Utilization Of IT In Property Management Information Technology Essay

Utilization Of IT In prop attention In holdation Technology EssayInformation Technology, or IT, has be pose an enabler in multiple areas of human life, including p caution manage of every start(predicate) kinds. The fleshly exercise of station guidance stinker non be accepted. With a case nurture of terra firma appraise firms in Lagos, this stem investigates the level of practice session of IT in the victor practice of retention concern. Data was collected victimisation questionnaires, which were administered development the cluster sampling order. The paper shows that IT is not man signifi arseholetly busy in the practice of stead precaution in Lagos. It further reveals that the sexual congress high oerall terms of its word sense is nearly probably trusty for the foregoing. In this wise, the paper recommends that the Nigerian Institution of terra firma messors and Valuers, the custodian of the profession, should tender leadership in the utilizatio n of it, while undivided and collective efforts of the firms should be geared towards this area.Key words Information Technology, lieu commission, Professional Practice, And Estate Surveying FirmsINTRODUCTIONThe initiation of today is being propelled by teaching, in pro open up proportion, via the agency of Information Technology (IT). Information, in these present times, to a greater extent frequently described as a fourth resource, is as of the essence(p) as land, labour and capital in the production process and advances in IT have tremendously facilitated the processes of gathering, storing, handling and utilizing this vital resource (Brady, 1991 and Olawore, 1999). The foregoing underlines the aptness of terming this 21st century the Information Age (Emeagwali, 2003). Signifi nookyt changes have come about due to the rapid growth of IT the outstanding change being the increasing globalisation of the world. T here is the increasing transmutation of the present-day world i nto a much homogenised geographical entity with no boundaries, hence, the famous clich the world is a global village (Owasanoye, 2001). The most(prenominal) revolutionary agent of this increase is the Internet, an offshoot of musical modern IT. The Internet has lowered the cost of doing occupation make it possible for a consumer to entry goods or helpers without passing the throttle of his home or touch and has given its intentionrs an opportunity to give out and lock across frontiers, across borders and beyond the control of national governments. IT has been, and give stay fresh to be, applied to the multifarious facets of the life of the ubiquitous modern-day man. It is common familiarity that virtually all categories of professional divine expediency providers are instanter supplement on the cutting edge afforded by modern IT so as to progressively leapfrog competitors, proactively respond to the ever-dynamic demands of their respective clientele and ultimatel y agree cherish to their bottom line. Modern IT has changed business landscapes and expanded the frontiers of service lecture (Osadolor, 2002). For example, banks and pecuniary serve providers have created their own system of electronic cash in transfers the travel industry customs electronic information services for reserveing, time tabling and set stock exchanges have evolved automated trading systems while solid ground agents now utilize the platform of the Internet to market real estate in their portfolio (Owasanoye, 2001 and Akomolede, 2002).Situated in the mount that prop managers are too include in the category of professional service providers carrying on the practice of ensuring that a clients dimension investment is kept in a state to get up its functionality, prolong its lifespan, yield an optimum return and achieve the investors general objectives, hence, IT is of utilitarian purpose to the practice. Similarly, central to proactive plaza focus practice is an effective system of take down keeping in its widety. Against this backdrop and given the countless of responsibilities of the property manager coupled with all sorts of compoundities presented by properties and their occupants, an enabling official document as IT piece of tailfulnot exactly be deployed. Furthermore, if the foregoing is critically examined in the con textual matter of the emerging milieu of increase client sentiency and requirements, it reinforces the imperative of property managers substantively leveraging on IT to drive, and step up the quality of, service delivery (Longe, 2001).However, even in the absence of an in-depth inquiry, by casual observation, it can be conjectured that in that respect is a yawning gap between the levels of mundanity that are being attained vis--vis the acceptance of information technology in the contemporary professional practice of property focus in twain the developed and the developing economies. The practice of property management (like its umbrella practice of estate surveying and valuation), in most developing economies, inclusive of Nigeria, is fall behind behind that in the developed economies (like the United Kingdom) specifically in wrong of the exertion of modern enabling tools of information technology. Though, it cannot be s advocate that there is blanket non-utilisation of IT in the practice of property management by estate surveying firms in Lagos, Nigeria, as a typical example of a city in the developing world, but to what extent is IT pick out in the practice? This is the central question that this paper intends to answer with the aid of an information-based study carried out in 2005.INFORMATION TECHNOLOGY AND PROPERTY heedThe term Information Technology has been variously described. IT, being the acronym for Information Technology, has been broadly defined as a term that encompasses all