Even My Houseboy is a Part-time Real Estate Agent

The estate agency business in Nigeria may be one of the most unregulated industries  in the country (not to say that we've done a great job of regulating many industires, case in point: telecoms) and indeed every one and their grandmother is a property agent.

While not completely unregulated in the UK, the barriers to becoming an estate agent are similarly very low, unlike in the US where you must aquire a license. Yet, the severe unprofessionalism that is often witnessed in Lagos is absent in the UK. So, with or without overarching regulation, there is no excuse for shabby, greedy and unprofessional behaviour. All agents whether on the 'right' or wrong side of the NIESV (that discusssion is for another day) should ideally have some sense of professionalism

Knowledgable and professional agents add significant value to their customers in a real estate jungle like that of Lagos where speculation and emotion are two of the main drivers of real estate decisions. Here, it is common to find a lanlord who feels that a particular price is right and is willing to lose money indefinitely until he/she is offered a particular cash amount for their property . (Yes I know, anyone with half a base unit of financial wit knows it is a bad idea)

Agents should endeavour to spend some time aquiring some industry knowledge, (at least buy some of the weekly Real Estate Newspapers and actually read the articles) and learn better interpersonal relations in order to properly educate your clients (Landlords and tenants alike)

An angle that Agents ought to have the ability to weigh in on, is the idea that the landlord is a more worthy client than the seeking tenant (this is especially so when there isn't a fat agency fee waiting). Agents shoud 'go to bat' for their tenants and actively seek the best deal for them, not because agents should be angels, but because it is short sighted to do otherwise. A short-sighted agent is less able to add value to either the tenant or the landlord and and in the long haul is unable to add any significant value or experience to their lives through the trade.

Find a professional real estate agent or you may as well ask your houseboy to find you your next home or piece of investment property.

SHARED APARTMENTS AND HOUSES BECOMING MORE COMMON IN LAGOS

Yours truly Sharing in DC

As a starving student in Washington DC and also when I graduated but wanted to live in "posh" neighborhoods on a shoestring budget, I racked up a lot of House and apartment sharing experience. I once lived conveniently across the street from my university's campus in DC with *Stanley from Tanzania who frequently cooked a funny smelling stew of anchovies, Rabiu* the kingpin 419 aka yahoo yahoo scam artist from Nigeria (he was considerably ‘disciplined’ and low key about his craft) and the rather cantankerous Ivorien-american chemistry PhD student who was also a member of the US army.

There was a also the down to earth Jewish dude (I forget his name) and the other conveniently reticent and compliant Californian (If I remember correctly) with whom I lived back-to-back when I had to sublet my sister’s room in our cool 2 bed apartment in Arlington. It was located conveniently 5 minutes from Reagan Memorial Airport and 7 minutes from the border of the US Capital. (I don’t think there will be much of a lull in that apartment’s value for years to come, it’s a shame that we don’t own it and neither is it up for sale yet).

More of yours truly, sharing in DC

Wow, looking back, I can say that I have been quite lucky with the individuals that I have shared apartments with. Some were slightly weird but I had no seriously eventful circumstances with any of them. After graduation, I ended up moving to 3 different apartments in 1 year because the I insisted on living in some of the coolest neighborhoods inside the Capital city and the only ones I could find withing my budget were shares and temporary sublets. There was the 60 year old African American investment banking Guru who had transacted business in Nigeria rubbing shoulders with the high and mighty of Shagari’s regime. He was down on his luck and sub- let his cool adams morgan apartment for $800/ month and after I left he told me that  he has actually rented out the living room as well. (An Idea he attributes to a conversation I had with him about such situations being common in DC especially among students).

The list goes on to the Mongolian UDC student and  the rather feminine and quiet ‘rocker’ guy who had a really attractive girlfriend . There of course, also was the young lawyer *Ralph who worked on capitol hill with a senator or congress man and the weirdo from eastern Europe or latin America (I saw him 2 times in all of the 2 months I lived 2 doors from the DC Convention center) who got Ralph arrested and charged (mistaken identity) because he ran into our 12 room house without paying his cab fare. (How do I know it wasn’t Ralph? Well because I was the “eye witness” who got Ralph off the hook . That was one situation where I was at a clear advantage for being black because several minutes after Mr Eastern Europe walked briskly through the front door and disappeared into his room, the Ethiopian Cab driver  appeared with a policeman asking for the perpetrator. Long story short I couldn’t identify the Mr Eastern Europe because I didn’t know where exactly his room was and, the police officer didn’t have a warrant to search the premises. Later in the day, Ralph walks out and is mistaken for Mr Eastern Europe and gets arrested.)

On to Lagos

What a long digression. Any who, I ended up living in a total of about 5 different sharing situations and have since moved back to Nigeria.  Having moved back to Lagos for some time now, I’ve found that flat, and house shares have become increasingly more common with young upwardly mobile individuals teaming up to rent multimillion naira homes in Lekki, VI and Ikoyi that would’ve otherwise been out of their reach. In some situations, one individual rents the house in his/her name and then rents out the rooms to others, (usually at a markup, becoming semi landlords without sharing any risk in the movement of value of the property within the period for which they have paid in advance) and in other situations, a group of people come together and have all their names on the lease. Landlords are not always open to shares, however, in this down market, Landlords are becoming increasingly flexible on their terms.

