Assessment of service charge administration on commercial properties in kano

SAJSET-01-2023-0031

Abstract

Service charge over the years has generated a lot of controversies and problems for both landlords and tenants such as the choice of contractor to handle the services. It is evident that non-payment of service charge as and when due can lead to disputes and litigation. This study seeks to explore the administration of service charge in commercial properties using Prime Hub Shopping Complex in Kano as a case study. The study examined the services that constitute service charge administration, its application, and the challenges to effective service charge. The research method employed quantitative approach, where 50 questionnaires were administered to the occupants of the building at study area. The sample frame for this study was the occupants of Prime Hub Shopping Complex. Purposive sampling was used as sampling technique. The data received was analyzed descriptive statistics. Findings from the study reveal that, the space volume method of service charge apportionment was adopted in the shopping complex but tenants prefer the fix percentage method of apportionment. The findings further shows that unfavorable economy and some tenants default in payment were the major challenges of service charge administration. Interestingly, the analysis also indicates that all services and facilities that constitute service charge were rendered to tenants in the case study except elevators and air-conditioning system services. The study recommends that disagreement between managers and tenants should be resolved through scheduled meetings. Professionals should be engaged for proper maintenance of facilities; services providers should enhance service provision in other to improve user service experience in Prime Hub shopping complex.