The experience of owning rental property can be either rewarding or a complete nightmare. In Nigeria, acquiring rental property that gives you the title “Landlord” is viewed as a laudable accomplishment and confers on you some level of respect in society.
Unfortunately, owning rental property comes with its fair share of difficulties. Most Nigerian landlords who have been dealt a bad hand regret their investment in residential real estate due to the challenge of finding reliable tenants, dealing with property damage, managing rent collection, evictions, and other issues.
Every year, more people will invest in residential real estate as a way to increase their investment portfolio, safeguard their retirement income, and leave a legacy for their children. Sadly, they will all face the same set of problems.
Landlord Heaven, a fast growing property tech company is changing the landlord experience in Nigeria through its innovative solutions designed to help them maximize their real estate assets and protect their legacy. Landlord Heaven provides landlords with guaranteed rent, credible tenants, up to N50 million in renovation financing, and preventive maintenance services. They are one of the few property tech businesses that have zeroed in on the major difficulties that landlords are facing and given them a fix that gets to the root of the issue.
“We consider ourselves as a landlord’s financial and wellness partner. Nobody invests in rental real estate with the intention of losing money, this is why our goal is to provide landlords with peace of mind while helping them plug financial leakages and protecting their real estate assets.” said Ngozi Ewemie, VP of Growth at Landlord Heaven.
Finding reliable and responsible tenants is one of the main challenges Nigerian landlords confront. Most landlords and their agents don’t conduct thorough background checks on potential tenants before renting out a property, which results in problematic tenants who default on rent.
To ensure that landlords always receive their rent, Landlord Heaven developed a 4-step process that includes thorough tenant screening and a money-on-time guarantee (in the event that unexpected, unplanned circumstances occur). This guarantee is backed by two of Nigeria’s leading financial institutions.
“The goal is to become partners rather than just property managers. We profit when landlords profit and lose when landlords lose. Unlike current arrangements, it is a real partnership with equal commitment and aligned incentives. What we offer landlords is like switching from traditionally posting letters to now, sending emails – a huge difference in efficiency and effectiveness.” said Busayo Akindele, Property Manager, Landlord Heaven
Property value degradation is another issue that landlords frequently encounter. Most Nigerian landlords entrust their property to caretakers, lawyers, or family members who take very little to no action to protect it. While handing over to non-professionals may seem like a quick fix, the long-term effects on the property value, particularly after the tenant vacates, are immediately evident.
Some landlords spend 2-3 years rent to repair damages (caution fees are a drop in the ocean) or are forced to sell their properties at below-market rates. This is such a big problem and PWC estimates that 70% of the over 40 million apartments in Nigeria are unliveable.
To solve this problem, Landlord heaven, after lots of research has developed processes, enabled by technology to ensure properties are in good shape before, during and after tenancy cycles. Landlord heaven, also, in collaboration with their financial partners provide renovation financing to landlords. Landlords are certain that they can consistently command good rates and hand over great assets to their children/estate. The Landlord Heaven app allows landlords and their children to stay informed about the condition of their property from anywhere in the world.
According to Mr. Adebiyi, a Lagos landlord with properties in Lekki, Oniru and Gbagada “Working with Landlord Heaven was one of the best decisions I made for my properties.” They delivered on their promises, and I have since told all of my friends about their services. My tenant was the first person I ever took to court, so meeting Landlord Heaven, I was particularly impressed by their thorough tenant screening process. I have also been a beneficiary of their renovation finance. I don’t lose sleep over my properties because I know they are in good hands.”
Landlord Heaven’s entrance into the market provides relief for rental property owners. The company, which presently manages over 200 apartments for different landlords who sing their praises, is confident in its quest to change the residential real estate ecosystem and offer solutions that will benefit both tenants and landlords.
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