly.

Design of the system should reflect the range of methods that are used to pay rent.

For example, rent collection, rent demands and payment by standing order are all

widely employed.

The system should permit rent registration details to be recorded.

Facilities should be provided for adding new clients, new tenants and new

properties to the system, with ease.

Error correction facilities should be available, with the proviso that certain

information has to be protected for security reasons.

The system should be designed to cope with irregular payments and expenditure.

In practice, the only way to determine whether a system provides all the necessary

requirements is to see it running – and sometimes that is too late!

Service Charge

One aspect of estate accounting that often proves to be particularly burdensome is

the work associated with service charges. Service charge accounting has become much

more complicated in recent years. The increased complexity of service charges is

reflected in the manner in which they are dealt with in leases. In the past a simple clause

setting out the tenant’s obligations to the landlord was sufficient. Today, however,

normally a covenant to pay the service charge is inserted in the main body of the lease

and a schedule is used to describe the details regarding methods of computation and

apportionment. The increasing size and complexity of such schedules reflects the trend in

recent years to transfer more and more of the financial burden of property management

on to the tenant. The landlord is left receiving a rent that equals, or nearly equals, a net

income. Given that the object is to reduce the landlord’s management burden it is only

logical that computers are employed to minimize the administrative tasks associated with

service charge computation.

The variety of items included within service charge accounts varies enormously

and it is impossible to give a comprehensive list. Also the type of item included varies

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with the type of property being considered. However, the following short list gives a

general indication of the heads under which costs are normally grouped for service

charge purposes:

Cleaning

Heating and ventilation

Insurance

Lighting

Management fee

Redecoration

Repairs and maintenance

Sinking funds for replacement of major items

Staff provision (eg security staff)

Upkeep of security systems

Computers can provide two useful functions for the property manager in respect of

service charge accounting period (usually quarterly). That is;

1. Every detail of expenditure can be recorded so as to provide an information

base for the purpose of budgetary control.

2. Second, the computer can produce a resume of this information which will

form the basis of the account sent to the tenant.

Depending upon the management policy adopted such a resume may provide the

property manager with a useful device for pacifying angry tenants. Tenants have, not

unnaturally, become more aggrieved in recent years as service charge costs have

escalated. A detailed account of the expenditure incurred by the property manager can

help to reduce the tenant’s anxiety.

Value Added Tax.

Estate accounting inevitably involves computation and record-keeping in

connection with Value Added Tax. A “taxable supply” is any supply of goods or services

by a “taxable person” other than an exempt supply. A “taxable person” is someone who is

registered for VAT. Any truly comprehensive computer-based estate management system

must include procedures for calculating and recording liability to Value Added Tax, in

accordance with the policy regulations. Further, it is clear that the accounting

requirements for VAT can readily be incorporated into computer systems. Thus, not only

can the accounting drudgery be minimized but also it becomes possible to maintain very

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high standards of accuracy. VAT differs fundamentally form other taxes in its extensive

requirements regarding documentation. Principal amongst these is the need to issue

invoices for any supply of goods or services. The following outline gives some indication

of the extent of the detail required:

The VAT registration number of the supplier;

The name and address of the supplier;

An invoice identification number;

The date of the supply of goods or services;

The date on which the invoice was sent out;

The name and address of the person receiving the good or services;

The type of supply (e.g. sale);

A description of the goods or services supplied;

The quantity of goods supplied or the extent of the services supplied;

The rate of tax for each individual supply and the amount of tax payable;

The total amount payable for the goods or services, exclusive of VAT;

The rate of any cash discount offered;

The total amount of tax chargeable at each rate; and

The grand total of tax chargeable.

In contrast to the above detailed regulations for tax invoices there are no

detailed guidelines regarding the method of accounting to be adopted by

taxable persons. Rather, any system of accounting is acceptable provided it

includes a reasonable audit trail.

Although normal accounting practice applies in all these areas, the estate manager should

pay special regard to the provisions of the RICS Accounts Regulations.

2.4.6 Role of Professional Bodies in Accounting Policy of Residential Income

Properties

One aspect of estate accounts that requires careful consideration is the need to comply

with the standards set by professional bodies. For example, members of the Royal

Institution of Chartered Surveyors are bound by regulations which govern the use of

clients’ money.

The Royal Institution of Chartered Surveyors issued its Members’ Accounts

Regulations and Notes for the guidance of Members in November 1977. These

Regulations are an extension of bye-law 24 (10) which states:

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Subject to the Regulations every member shall:-

1. Keep in one or more bank accounts separate from his own, his firm’s or

his company’s bank account as the case may be any monies held by or

entrusted to him, his firm or his company in any capacity other than that of

beneficial owner;

2. Account at the due time for all monies held as a foresaid (less any

deductions therefrom) to the parties entitled thereto.

Gemmell as described by Kirkwood (1984) has shown that the Accounts Regulations

amplify the above bye-law in three ways:

(i) Clients’ money must be paid into clients’ bank account;

(ii) Proper records of dealings with clients’ money must be kept and

Regularly balanced; and

(iii) Members are required to obtain a qualified Accountant’s certificate.

Clients’ money is defined within the Regulations as follows:

‘Client’s money shall mean money held or received by a member, his firm or his

company on account of a persons from whom he, his firm or his company is acting either

as a surveyor, as agent, bailee or in any other capacity including that of stakeholder

provided that the expression ‘client’s money’ shall not include money to which the only

person beneficially entitled is the member himself”.

There are thirteen regulations contained within the Accounts Regulations and

these are grouped under four headings:

Part I - Definitions

Part II - Bank Accounts

Part III - Books and Records

Part IV - Monitoring and Enforcement

Possibly the most relevant regulation, in relation to the computerization of estate

management records, is that contained within Part III on the subject of books and

records. This regulation states that:

Every member shall at all times keep properly written-up accounts such as

may be necessary:-

(a) To show his dealings with:

(i) All clients’ money received, held or paid by him; and

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(ii) Any other money dealt with by him through a Clients’

Account;

(b) To show separately in respect of each client all clients’ money that

is received, held or paid by him on account of such client.

All dealings referred to in sub-paragraph (a) of paragraph (i) of this regulation

shall be recorded as appropriate either:

(a) In a clients’ cash book, or in a client column of a cash book; or

(b) In a record of sums transferred from the ledger account of one

client to that of another.

Additionally, clients’ ledger, or clients’ column of ledger;

Every member shall not be less than one in every succeeding period of three

months cause the balance of his clients’ cash book (or clients’ column of his

cash book) to be agreed with his Client Account bank statements and shall

keep in the cash book or other appropriate place a reconciliation statement

showing this agreement.

In this Regulation the expressions ‘accounts’, ‘books’ and ‘ledgers’ shall be

deemed to include loose leaf books and such cards or other permanent

documents or records as are necessary for the operation of any system of

book-keeping, mechanical or otherwise, including computer-operated

systems.

Gemmell further emphasized that the phrase “at all times” in the above regulation

means that records should be written up daily. Thus, he illustrates, that if the services of a

computer bureau are to be used, there may be delays of several days between information

being submitted to the bureau and documentation being returned.

Another regulation that is relevant, particularly in relation to the preparation of

computer programs for estate management accounting, appears in Bank Accounts and it

identifies the monies that may be drawn from a Client Account. In the note attached to

this regulation it states that:-

“Drawing money on behalf of a client from a Client Account when such drawing

exceeds the total of the money held on behalf of that client is not permissible”.

Finally, for the purposes of monitoring and enforcing the Accounts Regulations, every

member is required to deliver to the institution, once every twelve months, either;

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(a) A certificate stating that the member did not receive or hold clients’ money during the

accounting period; or

(b) An Accountant’s Certificate set out in the form prescribed by the Institution.

To this end, all computer records should be in a form that complies with the Accountant’s

Certificate Regulations set out in the Schedule to the RISC Accounts Regulations.

2.5 THE HIGHLIGHT OF FUNDAMENTAL REQUIREMENTS FOR

AUTOMATING MANAGEMENT OF RESIDENTIAL INCOME

PROPERTIES.

2.5.1 Tools for Automating the Management of Residential Income Properties

The work of Ogbuefi (2002) on ‘Aspects of feasibility and viability studies’,

underscores the import of critical assessment of any scheme if the ambition will be

successfully implemented. Pulgram and Stonis (1984) stressed that it is important to

understand that an automated office is an integral system of design and planning

elements. Each element is individually important; each element is closely interwoven

with the others and together they constitute the organizational structure of automated

office. The integrated office system includes the following elements:

Hardware

Types

Applications

Organisation

Software

People

Environment

Hardware

The types of equipment or hardware typically used in the automated office are

video display terminal (VDT), keyboard, printer, disk drive, processor, and modem. The

applications of electronic hardware are related to specific programs and processing

functions. These applications include electronics tasks of input, processing, output and

transfer of various kinds of data, text, or graphic information.

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Software

Computer software, according to Wikipedia (2007) is a general term used to

describe a collection of computer programs, procedures and documentation that perform

some task on a computer system. Software is a general term for the various kinds of

programs used to operate computers and related devices. Software is often packaged on

CD-ROMs and diskettes. The term "software" is sometimes used in a broader context to

describe any electronic media content which embodies expressions of ideas such as film,

tapes, records, etc. In computers, software is loaded into RAM and executed in the central

processing unit. At the lowest level, software consists of a machine language specific to

an individual processor. A machine language consists of groups of binary values

signifying processor instructions (object code), which change the state of the computer

from its preceding state.

People

The effects of electronic and related technology upon the office workers are

significant. The sweep of the computer into the office has introduced change. Managers

often are reluctant to accept computers because they lack application skills. These skills

involve;

Data processing

Word processing

Micrographics

Telecommunications

Computer aided design (CAD, CADD)

Automation is often introduced in a way that substitutes a variety of tasks for isolated,

repetitive, and sometimes monotonous work.

Environment

In the automated office, the health of the workers depends on certain considerations

which relates both to the physical workplace and to the needs and expectation of the

workers. They should be used to evaluate existing conditions when a facility is new or

when it must be outfitted for automated equipment. They should influence all space

planning and furnishings layouts and design. Environmental considerations include:

Physical comfort

Human factor Principles

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Safety and security

Privacy

Personal space

Legibility

Communication

Flexibility

Judgment based upon experience, expertise, and accepted practice.

2.5.2 Computerisation; a Prerequisite for Automation

This is an act of providing a computer or computers to do the work of something;

to store information on a computer (Hornby 2006). Automation requires the following

procedures to become successful:

Selection of equipment and technology

Identifying Information to be gathered and

Employing the qualified human resource skill

Computerisation is inevitable in the successful implementation of automating

management of residential income properties (Regan and O’Connor 1994; Heizer and

Render 2004).

2.5.3 Concept of Automation in Residential Income Property Management

Automation: The concept of automating the management of residential income

properties would be expressed from the meaning of automation as presented by Teicholz

(1992) showing that it is a computer support to management of residential income

properties. Cross (1974) puts it as the use of computer systems to perform or supplement

functions in the direction of its application such as residential income property

management. It was further remarked that it is not a substitute for carefully planned and

developed general management practices or skill. Evans (1984) emphasized that if

properly employed, it will improve decision making by providing more accurate

information in a timely manner. This supports the idea that better information at the right

time would reduce costs, improve the functioning of the workplace and improve

employees’ input. Hammer (1988) stressed that automation would be an efficient

computer based approach to residential property management. It was further gathered that

the capacity of computers to manage large amounts of data accurately and inexpensively

would makes its application to property management systems very attractive. Hornby

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(2000) drew attention which supports the concept of automation as the utilization of

machine to improve on the work that was previously done by people. The use of

automation displays a factual advantage as explained by (Molnar 1983), to the fact that

many of the operations required in property management involves projections and

inventories with possible major time savings. Further advantage was ascribed to speed,

accuracy, consistency and cost (Palmer, 1986). In this regard information can be

conveniently compared in various ways affording faster and more complete analysis.

Wikipedia (2006) adduced that automation was interpreted from ancient Greek

philosophy to mean self dictated. This was examined from different perspectives to

connote robotization or industrial automation or numerical control. It was describes as the

use of control systems such as computers to control industrial machinery and processes,

replacing human operation (Eastman, 1979). This affirms that in this scope of

industrialization, it is a step beyond mechanization, while mechanization provided human

operators with machinery to assist them with the physical requirements of work;

automation greatly reduces the need for human sensory and mental requirements as well

(Liggett, 1986).

