REVIEW OF RELATED LITERATURE

2.1 INTRODUCTION

Residential building has been universally accepted as the second most important essential human need after food. Housing in all its ramifications is more than mere shelter since it embraces all the social services and utilities that go to make a community or neighborhood liveable environment. Efficient housing design is becoming increasingly imperative in Nigerian urban centres; this is because housing is an essential and fundamental component of the overall land use activities in both rural and urban centres. Besides it has a tremendous positive influence on the health, safety and welfare (economic and social) of residents of any community. Residential land use is the largest single land use in any community and a larger proportion of land is usually devoted to it. However, the desire to own houses has eluded the bulk of the Nigerian population in the urban centers. This can be attributed to a number of reasons like poor economic situation in the country, rising cost of building materials, explosive increase in urban population and absence of effective housing policy. Landed property ownership is regarded as a great success and achievement; and this mentality has great influence on landed property itself. After the construction of buildings, most property owners tend not to care for it again as all that matters to them is that they have a property which they can call their own. This is because most Nigerians lack maintenance culture. However, the effective management of properties is very important, due to its nature and the capital involved in its construction. Properly managed properties will not only maximize the income realized from the property where the property is built for investment purpose, but will also ensure that the property is in a good physical and structural state for it to continue performing the purpose for which it was built.

Though the countries of the world differ greatly in their levels of industrial and social development and the nature of their economic and political systems, the importance of housing and its related facilities as vital elements in determining the standard of living and as integral parts of the development process and the need for government to take a major share of responsibility for improving the level at which they are provided and generally recognized. Property management is the management of existing structures erected on land with the aim of securing the optimum return which need not always be financial but may be in terms of social benefit, status e.t.c. It is also the general administration of landed property on behalf of the owners usually known as the clients by the property manager. Management of residential properties, not only covers rent collection, repairs and maintenance but also other aspects of good management. The importance of management of residential properties has become so technical that the knowledge and services of competent property managers are required to perform the task.

2.2 THE NATURE OF NIGERIA’S HOUSING PROBLEMS

Housing challenges and issues has been generally accepted as being diverse and complex. Within the spectrum of this problem, one can identify both quantitative and qualitative deficiencies. identified the major housing problems in Nigeria as that of instability of human needs for housing. This problem is worldwide and it is of a recurring nature. In fact it is doubtful if any nation of the world can satisfactorily meet its housing requirements.

In Nigeria, most people live in poor quality housing and in unsanitary environments. This problem of inadequate housing has been compounded by the rapid rates of urbanization and economic growth. Housing difficulties is more serious for the low income groups where problems have been complicated by rapid growth, inflated real estate values, speculative activity, and influx of poor immigrants and lack of planning. One can also site the increasingly significant shifts in the form and design of housing from the rooming form to flat and single family house forms as a factor responsible for acute shortage of housing for the low income groups.

Many reknowned scholars of urban science (castells, Burgess, Hall, Turner, Abu-Lughod, Mabogunje and so on) as well as distinguished regional and international organization (United Nations Habitat, World Society of Ekistics, the World Bank etc.) concerned with urbanisation and housing at global levels, have long expressed immense anxieties over the alarming nature and dimensions of the housing problems in the nations of the developing world. Highly recognized among the most crucial corollaries of unplanned and dependent urbanisation is the urban housing crisis pervading the primary and large regional secondary cities of the fast and medium developing categories of the third world nations (Lagos, Rio de Janeiro, Sao Paolo, Mexico City, Cairo, New Delhi, Karachi etc.). This crisis situation in its integrated form has surpassed the terrains of the social sphere, reproducing itself in the economic, political and environmental processes of these nations of the third world, Nigeria not an exemption.

