₦airaland Forum

emmanuelewumi:
So you can't say workers are not well paid, most Nigerians are poor and can't afford to pay for premium services, therefore the workers will be poorly paid.

Most small business owners who render services allocate between 40% to 60% of their revenue to salaries and staff costs, 10% to 20% to rents, 10% to 20% to servings of debts or loan repayment, 10% to 15% to taxes, levies, dues, etc, 10% for depreciation and provision for asset replacement, about 5% to 15% of the revenue will be profit to the business owners

This is quite true. This also affects paying of rent by tenants. I have seen secondary schools where termly fees is between 20k-30k and even there are always defaults. The students have to be sent home when exams are coming. Sometimes parents do not prioritize education of their kids. A parent claiming no money to pay school fees will be buying an aso-ebi for wedding or burial for 10k.

emmanuelewumi:
Most are cheap ie 150k and below per annum, payment is determined by revenue and allocating about 40% to 50% of the revenue to staff cost.

The man has almost 2000 students in his schools at an average fee 800k per annum

Now you are talking.

The teachers in my kids primary school are paid well and most of them have been there for close to 20 years. The school is not cheap. The owner has a primary school, a secondary school and a University.

emmanuelewumi:
Haba, who told you that?

People who are poorly paid won't spend 25 years working in a place.

The Admistrator of the schools has a PhD in Management.

House ownership scheme, pension benefits, tuition free for teachers children, overseas training for workers.

Also know that the founder took a lot of risks, getting loans running into billions of Naira.

We should learn to respect successful business people oooo, if it is that easy you can easily start yours and teach us how it should be done

All these information you are giving now were not given earlier. Most private schools do not pay well. You always see private school teachers complain of low pay and being overworked.

afroxyz:
I still blame parents. When your child is young introduce him to the family business. Even when he goes to school let him know that the skills would be applied to the business.

For example if you are a spare parts dealer, you can encourage your child to read mechanical engineering. The education plus street smart from apprenticeship would push the biz to another level. Even the Mafia and Mobsters train their children to be lawyers, accountants etc so that they can apply their education to the business.

Donald Trump built the Trump tower in his ealry 30s. He learnt the biz from his father

My daughter has a classmate in school who opted for commercial which was a surprise to most of them. When she was asked why, she told them that she wants to go and study a buiness or commercial course so that she can takeover the father's business. She said she normally follows the father to the business during the holidays to understudy him.

emmanuelewumi:
You know what, don't be surprised if it was the business that was paying his bills in the UK.

When his father died, the business suffered and could not pay his bills again, so he decided to come and manage it himself.

I have relatives in Nigeria that are sending annual grants of up to $30,000 from their family business to each of their children in the US, the family business also pays the school fees of their grandchildren, assists with mortgage payments etc. The parents are now in their 80s, let us hope the workers will be faithful by the time the founders are gone. If not the children might be forced to sell the business to the workers and management at giveaway prices.

You mean $30,000 to their grown up children or children schooling there. I thought people there always say that money can be made left, right and centre. Is it that those children are lazy?.

emmanuelewumi:
Another young guy has a father who has group of primary and secondary schools in Lagos, generating billions of Naira every year, old man also has a University that is approved by NUC.

He has been invited to come over on several occasions but always turning down the offer, whereas it is this businesses that is paying his bills in the UK.

Menwhile the teachers in those schools will be poorly paid while the guy will be balling in the UK with money generated from those schools.

seunpinky:
He didn't even have d adequate papers to stay back... He was in the UK for several years after his b.sc and m.sc but still couldn't get legal papers ( citizenship)

So it was when he tried unsuccessfully for several years to get his papers in the UK that he then remembered his late Father's business in Nigeria. No wonder he failed in the business too.

LauraClasikVibe:
Why dip your own hand in your pockets, tenants should be able to take care of their own sh!ts and not you. What's is the maintenance claise in your tenancy agreement?

emmanuelewumi:
Landlord is responsible for external repairs and maintenance, tenants, drainage and soak away etc tenants for responsible for repairs in their apartments.