2.5.4 Significance of Automating the Management of Residential Income Property

Hamer (1986) explained many reasons why organizations use automated

management techniques rather than manual methods. The work of Elshafei (1977) and

Ryan (1979) supports the inference that property management through the use of

automation is usually justifies on cost avoidance or cost-saving basis though depending

on the criterion by which a corporation invest capital. The importance of automation in

real property management was exhibited through the paper presentation in the third

annual pacific-Rim Real Estate Society Conference held 20th-22nd January 1997 at New

Zealand by Kershaw and Rossini (1997). This paper demonstrated the development of an

automated time series package. This package was designed for use with residential sales

data. It was an automated statistical package incorporating sales storage, retrieval and

automatic analysis. The package allowed various time series analysis to be conducted for

any selection of properties.

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2.5.5 Software Applications in Automated Management of Residential Income

Properties

Property Management Software Integration

Prospect Portal integrates completely property management software, saving time

and money on information capture and data re-entry. A few of the powerful benefits

available through integrating Prospect Portal web site to property management software

include the following:

Online payments automatically post to resident ledgers.

Online maintenance requests enter directly into maintenance software.

Residents can view their balance, print receipts, email managers, and update

personal information online.

Prospective residents can submit online applications or guest cards that

immediately enter into property management software.

Prospective residents can view real-time availability from property management

software and make unit reservations that post in real-time back to the software.

As property pricing and floor plan information is updated within your property

management software, the web site will immediately and automatically reflect

those changes.

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CHAPTER THREE

3.0 RESEARCH DESIGN AND METHODOLOGY

3.1 RESEARCH DESIGN AND METHODOLOGY

Acceptable research principles and methods were devised in order to make

this work relevant. The research commenced with problem identification from the

background study of the organization and their management activities. Attention was

given to the management technique used in managing the residential income housing

of ESHDC properties at Real Estate housing, Uwani. Site inspection was conducted at

the location of the residential income properties at Uwani. The method adopted in

data procurement, presentation in the table, analyses, population for study and the

sampling techniques were detailed in this work.

The research design adopted the use of survey method for data collection. The

sampling technique used was stratified random sampling for residents of Real Estate

Housing, Uwani. Purposive sampling was used for sample selection of the staffs of

Enugu State Housing Development Corporation. A sample size of 395 respondents

was drawn from the entire population. The population parameter was made up of staff

of Real Estate Division in Enugu State Housing Development Corporation and the

Residents of Real Estate Housing, Uwani. The sample size was comprised of;

residents of real estate housing, Uwani (low income earners) with one hundred and

sixty (160) respondents; two hundred and twenty five (225) respondents of (high

income earners) and Real Estate Division staff of Enugu State Housing Development

Corporation, with ten (10) respondents. A total number of 395 questionnaires were

administered to the population. An oral interview was conducted with the Public

Relation Officer who addressed the documented and interactive discussion. The

questionnaires recovered were 150 respondents representing 93.8% from the lower

income residents; and 185 respondents of high income earners representing 82.2% of

the distributions administered to the occupants of Real Estate housing at Uwani. The

questionnaires recovered from Real Estate staff of Enugu State Housing Development

Corporation (ESHDC) were ten (10), representing 100% response. The data obtained

was shown in a table and analysed with both descriptive and inferential statistical

methods.

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Table 3.1.1 Questionnaire Distribution Table Class Number

Distributed Number

Recovered Percentage

(%) Distributed

Percentage (%)

Recovered

Number not recovered

Percentage (%) not recovered

Low Income

Residents of ESHDC,

Uwani Real Estate

160

150

100

93.8

10

6.2

High Income

Residents of ESHDC,

Uwani Real Estate

225

185

100

82.2

40

17.8

ESHDC, Staff (Estate

Division)

10

10

100

100.0

-

-

Total Sample Size 395 345 100 87.3 50 12.7

Source: Field Survey, 2009

Enugu State Housing Development Corporation

Number Recovered *100 Total Percentage Recovered = ------------------------------- for Analysis Number Distributed = (345 x 100) ÷ 395 = 87.3%

The table 3.1.1 shows the summary of distribution and recovered questionnaires.

The distributed number of questionnaires was three hundred and ninety five (395), which

represents 100% of the total distributions made. The total number of questionnaires

completely filled and returned for data analysis was one hundred and fifty (150) copies,

which represents 93.8% of the distribution made to the Low Income Residents of EHDC-

Real Estate Uwani and the instruments not recovered were 10 copies representing 6.2%

of the distributions. The Higher Income Residents of ESHDC-Real Estate Uwani were

distributed with two hundred and twenty five (225) questionnaires and one hundred and

eighty five (185) representing 82.2% were recovered while forty (40) representing 17.8%

were not recovered. Ten (10) questionnaire instruments were distributed to the staff of

ESHDC (Estate Division) and all were recovered. The total number of recovered

questionnaire was three hundred and forty five (345) copies out of three hundred and

ninety five (395) administered instruments. The percentage of the total recovered number

was approximately 87.3% of the total distribution made.

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3.2 DESCRIPTION OF THE STUDY AREA

The area covered in this study is within Enugu urban. Enugu State Housing

Development Corporation (ESHDC) is the administrative body charged with the

responsibility for the development, designing, planning, construction and management of

real estate properties for Enugu State.

This Corporation is located at 21 Kingsway Road, GRA in Enugu. It is near to

Court Avenue and Enugu State Transport Corporation (ENTRACO). It falls in Enugu

North Local Government area but controlled by the State Government. The

administration is headed by a CEO/Managing Director. Several departments popularly

called Divisions, function under this Corporation. Such divisions are Planning; Real

Estate; Civil Engineering; Accounting; Auditing and Administration; Legal; Public

relation; Computer; and security divisions.

Real Estate, Uwani

This housing estate is situated in Uwani area of Enugu urban. It is located in

Enugu South Local Government Area but managed by Enugu State Housing

Development Corporation (ESHDC) on behalf of Enugu State government. The

properties there are mostly blocks of flat on floors of two and three storey buildings. The

total number of flats is one hundred and eight (108). The properties are accessible

through Agbani Road and Nise Street by Agbani Road.

Plates 3.2.1 show the photographs of the types of residential income properties

that are in Real estate, Uwani.

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Real Estate, Uwani

Plate 3.2.1 3-Floors of 2-storey Blocks of Flats in Real Estate, Uwani Source: Field Survey, 2009 - Enugu State Housing Development Corporation,

3-Floors of 2-storey Blocks of Flats in Real Estate, Uwani Source: Field Survey, 2009 Enugu State Housing Development Corporation

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Plate 3.2.2 2- floor of 1- storey block of flats in Real Estate Uwani

Source: Field Survey, 2009 – Enugu State Housing Development Corporation.

3.3 POPULATION FOR THE STUDY The groups used for this study were randomly selected from the following locations:

Residents of Real Estate housing at Uwani

Staff of Real Estate Division of Enugu State Housing Development

Corporation

3.4 SAMPLE AND SAMPLING TECHNIQUES

Two sample methods were adopted for this work. This is because two different

groups of population were involved. The first group was residents of Real estate

housing at Uwani. The second group was the staff of real estate division of Enugu

State Housing Development Corporation. Stratified random sampling method was

used for selecting the respondents for evaluation from real estate housing in Uwani

while purposive sampling method was used for selecting the respondents for

evaluation at ESHDC. The population for the study at real estate housing was

stratified into; income group (both low and high income earners), dependant group

comprising of children, unemployed housewives and unlawful tenant group involving

squatters and holidaymakers. For the stratified sample, the sampling technique was by

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selecting one of the strata which was income group. This group was administered

with one hundred questionnaires.

For the purposive sample, the identical role in management of the residential

income properties by the staff of ESHDC made the selection possible. The employed

regular staff are thirteen (13) in number. The purpose here is to describe some

particular subgroup and there functions in depth. In this group; it is few in number.

The selection was considered based on participants with professional knowledge in

real estate management. The sample size used for the study here was ten (10)

respondents.

3.5 SOURCES OF DATA

The data collected for this study were from both primary and secondary sources.

Primary data were drawn from interviews, questionnaires, report and field

observations. The principal source of secondary data was drawn from textbooks,

Journals, reports, Internet websites and other related unpublished literatures written

by different authors.

3.6 RESEARCH INSTRUMENTS

There were three major instruments developed for this study in order to source for

detailed information towards achieving the aim and objectives of the study. These

instruments were as follows:

3.6.1 Interview

This was designed in question format. It was an oral and interactive

discussions guided by a written down questions. The interview was designed to allow

for a good flow of personal contact. The original intention was to contact several staff

of the establishment but was referred to the real estate division Public Relation

Officer. She was able to address about fifteen questions directed to the division. The

answers were designed with alternatives and in closed ended format. It was an

interesting interaction session. Where further explanations were needed, the public

relation officer did not hesitate to tackle the problem. The questions were designed to

meet the need of this research for the management of residential income properties of

Enugu State Housing Development Corporation (ESHDC).

It offered an opportunity to explain issues and new technology to the

respondent in terms of automating the management of residential income properties.

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The respondent expressed on behalf of the management their receptivity to the

innovation. The summary of the interview was presented in a table with the

corresponding answers:

S/No

INTERVIEW QUESTIONS

RESPONSES

1.

How soon were your policies and decisions for management of residential income properties updated?

The Board has been sitting.

2.

Does your current operating policy and decision reflect the need to accommodate a new management method for residential income properties?

Yes

3.

How would you consider a policy and decision that will accommodate automating the management activities of your residential income properties?

Increase Efficiency

4.

Do you have any existing management pattern that guides the monitoring of the performance of your residential income properties?

Yes

5.

How do you relate with your tenants?

Correspondence

6.

Do you accept that performing your property management functions can be best guided with programmed real estate management software?

Yes

7.

Do you agree that computerizing the management of your properties database would be important in prompt maintenance of your residential income properties?

Yes

8.

How do you receive maintenance requests from your tenants?

Visit to office & Phone calls

9.

How do you receive rents from your tenants?

Visit to office & Correspondence

10.

How do you carry out maintenance of your residential income properties?

Emergency & Routine maintenance

11.

How fast is the current management technique you adopt, address the maintenance need of your

Slow

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tenants? 12.

Do you understand a concept known as automated technique in management and how it works?

No

13.

With the explanation, do you consider automation an ideal response to reduce tenants’ pressure in managing residential income properties?

Yes

14.

What status are your staffs in computer literacy?

Few computer Literates

15.

Are you knowledgeable about computer software and hardware used as current tools for management of residential income properties?

No idea

3.6.2 Questionnaires

This was constructed to address the issues relating to the management of

residential income properties in Enugu State Housing Development Corporation

(ESHDC). The intention was to source for primary information that would help in the

assessment of automating the management of income residential properties of ESHDC.

Questionnaires were designed in a closed ended format with response options. A

total number of three hundred and eighty five (385) questionnaires were administered to

the residents of Real Estate, Uwani. Three hundred and thirty five (335) of the

questionnaires were recovered. The relevant questions that addressed the objectives of

this work were fifteen (15) itemized questions apart from preliminary questions.

Questionnaires containing ten (10) questions were administered to ten staff of ESHDC

who are real estate professionals.

3.6.3 Observations

This was conducted and recorded through the use of camera. This type of

observation did not give detailed information but forms the impression in the mind of the

observer. In the light of this, some photographs where taken to expose the issue relating

database management of the present technique. Files were littered on the floor with bulks

of paper documents relating to management of properties. Files on racks were observed

in the real estate division registry.

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Plate 3.6.3 Bulky residential files of the occupants of ESHDC

Source: Field Observation 2009

3.7 VALIDITY AND RELIABILITY OF THE INSTRUMENT

Validity refers to measure’s ability to measure accurately the variables intended to

measure. It is also defined as the degree to which a measuring instrument measures what

it is designed to measure Osuala (2001).

Reliability on the other hand refers to a measure’s ability to yield consistent

results each time it is applied. Gay (1981) suggest that one way to strengthen faith in

content of validity is to gather the opinions of other investigators, especially those

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knowledgeable about the variables involved, regarding whatever particular operational

definitions seems to be logical measures of the variables. To enhance the validity of the

questionnaire and interview questions used in this study. It was subjected to jury opinion

and pilot test before use.

Pilot survey was conducted about one month before the actual administration of

the questionnaires to the respondents. This was done to confirm the research

instrument. This involved fifteen (15) occupants of Uwani and ten (10) staff of Enugu

State Housing Development Corporation.

