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The Benefits of Property Well-Managed: Unlocking the Potential of Your Investment


In the world of real estate, a well-managed property goes beyond just a physical space. It represents a haven of comfort, security, and convenience for residents, as well as a lucrative investment opportunity for property owners. By delving into the advantages of effective property management, we can uncover the immense value it brings to both tenants and investors.

Enhanced Tenant Satisfaction:

When it comes to renting, tenant satisfaction is paramount. A well-managed property ensures prompt maintenance and repairs, creating a comfortable living environment. Responsive communication channels foster trust and satisfaction between tenants and landlords. By prioritizing tenant needs, property managers can establish positive and long-lasting relationships with their residents.

Increased Property Value:

Preserving and enhancing property value is a top priority for any investor. Regular maintenance and upkeep play a crucial role in maintaining a property’s aesthetic appeal and functionality. Well-maintained common areas and amenities attract potential tenants and buyers, leading to increased demand. Proactive management also ensures compliance with regulations, safeguarding the property’s value over time.

Optimal Occupancy Rates:

Empty units can be a burden for property owners. Effective marketing strategies and thorough tenant screening are essential for attracting high-quality tenants and minimizing vacancy periods. Accurate rental pricing, based on thorough market analysis, allows owners to maximize their rental income. By striving for optimal occupancy rates, property managers can ensure a steady cash flow for investors.

Streamlined Operations:

Efficiency is key when it comes to managing a property. Utilizing reliable property management systems automates tasks and streamlines operations. Effective financial management ensures timely rent collection and expense tracking, simplifying the accounting process. Transparent record-keeping also simplifies audits and financial reporting, providing peace of mind for property owners.

Proactive Maintenance:

Prevention is better than cure, especially in property management. Regular property inspections help identify and address maintenance issues promptly, preventing them from escalating into costly repairs. Implementing preventive maintenance programs can extend the lifespan of property and minimize unexpected expenses. By staying ahead of maintenance needs, property managers can ensure resident satisfaction and minimize disruptions.

Legal Compliance:

Navigating the complex landscape of regulations and laws is essential for property owners. Knowledgeable property managers stay up to date with changing regulations, ensuring compliance with local, state, and federal laws. Adhering to legal requirements minimizes legal risks and potential penalties for owners. Detailed documentation and record-keeping also simplify compliance processes and provide evidence of due diligence.

Risk Mitigation:

Protecting your investment should always be a priority. Comprehensive insurance coverage shields property owners from unforeseen events and potential financial losses. Diligent tenant background checks reduce the risk of problematic renters, minimizing potential issues. Implementing emergency response plans and security measures enhances resident safety and mitigates risks associated with property ownership.

Time and Stress Savings:

Owning and managing a property can be time-consuming and stressful. Professional property management relieves owners from day-to-day responsibilities, allowing them to focus on other aspects of their lives or investments. Access to a network of reliable contractors and vendors simplifies property maintenance, ensuring quality services at competitive prices. Additionally, 24/7 emergency response provided by property managers minimizes stress and guarantees swift problem resolution.


Investing in professional property management unlocks the true potential of your real estate investment. From ensuring tenant satisfaction and increasing property value to streamlining operations and mitigating risks, a well-managed property offers peace of mind and optimal returns. By prioritizing effective

Real estate Investment

Understanding Property Yield in Real Estate Investment

Source: iStock

If you are planning to invest in the real estate market, you must have come across the term ‘yield.’ Yield is an essential concept in the property valuation process that determines the profitability of an investment. It is a ratio of the annual rental income generated by a property to its value or price. In this blog post, we will delve into the details of what property yield is, why it is crucial in property valuation, and how it affects the prices of investment properties.

What is Property Yield?

In simple terms, yield refers to the percentage return that an investor gets from their investment property. It is a measure of the rental income generated by the property as compared to its market value. Yield is calculated by dividing the annual rental income by the market value of the property and then multiplying the result by 100.

For instance, if a property generates an annual rental income of $50,000 and has a market value of $1,000,000, the yield would be 5% [(50,000/1,000,000) x 100]. Therefore, the yield represents the percentage of the property’s value that the rental income generates.

Why is Yield Important in Property Valuation?

Yield is a crucial factor in property valuation as it provides insight into the risks and prospects of an investment property. Lower yields indicate less risky investments, whereas higher yields are associated with more uncertain and risky investments. Generally, investors prefer lower yields as they offer a more stable and predictable income stream. However, this may not always be the case, as lower yields may also reflect a less attractive location, higher maintenance costs, or other drawbacks.

In contrast, higher yields may indicate properties in prime locations or those with high rental demand. These properties may generate higher rental income but may also come with higher risks, such as higher vacancy rates or lower long-term rental growth prospects. Therefore, investors should carefully evaluate the risks and prospects of an investment property before making a purchase decision.

How Yield Affects Property Prices?