Roofing, water supply, fence etc are the responsibility of the landlord

I wonder o. Very soon, dem go say na tenant dey responsible for painting the exterior of the building. Tenant don suffer for Naija.

.

emmanuelewumi:
Very few people can manage huge fund, I guess that was why he suggested money made selling a property should be reinvested in a property .

Give 200 million Nigerian N10 million each, less than 10 million Nigerians would have grown the money to a minimum of N30 million in 10 years

When NEPA was privatized by GEJ and the workers paid off in millions, some of them use the money for frivolities and are now broke. I heard of someone that got 5m and went to buy a brand new SUV for 3m+.

emmanuelewumi:
An old man said 80% to 100% of the money realized from the sale of a land or house must be reinvested back into real estate, eg renovate, build a house or buy another land.

Do you agree with him.

He said dont sell land or house to start a business or any other Investment, if you must it should not exceed 20%.

If you want to do business you can use the 100% of the rent from the property, but should not be proceeds from the sale of the property.

The old man said the gods of the land will be annoyed, do you believe this.

I think his advice might work with most people sha, maybe 95% of us.

Very interesting. This is a real eye opener.

Lazyyouth4u:
Yes. Move out. Trust me, most landlords will call a good tenant to negotiate when the good tenant refuses to pay an unreasonable increase and lets the landlord know they would rather move.

Landlords know that it is not easy to find good tenants.

He refused negotiation now. You do not give somebody an increase of 60% after a prior increase of 2 years and say it is a 'take it or leave it' increase. Somebody must rent a house. It is a two way thing.

Lazyyouth4u:
The bolded is not right at all. Na this kain entitlement attitude dey make landlords like Oga Emma and his lawyer to put that ‘over familiarity 5 year limit clause’ for their contracts.

Na the guy house and if you no like the rent increase, then move out of his house immediately!

We know say na the guy house but at least we expected a reasonable increase. The guy does increase every two years and we no complain. Maybe na wetin make am come dey do 60% be that. Even Oga Emma no dey do increase every 2 years and no dey do such high percentage.

One thing is that by the time you do such high increase and the people move out, a desperate tenant will come and pay the high amount and after one year, quarrel go start. One did like that and by the time he was leaving after so much fight with the landlord, you need to see the destruction the guy did to the flat. It was pure wickedness on the part of the tenant but other people said what was the landlord expecting?.

Divoc19:
You have not answered what the benefits/bonus of an 11 years old child is as stated in your previous post.

Maybe i use the word 'bonus' in a wrong context. What i was actually implying is that it now depends on the parent to allow the child to continue to Primary 6. Some schools have strictly Primary 6 and will not give the child a testimonial if the child does not do Primary 6. Schools that have Primary 6 spread the scheme across 6 years to Primary 6 but those that do not have Primary 6 spread the scheme across 5 years to Primary 5. Some schools with Primary 5 basically have Primary 6 as a revision class for pupils preparing for common entrance.

emmanuelewumi:
You are getting super value, that is why you are still staying in house.

If not you would have sacked your landlord

Iam not one to be moving accommodation as i always carefully choose where i want to stay. Once i get such a place and stabilizes, it does not make sense to be move. We do not have any issue with the Landlord. It was that off the cuff increment that was annoying. If you wan quit me, just tell me straight and i move instead of trying to use wayo of anyhow increase to do it. Afterall, na your house. When i was coming to Lagos to look for work, i know say na person house i go rent as i cannot carry my papa house follow body come Lagos. So tell me straight say make i move and i move.

ojesymsym:
Oga, you are taking this matter too personal. Tenant vs Landlord wahala non de finish, non be u wan use Nairaland resolve am.

But as per bolded, that means if the rent was 1 million, he just increased it to 1.6 million? Is that correct abi I need to press my calculator again?