3.8 METHOD OF DATA ANALYSIS

3.8.1 Data Presentation

The data obtained from the questionnaires and the interviews were displayed

in tables. This method is more statistically oriented than other methods of presenting

data. According to Udo (2004), tables allow the researcher to display and analyze

variables that are related. This is most useful when variables are measured on nominal

and ordinal scales. It is also used where statistical techniques appropriate to the

interval ratio scale cannot be used. Tabulation is also a method of proper comparison

of the various classes and categories of data created to assist by arranging them in a

coherent and orderly manner.

3.8.2 Data Analysis

The analysis of this work was done by the application of percentage (%) and chi-

square statistical method.

Percentage (%):- This was used to compare the frequencies of the responses

obtained from the survey research instrument. The size of the association between

two variables could be determined easily by the percentage difference. According to

Marsha, Rose and Sullivan (1988 and 1993) as quoted by Udo (2004), the percentage

differences ranges from 0% to 100%. 0% represents no association between two

variables while 100% signifies absolute association. Chukwuemeka (2002), explained

that in order to convert to percentages, responses enable the researcher to compare

sub-group of unequal size meaningfully. Furthermore, changing frequency counts

into percentages shows the number per hundred compared using a common base of

hundred (100) for comparison of two or more variables.

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Chi-square (χ2):- This involves the use of observed frequencies and expected

frequencies in the computations. The observed frequencies were the data from the

field whereas the expected frequencies were data derived through statistical

computations. Edward, (1972) stated that chi-square test is an inferential statistics,

which could be used to determine the degree of association between two or more

variable. Udo (2004), opined that chi-square test could be applied to a table if the

information was obtained by random sampling. He explained that the technique

allows the result obtained to be compared with statistical probability distributors. Chi-

square is also used to check the goodness of fit of an observed frequency distribution

by a particular theoretical distribution. It is a test used for testing more than two

population proportions. The formula is stated below:

χ2 = (O – E)2

E Where:

χ2 = chi-square

O = Observed frequency

E = Expected frequency

= summation

Further simplification for obtaining Expected frequency (E) is stated below:

E = F(r) x F(c) N Where:

E = Expected frequency

F(r) = Total row frequency

F (c) = Total column frequency

N = Total frequency (or sample size)

Decision Rule: This was applied in this research so as to help in taking appropriate

decision whether to Accept or Reject any of the hypothesis (HO or H1) formulated.

The following represents:

HO = Null hypothesis

H1 = Alternative hypothesis

T.V = Table Value

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C.V = Calculated Value

> = Greater than

< = Less than

Accept HO, Null hypothesis if the table value (TV) is greater than the calculated value

(CV), (TV> CV) or reject Ho if the (TV) is less than calculated value (CV), (TV< CV).

Note:

The associated degree of freedom was derived by the application of the formula

below:

df = (R – 1) (C – 1)

Where:

df = degree of freedom

R = total number of rows

C = total number of columns

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CHAPTER FOUR

4.0 PRESENTATION OF DATA AND ANALYSIS

4.1 DATA PRESENTATION

This chapter deals with the presentation, analysis and interpretation of data

collected from the field survey and was displayed in tables. The data collected was

statistically oriented and involved systematic arrangement of facts and figures in rows

and columns.

4.2 DATA ANALYSIS

The analyses which involve descriptive and inferential statistics will be used in

this chapter to analyse the data collected from the respondents. The information presented

in the table below would be analyzed by the use of percentages and chi-square technique.

The percentages were used to compare the frequencies of response from the respondents.

The chi-square was used to evaluate the association that existed between the variables in

the hypothesis and to arrive at the right decision for conclusions on the finding. The

sample size obtained for this study was three hundred and forty five (345) respondents

which was used for the analyses.

ANALYSIS OF QUESTIONNAIRES DISTRIBUTED TO LOW INCOME

RESIDENTS OF ESHDC REAL ESTATE, UWANI.

4.1 QUESTIONS ON HOW POLICIES AND DECISIONS COULD

INFLUENCE THE MANAGEMENT OF RESIDENTIAL INCOME

PROPERTIES.

Table 4.1.1 Did you enter into any tenancy agreement with Enugu State Housing

Development Corporation before accessing the residential property?

Response Frequencies # Percentages % YES 117 78.0 NO 23 15.3 NO RESPONSE 10 6.7 TOTAL 150 100 Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

The distribution in the table 4.1.1 shows that the frequencies of the occupants

who accepted that they entered into tenancy agreement with Enugu State Housing

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Development Corporation for Real Estate housing, Uwani were (117) respondents.

This figure is represented by 78.0% of the total return of the questionnaires

administered to the residents. (23) respondents did not observe the standing policy of

contracting the rental tenancy agreement while (10) persons could not respond to the

question. These figures represented 15.3% for ‘NO’ response and 6.7% for

respondents who did not want to offer any answer. The representation here shows that

adequate supervision is not carried out in the management to ascertain legitimate

residents of Real Estate housing at Uwani.

Table 4.1.2 - Were you given any property management brief or manual that would

guide your tenancy obligations in management of your flat?

RESPONSE Frequencies # Percentages % YES 47 31.3 NO 96 64.0 NO RESPONSE 7 4.7 TOTAL 150 100

Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

The residents’ opinion was asserted to verify if property management brief or

maintenance manual were handed over to them to guide them in performing their

tenancy obligations. The table 4.1.2 displayed the opinion of the residents by disclosing

that (47) residents responded ‘yes’ indicating 31.3% of the total questionnaires

administered. (7) persons representing 4.7% of the residents who returned their

questionnaires could not respond to the question. However, greater number of

respondents was denied access to such operation or instructive manual. This number

was represented by (96) persons which is 64.0% of the total respondents.

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Table 4.1.3 Do you consider the policies and decisions of ESHDC compatible with

your tenancy?

RESPONSE Frequencies # Percentages % YES 48 32.0 NO 91 60.7 NO RESPONSE 11 7.3 TOTAL 150 100 Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

The tenants expressed how they felt with the operation of the policy to the

state of their tenancy. The table 4.1.3 indicates that the compatibility of the policy

was accepted by (48) respondents which represented about 32.0% of the total number

of questionnaires recovered. (91) respondents were not compatible with the current

operating policy on the management of the residential property in occupation. This

value statistically represents 60.7% of the recovered questionnaires. The respondents

who could not offer any answer were (11) residents representing 7.3%. The

interpretation in this analysis implies that greater number of residents is not

compatible with the operating policy on the management of real estate properties at

Uwani.

4.2 QUESTIONS RELATING TO ADOPTING A PROPERTY

MANAGEMENT PARADIGM FOR EFFICIENT SUPERVISION OF

RESIDENTIAL INCOME PROPERTIES.

Table 4.2.1 Do you presume that the way the management of your resident is carried out is patterned?

RESPONSE Frequencies # Percentages % YES 53 35.3 NO 81 54.0 NO RESPONSE 16 10.7 TOTAL 150 100 Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

Table 4.2.1 illustrates that the residents numbering (53) which is represented

by 35.3% of the recovered research instrument agreed that there is pattern used by the

administration of ESHDC in carrying out their management function. Greater

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proportion of the respondents numbering (81) which represents 54.0% said there is no

management pattern. (16) residents represented by 10.7% did not respond to the

question. Their concept is judged by their different understanding of what

management pattern actually mean.

Table 4.2.2 Do you encounter any management problem when you want to pay your rent? RESPONSE Frequencies # Percentages %

YES 118 78.7 NO 16 10.7 NO RESPONSE 16 10.7 TOTAL 150 100 Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

The table 4.2.2 above shows that 78.7% of the (118) residents of low

income earners in Uwani Housing estate who received the questionnaires

indicated that they encounter problems in paying their rent to the Enugu State

Housing Development Corporation while 10.7% of the respondents specified that

they do not encounter any problem in paying their rent as at time and when due.

10.7% of the respondents did not respond to this question.

Table 4.2.3 Do you experience delay in response from the staff of ESHDC when urgent

management attention is needed in your residence?

RESPONSE Frequencies # Percentages % YES 80 53.3 NO 40 26.7 NO RESPONSE 30 20.0 TOTAL 150 100 Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

The tenants expressed how they experience delay whenever urgent management

attention is needed in their apartment. The table 4.2.3 indicates that (80) respondents

representing 53.3% of the total number of questionnaires recovered experience this

delay. (40) respondents do not experience delay whenever maintenance need arises.

This number statistically represents 26.7% of the recovered questionnaires. The

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respondents who could not offer any answer were (30) residents who stood for

20.0%.

4.3 QUESTIONS ON HOW AUTOMATED MANAGEMENT TECHNIQUE

WILL FACILITATE AN EFFICIENT MAINTENANCE OF RESIDENTIAL

INCOME PROPERTY.

Table 4.3.1 Do you appreciate the ESHDC timing for your maintenance schedule?

Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

Table 4.3.1 shows that the number of respondents that appreciate the timing

for the maintenance schedule are represented by (31) occupants which is 20.7%.

(119) occupants that represented 79.3% of the recovered questionnaires do not

appreciate ESHDC timing in their maintenance schedule. The table interprets that the

timing for maintenance schedule of ESHDC for Real Estate properties at Uwani is not

being appreciated by the occupants.

Table 4.3.2 Will you acknowledge a new technique that is internet mobilized in

addressing your maintenance requests?

Response Frequencies # Percentages % YES 104 69.3 NO 30 20.0 NO RESPONSE 16 10.7 TOTAL 150 100 Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

The distribution in table 4.3.2 shows that the frequency of (104) residents

representing 69.3% would acknowledge the new technique of internet mobilization

in addressing their property maintenance request while (30) respondents

representing 20.0% of the total distribution made would not appreciate a new

technique of internet mobilization in addressing their property maintenance request.

RESPONSE Frequencies # Percentages % YES 31 20.7 NO 119 79.3 NO RESPONSE - - TOTAL 150 100

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Only (16) residents representing 10.7% of the total distribution did not have

anything to say on this question.

Table 4.3.3 Are you computer literate to be able to communicate with the

management if this management technique is adopted?

Response Frequencies # Percentages % YES 77 51.3 NO 73 48.7 NO RESPONSE - - TOTAL 150 100 Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

From the table above, (77) respondents representing 51.3% from Uwani

Real Estate housing accepted that they are computer literate such that they would

be able to communicate with the management if the new automated technique of

management is adopted by ESHDC. (73) respondents representing 48.7% of the

total distribution made were not computer literate such that, they would not be able

to communicate if ESHDC decides to adopt automated techniques for managing

their residential properties.

4.4 TO ASCERTAIN HOW THE APPLICATION OF AUTOMATED

MANAGEMENT TECHNIQUE IN RESIDENTIAL INCOME

PROPERTIES WILL ENHANCE SPEED AND ACCURACY IN

DATA PROCESSING.

Table 4.4.1 Do you understand the concept of automation and the technicalities

if devised as a new management technique in processing your documents?

RESPONSE Frequencies # Percentages % YES 39 26.0 NO 101 67.3 NO RESPONSE 10 6.7 TOTAL 150 100 Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

Table 4.4.1 shows that (39) respondents representing 26.0% from low

income earners of Uwani Real Estate housing could understand the concept of

automation and its technicalities if it is being used to process their property

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document while so many respondents which has the frequency of (101)

representing 67.3% admitted that they would not understand the concept

automation and its technicalities if it is being used by ESHDC to process their

property documents. The respondents that did not respond to this question were

(10) representing 6.7% of the total distribution made.

Table 4.4.2 Automated management will be faster and secure; your information,

data processing and accessibilities will be online; will you appreciate the

management trend?

Response Frequencies # Percentages % YES 138 92.0 NO - - NO RESPONSE 12 8.0 TOTAL 150 100 Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

The distribution in Table 4.4.2 shows that (138) respondents representing

92.0% of the total distribution from Uwani Real Estate housing would accept the

management trend of automation techniques to be faster in securing and processing

their property data through online than manual system. Only (12) respondents

representing 8.0% did not give any answer to this question. None of the

respondents refused to accept that automated management would be faster in

securing their property information and data through online.

Table 4.4.3 Do you consider that fulfilling your tenancy obligations through

online facilities will be more convenient to you?

Response Frequencies # Percentages % YES 88 58.7 NO 45 30.0 NO RESPONSE 17 11.3 TOTAL 150 100 Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

The above table shows that (88) respondents representing 58.7% believe

that fulfilling their tenancy obligations through online facilities will be more

convenient for them while (45) respondents representing 30.0% did not believe that

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their tenancy agreement being fulfilled through online would be convenient for

them. (17) respondents representing 11.3% did not respond to this question and the

reason is best known to them.