forms of technology utilize to create, store, exchange, and put on information i n its various forms (business information, persona conversations, still images, doubt pictures, multimedia system presentations, and new(prenominal) forms including those not yet conceived)1. However, in simple terms, the Oxford sophisticated Learners Dictionary of Cur rip English (6th edn) furnished a definition of IT as the use of electronic equipment, especially information processing systems, for storing, analyzing and sending out information.It is common association that IT has wide-ranging applications programmes it has been applied to virtually every aspect of human life. It has implant useful application in science, commerce, engineering, education, recreation, entertainment, research, medicine, governance, religion, agriculture, real estate market, project management, banking, skyway reservations and so on (Brady, 1991 Alile, 1997 Ojo, 2000 Ayo, 2001 and Akomolede, 2002). It is also of useful purpose to the various facets of the professional practice of property m anagement.Property management the other term under review is an integral aspect of the profession of Estate Management. Thorncroft (1965) defined estate management as the direction and supervision of an interest in set down property with the aim of securing the optimum returns. These returns need not be financial but may be in terms of social benefits, prestige, status, semipolitical power or some other goals or group of goals. In consonance with the traditional aim of general estate management, property management entails the practice of directing, supervising and controlling interest in land and get property so as to enable it yield an optimal return.Specifically, property management is that aspect of the real estate profession devoted to the leasing, management, marketing and overall sustainment of the property of others2. tally to Olajide and Bello (2003), property management can be defined as the application of skill in lovingness for the property, its surroundings and amenities, and in developing sound relationship between the landlord and dwell and among inhabits themselves, so that the property as well as individual set forth would give value some(prenominal) to the landlord and tenant. Basically, its purpose is to secure for the property proprietor the maximum continuous net return on his investment over the life of that property and to maintain the physical aspects of the property for optimum dexterity and economy (Weich, 1967 and Kyle, 2000). In essence, the primary functions of property management are dual achieve the objectives of the property owners, breed income for the owners, and preserve or increase the value of the investment property (Kyle, 2000).Towards this end, comprised in the professional services rendered by property managers are (a) rent collection and remittance (b) selection of tenants (c) property maintenance (d) marketing of vacant accommodation (e) administration of estate personnel and services (f) administration (maintenance) of estate records (g) routine management inspection and correspondence (h) enforcement of term of a contract covenants and (i) both other function as indicateably expected of a property manager or as stipulated in the management sympathy between the parties (the property manager and the client). All these services can be driven by IT.The following are some determine application areas where IT has been of beneficial use in the practice of property management.a. Filing It is assert that a property manager cannot survive without his records (Nwankwo, 2004). If he cannot maintain a good register system, he will always be in difficulty. Hence, the hallmark of an efficient management office is a good register system (Kyle, 2000). Data should be sorted and segregated into separatefiles for well-to-do collection, retention and retrieval of records. Records can be kept manually by means of simple registers, record cards, registers that are referred to often, reminders, files and so on but the trend now is computerization (Nwankwo, 2004).A computerized data system has a turn of advantages over a manual system including the ease of storage, the expertness to retrieve large amounts of data as needful, economy of space, and reduction of usable cost and time (Olawore, 1999). With a computer database, records relating to clients properties can be efficaciously maintained. Database much(prenominal)(prenominal) as computerized property management system (CPMS) e.g. EstMan is visible(prenominal) in the market to all property managers desirous of computerizing their trading operations (Adebiyi, 2003). The CPMS comprises various elements such as data relating to the properties, the landlords, the tenants and the deals in a digital form. It is designed to aid the management and administration of commercial, industrial and residential properties. The software allows the myriad of information to be retrieved quickly, eliminating the need to refer to bu lky files or having to refer physically to leased documents often by extracting vital information and making them ready(prenominal) to be looked at or pointed out whenever required.b. Financial Record belongings This is a crucial activity in property management that deserves a separate mention given that the cardinal aim of property management is securing the maximum return (Olajide and Bello, 2003). Accounting software programs allow tedious book keeping calculations to be performed automatically, including accounts receivable (e.g. rents and service charges), accounts payable (e.g. ground rents, judge and insurance premium), payroll, inventory and general ledger (Kyle, 2000). Accounting programs can generate various reports that are valuable for financial planning and evaluations, including monthly budgets, cash flow studies, profit