2.3 EMPIRICAL REVIEW

Housing has been universally acknowledged as one of the most essential necessities of human life and is a major economic asset in every nation. Adequate housing provides the foundation for stable communities and social inclusion (Bala, 2012). Since independence, the Nigerian nation has desperately continued to make concerted efforts in the area of quantitative supply of housing (though still far from the target) through huge budgetary and polity provisions, but surprisingly, the area of maintenance of the existing stock has suffered inexplicable neglect. Wahab et al (1990) asserted that two-thirds of urban housing are varying degrees of serious disrepair. Of these, a third is not fit for safe habitation as they are either dilapidated or in need of major repairs. Ogieto (1987) has observed that the disparity between the price and quality of materials to be use for housing maintenance on the one hand, and the number of households and the money available to them to pay these prices on the other, constitutes the central problem of housing maintenance. The gap between income, shelter cost and the housing maintenance in Nigeria is very wide (Okupe and Windapo, 2000). This has almost eliminated the low-income earners from the housing maintenance. The overall cost of a unit of housing in any building development includes the cost of providing land, infrastructure such as roads and essential service such as water and electricity. The cost of construction materials and labour constitutes major part of the total cost of the house. The building design process is defined as that through which the Architect and the Builder identify space allocation. It has also been established that traditional Africa settlement, exhibit a refined form of house type and community structure which is mostly determined by the interaction of culture such as linage or kinship pattern of the community, climate, economy or natural resources of the area. Wahab (2007) also observed that the tropical climate in Nigeria affects not only the patterns of daily life, the planning of settlement and forms of building but also determines the types of materials which could be used for the construction of the building. Building design consideration for the south-western Nigeria should take into account provision for adequate air movement for effective body cooling. This is due to the climate is warm and humid. Adetomiwa (2010) identified many factors that have been responsible for housing or building deterioration individually or collectively among them are design and proper workmanship, materials specifications, detailing of working drawings, construction supervision, cash flow analysis, environmental factors, users activities, shifting values and modernization, accidents and solar radiation. Other factors may include ageing, wear and tear, preservation of historic buildings, value of buildings, alteration and modifications, inadequate housing stock, low quality of original construction, harsh climatic effects, mixed and changing patterns of building uses, declining quality of building materials and social factors.Sanni (2010) stressed the need for the development of appropriate policies especially in the context of national development in Nigeria. It is widely believed that the number of construction projects going on in a nation at a particular time is a measure of the development activities of that nation and residential buildings constitute about 70%-100% of the products of the building industry (Chudley, 1987). For a decision to develop a large number of construction projects including housing units, many development activities must be completed. Product of the buildings such as hospitals, stadia, educational buildings, residential buildings and others, do enhance the overall development of a nation (Chadwick, 1987). Kunya (2012) identifiedthe solutions to the challenges that are facing housing maintenance in public and private housing facilities such as to monitor and document corrective actions, project expenditures, and accomplishments. Systematically identify maintenance needs, deficiencies and capital improvement needs at housing estates. Provision of accurate data for maintenance and construction programme decision making. Enable preparation of service maintenance and construction budget requests using systematic and standardized procedures, optimize the use of available funds, personnel, facilities and equipment through effective maintenance management methods; establish field station, regional, national and construction project priorities and determination of the unfunded maintenance backlog for the services.