4.5 TO VERIFY THE AVAILABILITY OF THE BASIC RESOURCES

REQUIRED FOR OPERATING AUTOMATED MANAGEMENT OF

RESIDENTIAL INCOME PROPERTIES.

Table 4.5.1 Do you have any computer system in your residence?

Response Frequencies # Percentages % YES 38 25.3 NO 104 69.3 NO RESPONSE 8 5.3 TOTAL 150 100 Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

From the table above, (38) respondents representing 25.3% accepted that

they have computer system in their homes while (104) respondents representing

69.3% of the total distribution made did not accept to have computer system in

their homes and only (8) respondents representing 5.3% of the total distribution

made did not have anything to say on the question asked.

Table 4.5.2 Do you know how to access internet websites and process

information?

RESPONSE Frequencies # Percentages % YES 42 28.0 NO 108 72.0 NO RESPONSE - - TOTAL 150 100 Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

The table 4.5.2 above is showing that (42) respondents representing 28.0%

accepted that they can access internet websites and process information while (108)

respondents representing 72.0% of the total return of the questionnaires distributed

to the residents of low income group in Uwani Real Estate housing did not accept

to have known how to access internet website and as well processing information

through internet.

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Table 4.5.3 Can your income afford a computer system with configured internet

services in your residence?

Response Frequencies # Percentages % YES 37 24.7 NO 87 58.0 NO RESPONSE 26 17.3 TOTAL 150 100 Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

The above table indicates that (37) respondents representing 24.7% of the

total distribution made accepted that they can afford to have a computer system

with configured internet services in their residence while (87) respondents

representing 58.0% could not afford to have computer system with configured

internet services in their homes. (26) respondents representing 17.3% did not

respond to this question.

ANALYSIS OF QUESTIONNAIRES DISTRIBUTED TO HIGH INCOME

RESIDENTS OF ESHDC REAL ESTATE, UWANI.

4.6 QUESTIONS ON HOW POLICIES AND DECISIONS COULD

INFLUENCE THE MANAGEMENT OF RESIDENTIAL INCOME

PROPERTIES.

Table 4.6.1 Did you enter into any tenancy agreement with Enugu State Housing

Development Corporation before accessing the residential property?

Response Frequencies # Percentages % YES 137 74.1 NO 34 18.4 NO RESPONSE 14 7.6 TOTAL 185 100 Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

The distribution in the table 4.6.1 shows that the frequencies of the high

income group who accepted that they entered into tenancy agreement with Enugu

State Housing Development Corporation for Real Estate housing, Uwani were (137)

respondents. This figure is represented by 74.1% of the total return of the

questionnaires administered to the residents. (34) respondents did not observe the

standing policy of contracting the rental tenancy agreement while (14) persons could

not respond to the question. This figure represented 18.4% for ‘NO’ response and

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7.6% for respondents who did not want to offer any answer. The representation here

shows that adequate supervision is not carried out in the management to ascertain

legitimate residents of Real Estate housing at Uwani.

Table 4.6.2 Were you given any property management brief or manual that would

guide your tenancy obligations in management of your flat?

RESPONSE Frequencies # Percentages % YES 51 27.6 NO 111 60.0 NO RESPONSE 23 12.4 TOTAL 185 100

Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

The residents’ opinion was asserted to verify if property management brief or

maintenance manual were handed over to them to guide them in performing their

tenancy obligations. The table 4.6.2 displayed the opinion of the residents by disclosing

that (51) residents responded ‘yes’ indicating 27.6% of the total questionnaires

administered. (23) persons representing 12.4% of the residents who returned their

questionnaires could not respond to the question. However, greater number of

respondents was denied access to such operation or instructive manual. This number

was represented by (111) persons which is 60.0% of the total respondents.

Table 4.6.3 Do you consider the policies and decisions of ESHDC compatible with

your tenancy?

RESPONSE Frequencies # Percentages % YES 65 35.1 NO 106 57.3 NO RESPONSE 14 7.6 TOTAL 185 100 Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

The tenants expressed how they felt with the operation of the policy to the

state of their tenancy. The table 4.6.3 indicates that the compatibility of the policy

was accepted by (65) respondents representing 35.1% of the total number of

questionnaires recovered. (106) respondents were not compatible with the current

91

operating policy on the management of the residential property in occupation. This

value statistically represents 57.3% of the recovered questionnaires. The respondents

who could not offer any answer were (14) high income residents representing 7.6%.

The interpretation in this analysis implies that greater number of residents is not

compatible with the operating policy on the management of real estate properties at

Uwani.

4.7 QUESTIONS RELATING TO ADOPTING A PROPERTY

MANAGEMENT PARADIGM FOR EFFICIENT SUPERVISION OF

RESIDENTIAL INCOME PROPERTIES.

Table 4.7.1 Do you presume that the way the management of your resident is carried out is patterned?

RESPONSE Frequencies # Percentages % YES 64 34.6 NO 100 54.1 NO RESPONSE 21 11.3 TOTAL 185 100 Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

Table 4.7.1 illustrates that the residents numbering (64) which is represented

by 34.6% of the recovered research instrument agreed that there is pattern used by the

administration of ESHDC in carrying out their management function. Greater

proportion of the respondents numbering (100) which represents 54.1% said there is

no management pattern. (21) residents represented by 11.3% did not respond to the

question. Their concept is judged by their different understanding of what

management pattern actually mean.

92

Table 4.7.2 Do you encounter any management problem when you want to pay your rent? RESPONSE Frequencies # Percentages %

YES 136 73.5 NO 33 17.8 NO RESPONSE 16 8.6 TOTAL 185 100 Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

The table 4.7.2 above showed that 73.5% of the (136) residents of high

income earners in Uwani Housing estate who received the questionnaires

indicated that they encounter problems in paying their rent to the Enugu State

Housing Development Corporation while 17.8% of the respondents specified that

they do not encounter any problem in paying their rent as at time and when due.

8.6% of the respondents did not respond to this question.

Table 4.7.3 Do you experience delay in response from the staff of ESHDC when urgent

management attention is needed in your residence?

RESPONSE Frequencies # Percentages % YES 100 54.1 NO 55 29.7 NO RESPONSE 30 16.2 TOTAL 185 100 Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

The high income residents expressed how they experience delay whenever

urgent management attention is needed in their apartment. The table 4.7.3 indicates

that (100) respondents representing 54.1% of the total number of questionnaires

recovered experience this delay. (55) respondents do not experience any delay

whenever maintenance need arises. This number statistically represents 29.7% of the

recovered questionnaires. The respondents who could not offer any answer were (30)

residents representing 16.2%.

93

4.8 QUESTIONS ON HOW AUTOMATED MANAGEMENT TECHNIQUE

WILL FACILITATE AN EFFICIENT MAINTENANCE OF

RESIDENTIAL INCOME PROPERTY.

Table 4.8.1 Do you appreciate the ESHDC timing for your maintenance schedule?

Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

Table 4.8.1 shows that the number of respondents that appreciate the timing

for the maintenance schedule of ESHDC are represented by (36) occupants which is

19.5%. (139) occupants that represented 75.1% of the recovered questionnaires do not

appreciate ESHDC timing in their maintenance schedule (10) respondents

representing 5.4% did not attempt to answer this question. The table interprets that

the timing for maintenance schedule of ESHDC for Real Estate properties at Uwani is

not being appreciated by the occupants.

Table 4.8.2 Will you acknowledge a new technique that is internet mobilized in

addressing your maintenance requests?

Response Frequencies # Percentages % YES 120 64.9 NO 40 21.6 NO RESPONSE 25 13.5 TOTAL 185 100 Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

The distribution in table 4.8.2 shows that the frequency of (120) residents

representing 64.9% would acknowledge the new technique of internet mobilization

in addressing their property maintenance request while (40) respondents

representing 21.6% of the total distribution made would not appreciate a new

technique of internet mobilization in addressing their property maintenance request.

Only (25) residents of high income group representing 13.5% of the total

distribution did not have anything to say on this question.

RESPONSE Frequencies # Percentages % YES 36 19.5 NO 139 75.1 NO RESPONSE 10 5.4 TOTAL 185 100

94

Table 4.8.3 Are you computer literate to be able to communicate with the

management if this management technique is adopted?

Response Frequencies # Percentages % YES 120 64.9 NO 53 28.6 NO RESPONSE 12 6.5 TOTAL 185 100 Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

From the table above, (120) respondents representing 64.9% from high

income residents of Uwani Real Estate housing accepted that they are computer

literate such that they would be able to communicate with the management if the

new automated technique of management is adopted by ESHDC. (53) respondents

representing 28.6% of the total distribution made were not computer literate such

that, they would not be able to communicate if ESHDC decides to adopt automated

techniques for managing their residential properties. 12 respondents which

represents 6.5% out of the total distribution made did not respond to this questions.

4.9 TO ASCERTAIN HOW THE APPLICATION OF AUTOMATED

MANAGEMENT TECHNIQUE IN RESIDENTIAL INCOME

PROPERTIES WILL ENHANCE SPEED AND ACCURACY IN

DATA PROCESSING.

Table 4.9.1 Do you understand the concept of automation and the technicalities

if devised as a new management technique in processing your documents?

RESPONSE Frequencies # Percentages % YES 98 53.0 NO 87 47.0 NO RESPONSE - - TOTAL 185 100 Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

Table 4.9.1 shows that (98) respondents representing 53.0% from high

income earners of Uwani Real Estate housing could understand the concept of

automation and its technicalities if it is being used to process their property

document while the respondents which has the frequency of (87) representing

95

47.0% admitted that they would not understand the concept automation and its

technicalities if it is being used by ESHDC to process their property documents.

The implication of this is that, more than half of high income residents understand

this concept and the remaining half should be put through with this concept by

organizing seminars on computer application.

Table 4.9.2 Automated management will be faster and secure; your information,

data processing and accessibilities will be online; will you appreciate the

management trend?

Response Frequencies # Percentages % YES 164 88.6 NO 11 5.9 NO RESPONSE 10 5.4 TOTAL 185 100 Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

The distribution in Table 4.9.2 shows that (164) respondents representing

88.6% of the total distribution from Uwani Real Estate housing would accept the

management trend of automation techniques to be faster in securing and processing

their property data through online than manual system, while (11) respondents

representing 5.9% did not accept. Only (10) respondents representing 5.4% did

not give any answer to this question.

Table 4.9.3 Do you consider that fulfilling your tenancy obligations through

online facilities will be more convenient to you?

Response Frequencies # Percentages % YES 108 58.4 NO 53 29.7 NO RESPONSE 22 11.9 TOTAL 185 100 Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

The above table shows that (108) respondents representing 58.4% believe

that fulfilling their tenancy obligations through online facilities will be more

convenient for them while (55) respondents representing 29.7% did not believe that

their tenancy agreement being fulfilled through online would be convenient for

96

them. (22) respondents representing 11.9% did not respond to this question and the

reason is best known to them.

4.10 TO VERIFY THE AVAILABILITY OF THE BASIC RESOURCES

REQUIRED FOR OPERATING AUTOMATED MANAGEMENT OF

RESIDENTIAL INCOME PROPERTIES.

Table 4.10.1 Do you have any computer system in your residence?

Response Frequencies # Percentages % YES 114 61.6 NO 56 30.3 NO RESPONSE 15 8.1 TOTAL 185 100 Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

From the table above, (114) respondents representing 61.6% accepted that

they have computer system in their homes while (56) respondents representing

30.3% of the total distribution made did not accept to have computer system in

their homes and only (15) respondents representing 8.1% of the total distribution

made did not have anything to say on the question asked.

Table 4.10.2 Do you know how to access internet websites and process

information?

RESPONSE Frequencies # Percentages % YES 120 64.9 NO 53 28.6 NO RESPONSE 12 6.5 TOTAL 185 100 Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

The table 4.10.2 above is showing that (120) respondents representing

64.9% accepted that they can access internet websites and process information

while (53) respondents representing 28.6% of the total return of the questionnaires

distributed to the residents of high income group in Uwani Real Estate housing did

not accept to have known how to access internet website and as well processing

information through internet. The respondents that refused to answer this particular

question were (12) which is represented as 6.5%.

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Table 4.10.3 Can your income afford a computer system with configured internet

services in your residence?

Response Frequencies # Percentages % YES 128 69.2 NO 49 26.5 NO RESPONSE 8 4.3 TOTAL 185 100 Source: Field Survey, 2009

ESHDC Enugu State Housing Development Corporation.