You are cortect but we refused the 60% and we were on it for several months. We come tell am make he carry us go court since he refused our counter offer. At the end of the day, we agreed on an amount. As you said, Tenant vs Landlord wahala no dey finish.

emmanuelewumi:
What is the value of the increase. 2 years is too short, three to four years is okay at increment of 40k to 50k

He once did between 100k-150k. We were surprised in the last one when he did 50k. He does increase every 2 years. We have adjusted to his 2 years. If the amount or percentage for the every 2 years was known, somebody can plan. So you can imagine planning for a particular amount and he comes and slam two or three times that amount. That throws your planning out the window and when you say you should be given time to make up the new amount based on what he did, it is that the tenant is a bad tenant who does not want to pay rent. Next thing is quit notice. Meanwhile, this is a learned landlord and executive in a company.

emmanuelewumi:
You can only be reasonable when you are growing your earnings.

Apart from regular payment, being reasonable is important.


Imagine Ukay's tenants refused rent increase after 5 years, eventhough the property is in Abuja. Yet they are not willing to move out of the property

I do not support this. He should quit them. My landlord does an increase every 2 years which we the tenants are comfortable with. Initially he was slamming a 40-60% increase which was the cause of our disagreements with him. He is no longer doing that. He now does a reasonable percentage increase.

rowland545:
thanks for the correction... I'm glad u got d message.

I hope u won't see anything special when ur child is 20 and still in sec school

Very funny. How is that possible?. I plan my kids education from when they are born. Age 3 in Nursery 1. Age 5 in Primary 1. Age 10 in Primary 5. So how is it possible that the child will be in secondary at age 20?. My son is 15 and is about to write WAEC having blasted his February WAEC GCE which he can use to enter University if i want as he got a good JAMB result. The key thing is to meticulously plan your kids education. As i said, iam a strong believer in age 10 for secondary. I do not subscribe to age 8 for secondary no matter how brilliant the child is.

emmanuelewumi:
New houses at Mafoluku attract rent of 800k for 3 bedroom apartment, old houses attract rent of 500k.


Old tenants who have spent about 10 years are paying less than 350k and they are not reasonable to understand that the increase to 450k by their landlord is fair enough.

They formed tenant union and have not paid for 9 months, Baba sold his house in April for for N38 million.

It took the Yahoo boy who bought the house just 4 weeks to take possession of the property and has started converting the property to a hotel

That is unreasonable of them. Iam sure that there are others there that are reasonable. What iam against is using the same brush to paint every tenant. There is no guarantee that a new set after 5 years will be better. As i said in one of my post on this issue, the landlords do not put the rate of increase and frequency into their agreement when renting out and drafting agreements because they want to be able to wake and call any percentage. That is why they are argue. My landlord once gave us an increment of 60% even after initially increasing it 2 years prior. Who does that?. When we started contesting that, iam sure he will be telling people hat we are bad tenants.

Divoc19:
How is age 11 in Grade 6 a bonus? Please

Some parents insist on the child completing the entire primary education in the 6-3-3-4 system. So after Primary 5, you can decide to allow the child to go to Primary 6 or he/she goes to secondary. None of my kids did Primary 6 as my target was 10 or 10+ to enter secondary as the plan was for them to go to a boarding school and i feel that at 10 or 10+, they will be able to cope in boarding.

rowland545:
primary 6 u smoke weed?

My kidbro is 14yrs and he is writing his neck exams already....
.children now r finishing sch early...don't follow this advice... At 10 a child should b in jss1 already. .no time especially a female child. .

Do what is best for you. You do not have to follow my advise. Iam a believer in 10 years to enter secondary. My daughter passed into a competitive secondary school in primary 4 at 9+ but i prevented her from going as i wanted her to do one more year in Primary school. There is no hurry in life.