2.4 PROBLEMS OF HOUSING IN NIGERIA

Nigerians are faced with numerous housing problems, which are essentially connected with the hardships they face in securing and retaining a residence. This situation is particularly evident in Lagos state due to the cosmopolitan nature of the state, which has placed great demands not only on housing but also on physical and social amenities. Egunjobi,( 1999) succinctly stated that there are twin problems of quantitative and qualitative deficiencies with respect to housing in Nigeria, especially Lagos State The efforts of governments at federal, state, and local government to provide housing for the urban population have not yielded much fruits. Researchers have tended to draw a strategic link between urbanization processes in a country and subsisting housing problems. Thus, the rapid rate of urbanization and its attendant socio-economic and spatial consequences have been of tremendous concern to all professionals, policy makers and analysts especially as it affects urban development and management (Olatubara, 2007). It should be noted that the problem of urbanization in Nigeria is not necessarily that of level but that of rate. For example, while the level of urbanization in Nigeria is put at 36%, that of South Korea is 79%, Mexico 74% and Columbia 71%(Population Reference Bureau, 2001). While the rate of urbanization in Seoul is 7.8%, Mexico City is 5.5% and Bogota 5.4% and that of Lagos is 15% per annum (Federal Government of Nigeria, 1991).This rapidity in the rate of urbanization is so overwhelming that it generally far exceeds the speed with which government` are able to respond to the dynamics of urbanization due to inadequate facilities, resources and capabilities at their disposal. To fill the gap of quantitative housing problems in Nigeria in general and Lagos State in particular are the private developers. These private developers according to Olatubara (2008) have as their motivation the desire to make profit. Many of them capitalize on the acute shortage of accommodation by providing housing at exorbitant prices to prospective house seekers. Invariably, the majority of the houses provided by the private developers, besides being expensive are deficient in meeting the requisite minimum standards that make for a healthy and comfortable living Also in housing policy, women or girls are often excluded or discriminated against as they do not fit into the traditional concept of a family (African Development Bank, 1990). Furthermore, Lawanson (2006) states that when housing programmes are upgrading schemes present opportunities for the improvement of human settlement, women are often excluded. Projects are designed without reference to woman’s economic, domestic or community responsibilities. Policy makers focused on providing for the needs of the presumed male head of the house, virtually ignoring the large number of women who head or maintain households. Among the perculair problems are the patriarchal attitudes of men which sees a woman who moves out of her accepted family role in order to source for accommodation, as a “loose woman”. Men may fall back on societal expectations and treat the woman as sexually available. In some instances, the housing needs of women may force some of them to stay in a hostile relationship, as some may perceive that they are likely to be denied accommodation elsewhere or be sexually harassed by house-owners.

2.4 PROPERTY AS AN INVESTMENT

Property is one of the main investment assets, the others being shares and bounds. Shares (also known as stocks or equities) and property (also known as real estate) entail ownership rights and are known as real assets. In contrast, bonds are financial assets. Shares represent a claim to a proportion of a company and, so are a form of joint ownership. Direct property investment involves the rights of ownership to a piece of land, typically with a building. Property comprises both commercial and residential investments. The types of property which constitute the investment market and their financial characteristics vary from country to country and from town to town. In Kaduna metropolis, the dominant form of property investment is residential, while in other towns, such as Onitsha and Aba, commercial property is an important investment vehicle. Investment can be defined as the act of laying out money now in order to receive financial recompense in the future. This recompense or reward may be received in the form of future flows of income or by the receipt of a single capital sum. It may or may not be a guaranteed return; equally it may or may not involve the investor in further action to obtain the return. The essential factors are thus only two, namely a money outlay and future money receipt/receipts. Apart from these common ingredients investment differ in their characteristics, rendering some media more suitable for particular investors than others. The first prerequisite of successful investment is the choice of investments that are appropriate to the requirements of the investor, that is to say, investments should display the qualities most sought after. In addition to looking at the individual investment opportunity, the effect of that investment upon the entire portfolio must be considered. Baum and Crosby (1988) state that “ a good investment is one which produces high levels of return (from income, capital and psychic income) in comparison with the price paid”. However, these characteristics are only some of these which may be identified and it is the overall „package‟ of qualities which any potential investor should consider.

2.4.1 INVESTMENT QUALITIES

1. Capital Security

Will the capital sum remain intact, such as with an investment in a building society or bank account or is there a chance that the whole sum spent will never be recouped? In general, capital security is a quality regarded as a high priority for most investors.

ii) Capital Growth

Capital growth is a desirable quality but frequently difficult to achieve. Few investments offer a guaranteed capital growth in real terms: many purporting to offer capital growth guarantee it only in money terms, which may or may not provide a net growth in real terms.

iii) Income Security

Some investment media produce no income at all. A collector of antiques may purchase a fine piece of furniture which over time may yield a high capital return but will not produce an income. With property the degree to which income is secure will depend, among other factors, upon the quality of the tenant: is he reliable and has he the financial resources being the first questions a letting agent answer.