The above table indicates that (128) respondents representing 69.2% from

the high income earners of the residents of Uwani housing Estate accepted that they

can afford to have a computer system with configured internet services in their

residence while (49) respondents representing 26.5% could not afford to have

computer system with configured internet services in their homes. (8) respondents

representing 4.3% did not respond to this question. This implies that, the greater

number of high income earners among all the residents in Uwani Housing Estate

are ready to accept automation techniques in management of their residential

properties.

98

ANALYSIS OF QUESTIONNAIRE FOR THE STAFF OF ESHDC (ESTATE

DIVISION)

4.11 QUESTIONS ON HOW POLICIES AND DECISIONS COULD

INFLUENCE THE MANAGEMENT OF RESIDENTIAL INCOME

PROPERTIES

Table 4.11.1 Does your present policy and decision reflect the need to accommodate a

new management method for residential income properties?

Response Frequencies # Percentages % YES 4 40.0 NO 3 30.0 NO RESPONSE 3 30.0 TOTAL 10 100.0 Source: Field Survey, 2009

ESHDC – Enugu State Housing Development Corporation

The responses shown in table 4.11.1 indicates that (4) respondents representing

40.0% from the estate staff of ESHDC accepted that their present policy and decision

reflect the need to embrace a new management technique for managing the residential

income properties of ESHDC. 30.0% of the total distribution made did not accept that

there would be any need to introduce a new method of managing the residential income

property of ESHDC while (3) respondents representing 30.0% did not answer this

question.

Table 4.11.2 Is the manual system of managing multiple residential income properties

satisfactory from your own perspective?

Response Frequencies # Percentages % YES 5 50.0 NO 4 40.0 NO RESPONSE 1 10.0 TOTAL 10 100.0 Source: Field Survey, 2009

ESHDC – Enugu State Housing Development Corporation

From the table 4.11.2 above, 50.0% of the staff of ESHDC in Estate Division

indicated from their own point of view that the manual system of managing the multiple

income residential properties of ESHDC through manual system were not satisfactory to

them while 40.0% of the respondents believed that the old manual system of managing

the multiple income residential properties of ESHDC is satisfactory to them and only

99

10.0% of the total distribution made did not give any reply on this question. The

implication for this is that over 50.0% of those that answer this question has knowledge

of automation as another technique of managing income residential properties.

4.12 QUESTIONS RELATING ADOPTING A PROPERTY MANAGEMENT

PATTERN FOR EFFICIENT SUPERVISION OF RESIDENTIAL

INCOME PROPERTIES.

Table 4.12.1 Have you ever encountered any missing file(s) or document(s) of the

residents of ESHDC before?

Response Frequencies # Percentages % YES 7 70.0 NO 2 20.0 NO RESPONSE 1 10.0 TOTAL 10 100.0 Source: Field Survey, 2009

ESHDC – Enugu State Housing Development Corporation

From the table above, it shows that 70.0% of the staff of ESHDC have been

encountering missing files and documents of the Corporation’s residents as a result of too

many files parked at different places. 20.0% of the staff of ESHDC from Estate Division

said that they have never experienced any missing files or documents of the

Corporation’s residents while 10.0% of the total respondent did not respond to this

question.

Table 4.12.2 Do you encounter delay in carrying out your tenants’ request whenever

urgent management attention is needed?

Response Frequencies # Percentages % YES 6 60.0 NO 1 10.0 NO RESPONSE 3 30.0 TOTAL 10 100.0 Source: Field Survey, 2009

ESHDC – Enugu State Housing Development Corporation

Table 4.12.2 above shows that (6) respondents representing 60.0% of the total

staff in Estate Division of ESHDC had encountered delay in carrying out their tenants’

request whenever urgent management attention is need. This implies that, there is serious

protocols and a lot of procedures to go through before they were able to attend to an

100

urgent management requests to their clients. Only one respondent representing 10.0%

indicated not to have encountered any delay in carrying out an urgent management

request from the tenants of ESHDC while 30.0% of the total distribution made said

nothing over this question.

4.13 QUESTIONS ON HOW AUTOMATED MANAGEMENT TECHNIQUE

WILL FACILITATE AN EFFICIENT MAINTENANCE OF

RESIDENTIAL INCOME PROPERTY

Table 4.13.1 Would you like all the information of the residential income properties of

ESHDC to be computerized?

Response Frequencies # Percentages % YES 8 80.0 NO 2 20.0 NO RESPONSE - - TOTAL 10 100.0 Source: Field Survey, 2009

ESHDC – Enugu State Housing Development Corporation

The table above shows 80.0% staff or workers of ESHDC from Estate Division

would like all the information of the Corporation Estate to be computerized.

This shows that the majority staff of ESHDC in charge of property management

would always want all the information of the public tenants to be safe guarded at every

point in time. Only (2) respondents representing 20.0% out of the total distribution made

would not want all the information of their residential properties and clients data to be

computerized. Every respondent responded to this question.

Table 4.13.2 Do you have knowledge about what automation is all about?

Response Frequencies # Percentages % YES 6 60.0 NO 4 40.0 NO RESPONSE - - TOTAL 10 100.0 Source: Field Survey, 2009

ESHDC – Enugu State Housing Development Corporation

The distribution in table 4.13.2 shows that 6 respondents representing 60.0% from

the Estate Division staff of ESHDC accepted that they have knowledge about what

automation is all about. This implies that; if the Corporation decides to introduce

101

automation technique in managing all the residential income properties of the corporation

estate, a lot of staff will gladly embrace the new technique as it would facilitate an

efficient maintenance of all the residential income estates of the corporation. (4)

respondents representing 40.0% of the total distribution made did not accept to have

knowledge about automation while none of the respondents refused to answer this

particular question.

4.14 QUESTION ON HOW TO ASCERTAIN HOW THE APPLICATION OF

AUTOMATED MANAGEMENT TECHNIQUE WILL ENHANCE SPEED

AND ACCURACY IN DATA PROCESSING

Table 4.14.1: Do you think using electronic machine like computer to process

data on properties would be faster and easier?

Response Frequencies # Percentages % YES 5 50.0 NO 3 30.0 NO RESPONSE 2 20.0 TOTAL 10 100.0 Source: Field Survey, 2009

ESHDC – Enugu State Housing Development Corporation

The responses shown in table 4.14.1 shows that (5) respondents representing

50.0% of the staff in Estate Division of ESHDC believe that using computer to process

data on properties would be faster and easier. This is because they feel that the

application of automated management technique in managing income residential

properties will enhance speed and accuracy in data processing. 30.0% of the staff from

Estate Division did not believe that using computer to process data on properties would

be faster and easier while (2) respondents representing 20.0% did not answer this

question.

102

Table 4.14.2: Do you think that automation technique would help the Corporation to

achieve its mission goal?

Response Frequencies # Percentages % YES 5 50.0 NO 3 30.0 NO RESPONSE 2 20.0 TOTAL 10 100.0 Source: Field Survey, 2009

ESHDC – Enugu State Housing Development Corporation

Table 4.14.2 shows that (5) respondents from the staff of Estate Division in

ESHDC believed that the application of automation technique in managing the

corporations residential estates would help the Corporation estate to achieve its objectives

such like providing adequate housing facilities to their public clients while only (3)

respondent representing 30.0% of the total distribution made did not believe that adoption

of automation technique would help the Corporation to achieve their mission goal and

20.0% of the respondents did not respond to this question.

4.15 QUESTION TO VERIFY THE AVAILABILITY OF BASIC

RESOURCES REQUIRED FOR OPERATING AUTOMATED

MANAGEMENT OF RESIDENTIAL INCOME PROPERTIES

Table 4.15.1 Does the Corporation Estate have any plan of introducing internet

website for online servicing of properties?

Response Frequencies # Percentages % YES 7 70.0 NO 2 20.0 NO RESPONSE 1 10.0 TOTAL 10 100.0 Source: Field Survey, 2009

ESHDC – Enugu State Housing Development Corporation

From the table 4.15.1 above, (7) staff from the Estate Division of ESHDC

which represents 70.0% of the total distribution made accept that the Corporation

Estate have plan of introducing internet website for online servicing of properties.

The implication of this is that the housing management staff are meant to acquire,

knowledge on how to manage the residential properties of the corporation through

online. Only (2) respondents out of the total distribution made which represents

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20.0% did not accept that the corporation Estate has any plan of introducing

internet website for online services of residential properties while (1) respondent

representing 10.0% did not say anything on this question.

Table 4.15.2 Are all your staff computer literate?

Response Frequencies # Percentages % YES - - NO 8 80.0 NO RESPONSE 2 20.0 TOTAL 10 100.0 Source: Field Survey, 2009

ESHDC – Enugu State Housing Development Corporation

The responses from the above table signifies that not all the staff of Estate

Division of ESHDC are computer literate while (8) respondents representing 80.0%

indicated that not all the staff of the managing unit of residential income property

(Estate Division) have the knowledge of operating computer. This implies that all

the staff of the Estate Division would try to acquire for knowledge of operating

computer for them to be able to carry out their management functions effectively if

automation technique is eventually adopted by the State housing in managing their

properties. (2) respondents representing 20.0% would not give any answer to the

question and the reason is best known by them.

4.3 PRESENTATION AND TEST OF HYPOTHESIS

A systematic approach consisting of the following steps were used to test

the hypothesis.

STEP I: Identification of test statistics or formulation for chi-square (x2)

X2 = (O – E)2

E

Where:

X2 = chi-square

O = Observed frequency

E = Expected frequency

104

To determine the (E) Expected frequencies;-

E = F(r) x (F(c)

N Where:

E = Expected frequency of the cell

F(r) = Total row frequency

F(c) = Total column frequency

N = Total frequency

STEP II: Identification of degree of freedom (df)

To determine the associated degree of freedom (df)

df = (R - 1 ) (C – 1)

Where:

df = degree of freedom

R = number of rows

C = number of columns

Note: The degree of freedom of this test statistics will be at 5% or 0.05 level of

significance from the chi-square (x2) table.

Step III: Computation of the Value of the test statistics.

The details and computation of the test is shown below:

CONTINGENCY TABLE:

Table 4.16 Do you accept that to adopt automated technique in management

of residential income properties will significantly improve the database

administration for residential income properties?

Response Low income residents of ESHDC, Uwani Real Estate

High income residents of ESHDC, Uwani, Real Estate

ESHDC Staff (Estate Division)

Total

0 (E) 0 (E) 0 (E)

YES 68 (75.2) 100 (92.8) 5 (5.0) 173

NO 48 (53.9) 73 (66.5) 3 (3.6) 124

NO RESPONSE 34 (20.9) 12 (25.7) 2 (1.4) 48

TOTAL 150 150 185 185 10 10 345

Source: Field Survey, 2009

ESHDC- Enugu State Housing Development Corporation

105

χ2 = (O – E)2

E

χ2R1 = (68 – 75.2)2 + (100 – 92.8)2 + (5 – 5.0)2

75.2 92.8 5.0

= 06894 + 0.5586 + 0.0000

χ2R1 = 1.2

χ2

R2 = (48 – 53.9)2 + (73 – 66.5)2 + (3 – 3.6)2 53.9 66.5 3.6

0.6458 + 0.6353 + 0.1

χ2R2 = 1.4

χ2

R3 = (34 – 20.9)2 + (12 – 25.7)2 + (2 – 1.4)2

20.9 25.7 1.4

= 8.2 + 7.3 + 0.3

χ2R3 = 15.8

χ2

= (X2R1 + X2

R2 + X2R3)

= (1.2 + 1.4 + 15.8)

χ2 = 18.4 Therefore, the calculated value (CV) from the data is = 3.11

To determine the associated degree of freedom df is = (R-1) (C-1)

R = number of contingency table row (3)

C = number of contingency table column (3)

df = (3 – 1) (3 – 1)

= 2 x 2

df = 4 @ 5% or 0.05 significance level from the chi-square table will give a

table value (TV) of 9.488

TV 9.5

106

STEP IV: Statement of Hypothesis HO: The use of automation techniques in Residential Income Property Management

would not significantly improve the database analysis in Management of Residential

Income Property.

H1: The use of automation techniques in Residential Income Property Management

would significantly improve the database analysis in Management of Residential Income

Property.

Thus:

HO means (Null Hypothesis)

H1 means (Alternative Hypothesis)

CV means (Calculated value) = 18.4 while

TV means (Table value) = 9.5

STEP V: Decision Rule Accept HO if the table value (TV) is greater than calculated value (CV) or reject HO if table

value is less than calculated value (CV)

TV > CV accept HO or TV < CV reject HO.

