Considering that the Lagos State Government one-year rent policy will not only favour tenants but additionally attract good agent’s return, the Association of Estate Rent Commission Agents of Nigeria (ERCAN), has placed its weight behind the policy.
ERCAN in a way commended the Lagos State Real Estate Transaction Regulatory Authority, a new body charged with the responsibility to regulate the practice of estate agency in the state on the policy that is adjudged masses-friendly.
The authority had earlier registered the Lagos State branch of ERCAN to regulate the activities of estate agents operating in state.
The Vice Chairman of Lagos State branch of ERCAN, Mr. Ikwuagwu Emeka George, while fielding questions from the press, pointed out that the newly established state authority will henceforth monitor and regulate the activities of estate agents in the state under ERCAN.
According to Ikwuagwu, ERCAN is also duly registered and recognised by the Federal Government, adding that the registration and recognition of his association by the state government lends credence to the fact that the umbrella body of estate agents across the country is a legal body.
He said that ERCAN is to estate agents what the Nigerian Institute of Estate Surveyors and Valuers (NIESV) is to estate surveyors and valuers. He added that every practicing estate agent in Nigeria is expected to be a member of the association, which was formed to stem the dubious activities of estate agents.
Lagos State’s one-year rent policy, he said, is achievable, noting that the policy is already achieving its goal because landlords now know that they cannot collect more than one year rent in Lagos.
“We as estate agents take our time to educate the landlords on the new policy. Those of them that insisted on two years’ rent collection initially have come to realise that it pays more to collect one year rent than to allow their houses to be locked up without tenants for months or years. So, they have no option than to succumb to the policy of the government. The policy will gradually be popularised. It is just a question of time.
“However, there is much work to be done by the government in terms of housing provision. The government needs to concentrate its attention on provision of mass housing for its citizenry, as this will force the Lagos Shylock landlords to comply with the one-year rent policy. If most low income earners in the state are accommodated by the government, Lagos landlords will have no option than to beg people to become tenants in their houses, because if they don’t, their houses will be locked up. The government can help landlords by reducing charges on soil test and land use so that the cost of building will not be too high for them.
“Once these charges are reduced, the landlords may even be willing to collect six months from tenants. As an association, we advise landlords to collect one-year rent as stipulated by the government. But those stubborn ones who insist on collecting two years’ rent, tell them they are on their own. For us, one year rent collection makes the job easier for the business. Some people, because they are desperate to get accommodation, don’t bother if the landlord is asking for two years’ rent. Such people are the ones encouraging landlords to collect two years’ rent,” he stated.
He, however, noted: “The fact that you do not belong to an association or professional body does not make you a quack in your area of business. You are a quack if you carry out a function you are not trained to practice. Those who were not able to go through the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON) are regarded by those who went through the registration body as quacks. You are a quack as an estate agent because you are not empowered by law and education to carry out valuation business but you are not a quack to do renting, sales and management.
“You can do those things as an estate agent because you have the basic qualification of secondary education coupled with marketing skills to carry out the business of estate agency. As I said earlier, an estate agent is a quack because he was not trained in the area of valuation but he is not a quack to practice estate management, and of course, no estate agent is involved in property valuation because that is a specialised area in estate management as a course.”
Ikwuagwu likened the situation to a pharmacist and a chemist. “Because a pharmacist went to the university to read Pharmacy and because a Chemist is not certified, the pharmacist will refer to him as a quack. The fact that he did not read Pharmacy as a course does not mean he is a quack. He may have other requisite qualifications to practice as a chemist,” he said.
“Estate agency is the area of the business that is porous to everybody who can read and write, that is why it appears to be an all comers’ affair. The ability to communicate makes you a marketer and because he has acquired that basic communication skill empowers him as an estate agent. Estate agency is purely about marketing. Now, there is difference between a graduate, a non-graduate and a professional estate surveyor and valuer.
“Your ability to see far in the business is what distinguishes between you and others in the business. A non-graduate estate agent can empower himself by undertaking some estate management courses to brighten his future in the business. So, it is only those who want to remain as quacks that are quacks,” the Holmes Viu Properties boss said.