The relationship between yield and property prices is inverse, i.e., as yields increase, prices decrease, and vice versa. For example, if two similar properties generate the same annual rental income, but one has a higher yield of 6% compared to the other’s yield of 4%, the higher-yielding property will have a lower market value.

The reason for this inverse relationship is that yield reflects the expected future income stream of the property. As the yield goes up, it indicates a higher risk or uncertainty associated with the property’s rental income. This, in turn, makes the property less attractive to investors, leading to lower demand and hence, a lower price.

Conversely, as the yield goes down, it indicates a lower risk or uncertainty associated with the property’s rental income. This makes the property more attractive to investors, leading to higher demand and hence, a higher price. Therefore, investors should carefully consider the yield of an investment property when making a purchase decision to ensure that they get the best value for their investment.

In conclusion, property yield is an essential concept in property valuation that determines the profitability of an investment property. It reflects the risks and prospects of the property and affects its market value. Therefore, investors should carefully evaluate the yield of an investment property before making a purchase decision to ensure that they get the best value for their investment.


7 Processes of carrying out real estate due diligence

Due Diligence explained

Due diligence, according to Investopedia, is an investigation, audit, or review performed to confirm facts or details of a matter under consideration. In the real estate world, due diligence requires a buyer or an investor to embark on a fact finding journey by critically examining the legal, physical, environmental, financial and economic conditions of the property, and confirming every information supplied by the seller or his agent before agreeing to transact with the seller. Due diligence is primarily done to establish ownership of the property and to ensure that the property is free from all encumbrances.

Effect of one not carrying out real estate due diligence

In Nigeria and most developing countries of the world, it is difficult to establish ownership as there are obstacles to legality of landed properties ownership. This is connected to the fact that the property market is imperfect, and the system of gathering real estate data is inadequate to give adequate information about the property market. Many people, while investing in real estate have in some cases acquired landed properties from those (scammers) who have no legal interest in the subject properties; some acquired properties that fall under compulsory acquisition by the government while some bought unprofitable properties. All these happened because they failed to carry out due diligence on the subject property.  It is therefore important to do some background checks before investing in real estate. 

Things to look out for when carrying out real estate due diligence

On your fact finding journey, it is important that you have a checklist of what you need to look at before buying properties. While the list is exhaustive, the following are crucial and form the basis for carrying out property due diligence.

  1. Physical Features of the property

This involves you to inspect the property physically, checking the state of the land or building. In case it is land, you need to know the topography, dimension of the land, flood zone verification, drainage systems and other land components. In case it is a building, you need to physically inspect the structural elements such as the foundation, wall, and roof. Also, you need to check the utilities and mechanical systems such as plumbing and HVAC. Doing this will help you to know what the property looks like; what level of repairs is required (if it is an old building) and to eventually determine whether you can commit your funds on the property.

  1. Legal Conditions

The legal condition of any property states the interest an owner has in a property, and to the extent to which an owner can exercise proprietary rights. When investing in landed properties, you must ascertain that the property genuinely belongs to the vendor i.e. the seller. Therefore, you will need to conduct a title search, this is done by collecting the title documents available on the land and confirming the authenticity at the appropriate places such as the land registry in your state.

Also, you need to chart the land to ensure that the subject property is not subject to compulsory acquisition i.e. lands that are earmarked by the government for public uses. The implication of acquiring such properties is that the government may acquire it from you in the nearest future thereby, losing your investment. 

To ascertain authenticity of an interest in property, you may need to consult any of these professionals; a legal practitioner, land surveyor, and an estate surveyor and valuer

  1. Economic condition of the property

The economic condition of a property is usually concerned with the economic value of a property, this is what the property can be exchanged for in the open market (usually the actual price of a property) between a willing seller and a willing buyer in an arm’s length transaction where both parties act knowledgeable and without compulsion. Therefore, while buying any property, you need to determine the economic worth so that you don’t pay higher or lesser than the actual value of the property. To do this, you need to engage the service of an estate surveyor and valuer, a professional who determines the value of an asset.

  1. Financial condition

In case you are buying an investment property, you need to ascertain that the property is profitable. To do this, you need to collect the financial statements that shows the income and expenditure on the property for example collecting financial statements showing the rent collected from tenants, and the amount expended on outgoings, or collecting the financial records of a filling station, hotels and other investment properties to determine the rate of turn over.   

  1. Environmental conditions 

The environmental conditions of the surrounding areas of the subject property must be thoroughly examined, you don’t want to invest in an area where your investment is adversely affected by environmental pollution, bad water, erosion and other environmental hazards.

Process of real estate due diligence

  1. Making enquiry 

When you have identified a property you like to purchase, you need to make an inquiry from the property owner or their agent to confirm that the property is available for sale. In some cases, ‘for sale’ banners are placed on properties while in some cases vendors would like to sell their property discreetly, either ways, it is important to make enquiry about the market availability, status, price, title documents and other necessary information you need to know about the subject property.