Btw, your kidbro is not doing anything special writing neck exams at 14 years. Btw, it is NECO and not neck. I have seen 12 years writing NECO exams.

kalu61:
First, it really gave me first hand idea about state of Nigeria real estate. My brother is heavily investing in real estate and l can say, it is worth investing in if one is really.... really patient and wants to save or tie down cash.

Secondly, locating property in areas of potential value is a key factor because that's where the asset value reside. What's the city population size? Which areas are estate investors migrating to or the city expanding to?.

The property where l stay was build in 2010. I can't say about the cost of building materials then but l am very sure the 2 story buidling cost less than 25m plus land. During the lockdown before renovations was done, it was priced at 70M but was turned town.

The tenants now are capable. One flat is permanent for Winners Chapter deputy state pastor. One is a lecturer, the other Politician, another Pastor. The only issue is the Yahoo boys downstairs. Blasting music some part of the time and l can't tell how many there are in that flat. I keep seeing faces but they are cool. No problems. The Lecturer changed all the security lighs, said he loves light. the politician bought packlock for the big gate and wants security man but other tenants are not buying into that.
We have a WhatsApp group and it's all fun especially during birthdays. Good experience.

Only family people with children are given apartment. The Yahoo boys were exception, the lawyer wanted to use price to pursue them but niggars still paid

So why have you not given them quit notice after 3 or 5 years despite paying promptly?. Don't you know that they can form a union?.

ukay2:
Very Apt.

My old tennants resisted increase in my rental apartments with the new tennants.

More than 5years now, I have not increased rental fees despite bearing the maintenance of the building. I have decided not to increase the rentals, let the rental incomes keep coming and be diversifying into equities like updc-reit etc. The tennants seem to be happy to have nice landlord

The troubles of real estate investment in the country have made me not to build any other rental apartments; having discovered the easy way of doing investments in equities and fixed income Investments without headaches.

Iam sure when the tenants came in, there was no agreement on percentage increase and frequency given to them. I have noticed that most landlords do not like doing this or shy away from it because they want to be able to wake up anytime and give a percentage. My landlord once gave us a 60% increment after 2 years. What can you say to that as a landlord?.

kalu61:
l'm a silent follower of this thread. I read where it all started.
We are saying the same thing. As long as the duration is stated clearly in tenancy agreement form, there is no cause for alarm. Except his lawyer wakes up every five years to issue quit notice to up to date paying tenants, then your argument is valid.
I'm not on rentage. I live in our property or house for 10 years now with other tenants.

That is where the issue is coming from. It is never written into it. It is codedly done in the 5th year in order to collect a higher rent from new tenants because by the 5th year, there is no way you can increase the rent of an existing tenant to match that of a new tenant.

There is a landlord in my area. Once a new building springs up, he goes to find out the rent for it and then tell his tenants that the going rate in that area is that price and so they should all pay that new price even though his property might be 15 years old.

maishai:
Oga Emma has dropped a Golden rule.......... Please digest before emotions................ The decision to be a good tenant is a personal decision, most at times its not even about the increment but the entitlement mentality................ personally, I have a beef with some of my co-tenant as they feel I have too much money cos i pay my rent as at when due............. There is always something that comes up when its time to pay the rent.............. I feel if one has taken time to erect a good structure in a prime location, one should take this approach, the typical tenant is a vicious animal ready to milk the last drop of his annual rent......................... I say this from experience living in rental property

I'm yet to have a rental property but when I have one I would follow this approach........... Personally one should take this approach even with the caretaker of the property, the average Nigerian has too many problems and would rather use your money to solve their problems except there is a threat of physical injury and humiliation

There are too many bad eggs spoiling it for principled persons like you and me

The Oga Emma rule does not solve the problem of a tenant that does not want to pay. If a tenant knows that he can only stay in a property for just 5 years despite paying promptly, nothing stops the tenant becoming problematic after 3 years and then dragging the issue to court for 2 years because afterall, he/she knows that he/she will given quit notice after 5 years. Such a tenant will start systematically destroying the property in the 3rd, 4th and 5th year. No be only one person get sense.

