National Economy
Monday, September 1, 2025
  • Home
  • News
    • International Business
  • Lead-In
    • Cover
    • Investigation
  • Economy
    • Nigerian Economy
    • Fiscal Policy
    • Energy
    • Agri Business
    • Transportation
    • Industry
    • Competition
    • Homes & Property
    • Insurance
    • Companies & Markets
      • Companies
      • Capital Market
  • Tech
  • States & Politics
  • Commentary
    • Analyst
    • Business Matters
    • All Angles Considered
    • ClickSend
  • Editorial
  • Data
  • Others
    • Opinion
    • Money Guide
    • Analysis
    • Growth
    • Sport Economy
No Result
View All Result
Read News
National Economy
  • Home
  • News
    • International Business
  • Lead-In
    • Cover
    • Investigation
  • Economy
    • Nigerian Economy
    • Fiscal Policy
    • Energy
    • Agri Business
    • Transportation
    • Industry
    • Competition
    • Homes & Property
    • Insurance
    • Companies & Markets
      • Companies
      • Capital Market
  • Tech
  • States & Politics
  • Commentary
    • Analyst
    • Business Matters
    • All Angles Considered
    • ClickSend
  • Editorial
  • Data
  • Others
    • Opinion
    • Money Guide
    • Analysis
    • Growth
    • Sport Economy
No Result
View All Result
National Economy
No Result
View All Result
Home Opinion

Overview Of Service Charge Administration In Office Complexes

by y Esv. Olusegun Odetoyinbo
6 hours ago
in Opinion
Reading Time: 3 mins read
Overview Of Service Charge Administration In Office Complexes
Share on FacebookShare on TwitterShare on Telegram

The concept of service charge administration cannot be over emphasised in property management today as it is a paramount aspect of property management especially in multi-tenanted properties where there is an element of multiple occupation by tenants and the servicing of common needs arises such as maintenance and use of lifts, maintenance and fueling of generator, gardening, lighting and cleaning of common parts, dislodgement of septic tanks, security services, etc.
Service charge as applied to property management is a special money collected by the property owner or managing agent from tenants and occupiers of a property for providing common services that they and the landlord have agreed should be provided and centrally coordinated by an expert in the field which in this case is an estate surveyor and valuer. The term ‘service charge’ refers not only to the actual cost involved in providing the services but also to the range of obligations, liabilities and administrative procedures and also the cost of complying with the obligations.
The occupiers of multi-tenanted properties usually pay an additional levy or charge for the discharge of obligations which would have been carried out by the tenants or occupiers themselves but which may be complex due to multiple occupation.
The services to be provided in the building is very essential and this must be taken care of right from the design and construction stage of the building for effective administration of services. The problems of service charge in commercial properties are enormous and differ from one property to another. Also, the nature and type of the property is another factor that may create problems. For instance, shopping complex are noted to be more problematic than office complex due the nature of activities. Equally high rise complexes have their own peculiar challenges different from simple office building. In practice, it has also being discovered that the nature of tenants has effect on service charge administration. Challenges in office complex do vary from one property to another, and may ranges from design problem, construction, size and age.Problems also arise from non-payment of service charge deposit by occupiers, idiosyncratic management practices and lack of cooperation.
Service charge has two broad areas of costs that are ‘service and works.’ Service refers to housekeeping and includes cost of cleaning, fuel, staffing, etc, while works refers to repairs, replacement, maintenance and improvement. The general acceptable standard and its effective application will reduce the potential for conflict between owners, management surveyors and tenants and thereby increase the attractiveness of office complexes for investment.
Meaning Of Office Complex
An office is a place meant specifically for carrying out activity or activities of a business organisation. According to Wikipedia (2007), the primary purpose of an office building is to provide a workplace and working environment primarily for administrative and managerial workers. The Webster’s New World Dictionary (1967), defines an office as a room or premises for administrative or clerical work or for transactional business or simply put, an office is place of business where professional or clerical duties are performed.
An office complex could thus be described as purposed built building providing multiple accommodations for business transactions, professional services, clerical works and any such transactions whether public or private.
Two types of office complexes are common, namely small or simple office building, and large office building.

Small/Simple Office Buildings
These are office accommodations simply designed with floor ranging from one to four floors. The designs could be open planned or partitioned. The services and facilities to be provided in these building may not be enormous. Services usually provided are minimal and there are some of them that are not serviced beyond security and refuse collection. The designs are simple and the numbers of occupiers are few. Most of the small office buildings do not have lift services and central air-conditioning system.

Large Office Complex
These are usually regarded as high rise buildings, which is a described as multi-units office building with many floors and made of concrete and steel structures. The lobby, elevators and hallways are common to all units. high rise building are designed with high technical involvement and incorporated a lot of mechanical and electrical equipment. These equipment and appliances ranges from air-conditioner units, lifts and elevators, power generating plants, automated security doors, among others which requires good maintenance.
Management of these facilities/services is very important and require the adequate maintenance programme to ensure continue functionality. Hence, service charge is introduced and is applied to manage these facilities.

