By ESV Toyin Serifat KEKEMA and ESV Omotayo Sunday FASINA
Premises recovery the lawful process through which a landlord regains possession of a property from a tenant is one of the most sensitive yet crucial aspects of property management in Nigeria. Beyond being a legal exercise, it plays a strategic role in protecting investment returns and sustaining asset value. From the perspective of estate surveyors and valuers (ES&Vs), the recovery process is not simply about eviction but about risk management, compliance, and maintaining the viability of real estate investments.
Understanding Premises Recovery and Its Importance
In Nigeria’s property market, where rental income forms the lifeblood of many investments, an investor’s ability to recover possession when a tenancy lapses or a tenant defaults is vital. Without this ability, rental income stalls, costs rise, and property value deteriorates. From the professional standpoint, ES&Vs are deeply involved in the process: they draft clear lease agreements, monitor rent payments, ensure adherence to lease terms, and take corrective action when breaches occur.
Premises recovery is often triggered when tenants fail to pay rent, violate lease terms, or remain in occupation after lease expiration. According to Woye et al. (2021), the process typically begins once such breaches are identified. For property investors, effective recovery processes protect income flow, while for ES&Vs, they form a fundamental part of their property management duties.
Legal Framework for Premises Recovery in Nigeria
The legal foundation for premises recovery in Nigeria is shaped by both federal and state laws. At the federal level, the Recovery of Premises Act (Cap. 544 LFN 2004) governs tenancy relations in the Federal Capital Territory. Each state also maintains its own tenancy law; for instance, the Lagos State Tenancy Law (2011) provides explicit notice requirements—one week for weekly tenancies, one month for monthly tenancies, and six months for yearly tenancies. As Woye et al. (2021) explained, the process generally requires that landlords serve a Notice to Quit, followed by a Notice of Owner’s Intention to Recover Possession, before filing for possession in court. Failure to follow these procedural steps can nullify recovery efforts. For ES&Vs, compliance with statutory procedure is non-negotiable; any misstep may result in legal setbacks and financial loss for the client. Permissible grounds for recovery include arrears of rent, breach of covenant, abandonment, unsafe conditions, or the landlord’s personal use of the property (X, 2021). The estate surveyor and valuer thus play a crucial role in ensuring proper documentation, correct service of notices, and accurate profiling of tenants to reduce legal complications.
Stages in the Premises Recovery Process
From an estate surveyor’s perspective, premises recovery typically unfolds in six major stages:
- Prevention and Risk Management:
Prevention begins with tenant screening, rigorous lease drafting, and periodic monitoring of payments and property use. Effective risk management ensures that recovery, if required, will be efficient and low-cost (Akpan, Ebam, & Effiong, 2023). - Identification of the Trigger Event:
Recovery is triggered by events such as non-payment of rent, lease expiry, or breach of covenants. Early detection allows the ES&V to act swiftly, avoiding prolonged losses. - Issuing Statutory Notices:
The landlord or managing agent serves the “Notice to Quit” and, if necessary, the “Notice of Owner’s Intention to Apply to Court.” Section 13 of the Lagos Tenancy Law outlines specific notice durations based on the tenancy type. - Court Action and Litigation:
Where tenants refuse to vacate, the landlord must approach the court for an order of possession. ES&Vs often support legal counsel by preparing rent arrears statements, mesne profit valuations, and property condition reports (Kolawale & Grace, 2017). - Enforcement of Court Orders:
Upon obtaining judgment, the order is executed by court bailiffs. Self-help eviction is strictly prohibited and punishable under law (Oloke, Akindele, & Olagunju, 2022). - Post-Recovery Management:
After recovery, the ES&V inspects the property, documents damages, arranges repairs, and prepares the property for re-letting or redevelopment. This step is vital for restoring rental income and asset value.
The Role of Estate Surveyors and Valuers
ES&Vs are central to the successful recovery of premises. Their expertise spans the technical, financial, and advisory aspects of property management. Their main roles include:
- Lease Structuring and Advice: They ensure leases clearly outline terms on rent review, default, subletting, and re-entry rights (Adewunmi & Ogunba, n.d.).