Btw, you are presently a tenant. How many years have you spent in your present tenancy?.

Mecka:
is it ok to home school a child and then by five yrs send him or her to sch at pry one. I'm not a father yet

Yes. I home schooled my first child as my wife was not working then. He started Nursery 1 at age 3 as he was born in September. He is preparing for his WAEC now. My second child got into Nursery 1 at 3+.

NL1960:
Yes but target Three years for Nursery 1. Five years for Primary 1. Ten years for Primary 5. At Ten years, he/she is qualified for common entrance in most secondary schools. Eleven years in Primary 6 is a bonus.

I want to rephrase this post so as to be clearer.

Yes but target Nursery 1 at age 3. Primary 1 at age 5. Primary 5 at age 10. At age 10, he/she is qualified for common entrance in most secondary schools. Age 11 in Primary 6 is a bonus.

Juliusmomoh:
Parent in the house should help us answer this please... It's urgent...... It's just 1 and six month old

Yes but target Three years for Nursery 1. Five years for Primary 1. Ten years for Primary 5. At Ten years, he/she is qualified for common entrance in most secondary schools. Eleven years in Primary 6 is a bonus.

Lazyyouth4u:
Forget all the statistics. What’s your source by the way? It looks like you are churning out statistics from thin air to justify your lawyers’ policies.

Any tenant that will owe, will owe. Whether he has a good job or all the dividends in the world. Some tenants with decent steady jobs and no investments still make great tenants.

It’s a thing of luck and God’s grace to find good tenants and when you find them, it makes no sense at all to have policies that state they MUST move after 5 years, no matter what.

Gbam. Those of us that are the first occupants of where iam staying wer always paying promptly. The landlord will just wake up and slam a 40% increase in rent and when you complain that it is too high, he will give quit notice and say those who do not want to pay should pack out. Some people packed out. He brought in new tenants on high rent. Since then, it has been a tug of war with the new tenants because they refused to pay after the first year. If they pay at all, they will be paying in bits. Na so we wen dey pay promptly that he was always threatening just dey laff.

emmanuelewumi:
90% of Nigeria tenants become problematic after 5 years, 60% become problematic after 2 years

Rent is one of the payments to overlook and allow to pile up

90% of tenants get loans to pay for their rents, while the rent is reading they are paying back the loan instead of saving for the next rent. The is the major reason.

After 5 years, few of them will be reasonable.

Someone who has been using his dividends to pay for rents and the dividends have been increasing over the years won't have a problem making adjustments for inflation for his provision for rents.

Residential real estate is to store value, if you plan to hold for 20 years not to generate good cash flow.

How can a property of N50 million, struggle to give an annual income of N2 million after giving allowance for maintenance, repairs etc.

Yea. I have an account where i put my monthly rent every month. It is a first line charge once i receive a salary. When the rent is due, i either pay the rent from there or use interest from TBs.

emmanuelewumi:
90% of Nigeria tenants become problematic after 5 years, 60% become problematic after 2 years

Rent is one of the payments to overlook and allow to pile up

90% of tenants get loans to pay for their rents, while the rent is reading they are paying back the loan instead of saving for the next rent. The is the major reason.

After 5 years, few of them will be reasonable.

Someone who has been using his dividends to pay for rents and the dividends have been increasing over the years won't have a problem making adjustments for inflation for his provision for rents.

Residential real estate is to store value, if you plan to hold for 20 years not to generate good cash flow.

How can a property of N50 million, struggle to give an annual income of N2 million after giving allowance for maintenance, repairs etc.

I know. The new ones in where iam staying became problematic after the first rent. Some were given quit notice. Nobody complained. Iam an apostle of people paying rent. It is not easy to build a property for rentage. My issue is grouping those that are good and paying promptly with those that refuse to pay. Isolate and deal accordingly.