Tenant selection is of utmost importance for both residential and commercial properties in Nigeria. Below are a few major reasons which I believe will interest you, guide you in real estate investment aspirations.
- Rental Income: Selecting the right tenant ensures a steady and reliable rental income. A tenant who pays rent on time, respects the property, and fulfills their obligations contributes to the financial stability of the property owner. Timely rental income is crucial for maintaining the property and meeting financial obligations.
- Property Maintenance: A responsible tenant helps to maintain the property in good condition. By selecting tenants who take care of the property, property owners can minimize the costs and efforts associated with repairs and maintenance. This preserves the value of the property and enhances its long-term prospects.
- Legal Compliance: A thorough tenant selection process ensures that the property owner complies with relevant laws and regulations. For instance, verifying tenants’ identification documents, conducting background checks, and considering their financial stability can help prevent illegal activities, potential disputes, or the risk of defaulting on rental payments.
- Commercial Viability: In the case of commercial properties, tenant selection plays a significant role in maximizing profitability. Selecting tenants that align with the property’s purpose and target market ensures a higher chance of success for businesses operating on the premises. A well-curated mix of compatible commercial tenants can attract more customers and increase foot traffic, leading to higher rental returns.
- Property Security: Tenant screening helps mitigate the risk of property damage, theft, or other losses. By selecting tenants with a good reputation and reliable references, property owners reduce the chances of criminal activities or neglectful behavior that may put the property at risk.
- Neighborhood Harmony: In residential areas, tenant selection affects the overall harmony and stability of the community. Choosing tenants who are respectful, considerate, and compatible with the existing neighborhood can foster a positive living environment for both the tenant and neighboring residents. This contributes to a sense of security, well-being, and satisfaction among the community.
Overall, tenant selection is crucial for the financial, legal, and social well-being of both residential and commercial properties in Nigeria. Taking the time to carefully select tenants ensures a smooth and profitable renting experience while minimizing risks and maintaining property value. All of these can only be achieved or maximized through Estate Surveyors and Valuers.
Contact: IBUKUN EFUNTAYO & COMPANY
ESV. Desmond O. Ataijie ANIVS, RSV, AGIPM, CFM, CPM