Ini Billie, Uyo
The Nigerian Institution of Estate Surveyors and Valuers (NIESV) has criticised arguments supporting the introduction and implementation of monthly rent payments by tenants, saying it would threaten the housing subsector.
This follows the Senate commencement of deliberations on a bill seeking to make it an offence for any landlord to demand payment of advance rent from tenants of residential and office buildings and spaces beyond three months.
NIESV stated that the monthly rent payment advocacy which was suggested by the Minister of Works & Housing, Mr Babatunde Raji Fashola, would ultimately scare away investors in the housing market.
Speaking during a press conference at the weekend in Uyo, President and Chairman of Council, NIESV, ESV Emmanuel Wike, said that with the current prevailing realities, the idea would succeed.
“The Minister had in a statement a few months ago, in Abuja, said that exorbitant amounts of rent, ranging from two to three years demanded by landlords and property owners before letting out their properties is what has made affordable homes inaccessible for Nigerians in urban centres.
“Nigerian Institution of Estate Surveyors and Valuers fully resonates with the argument to re-establish a match between the prevailing regime of monthly income and the practice of advance rental payments, quarterly, annually and biennially.
“Housing is an inelastic social good or service, with substantial shortages at the urban low- and medium-income subsectors of the market. That re-establishment, however appealing it may be, requires careful planning and systemic implementation, so as not to exacerbate the difficulties.
“Monthly payment of rents will not work presently. The parties involved will circumvent it by agreeing at the same time with 12 monthly contracts at once and in advance.
“Any move to enforce implementation by law or public regulation will scare away investors from that subsector of the housing market, thereby further worsening the shortage. The result is the compounding of the housing problem instead of proffering some solutions,” he added.
NIESV advocated a public discourse on the matter that would arrive at a mutually beneficial policy for renters and landlords.
“The ongoing conversation is a good start and should be built upon to generate consensus through more stakeholder (landlords, investors, tenants) engagements and buy-ins, identification of needed special interventions, leading to carefully formulated policies with robust implementation procedures, and implementable fast-track mechanisms for conflict resolution,” the President advised.
On Akwa Ibom, the institution urged the State Government to pay the Attorney General’s fees due to Estate Surveyors and Valuers it has been owing since 2016.
It encouraged the government to examine the Accountant General reports as it does not include government assets valued by its members, employing more of its members into government agencies and local government councils.
It however commended the State Government for employing many of its members and sought a continued partnership with the association for the development of the state.
The group stated, “The Accountant General’s report is not comprehensive enough to the extent that it does not include Government Assets as valued by Estate Surveyors and Valuers. More Estate Surveyors and Valuers should be employed by Government Agencies and Local Governments. This is because our roles in the economic development of the nation and state cannot be overemphasized.
“The State Government has been withholding attorney fees due to Estate Surveyors and Valuers since 2016.
Meanwhile, the Government is currently paying 100% compensation value to claimants and instructed the attorneys to get their fees from them. That is procedurally wrong and calls for rectification”.