Since the calculated value of the chi-square (χ2) is 18.4 and it is greater than the

table value, which is 9.5, we reject the null hypothesis (HO) and accept the alternative

hypothesis (H1) that states that; “the use of automation techniques in Residential

Income Property Management would significantly improve the database analysis in

the Management of Residential Income Property”. This simply means that if all the

management of income residential properties is carried out by using automation

techniques, it would highly reduce the decline in efficiency of management of high rise

demand in housing development. That means; application of contemporary method

management is highly needed for speed and accuracy in processing the tenants’ property

data and easy retrieval of information by granting an automatic data analysis for Enugu

State Housing Development Corporation.

107

CHAPTER FIVE

5.0 SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1 SUMMARY OF FINDINGS

5.1.1 Findings on how Policies and Decisions positively influence the Management

of Residential Income Properties in ESHDC.

There is no stable policy that operates in the establishment for management of

residential income properties. Policies and decisions are influenced by presiding

government. The Policy making body is presently sitting to review the present policy.

The current operating policy and decisions reflect the need to accommodate a new

management method for residential income properties. The policy making board may

adopt an automated management method if it will improve the management efficiency of

income residential properties. These were the outcome of the response provided in the

interview with the Public Relation Officer.

The response from the questionnaires showed that wholesome documentation was

not implemented. Table 4.1.1 showed that about 78.0% of the tenants completed their

tenancy agreement certification while 15.3% did not complete their forms. Fewer number

of tenants 6.7% did not respond.

5.1.2 Property Management Paradigm for Efficient Supervision of Residential

Income Properties.

There is an existing property management method which is presently in use by

Enugu State Housing Development Corporation. The method in use for monitoring the

performance of residential income properties in their management domain is manual. The

relationship existing between them and their customers are mostly by interpersonal

contact. Communication is by correspondence. The Organisation is not familiar with the

use of programmed real estate management software for managing their residential

income properties.

Majority of the respondents do not acknowledge the present pattern of attending

to their management needs. Some of the pattern which is unfavorable with them is the

mode of payment of rents. Response to maintenance management is slow. Reporting

management flaws to the office is usually unfruitful.

108

5.1.3 Findings on how Automated Management Technique will facilitate an

Efficient Maintenance of Residential Income Property.

The concept of automation is a strange technology to the staff of Enugu State

Housing Development Corporation and Real Estate residents at Uwani. An explanation of

the technique aroused the interest of the staffs and the residents. It was an accepted idea.

Problem of low computer literacy may pose hindrances to prompt execution of the

automated management technique. Poor technical and human resource skill could

constitute management despair to this innovation.

The questionnaire reports that the maintenance timing by the management is not

appreciated by the majority of both the low and high income tenants respectively

(79.3%), (75.1%). There is an acceptance of internet mobilized services by both staff and

tenants especially where documentation and sundry payments are required.

5.1.4 Findings on how the application of Automated Management Technique in

Residential Income Properties will enhance Speed and Accuracy in Data

Processing.

The speed in processing information relating income residential properties were

reported to be slow. Automated technique is a fulfillment of operating an internet services

for the management of residential income properties. It is very fast in operation. It can

process several millions of information at the same time. Time is not a restrain to the

operation. Many customers can be attended to at the same time. It is accurate and fast in

data processing. It requires that the user should be computer literate.

5.1.5 Findings on the Basic Elements Required for Automating the Management of

Residential Income Properties.

The management situation based on technical skill and equipment in Enugu State

Housing Development Corporation did not reflect immediate intention to resume an

automated management services. Acquisition of the right tool has not been planned. The

skilled technical experts have not been employed. Documentation is not completely

computerized. Adequate software for management of residential income management

properties has not been procured by the management. Majority of the residents especially

the low income earners (69.3%) do not have computer and modem that would link them

to internet services in their homes. Greater number of the tenants (72.0%) does not know

how to access internet websites. Greater number of respondents from high income group

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(69.2%) agreed they could afford a computer system with configured internet services if

automated services are provided.

5.1.6 FINDING FROM THE CHI-SQUARE ANALYSIS

The calculated value of the chi-square (χ2) is 18.4 and the table value, is 9.5. The

decision rule states: Accept null (HO) hypothesis if the table value (TV) is greater than

calculated value (CV); or Reject null hypothesis (HO) if table value is less than calculated

value (CV). The information shows that the table value is less than the calculated value.

The implication is that the null hypothesis is rejected in favour of the alternative

hypothesis (H1) that states; “the use of automation technique in Residential Income

Property Management would significantly improve the database analysis in the

Management of Residential Income Properties”. This simply means that if the

management of income residential properties is carried out by using automation

techniques, it will significantly improve the database analysis in the Management of

Residential Income Property of Enugu State Housing Development Corporation.

5.2 CONCLUSION

The conclusion of this work was based on the findings. The findings were guided

by the objectives and sourced through an exhaustive primary and secondary resource

material at the disposal of this research. The objectives were relatively examined so as to

arrive at the aim of the study. The aim was to conceptualize an automated management

technique that will expedite management of Residential Income Properties and to meet

tenants demand in maintenance and effective database administration for Enugu State

Housing Development Corporation.

Automating the management technique of residential income properties in Enugu

State Housing Development Corporation is the ultimate response that will address the gap

resulting from the former management weaknesses. A test of hypothesis posited and

guided by the decision rule concludes that the use of automation techniques in

residential income property management would significantly improve the database

analysis of the management of residential income properties of Enugu State Housing

Development Corporation. This was the alternative hypothesis and was accepted. The

null hypothesis was rejected in this study.

The results obtained from the data analysed expressed in percentages showed

positive affirmation by the recipients or respondents in the direction which is in harmony

110

with the accepted alternative hypothesis. A combination of the accepted hypothesis and

the result of various analyses supported that Enugu State Housing Development

Corporation should possibly adopt to use automated technique to manage their residential

income properties.

Computer applications and online services which are product of automation will

help to minimize the risk in information misplacement due to careless filing of

documents. It will also reduce space consumption resulting from multiple filing racks and

shelves. Speed and accuracy in data processing for income residential Property

management will be realized. The rapid growth trend in residential housing development

can easily be evaluated through the application of automation techniques. Technical skills

and proficiency in computer knowledge will improve.

The Enugu State Housing Development Corporation will enjoy an efficient

management strategy through effective planning, control and supervision. Automation

will tremendously assist in the decisions being reached more quickly. Information can be

quickly retrieved at any point in time. The use of automation will improve employee

moral, reduce fatigue and expedite work efficiency.

5.3 RECOMMENDATIONS

The information gathered in the process of carrying out this work will enable the

following recommendation to be suggested. The recommendations will be vital to the

realization of the aim and objectives of this work.

5.3.1 Good Policies and Decisions

Efficiency of residential income property management is dependent on good,

quality and accurate information that is available as conveniently as possible, it is

necessary that the method of managing residential income properties should be addressed

to meet the contemporary technique through timely policies and decisions. The decision

making team should include experts in the field of the property management profession.

5.3.2 Efficient Management Pattern

A Property management model for an efficient supervision and control of

residential income properties should focus on an automated management technique. The

adoption of this technique should follow a gradual transition from the traditional manual

method of management because of low accessibility to computer application by staffs and

111

residents. The Corporation should not be restricted to in-house service personnel but

where necessary, outsource of professional experts should be encouraged in order to get

the best. Local and overseas resource technologies should not be underestimated.

Adequate training, research, seminar presentation and workshops should not be avoided

as proficient tools to update the staff knowledge. Current hardware and software relevant

to this mission should be readily made available in the departments well furnished and

equipped resource centre. Such centre should be computer based and an ideal computer-

based information system should exhibit the following characteristics:

There should be a minimum amount of data duplication. In computer terminology

this means that system that should be substantially non-redundant.

Systems should eliminate inconsistencies in the data stored by an organization.

It should be possible to interrogate an information system and receive a rapid

response, without having to write special programme.

There should be program and data independence (i.e. if the data is altered there

should be no need to alter the programs, and vice versa).

Internet services and website which is easily accessible with active internet hotspot zone

should be set up for remote interactivity with clientele and prospective consumers.

Clientele’s record, business negotiations, filling and purchase of forms, advertisements

and several other transactions should be implemented online. People could easily access

their permissible documents in their homes, offices, schools, business areas, overseas and

wherever, thereby saving costs, time and conveniences. Introduction of an Automated

State Housing or Property Management System would be appropriate to embark on an

efficient database administration in property development, management and marketing

stratagem. Consequent upon this, complete extinction of the outmoded method of the

filing system should be implemented on a gradual basis.

5.3.3 Training and Skill acquisition

There should be awareness on the mechanism of the concept of automation

technology to the staff of Enugu State Housing Development Corporation and Real Estate

residents at Uwani. An explanation of the technique will stirred the interest of the staffs

and the residents. Computer education and application should be organized and

encouraged for easy utilization of an automated management technique. Management of

Enugu State Housing Development Corporation should expose their personnel to

112

adequate training on related courses for easy implementation of this innovation. Skilled

computer programmers, technologist and scientists should be employed.

This contemporary technique in management of income residential properties

entails a comprehensive computerized system available to the corporation which is

preferred to a collection of locally held, real properties and land registry of a national

system that is paper based. Close to this is an effective implementation of Information

and Communication Technologies which continues to bring about significant changes in

our society. These changes may be viewed as the direct consequence of technological

advances which in turn rely on scientific discovery.

5.3.4 Planning and Budgeting

Development and management of budget is an essential factor in running an

automated management of residential income properties typical to Enugu State Housing

Development Corporation. At the heart of any successful project is a clear definition of

the scope of work and sound management of the budget and the schedule. In the

automated office, it is important that all elements are integrated during each step of the

management process. For instance, when evaluating your scope of work, prepare a

detailed listing of anticipated tasks and considerations that pertain to each project phase.

This should clarify from the beginning, the full scope of responsibilities and develop

more accurate return and a more realistic time framework for accomplishing the required

tasks. It will also help to recognize those phases according to the specific project scope

that will require greater concentration of time and manpower.

113

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118

APPENDIX A

Department of Estate Management, School of Post Graduate Studies, University of Nigeria, Enugu Campus. 10th Jan, 2009.

Dear Respondent,

ACADEMIC RESEARCH ON AUTOMATING THE MANAGEMENT OF

RESIDENTIAL INCOME PROPERTY IN ENUGU STATE HOUSING

DEVELOPMENT CORPORATION, NIGERIA

I am a Postgraduate student of the above Institution currently carrying out an

academic research on “Automating the Management of Residential Income Property

in Enugu State Housing Development Corporation, Nigeria”. The dissertation is in

partial fulfillment of the requirement for the award of Master in Science (M.Sc) in Estate

Management.

Your answer will be treated with utmost confidentiality. Your name and address

are not required for this research.

Thank you for your kind co-operation.

Yours faithfully,

Nnodim Akuyoma

119

APPENDIX B

QUESTIONNAIRE

Please indicate your view on the following items by ticking ( ) in the close ended box.

BACKGROUND INFORMATION:

1. What are you to Enugu State Housing Development Corporation?

Staff Resident None above

2. How many bedroom flat are you occupying?

3 bedrooms 2 bedroom None above

3. How often is maintenance being carried out on the properties under the

management of ESHDC?

Monthly Every year Between 2-3 years

More than 5 years

4. What is the interval period of rent review?

Every 2 years Every 3 years Every 5 years

Others specify ________

5. What is your age?

20 - 29 years 30 – 39 years 40 – 49 years

50 – 59 years 60 years and above

6. What group of income earning do you belong as a resident of ESHDC?

Low income group High income group

None income group

120

QUESTIONNAIRE FOR UWANI REAL ESTATE RESIDENTS

(LOW INCOME GROUP)

S/NO QUESTION YES NO NO

RESPONSE

TOTAL

1. Did you enter into any lease agreement with ESHDC

before accessing the residential property?

117 23 10 150

2. Were you given any property management brief or

manual that would guide your tenancy obligations in

management of your flat?

47 96 07 150

3. Do you consider the policies and decisions of ESHDC

compatible with your tenancy?

48 91 11 150

4. Do you presume that the way the management of your

residence carried out is patterned?

53 81 16 150

5. Do you encounter any management problem when you

want to pay your rent?

118 16 16 150

6. Do you experience delay in response from the staff of

ESHDC when urgent management attention is needed

in your residence?

80 40 30 150

7. Do you appreciate the ESHDC timing for your

maintenance schedule?

31 119 - 150

8. Will you acknowledge a new technique that is internet

mobilized in addressing your maintenance requests?