iv) Income Growth

As with capital, income growth is often more illusory than real. To find an investment offering guaranteed income growth in real terms is difficult if not impossible. Property, if let at a rent below its full rental value, may afford a good opportunity for income growth in real terms. Rental growth is realized only at rent review. Between the reviews income will decline in real terms. The review will restore the income profile and this may or may not provide growth in real terms.

v) Life of the investment

An investment can be of a fixed duration such as a dated government security or a leasehold property, or it can be open ended, that is, it lasts until it is either sold such as a freehold property, or it wears out such as a car, or it ceases such as company which goes into liquidation and is wound up. With a fixed life investment it will frequently be possible to determine the end value at the time of initial outlay which may be positive. An example is where a lease of a property expires and a liability for dilapidations has accrued.

vi) Transferability or marketability

The ability to sell an investment is important to most investors and the lack of marketability is regarded as a serious drawback. Few investments are totally transferable but some are, for example, property held on a non – assignable lease. Freehold property is readily marketable but has the drawback that transactions normally take a comparatively long time.

vii) Psychological value

The ownership of land and the way it is utilized have been important and sensitive issues throughout history. Status has always been afforded to the owner of land, quite apart from any financial advantage that it may impart. To some individuals the mere ownership of land can be regarded as an end in itself; it is perceived to give personal satisfaction, security and of course, value.

2.5 PROPERTY MAINTENANCE

According to Oxford Advanced Learner‟s Dictionary fourth edition, maintenance means cause to continue keep in existence at the same level, standard, etc. Maintenance is the combination of all technical and associated administrative actions intended to retain an item in, or restore it to a state in which it can perform its required function. Maintenance of property involves a number of issues. Some of these issues are technical, financial and managerial. These three must be employed harmoniously to achieve the desired results. Most often the situation is such that one or two of these components may be lacking and as such a little can be achieved. In Nigeria, for example, the culture of maintenance is very low except in emergency situations when it might have become too late and even costly to achieve the desired results. The poor maintenance culture may manifest either in the landlord not approving maintenance estimates or unnecessarily delaying the release of funds or in the form of destructive and improper usage on the part of occupiers.

2.6 TYPES OF RESIDENTIAL PROPERTIES

Arnold Encyclopedia of Real Estate, (1978) described residential property as property used as a dwelling by one or more families, as distinguished from business, commercial or industrial property. While, Chapman (1983) see the term residential property as properties developed as dwelling only. The decision with regard to the type of a residential property by man is a function of his income as residential properties vary in size, rent and the nature or type of occupation envisages and the nature or type of accommodation. The types of residential properties we have include:

MAISONETTE: This type of property is sometimes referred to as duplexes depending on the professional involved in its definition. It is a suite in an apartment usually on two floors and is usually for a single family dwelling. It comprises of living room, kitchen, bedrooms, toilets, store etc. BUNGALOW: This is single family dwelling on a single floor; it could be detached or semidetached depending on the design. It comprises essentially of a living room, bedroom (s), kitchen and toilets.

FLATS: This refers to a suite of rooms usually on a floor and mostly detached, but some could be semi-detached. Its accommodation scheduled is similar to those provided by bungalows.

TENEMENT BUILDING: These constitute such dwelling units usually constructed for multiple occupations and are mostly developed for rentage. It usually comprises of rooms and parlours and affords common toilets and bathrooms.

2.7 NATURE AND CAUSES OF PROBLEMS IN BUILDING

1) Dampness: Damp penetration is one of most serious defects in buildings. It causes deterioration of the structure and also results in damage to furnishing and contents of the building. It can also affect the health of the occupant.

2) Roof leakage: This is one of the commonest defects complained of by the occupier. Apart from causing considerable inconvenience to the users, it can lead to accelerated deterioration of the other parts of the buildings such as ceilings, floors and walls, and can cause serious damage to decoration and electrical installation.

