Application of Security Deposit In Residential Properties In Emerging Economies: Evidence From Nigeria

Security deposit is a very important aspect of property management since it is based on liabilities which a tenant might leave behind when vacating a property. The property manager has roles to play and must demonstrate his skills and expertise in the application of security deposit. In countries such as United States of America, United Kingdom and Ireland, Korea, South Africa and some others, relevant laws guide the application of security deposit. However, there is a gap in extant literature with regard to application of security deposit in emerging economies. Therefore, this informs the aim of the study which is to examine the application of security deposit in residential properties in emerging economies such as the study area. The survey research design was adopted by the study. Data was obtained through primary sources using a sample size of 326 estate firms registered by Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON). The findings from the analysis using descriptive statistics indicated that the determination, collection and refund policies by estate firms where based on either their discretion, the landlords’ instruction or the agreement by the firms and the landlords, hence not guided by any legal framework or standardized security deposit policy by the government. These and other factors from the findings of the study, led to series of challenges faced by the estate firms in the application of security deposit in residential properties. Hence, the study proffered recommendations that would improve and strengthen the quality of security deposit application in these properties in Nigeria as well as help to reduce the challenges faced by the estate firms.