Estate Surveyors body calls for caution in implementation of monthly rent payment

The Nigerian Institution of Estate Surveyors and Valuers [NIESV] has warned that greater caution should be taken in enforcing the implementation of monthly payment of rents so as not to scare away investors in the sub-sector.

The trade group gave this warning during its Council meeting held at Watbridge Hotel in Uyo, the Akwa Ibom state capital, at the weekend.

Addressing journalists at a press conference, the President and Chairman of Council, ESV Emmanuel Okas Wike, stressed that any mode of enforcement be it law or public regulation, should be cautiously applied otherwise may worsen the already existing deficit in the number of houses in the sub-sector.

According to him, as a major stakeholder in the housing sector, after the Minister’s directive, a committee was set up to study the action, adding that, the report of the committee informed the body to ask for caution in implementing it so as not to create more problems than solving it.

“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.

“In the face of the available evidence, monthly payment of rents will not work presently. The parties involved will circumvent it by agreeing at the same time 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 end result is the compounding of the housing problem instead of proffering some solution.

“In the long term, the way forward is to take a balanced position, push for public discourse that should generate the buy-in for 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”, he advised.

The Institution commended the Akwa Ibom state government for employing many of its members, calling on the government to continue to partner with its branch in the state for the development of the state.

The body advised the state government to do more by looking into the accountant general reports as it does not include government assets valued by its members, employ more of its members into government agencies and local government councils, adding that, the state government had been withholding the attorney fees due to Estate Surveyors and Valuers since 2016.

“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”.