Full Project – THE EFFECT OF LANDLORD AND TENANT RELATIONSHIP ON RESIDENTIAL INVESTMENT RETURNS

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CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

The parties involved in a leasehold system may be broken down into three broad categories: landlords, renters, and estate surveyors and valuers. The lease establishes the rights and responsibilities of the landlord (owner/manager) and tenant, whereas the investment returns management contract formalizes the owner’s relationship with the manager. Typically, agreements between parties involved spell out each party’s obligations and rights. According to Kyle (2005), property managers need to have a firm grasp on the rules governing leases, particularly the covenants that have an impact on the jurisdictions in which their businesses operate, since they show landlords and tenants the nature of their relationship.

In the opinion of Thorncroft (1976), the legal arrangements that provide frameworks for the landlord – tenant relationships are important and expected to be established properly, although they cannot substitute for dynamic working relationships that have the potential of bringing real prosperity and well-being to both parties. The success of estate management through lease control for that reason depends firstly on the terms of the lease; and secondly, on the way they are implemented. In consonance with Thorncroft (1976), Morgan (2005) stated that although lawyers are responsible for legal and technical details of transactions involving the parties to a lease, property managers are expected to be familiar with the basic provisions of the leases. Making an allowance for disputes, which cannot be entirely avoided and disagreement, which constitute the bulk challenge of managing income- generating properties by the Estate Surveyors and Valuers.

The property manager usually has the responsibility for leasing real estate in accordance to the terms of management contract, but his duties does not stop at that as he cannot avoid inconsistencies in the relationship between the landlord and tenant, which are a common occurrence in the renting process. However, such differences could be avoided if parties become aware of the rights and responsibilities ensued to them under the lease. This coupled with being open and having clear understanding of each other’s objectives for the long and short terms can remove uncertainty, build confidence and trust, and in the main prevent conflict (Aina, 1998).

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Full Project – THE EFFECT OF LANDLORD AND TENANT RELATIONSHIP ON RESIDENTIAL INVESTMENT RETURNS

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