- Tenant Vetting and Monitoring: They assess tenants’ creditworthiness, track rent payments, and detect potential defaults early.
- Valuation and Yield Forecasting: They analyse how recovery costs and downtime impact returns, ensuring that investors have accurate yield projections.
- Legal and Technical Support: They provide key documents such as valuation reports, arrears schedules, and condition surveys for court proceedings.
- Investment Guidance: They advise clients on risk exposure, recovery timelines, and re-letting strategies to optimise returns.
Through these functions, ES&Vs bridge the gap between legal compliance and financial performance, helping investors make data-driven decisions while minimising risk.
Challenges Facing Premises Recovery in Nigeria
Despite the clarity of the law, several challenges hinder smooth recovery. Legal processes in Nigeria are often slow and costly, leading to prolonged vacancy and income loss (Woye et al., 2021). Poorly drafted leases or undocumented tenancies also complicate recovery efforts, as courts require strict compliance with tenancy terms.
Some landlords resort to self-help eviction such as changing locks or forcibly removing tenants, which is illegal and can attract fines or imprisonment (X, 2021). Furthermore, tenants’ growing awareness of their legal rights often leads to protracted disputes. Finally, fluctuating rental values and maintenance costs introduce valuation uncertainties, making financial planning difficult. For ES&Vs, navigating these challenges demands professionalism, patience, and strong communication with both clients and legal teams.
Implications for Investment Decision-Making
For investors, the time and cost involved in recovering premises are critical components of investment risk. Delays can reduce net operating income, extend vacancy periods, and lower property yields. As such, ES&Vs must incorporate recovery risk into feasibility analyses and valuation reports (Kolawale & Grace, 2017).
Markets with efficient recovery mechanisms are generally more attractive to investors. A diverse tenant mix, sound lease structures, and proactive management all help reduce exposure to income disruptions. Additionally, post-recovery repositioning—such as refurbishing or rebranding can increase long-term property value and rental performance.
Recommendations
To strengthen the effectiveness of premises recovery and support investment confidence, the following recommendations are proposed:
- Leases should be clearly drafted with explicit default and termination clauses.
- Tenant selection and monitoring should be continuous to identify risks early.
- Recovery costs and delays should be factored into investment projections.
- ES&Vs should be engaged at all stages of lease administration and recovery.
- Alternative Dispute Resolution (ADR) should be promoted to reduce litigation delays.
- Investors and landlords should be educated on tenancy laws and legal compliance requirements.
Conclusion
Premises recovery is a cornerstone of effective property management and a key determinant of investment success in Nigeria. For estate surveyors and valuers, it represents the intersection of law, finance, and asset management. By ensuring legal compliance, managing risks, and guiding investors through recovery processes, ES&Vs safeguard both the physical and financial health of real estate assets. In an environment where tenancy disputes can be costly and time-consuming, professional handling of premises recovery is not optional,it is indispensable to sustainable property investment.
References
Adewunmi, Y., & Ogunba, O. (n.d.). Facilities management and the estate surveyor and valuer: An investigation of attitudes of Nigerian estate surveyors. Pacific Rim Real Estate Society (PRRES).
Akpan, K., Ebam, R., & Effiong, J. (2023). Clients satisfaction with estate surveyors and valuers’ property management services in Calabar, Cross River State, Nigeria. International Journal of Environmental Research and Earth Science, 2(2).
Kolawale, O. A., & Grace, O.-O. B. (2017). Assessment of viability appraisal practice by estate surveyors and valuers in Lagos metropolis, Nigeria. International Journal of Built Environment and Sustainability, 4(1).
Oloke, O. C., Akindele, N. A., & Olagunju, O. O. (2022). Supply chain management in real estate practices: The estate surveyor and valuers’ perspective. International Journal of Real Estate Studies, 15(2), 75–82.
Woye, F., Adeniyi, A., & Nedolisa, A. (2021). Overview of the concept of recovery of premises under tenancy law of Lagos State. Mondaq.
(2021).The legal processes of premises recovery in Lagos.The Government and Business Journal.