  1. Physical inspection of property

Once you confirm the market availability of the property, it is necessary that you inspect the property to be sure that it is what you want and are willing to commit funds on.

  1. Valuation of property

After you have inspected the property and you are satisfied with its condition, it is important that you engage the service of an Estate Surveyor and Valuer to help you determine the fair market value of the property, this is to ensure that you are not overpaying for a property but rather help you in negotiating price with the vendor, thereby increasing your chance of buying the property cheaper than it is advertised.

  1. Letter of intent

At this stage, you write a letter of intent to the vendor to express your intention of buying the property, you may include an amount you are willing to pay for the subject property based on your idea of the fair market value. Also, in your letter of intent, you need to request for the title documents available so as to aid your title search.

  1. Receiving offer letter

Offer letter is written to you by the vendor or his agent, stating his willingness to sell, the sales price, condition of the property and title document.

  1. Conducting title search

This is the core and a critical aspect of real estate due diligence. At this stage, you confirm every information supplied to you by the vendor; the documents to request for includes certificate of occupancy (C of O), deed of conveyance/ governor’s consent, original purchase receipt, deed of assignment, survey plan and other title that may be available on the subject property. These documents will then be confirmed at the land registry, ministry of town and physical planning. This is to ensure that the land is not subject to compulsory acquisition by the government and to establish that the land truly belongs to the vendor claiming ownership title to land. 

  1. Contractual agreement

Once you have ascertained that the title to land is genuine, you may now pay for the property and enter into a sales agreement with the seller, as well as ensuring that title to land is transferred to you. 

Final word

Although the process of carrying out real estate due diligence might be complex and critical, it is indeed a crucial stage in any real estate acquisition, therefore, you must ensure that no stone is left unturned while purchasing a property in order to have peace of mind and safeguard your investment. 

Moses Ibukunoluwa Adepoju.



Just before you buy that land

A decision to invest in landed properties is one of the most important and significant investment decisions one could ever make in one’s life time! For many people, especially the low and middle income earners, the cost of acquiring landed properties forms 60-80% of their lifetime income while only few who fall into the high income earner category can purchase landed properties without feeling the strain in their purse, therefore, before investing your hard earned money on landed properties, it is necessary that you put these five things at the back of your mind so that you will not lose your lifetime savings.

  1. Have a Plan
write down your plans

Like they say, ‘he who fails to plan, plans to fail’, planning forms the basis of any successful investment, to buy or invest rightly, you must plan rightly, your property investment goals should be well planned, written down, clearly state your goals and how you want to achieve them; this involves determining the proposed location, knowing who to buy from, having a fore knowledge of the amount you will need to purchase a piece of real estate in your desired location, having an idea of the return on investment and the duration of recouping your capital, understanding the risks associated and how to minimize it. What you are doing at this stage is to put together the elements that will make your goal of land acquisition achievable.  

  1. Determine the location
location is key!

Location is a major thing to consider when buying land or landed properties. It is true that every land has value irrespective of their location but it is truer that the value of lands situated in areas with potential growth appreciates faster than those without potential development. If you are not planning to invest in agricultural estate, you may not buy lands in the rural areas except it is an area where development is tending towards. The goal is to identify lands situated in areas with growth potentials.

  1. Put your finances together
Capital is key to the success of any investment

The money required in acquiring lands and buildings is usually huge, so, you must understand where to get funds required in financing your real estate investments; such fund may come from your personal savings, mortgage financing, returns on other investments and other sources of income. What matter most here is that you know where and how to get legitimate funds to buy your dreamed property.

  1. Carry out your due diligence
Be sure the information you are supplied is correct

Before committing your funds to any property, ensure you have a clearer understanding of who the owner is, this can be done by asking questions from people in that area, know the title documents available on the land, also, you need to know the predominant land use base on town planning laws and zoning codes; is it for residential, commercial or industrial? Get to know if the land is not subject to compulsory acquisition by government. All these can be done by verifying the information supplied at the ministry of lands and town planning offices. Doing these is just to determine the authenticity of title to land. Even when you are buying from abroad, have someone do these for you; a professional, close friends and family can always be of help.

  1. Engage the service of a professional/ trusted estate agent
work with someone you can trust

Getting a trusted agent or professional in the proposed area will not only save you time and stress of searching for properties available for sale, it will also help you in getting genuine properties as well as ease the perfection of title documents. Professional estate agents have vast knowledge of the market, as well understands the nitty gritty of carrying out title search and perfecting title documents, they also give advice on the type of use you can put your land into based on their knowledge of the market, and can help you to negotiate and get the best deals. 

The list of things to do before buying land/ landed properties is inexhaustible, however, taking the above steps will help you to minimize the risks that comes with real estate investment. 

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