104 30 16 150

9. Are you computer literate to be able to communicate

with the management if this management technique is

adopted?

77 73 - 150

10. Do you understand the concept of automation and the

technicalities if devised as a new management

technique in processing your documents?

39 101 10 150

11. Automated management will be faster and secure;

your information, data processing and accessibilities

will be online; will you appreciate the management

trend?

138 - 12 150

121

12. Do you consider that fulfilling your tenancy

obligations through online facilities will be more

convenient to you?

88 45 17 150

13. Do you have any computer system in your residence? 38 104 08 150

14. Do you know how to accessing internet websites and

process information?

42 108 - 150

15. Can your income afford a computer system with

configured internet services in your residence?

37 87 26 150

ESHDC – Enugu State Housing Development Corporation

122

QUESTIONNAIRE FOR UWANI REAL ESTATE RESIDENTS

(HIGH INCOME GROUP)

S/NO QUESTION YES NO NO

RESPONSE

TOTAL

1. Did you enter into any lease agreement with ESHDC

before accessing the residential property?

137 34 14 185

2. Were you given any property management brief or

manual that would guide your tenancy obligations in

management of your flat?

51 111 23 185

3. Do you consider the policies and decisions of ESHDC

compatible with your tenancy?

65 106 14 185

4. Do you presume that the way the management of your

residence carried out is patterned?

64 100 21 185

5. Do you encounter any management problem when you

want to pay your rent?

136 33 16 185

6. Do you experience delay in response from the staff of

ESHDC when urgent management attention is needed

in your residence?

100 55 30 185

7. Do you appreciate the ESHDC timing for your

maintenance schedule?

36 139 10 185

8. Will you acknowledge a new technique that is internet

mobilized in addressing your maintenance requests?

120 40 25 185

9. Are you computer literate to be able to communicate

with the management if this management technique is

adopted?

120 53 12 185

10. Do you understand the concept of automation and the

technicalities if devised as a new management

technique in processing your documents?

98 87 - 185

11. Automated management will be faster and secure;

your information, data processing and accessibilities

will be online; will you appreciate the management

trend?

164 11 10 185

123

12. Do you consider that fulfilling your tenancy

obligations through online facilities will be more

convenient to you?

108 55 22 185

13. Do you have any computer system in your residence? 114 56 15 185

14. Do you know how to accessing internet websites and

process information?

120 53 12 185

15. Can your income afford a computer system with

configured internet services in your residence?

128 49 08 185

ESHDC – Enugu State Housing Development Corporation

124

QUESTIONNAIRE FOR THE STAFF OF ESHDC (ESTATE DIVISION)

ESHDC –Enugu State Housing Development Corporation

S/NO QUESTION YES NO NO

RESPONSE

TOTAL

1 Does your present policy and decision

reflect the need to accommodate a new

management method for residential

income properties?

04 03 03 10

2 Is the manual system of managing your

multiple residential income properties

satisfactory from your own perspective?

05 04 01 10

3 Have you ever encountered any missing

file(s) or document(s) of the residents of

ESHDC before?

07 02 01 10

4 Do you encounter delay in carrying out

your tenants’ request whenever urgent

management attention is needed?

06 01 03 10

5 Would you like all the information of the

residential income properties of ESHDC

to be computerized?

08 02 - 10

6 Do you have knowledge about what

automation is all about?

06 04 - 10

7 Do you think using electronic machine

like computer to process data on

properties would be faster and easier?

05 03 02 10

8 Do you think that automation technique

would help the Corporation to achieve its

mission goal?

05 03 02 10

9 Does the Corporation Estate have any

plan of introducing internet websites and

online servicing of properties?

07 02 01 10

10 Are all your staff computer literate? - 08 02 10

125

INTERVIEW QUESTION FOR THE STAFF OF ESHDC (ESTATE DIVISION)

S/No

INTERVIEW QUESTIONS

RESPONSES

1.

How soon were your policies and decisions for

management of residential income properties

updated?

The Board has

been sitting.

2.

Does your current operating policy and decision

reflect the need to accommodate a new management

method for residential income properties?

Yes

3.

How would you consider a policy and decision that

will accommodate automating the management

activities of your residential income properties?

Increase

Efficiency

4.

Do you have any existing management pattern that

guides the monitoring of the performance of your

residential income properties?

Visiting the

residents &

Phone Calls

5.

How do you relate with your tenants?

Correspondence

6.

Do you accept that performing your property

management functions can be best guided with

programmed real estate management software?

Yes

7.

Do you agree that computerizing the management of

your properties database would be important in

prompt maintenance of your residential income

properties?

Yes

8.

How do you receive maintenance requests from your

tenants?

Visit to office &

Phone calls

126

9.

How do you receive rents from your tenants?

Visit to office &

Correspondence

10.

How do you carry out maintenance of your

residential income properties?

Emergency &

Routine

maintenance

11.

How fast does the current management technique you

adopt address the maintenance need of your tenants

promptly?

Slow

12.

Do you understand a concept known as automated

technique in management and how it works?

No

13.

With the explanation, do you consider automation an

ideal response to reduce tenants’ pressure in

managing residential income properties?

Yes

14.

What status are your staffs in computer literacy?

Few computer

Literate

15.

Are you knowledgeable about computer software and

hardware used as current tools for management of

residential income properties?

No idea

127

APPENDIX C

DISTRIBUTION OF X2

128

COMPUTATION OF EXPECTED FREQUENCY FOR THE THREE SAMPLED

DISTRIBUTION IN TABLE 4.16

The simple format for obtaining the expected frequency is:

E = Fr X Fc

N

Where:

E = Expected frequency

Fr = Total row cell

Fc = Total column cell

N = Total Sample Size

From:

Table 4.16 Do you accept that to adopt automated technique in management of

residential income properties will significantly improve the database administration for

residential income properties?

Response Low Income Residents of ESHDC in Uwani

High Income Residents of ESHDC in Uwani

Staff of ESHDC Estate Division

Total

(F) (%) (F) (%) (F) (%) (F) (%)

YES 68 45.3 100 54.0 5 50.0 173 50.1

NO 48 32.0 73 39.5 3 30.0 124 35.9

NO RESPONSE

34 22.7 12 6.5 2 20.0 48 14.0

TOTAL 150 100.0 185 100.0 10 100.0 345 100%

Source: Field Survey, 2009.

ESHDC – Enugu State Housing Development Corporation.

Expected frequency for Low Income Residents Uwani in each response (Yes, No, No

Response)

Workings

Total frequency for “Yes” = 173(r)

Total frequency for “No” = 124(r)

Total frequency for “No Response” = 48(r)

Total Sample Size (N) = 345

129

Sample size for Uwani Real Estate Residents = 150 (c)

Where:

c represents column in Table 4.16

r represents row in Table 4.16

N represents Total Sample Size in Table 4.16

Expected Frequency under “Yes” Response for low income Residents in Uwani

E = Fr X Fc

N

Where: Fr = 173, Fc = 150, N = 345

= 173 X 150

345

E (Yes) = 75.2

Expected Frequency under “No” Response for Low Income Residents in Uwani

E = Fr X Fc

N

Where: Fr = 124, Fc = 150, N = 345

= 124 X 150

345

E (No) = 53.9

Expected Frequency under “No Response” for Low Income Residents in Uwani

E = Fr X Fc

N

Where: Fr = 48, Fc = 150, N = 345

= 48 X 150

100

E (No Response) = 20.9

Expected frequency for High Income Residents Uwani in each response ( (Yes, No, No

Response)

Workings

Total frequency for “Yes” = 173(r)

130

Total frequency for “No” = 124(r)

Total frequency for “No Response” = 48(r)

Total Sample Size (N) = 345

Sample size for High Income Residents = 185 (c)

Where:

c represents column in Table 4.16

r represents row in Table 4.16

N represents Total Sample Size in Table 4.16

Expected Frequency under “Yes” for High Income Residents in Uwani

E = Fr X Fc

N

Where: Fr = 173, Fc = 185, N = 345

= 173 X 185

345

E (Yes) = 92.8

Expected Frequency under “No” Response for High Income Residents in Uwani

E = Fr X Fc

N

Where: Fr = 124, Fc = 185, N = 345

= 124 X 185

345

E (No) = 66.5

Expected Frequency under “No Response” for the High Income Residents in Uwani

E = Fr X Fc

N

Where: Fr = 48, Fc = 185, N = 345

= 48 X 185

345

E (No Response) = 25.7

131

Expected frequency for the staff of ESHDC (Estate Division) in each response ( (Yes,

No, No Response)

Workings

Total frequency for “Yes” = 173(r)

Total frequency for “No” = 124(r)

Total frequency for “No Response” = 48(r)

Total Sample Size (N) = 345

Sample size for staff of ESHDC (Estate Division) = 10(c)

Where:

c = represents column in Table 4.16

r = represents row in Table 4.16

N = represents Total Sample Size in Table 4.16 Expected Frequency under “Yes” Response for Staff of ESHDC (Estate Division)

E = Fr X Fc

N

Where: Fr = 173, Fc = 10, N = 345

= 173 X 10 345 E (Yes) = 5.0

Expected Frequency under “No” Response for Staff of ESHDC (Estate Division).

E = Fr X Fc

N

Where: Fr = 124, Fc = 10, N = 345

= 124 X 10

345

E (No) = 3.6

Expected Frequency under “No Response” for Staff of ESHDC (Estate Division).

E = Fr X Fc

N

Where: Fr = 48, Fc = 10, N = 345

= 48 X 10

345

E (No Response) = 1.4

132

COMPUTED EXPECTED FREQUENCY REPRESENTED IN TABLE 4.16

Table 4.16: Contingency Table: Do you accept that to adopt automated technique, in management of residential income properties would significantly improve the database administration for residential income properties?

Response Low Income Residents of ESHDC in Uwani

High Income Residents of ESHDC in Uwani

Staff of ESHDC Estate Division

Total

(O) (E) (O) (E) (O) (E)

YES 68 (75.2) 100 (92.8) 5 (5.0) 173

NO 48 (53.9) 73 (66.5) 3 (3.6) 124

NO RESPONSE 34 (20.9) 12 (25.7) 2 (1.4) 48

Total 150 (150) 185 185 10 10 345

Source: Field Survey, 2009.

ESHDC – Enugu State Housing Development Corporation.

COMPUTATION OF THE CALCULATED CHI-SQUARE (X2)

χ2 = (O – E)2

E

χ2R1 = (68 – 75.2)2 + (100 – 92.8)2 + (5 – 5.0)2

75.2 92.8 5.0

= 0.6894 + 0.5586 + 0.0000

χ2R1 = 1.2

χ2

R2 = (48 – 53.9)2 + (73 – 66.5)2 + (3 – 3.6)2 53.9 66.5 3.6

= 0.6458 + 0.6353 + 0.1

χ2R2 = 1.4

χ2

R3 = (34 – 20.9)2 + (12 – 25.7)2 + (2 – 1.4)2 20.9 25.7 1.4

= 8.2 + 7.3 + 0.3

133

χ2R3 = 15.8

χ2

= (X2R1 + X2

R2 + X2R3)

= (1.2 + 1.4 + 15.8)

χ2 = 18.4

134

AUTOMATING THE MANAGEMENT OF RESIDENTIAL

INCOME PROPERTY IN ENUGU STATE HOUSING

DEVELOPMENT CORPORATION, NIGERIA.

NNODIM, AKUYOMA

M.Sc

ESTATE MANAGEMENT

MAY, 2009

135

TITLE PAGE

Automating the Management of Residential Income Property in Enugu State

Housing Development Corporation, Nigeria

By

Nnodim Akuyoma

PG/M.Sc/04/38518

A dissertation Submitted to the Department of Estate Management

University of Nigeria Enugu Campus

In partial fulfillment of the requirement for the award of a Master of Science

in Estate Management

Supervisor

Mr. K. E. O. Iloabuchi

May, 2009

136

APPROVAL PAGE

This dissertation titled “Automating the Management of Residential Income

Property in Enugu State Housing Development Corporation, Nigeria” has been

assessed and approved by the Postgraduate Studies Committees of the Department of

Estate Management and Faculty of Environmental Studies, University of Nigeria, Enugu

Campus.

By

__________________ __________________ Mr. K. E. O. Iloabuchi Rev. (Barr.) I.W. Ozigbo Supervisor Head of Department _________________ __________________ External Examiner Prof. J.U. Ogbuefi

Dean of Faculty _________________ ___________________ Dr. F. I. Okeke Date Faculty SPGS REP.