and loss statements and reports to owners. Some even can preserve and print a cheque, while entering that directly into the bank remainder summar y, thus maintaining even more up-to-the-minute control.c. Word Processing/generation of Notices and Reports Word processing is utilize when composing and typing almost whatsoever kind of letter, report, or newsletter it is easy to insert or cut characters, words, lines, paragraphs or even pages of text and correspondence can be integrate with mailing lists to generate mass mailings. Drafting a document, letters to neglectful tenants for example, which can be time-consuming, will be made easier and faster with the aid of this software.According to Kyle (2000), at the very least, the new software programs offer a template for letters (for proper form) as well as pre-written form letters to meet all sorts of needs late notices, eviction notices, lease termination and letters on all types of problems (e.g. excessive noise). If the software does not have a letter bingle needs, after drafting it, one can save it to reuse. Specifically, in connection with review and renewal of tenanc ies and other action dates, a completely automatic key dates system is available (Stapleton, 1994). Further, graphic software programs can produce a variety of graphs and charts to use in presentations and reports, and can also be used to create advertisements, brochures and tenant newsletters.d. Property Marketing and Tenant Selection The World Wide Web, a inter snuff it of interconnecting computers, is quickly becoming a vehicle for announce, marketing and dialogue (Kyle, 2000). The Web enables users to create their own websites to break information easily affable to the public. Adebiyi (2003) determine the benefits accruable to professional firms with websites Information can be provided to the user free, or via subscription service, or for a specific payment it provides the firms with shop windows available to any client or applicant 24 hours of the day it can display an innovative brochure of the firms professional services, clients properties available for sale or let an d they market to the widest audience without any boundaries to working days. In particular, Alile (1997) identified that, with multimedia technology, a contemporary offshoot of IT, marketing renting properties has become more sophisticated in the sense that you can walk done houses without leaving your room.Apart from marketing, the Internet can serve the purpose of tenant selection. Kemp (2000) account a special Web property management solution, the Rentals.com on-line property management system. Through Rentals.com, letting property owners and managers can create a personalized website. From the site, one can show pictures/floor plans of all properties access a private, virtual office track site traffic schedule viewing appointments view rental applications and obtain rental news and advice from experts in the real estate industry. The benefits of this system are obvious a clutter-free workspace and a round-the-clock virtual, paperless office, amongst others.e. Office Automat ion Office automation deals with acquisition and distribution of information, communication (internal and external), and information processing. It has, therefore, a variety of facets including communications, publishing, and data processing. Very few, if any, offices can run without theuse of some automated equipment. The amount of automation needed depends, again, on the size of it of the operation and the type of properties involved (Kyle, 2000). Office equipment such as fax machines, typewriters, word processors, calculators and specialized accounting equipment (including computers) are heavy once the business begins to grow.For communication purposes particularly, with a local area network (LAN), computer users in the same office can share data, including text or data files, whole programs, scanned images, incoming and outgoing fax messages, blueprints and voice messages. LANs increase the efficiency of computers, software and printers, which make inter-office communication better, faster and cheaper. LANs disaccord in speed, reliability, and compatibility with various computer hardware, so a wise property manager will consult a LAN expert forwards making a purchasing decision.Further, with a modem and a phone line, computers can communicate with each other over long distances, sending computerized data (e-mail) to another computer hundreds or thousands of miles away. Since the modem transfers information directly to another computer, there is no need to print out the information on paper archetypical, which increases the speed and efficiency of the communication. The data can be viewed on the receiving computer screen or printed out on paper.f. Tracking Maintenance According to Holmes (1994), IT has enhanced the planning and organization of maintenance. Software packages have been developed for most activities. There are 3 main areas which require IT support the first for handling work recording and monitoring, the second for condition assessment analysis, and the triplet for cost predictions. Within these areas a range of linked programs can be used to supplement the process for example, an asset register will greatly help with work ordering.On a general note, Stapleton (1994) described the benefits of the application of IT to the practice of property management as follows Problems can be identified quicker and performance be analyzed in a more rigorous way. Information for regular review by policymakers is more right away available and more work can be handled by the same round. He, however, attached a caveat that the application of IT does require a substantial commitment by the existing staff and considerable care is required in the way the concept, the technology and the system