3) Cracks

These are generally caused by tensile stresses in excess of the tensile strength of the materials. Produced by externally applied loads or internal movement arising from temperature or moisture changes. Cracks frequently give rise to air infiltration, heat loss and reduced sound insulation, all of which results in reduced efficiency of the building.

4) Efflorescence

This consists of deposits of soluble salts formed on the surface of new brick work, and it usually appears as loose white power or a feathery crystals, or more occasionally as a hard glossy deposit penetrating the brick faces. It can occur on internal as well as external surfaces, causing damage to decoration where applied before the walls have dried out.

5) Painting defects

Decorations enhance the appearance of buildings and in many cases also protect materials which would otherwise deteriorate. Common defects in painting are flaking and peeling of paints which give the property a shabby appearance and make it unsightly and unacceptable to the occupants.

6) Plumbing defects

Plumbing defects are also one of the major defects in buildings. Leaking taps and waste water are a nuisance. Burst pipe leaks water into the walls or floors and cause dampness on the property. Plumbing defects are very destructive to the building if not attended to on time.

2.8 CAUSES OF PROBLEMS IN RESIDENTIAL BUILDINGS

Problems in building are a gradual deterioration or physical obsolescence of building structure through wear and tear of the fabrics. The common factors identified for this are:-

Standard of construction: Some defects originate from the building process during design and construction stages. Use of low quality materials and labour in construction will lead to a quick deteriorating of the building. Intensity of use: The higher the intensity of use, the higher the degree of wear and tear. Moreover, a building with uses that requires heavy traffic or installation of heavy machinery is more likely to wear out at a faster rate than a similar one with ordinary users.

Climate/natural factors: Weather elements particularly affect the external components and elements of the building and this varies in severity according to its location in items of the natural condition of that environment, and the orientation of the building. But where standard materials and adequate designs are incorporated into the building, climatic effects will be checked and minimized, subsequently reducing maintenance costs. The cumulative effects of rain, wind, solar radiation, atmospheric pollution and chemical action cause corrosion of building structure. Moisture which comes in many forms: rain penetration, condensation, leakage from water – carrying devices or drainage and rising damp, is a common decay – causing factor of building components. Damp proof course and water resisting points are often used to keep moisture off the floors and walls. Natural forces like storm, food, land side and earthquake may also strike the property.

Biological factors: These include activities of human beings and animals. Such activities as excavation, sinking of wells and blasting of rocks can lead to settlement resulting in cracks in the floors and walls of buildings and eventual collapse of these components. Insects like beetle and termite, and also rodents like rat and mouse can attack building components to cause a quick deterioration.

User – Activities: This includes both human and mechanical agencies, and authorized and unauthorized usage. Also tenants could be very destructive to building components.

Standard of workmanship: This determines the building level of future maintenance. If low level workmanship is used, maintenance problems come up. Therefore qualified contractors must be employed. Changing standards and tastes: This creates a damage to be carried out more often than functionally necessary. Therefore the ability of the designer to consider future needs will reduce such damage. Also property managers can check unauthorized alterations by tenants which have negative effects on buildings.

Inter–dependence of building components: Deterioration rate of some components can be speeded up by the failure of other elements. For example the cracking of plumbing works buried in walls due to age, may result in leakage of water and subsequent dampness of wall and timbers resulting in organic growth and vote respectively.

Design consideration: Inherent design problems include wrong decisions, incorrect assessment of soil and load capacity. Complex specification, misjudged layout, etc. conflicts may arise between environmental factors designers own bias, client requirement, nature of materials, etc correct judgment and better understanding will therefore provide the necessary rational and balance compromise. Sometimes design and location of some fittings may make accessibility to them difficult when maintenance is required. This results in external costs and may lead to damage of other parts when trying to gain access.

Building Occupancy: Where the occupancy ratio of building is higher than planned for, facilities in the building will be over used and thus results in a faster rate of deterioration. This result in a high frequency of maintenance works resulting in high maintenance costs.