137

CERTIFICATION

The work embodied in this dissertation is original and had not been submitted in

part or full for any other diploma or degree of this or any other University. All observed

errors of omission or commission are entirely mine.

________________ Nnodim Akuyoma

(Student)

138

DEDICATION

This work is dedicated to God Almighty for His infinite mercy and kindness unto

me in the course of carrying out this dissertation to accomplishment and to my beloved

husband Mr. O.V.I Ozugha.

139

ACKNOWLEDGEMENT

This work could not have come to successful completion if not for the help of

God and contributions of some people around me.

My profound gratitude goes to my Father in heaven for His immeasurable love

and infinite mercy unto me in the course of carrying out this wok.

I am grateful to my project supervisor, Mr. K.E.O Iloabuchi, who inspite of his

tight schedule made out time to go through this work and offered his wonderful advice

for the success of this work.

I am indeed grateful to all the staff and management of the department of Estate

Management, University of Nigeria, Enugu Campus for their kind co-operation in

completion of this work.

Special thanks also go to Prof. J. U. Ogbuefi, Prof. Umeh, Prof. G.O. Udo, Rev.

(Barr.) I.W. Ozigbo and all the lecturers in the department of Estate Management for

their immense contribution and assistance in making this dissertation an acceptable

academic piece of research work.

I appreciate the effort of a friend in the Lord, Pastor P.C Anih for supporting this

work spiritually and materially. My Pastor, God bless you.

I sincerely express my profound gratitude to my academic role models, Dr. and

Dr. (Mrs.) Ifeanyi and Ada Eyisi; thank you for your encouragement in the course of my

second Degree Programme.

I will never fail to thank and bless my husband Mr. O.V.I Ozugha for supporting

the success and completion of this work financially, spiritually, mentally and otherwise.

Thank you very much my darling for showing truly that we are one in everything.

Nnodim Akuyoma

140

TABLE OF CONTENTS

Title Page i

Approval Page ii

Certification iii

Dedication iv

Acknowledgement v

Table of Contents vi

List of Tables x

List of Plates xiii

Abstract xiv

CHAPTER ONE

1.0 Introduction 1

1.1 Background of the Study 1

1.2 Statement of the Problem 4

1.3 Aim of the Study 5

1.4 Objectives of the Study 5

1.5 Research Questions 5

1.6 Hypothesis 6

1.7 Significance of the Study 6

1.8 Scope of the Study 7

1.9 Limitation of the Study 7

CHAPTER TWO

2.0 Literature Review 9

2.1 Examination of How Policies and Decision Influence the

Management of Residential Income Properties. 9

2.1.1 Importance of Policies and Decisions in Management of Residential

Income Properties 9

2.1.2 Concept and Characteristics of Properties 13

2.1.3 Income Property 14

2.1.4 Residential Income Property 14

141

2.2 Property Management Paradigm for Efficient Supervision of

Residential Income Properties 17

2.2.1 Management Theory in Residential Income Properties 17

2.2.2 Management Requirements of Residential Income Properties 24

2.2.3 Estate Managers’ Functions in Management of Residential Income

Properties 25

2.2.4 Management of Residential Income Property as Public Estates 32

2.2.5 Commercially Managed Residential Properties 34

2.2.6 Local Authority Housing 35

2.2.7 Management of New Residential Income Accommodation 37

2.2.8 Residential Income Property Letting 38

2.2.9 Residential Income Property Rents 39

2.2.10 Automated Resident Online Rent Payment 40

2.2.11 Residential Income Property Supervisor 40

2.3 An Examination of How Automated Management Technique will

Facilitate an efficient Maintenance of Residential Income Property 41

2.3.1 Maintenance of Residential Income Properties 41

2.3.2 Maintenance Concept 42

2.3.3 Cost Saving Type of Maintenance 43

2.3.4 Maintenance Plans 44

2.3.5 Maintenance Operation 44

2.3.6 Computerizing Maintenance of Residential Income Property

for Automation 46

2.3.7 Automated Maintenance Request of Residential Properties- Online 49

2.4 Ascertain how Application of Automated Management Technique in

Residential Income Properties will Enhance Speed and Accuracy

in Data Processing. 50

2.4.1 Computerizing Residential Income Property as Component of Automation 50

2.4.2 The Preparation and Interpretation of Lease in Residential Income Property 51

2.4.3 Comparative Assessment of Computerizing the Management of

Residential Income Property 54

2.4.4 Lease Operation in Computerized Management of Income Properties 56

2.4.5 Computerized Estate Management Accounts for Residential

Income Properties 57

142

2.4.6 Role of Professional Bodies in Accounting Policy of

Residential Income Properties 61

2.5 The Highlight of Fundamental Requirements for Automating

Management of Residential Income Properties 64

2.5.1 Tools for Automating the Management of Residential Income Properties 64

2.5.2 Computerization, a Prerequisite for Automation 66

2.5.3 Concept of Automation in Residential Property Management 66

2.5.4 Significance of Automating the Management of Residential

Income Property 67

2.5.5 Software Applications in Automated Management of

Residential Income Properties 68

CHAPTER THREE

3.0 Research Design and Methodology 69

3.1 Research Design and Methodology 69

3.2 Description of the Study Area 71

3.3 Population for the Study 73

3.4 Samples and Sampling Techniques 73

3.5 Sources of Data 74

3.6 Research Instruments 74

3.7 Validity and Reliability of Instrument 77

3.8 Method of Date Analysis 78

CHAPTER FOUR

4.0 Presentation of Data and Analysis 81

4.1 Data Presentation 81

4.2 Data Analysis 81

4.3 Presentation and Test of Hypothesis 103

CHAPTER FIVE

5.0 Summary of Findings, Conclusion and Recommendations 107

5.1 Summary of Findings 107

5.2 Conclusion 109

5.3 Recommendations 110 Bibliography 113

143

Appendix A 118

Appendix B 119

Appendix C 127

144

LIST OF TABLES

Table 3.1.1 Questionnaire Distribution Table 70

(Tables for low income residents of ESHDC, Uwani):

Table 4.1.1 Did you enter into any tenancy agreement with ESHDC

before accessing the residential property? 81

Table 4.1.2 Were you given any Property management brief or manual that

would guide your tenancy obligations in management of your flat? 82

Table 4.1.3 Do you consider the policies and decisions of

ESHDC compatible with your tenancy? 83

Table 4.2.1 Do you presume that the way the management of your resident

carried out is patterned? 83

Table 4.2.2 Do you encounter any management problem when you

want to pay your rent? 84

Table 4.2.3 Do you experience delay in response from the staff of ESHDC?

when urgent management attention is needed in your residence? 84

Table 4.3.1 Do you appreciate the ESHDC timing for your maintenance schedule? 85

Table 4.3.2 Will you acknowledge a new technique that is internet mobilized in

addressing your maintenance requests? 85

Table 4.3.3 Are you computer literate to be able to communicate with the

management if this management technique is adopted? 86

Table 4.4.1 Do you understand the concept of automation and the technicalities if

devised as a new management technique in processing your document? 86

Table 4.4.2 Automated management will be faster and secure your information,

data processing and accessibilities will be online; will you

appreciate the management trend? 87

Table 4.4.3 Do you consider that fulfilling your tenancy obligation through

online facilities will be more convenient to you? 87

Table 4.5.1 Do you have any computer system in your residence? 88

Table 4.5.2 Do you know how to access internet website and process information? 88

Table 4.5.3 Can your income afford a computer system with configured internet

services in your residence? 89

145

(Tables for high income residents of ESHDC, Uwani):

Table 4.6.1 Did you enter into any tenancy agreement with ESHDC

before accessing the residential property? 89

Table 4.6.2 Were you given any Property management brief or manual that

would guide your tenancy obligations in management of your flat? 90

Table 4.6.3 Do you consider the policies and decisions of

ESHDC compatible with your tenancy? 90

Table 4.7.1 Do you presume that the way the management of your resident

carried out is patterned? 91

Table 4.7.2 Do you encounter any management problem when you

want to pay your rent? 92

Table 4.7.3 Do you experience delay in response from the staff of ESHDC?

when urgent management attention is needed in your residence? 92

Table 4.8.1 Do you appreciate the ESHDC timing for your maintenance schedule? 93

Table 4.8.2 Will you acknowledge a new technique that is internet mobilized in

addressing your maintenance requests? 93

Table 4.8.3 Are you computer literate to be able to communicate with the

management if this management technique is adopted? 94

Table 4.9.1 Do you understand the concept of automation and the technicalities if

devised as a new management technique in processing your document? 94

Table 4.9.2 Automated management will be faster and secure your information,

data processing and accessibilities will be online; will you

appreciate the management trend? 95

Table 4.9.3 Do you consider that fulfilling your tenancy obligation through

online facilities will be more convenient to you? 95

Table 4.10.1 Do you have any computer system in your residence? 96

Table 4.10.2 Do you know how to access internet website and process information? 96

Table 4.10.3 Can your income afford a computer system with configured internet

services in your residence? 97

146

(Tables for the Staff of ESHDC- Estate Division):

Tables 4.11.1 Does your present policy and decision reflect the need to

accommodate a new might method for residential income properties? 98

Table 4.11.2 Is the manual system of managing multiple residential Income

properties satisfactory from your on perspective? 98

Table 4.12.1 Have you encountered any missing file(s) or document(s) of the

residents of ESHDC before? 99

Table 4.12.2 Do you encounter delay in carrying out you tenants request whenever

urgent management attention is needed? 99

Table 4.13.1 Would you like all the information of residential Income properties of

ESHDC to be computerized? 100

Table 4.13.2 Do you have knowledge about what automation is all about? 100

Table 4.14.1 Do you think using electronic machine like computer to process

data on properties would be faster and easier? 101

Table 4.14.2 Do you think that automation technique would help the corporation to

achieve its mission goal? 102

Table 4.15.1 Does the corporation Estate have any plan of introducing internet

website for online servicing of properties? 102

Table 4.15.2 Are all your staff computer literate? 103

Table 4.16 Do you accept that to adopt automated technique in management of

residential income properties will significantly improve the

database administration for residential income properties? 104

147

LIST OF PLATES

Plate 3.2.1 3 floors of 2 – storey block of flats in Real Estate Uwani 72

Plate 3.2.2 2- floor of 1- storey block of flats in Real Estate Uwani 73

Plate 3.6.3 Bulky residential files of the occupants of ESHDC 77

148

ABSTRACT

The rapid growth in housing development especially in the area of residential property market experiences decline in efficient management competence. The decline is attributed to the application of the outmoded conventional manual management strategy, which could not evaluate the rapid growth trend. This conventional technique employs the use of file cabinet, file folders of leases, drawings, file cards and manufacturers catalogs. Many organizations in the field of Estate Management at present adopt these basic tools of residential management method that consist of manila folders bulging with equipment lists, personnel allocation, space projection, lease expiration dates, related forms, documents and drawing of many kinds. This system is constrained in human speed and accuracy. Information management, appraisal and data processing become tedious and time consuming. This study is intended to conceptualize a technique such that would facilitate an effective database administration for residential income property management. This technique is automation in residential income property management that assesses sales storage, retrieval and automatic analysis for Enugu State Housing Development Corporation. The hypothesis therefore states that the use of automation techniques in residential income property management would significantly improve the database analysis in management of residential income property. The research adopted the survey method for collecting data. The staff and residents of Enugu State Housing Development Corporation formed the population study. A sample of 395 respondents within Enugu was drawn from the population parameters while the main selection of the sample adopted the stratified random and purposive sampling techniques. A total number of 345 completed questionnaires representing 87.3% of the distribution were recovered and used for statistical analysis. The data collected was subjected to nonparametric test using chi-square techniques. A study on the use of automation techniques on indicators such as constant house price indexing, growth trends, sales volume analysis revealed speed and accuracy in data processing. The traditional manual method is constrained in human speed and accuracy. The value from the chi-square calculation x2cal = 18.4. At 5% or 0.05 level of significance and 4 degree of freedom, the table value x2tab = 9.5. The hypothesis that the use of automation techniques in residential property management would significantly improve the database analysis in management of residential property is accepted. This implies that the implementation of automation techniques in residential database administration will enhance strategic management of residential property. The initiation of this new innovation (Automation) will help so much in reducing much space consumption resulting from multiple filing racks and shelves and as well improve the staff or workers moral, reduce fatigue and expedite work efficiency. The study therefore, recommended that automation techniques in management of residential income property should be initiated by educating the staff and residents of ESHDC on computer application through seminar presentation and workshop programmes.