are introduced.In fire of the gains of the adoption of IT in the practice of property management (and estate surveying and valuation in general), Adebiyi (2003) suggested that, by casual industry analysis of the use of IT, not a deliberate in quiry, it is indicated that there is low-level utilization and cognisance by a significant proportion of estate surveying firms in the Nigerian real estate industry. He opined that IT is often seen by those who do not use it as an unknown technological threat, both complex and expensive, requiring extensive training and bringing an additional and unnecessary complication to professional life.In the light of the foregoing, Adebiyi (2003) offered an admonition thusIt is important for (Estate) Surveyors who do not use IT to consider the changes that have taken place over the last few years, the current speed of changes and facilities available to assist Surveyors. It is also wise for them to have some understanding of the ever more rapid developments that will affect all practitioners in the foreseeable future. They need to consider how IT awareness and use can enhance not just their efficiency and business performance, but also the professional advise they give to property keep com pany and developer-clients or to tenants.THE INVESTIGATIONBearing in mind that it is an observable list for estate surveying firms to exist in pockets or congregate unitedly in geographical areas around Lagos (i.e. the population of estate surveying firms is largely distributed in clusters), hence, it is apposite to adopt the cluster sampling method as the suitable approach to generating a representative sample for study here (Asika, 1991).According to Asika (1991), generally, a sample size of 10% of the population size is adequate enough to effectualate and generalize the findings of a study to the entire population. Given that there are 477 estate surveying firms in Nigeria as offered by Nwankwo (2004) and assuming that all the firms have an operational office in Lagos, then applying 10% to this number of firms and leaving ample room for safety, the agree sample size for this study is therefore 50 and will be spread over four main identified clusters (convergence areas) in th e Lagos metropolis. reply RateAs indicated in circuit board 1 below, an evaluation of the individual solvent rates of the cluster areas reveals that all areas are fairly represented (with the minimum response rate being 80%), and the average response rate being 84%. For all practical purposes, this is acceptable and valid for statistical analysis. plug-in 1 retort Rate According to ball AreaCluster AreaTarget ResponseActual ResponseResponse Rate (%)Lagos Island201785Victoria Island/Ikoyi10880Surulere5480Ikeja/Opebi151387Total504284Source subject Survey, 2005Extent of Utilization of Information Technology in the Practice sevener specific areas of the practice are examined vis--vis the adoption of information technology, namely training of schedules of letting expression and communication of management notices and reports Preparation of clients statements of accounts Rental property marketing Mode of receiving applications from prospective tenants Mode of receiving complaints from school term tenants and Property record keeping.A schedule of lettings serves a major purpose in the practice of property management and it is frequently required. It aids rent collection. Hence, the mode done which it is drawn up is very crucial. Two modes can be identified manual and computerized or a combination of both. Fig. 1 reveals that 64% (or 27 out of 42) use the manual means, 12% (or 5 out of 42) use the computerized means while 24% (or 10 out of 42) use both the manual and computerized means. It can then be reasonably concluded that the legal age of the respondents still rely on the manual mode of extracting applicable data from rental payments register in order to draw up schedules of letting. This method is, however, adjudged to be inefficient and susceptible to errors.Table 2 Preparation of Management Notices and ReportsModeFrequency forecastPercentages of Responses (%)Percentages of Cases (%)By handwritingBy using typewriter245By using word-processors4284 co ulombBy using property management software61214Total50* carbon119Source field of honor Survey 2005* banknote Total number of responses is greater than the total number of respondents because each respondent gave multiple responses. The cumulative frequency count by the multi-response analysis was thus greater than the total number of respondents.Table 3 Communication of Management Notices and ReportsModeFrequency itemisePercentages of Responses (%)Percentages of Cases (%)By staff hand delivery372688By courier service271964By postal service151036By phone292069By e-mail service211450By short message service (SMS)161138Total145*100345Source line of products Survey, 2005*Note cop Table 2 for renderingIn preparing management notices (such as rent demands) and reports, 4 methods are identifiable as shown in Table 2. Survey reveals that word processors are of general application, and used by all the respondents (or 100%) while 6 out of 42 (or 14%) use special-purpose property managem ent software. 