Why landlords are cutting down rents – Estate valuer

An Estate Valuer,  Joe Nelson, has explained that landlords are cutting down on house rents in Benue State due to adverse effect of recession on tenants. Tenants in the state who are majorly civil servants are being owed salaries between five and 10 months.   Nelson, a principal consultant of J. Nelson Associates in Makurdi […]

An Estate Valuer,  Joe Nelson, has explained that landlords are cutting down on house rents in Benue State due to adverse effect of recession on tenants. Tenants in the state who are majorly civil servants are being owed salaries between five and 10 months.  

Nelson, a principal consultant of J. Nelson Associates in Makurdi told our correspondent in an interview that house rents were seriously on the decline.

“House rents have reduced drastically because in any recess economy, the first victim is property,” Nelson said.

He, however, expressed optimism that the value of property would rise after the recession. 

“But, right now, landlords are reducing rents for tenants. Some of them have taken away 30 percent off their rents to enable tenants pay and even at that only few occupants could renew their rents,” he added.

Nelson posited that house rents are higher in Makurdi because many of the houses are built for the owners occupation, adding that  there are  no much investors in the sector as estate is capital intensive. 

A one bedroom flat in Makurdi before now went for between 180,000 and N250,000 while a two bedroom flat is rented for between N250,000 and N400,000. But  at the moment, one bedroom costs between N150,000 and N180,000 just as two bedroom can be rented  for between N200,000 and N300,000.