Elements Of Service Charge In Office Building
Service charge as applicable to the management of office complex usually covers the followings; cleaning of common parts such as corridors, lobbies, car parks, including cleaning of weeds in the surroundings.
Lighting of common parts which include replacement of fluorescents tubes, bulbs, switches etc, provision of uniform security guards for the premises, maintenance of lifts (if any), air-conditioning, generator and other installations,fumigation and pests control in the premises,payment for emptying and cleaning of the septic tank and soak-away pits, provision of utilities such as water, electricity in common areas,settlement of bills for disposal of refuses and liquid wastes, salaries and wages of administrative and technical staff on site, and any other services jointly agreed to be provided for the occupiers.

You May Like

African Security: Nigeria Leads From The Front

Issues, Challenges And Prospects Of Real Estate Investment In FCT Satellite Towns

Esv. Olusegun Odetoyinbo, is the principal partner, Segun Odetoyinbo & co. Estate Surveyors & Valuers

Tags: Overview Of Service Charge Administration In Office Complexes
ShareTweetShare
Previous Post

Nigeria’s Oil & Gas Reforms Now Case Study For Africa – AEC

Next Post

FG Blames Multiple Loan Deductions For Housing Loan Denials

ANOTHER GOOD READ

African Security: Nigeria Leads From The Front
Opinion

African Security: Nigeria Leads From The Front

6 hours ago
Issues, Challenges And Prospects Of Real Estate Investment In FCT Satellite Towns
Opinion

Issues, Challenges And Prospects Of Real Estate Investment In FCT Satellite Towns

1 week ago
Tackling Rising Rent Crisis In Abuja: A Focus On Affordability, Sustainable Solutions
Opinion

Tackling Rising Rent Crisis In Abuja: A Focus On Affordability, Sustainable Solutions

1 week ago
Issues, Challenges And Prospects Of Real Estate Investment In FCT Satellite Towns
Opinion

Issues, Challenges And Prospects Of Real Estate Investment In FCT Satellite Towns

2 weeks ago
Food Security: Nigeria, IFAD Begin Value Chain Dev’t Programme
Opinion

Food Security: Nigeria, IFAD Begin Value Chain Dev’t Programme

2 weeks ago
Issues, Challenges And Prospects Of Real Estate Investment In FCT Satellite Towns
Opinion

Issues, Challenges And Prospects Of Real Estate Investment In FCT Satellite Towns

3 weeks ago
Next Post
FG Blames Multiple Loan Deductions For Housing Loan Denials

FG Blames Multiple Loan Deductions For Housing Loan Denials

Most Recent

Customer Service Matters That Do Not Matter

Customer Service Matters That Do Not Matter

September 1, 2025
Fulham Intensify Efforts To Sign Another Super Eagles Star

Fulham Intensify Efforts To Sign Another Super Eagles Star

September 1, 2025
Arsenal Have To Win Something Big This Season –Shearer

Arsenal Have To Win Something Big This Season –Shearer

September 1, 2025
2025 World Athletics Championships: AFN To Unveil Team Nigeria’s Squad For 2025

2025 World Athletics Championships: AFN To Unveil Team Nigeria’s Squad For 2025

September 1, 2025
Illegal Betting: NPFL Lifts Suspension On Goalkeeper Adeyinka

Illegal Betting: NPFL Lifts Suspension On Goalkeeper Adeyinka

September 1, 2025
Leveraging  North-Central Development Commission For Inclusive Growth

Leveraging North-Central Development Commission For Inclusive Growth

September 1, 2025
Social Safety Nets As Buffers In Economic Reforms

Social Safety Nets As Buffers In Economic Reforms

September 1, 2025
Aradel Holdings Plc Renews Contractual Deal For Gas Supply To NLNG

Aradel Holdings Plc Renews Contractual Deal For Gas Supply To NLNG

September 1, 2025
Advertise with us

© 2024 | National Economy

No Result
View All Result
  • Home
  • News
    • International Business
  • Lead-In
    • Cover
    • Investigation
  • Economy
    • Nigerian Economy
    • Fiscal Policy
    • Energy
    • Agri Business
    • Transportation
    • Industry
    • Competition
    • Homes & Property
    • Insurance
    • Companies & Markets
      • Companies
      • Capital Market
  • Tech
  • States & Politics
  • Commentary
    • Analyst
    • Business Matters
    • All Angles Considered
    • ClickSend
  • Editorial
  • Data
  • Others
    • Opinion
    • Money Guide
    • Analysis
    • Growth
    • Sport Economy

© 2024 | National Economy