5% (or 2 out of 42) of the respondents still use typewriters. And to communicate the notices and reports, a combination of 6 options are open to the respondents (see Table 3). ply hand delivery features most prominently as the means through which most of the respondents communicate notices and reports (37 out of 42 or 88%). electronic mail service, a main IT option in the context of this study, ranks 4th and adopted by 50% (or 21 out of 42) of the respondents.Table 4 Preparation of Clients Statements of AccountsModeFrequency CountPercentages of Responses (%)Percentages of Cases (%)By manual calculations274364By using accounting software294769By using property management software61014Total62*100147Source theatre of operations Survey, 2005* Note See Table 2 for explanationAccounting software, a general application software, finds the widest use amongst the respondents in rendering accounts to landlord-clients (see Table 4), followed intimately by manual means of extr acting relevant data from account books and equilibrise the accounts (27 out of 42 or 64%). The use of special-purpose property management software ranks last (a distant 3rd).Table 5 Rental Property MarketingModeFrequency CountPercentages of Responses (%)Percentages of Cases (%)To-Let mature placements4231100Print media advertising4231100Property bulletin distribution362686Internet advertising161238Total136*100324Source playing field Survey, 2005* Note See Table 7 for explanationTable 5 indicates that all the respondents market available rental accommodation by board placements and print media advertising. However, only 16 out of 42 (or 38%) advertise via the Internet. Hence, it can be fairly concluded here that IT has not found popular use amongst the estate surveying firms in marketing rental property.Table 6 Mode of Receiving Applications from Prospective TenantsModeFrequency CountPercentages of Responses (%)Percentages of Cases (%)By phone394793By physical appearance at offic e4251100By applying on-line225Total83*100198Source Field survey, 2005*Note See Table 2 for explanationTable 6 shows that only 2 out of 42 (or 5%) accept on-line applications from prospective tenants that intend to let advertised rental accommodation in spite of its benefits of round-the-clock accessibility. All the respondents dwell on prospective tenants physically visiting their offices. Applications through the phone are also accepted by 39 out of 42 (or 93%).Table 7 Mode of Receiving Complaints from Sitting TenantsModeFrequency CountPercentages of Responses (%)Percentages of Cases (%)By phone392693By letters4228100By physical appearance at office372588By short message service (SMS)13931By e-mail service181243Total149*100355Source Field Survey, 2005*Note See Table 7 for explanationIt is not uncommon for sitting tenants to forward complaints about relevant matters demanding the attention of property managers. Different conduct are created through which these complaints are autho ritative. Table 7 reveals that the multitude of complaints is received through letters by all the respondents while SMS is the least used mode. E-mail service is the 4th most frequently used mode of receiving complaints from sitting tenants (18 out of 42 or 43%).Table 8 Mode of Property Record KeepingModeFrequency CountPercentages of Responses (%)Percentages of Cases (%)Cabinet filing406395Electronic database243757Total64*100132Source Field Survey, 2005*Note See Table 2 for explanationFrom table 8, 95% of the respondents (or 40 out of 42) adopt cabinet filing while 57% of the respondents (or 24 out of 42) use electronic database. Both cabinet filing and electronic database are complementary though the latter offers easier access to relevant information.Having examined seven salient areas of the practice of property management in Lagos in relation to the adoption of IT, it can be summarized thus IT is being comparatively put to use in all the examined areas of the practice of propert y management in Lagos however, the extent of adoption, on the whole, is below average.Table 9 Respondents be of the Reasons for the Current Extent of Utilization of IT in the Practice of Property ManagementReasonAbsolute FrequencyWeighted mean score potently Agree5Agree4Undecided3 protest2Strongly Disagree1 coition underdeveloped state of the property management practice in Lagos311018102.50Relative non-availability of IT tools for property management in Lagos5581952.43Relative high cost of adoption of IT in the property management practice21951603.17Relative non-sophistication of clients served by property management firms in Lagos3862232.64Relative small sizes of the operations of the property management firms in Lagos23619122.14Source Field Survey, 2005Respondents were asked to score tailfin probable reasons for the below-average utilization of IT in the practice of property management in Lagos on a 5 point Likert scale. The results as shown in Table 9 above show that the sexua l relation high cost of adoption of IT in the property management practice is the most probable reason for the current extent of utilization of IT in the practice. IT is widely viewed to attract broad costs for its application in the practice of property management. Relative non-sophistication of clients served by the property management firms ranks 2nd. However, ranking last is the relative small sizes of the operations of the property management firms. A possible interpretation of this is that the respondents see the sizes of their operations as substantial enough to warrant the deployment of IT.Further, to gauge the practice-wide perception of the adoption of IT, respondents were asked to indicate their degree of agreement or disagreement with this statement The increased adoption of IT in the practice of property management in Lagos can have a significant positive impact thereon in terms of increased profitability, broadened client base and excellent service delivery. let on o f 42, 28 (or 67%) strongly agreed, 13 (or 31%) agreed and 1 (or 2%) was undecided. On the basis of this, it can be said that, in the absence of constraints, the firms are willing to significantly increase the level of utilization of IT in the practice of property management.From the foregoing, it can be stated that the relative high cost of adoption of IT in the practice of property management, amongst others, is the most probable reason for the current extent of utilization of IT in the practice. speculation TestingResearch HypothesisTo be tested in t