Should I consider a share

I am an advocate of shares in several situations

·         If you are single and tired of living with your parents and a share will bring a desired housing option considerably within your reach.

·         If you are spending way too much money commuting to and from work and your desired housing option comes within your financial reach if you share.

·         If you have several rooms vacant in your current rental or home owner housing and are looking for another source of cash, letting out rooms can be a gold mine.

Perspective

Allow me to help you put all of this in perspective. I currently have a find of a 5 bedroom detached house in Parkview Ikoyi overlooking the lagoon, going for 5.5 million naira per year for which 5 individuals  with a budget of 1.1 million naira each would be suitable . Each would get a 1 bedroom and 2 living rooms and a kitchen to share with 4 other people in the otherwise unattainable Parkview, Ikoyi location.

And for current renters with vacant rooms; say you have a 4 bedroom detached house in Victoria island for which you have paid N8 million, young professionals whose background can be reasonably vetted who would be willing to pay N1.5 million for each of your vacant rooms are becoming increasingly available to help you to recoup a significant part of your “investment”.

Well then folks, I’ve been long winded enough for another week. However, If you are interested in a house share of one type or the other, Lekki Real is in a good position to get you well situated. Be sure to give us a call on 08020741742 or email info@lekkireal.com

Till next week, have a happy holiday season!!!

*Not their real names for obvious reasons

Coming Home this Christmas! Don’t Wanna Stay with Mom and Dad ( What’s the allure of Short Lets / Short term lets / Stay?)

In Lagos these days you have the option of accommodation that is not a hotel and is not a regular apartment. They are called short lets and are common in the UK, US and so on. For many holiday makers, prospecting returnees and returnees (or “repatriates”) with a little bit of money to burn, it’s the answer to a common dilemma. You don’t want to stay at “home” with your parents or other family but prefer a homely situation with quality akin to the crazily priced hotels in Lagos at a “good price”.

In a city where, in order to rent an apartment/flat (whatever you decide to call it), you have to “cough-out” a 2 year cumulative rent up-front, as well as a security deposit and agency fees, it is easy to see the difference between a short let and a regular apartment. In short-lets, you get to pay nightly, weekly or monthly.

Seeing, however,  that most tend to charge nightly (and handsomely too) and usually come fully furnished, it is harder to tell why they simply do not call themselves hotels. Check out the comparison I’ve put together. It’ll help you make a decision as to whether short lets are appropriate for your trip or not.

Comparison

	High-end Hotel	High-end Shortlet
Room	Usually have a choice of singles, doubles or suites. They usually do not come with kitchens or laundries.	Usually provide all the convenience of a home in each unit. Kitchen, Laundry etc
Reception/ Lobby	Usually Elaborate with all sorts of entertainment	Usually small and sometimes does not exist
In house Restaurant	Most high-end hotels  have a good variety of restaurants or at least a large menu to choose from	Many simply have in-house cooks who can whip up a nice meal or two. Others expect you eat out or “hook-up” your meal yourself in the kitchen that usually comes with your room/ flat/ house
Room Service	The hallmark of hotel stays	Some have room service but many do not and expect you to fend for yourself
Laundry Services	Usually central and provided at an extra cost	Usually available in each unit and expected to be self serviced
Reception/ Lobby	Usually elaborate with loads of entertainment	Usually small or non-existent
BQ / Servant’s quarters	I beg your pardon?	Some actually come with these.

Cost

High-end shortlets can be a no brainer for certain people’s accommodation when you consider that the price of a well furnished (yes ,comparable to Federal Palace hotel in quality finishing) and homely 3 bedroom apartment is equivalent to a 2 by 4 room (exaggeration) in your favorite hotel.

The average high-end 2 bedroom shortlet in VI, Ikoyi or Lekki ; the island as they are commonly called (ooh, did you know that VI is actually not an island?) goes for N40,000-50,000 a night (approx $330).

On the other hand:
A standard King room @ Fed Palace VI: $588

A standard room at the Southern Sun Ikoyi : $488 per night

You’re looking at an average savings of 30% and could save even more if you decided to venture farther along the Lekki Peninsula towards Victoria Garden City or even to the mainland.

Where to find Short-lets

Good things can be hard to find but are worth searching hard for. The internet savvy may be able to come upon a few good options on the internet while searching through various publications may be less forthcoming but fruitful nonetheless . It’s usually like a treasure hunt and so can be fun but also potentially frustrating. Lekki Real also provides a service to help find good Short-lets in Lagos, so do not hesitate to shoot us an email (info@lekkireal.com)or give us a call to help you out. 08020741742 or 07029231200.

Ttyl
T.O.