Examination of the Determination, Application, and Administration of Security Deposits as Property Management Tools in Anambra State

Abstract

Security deposits, often known as caution deposits in Nigeria, function as financial protections for landlords against potential property damage and unpaid rent. In Anambra State, despite their prevalent use, the lack of a uniform legal framework has resulted in discrepancies regarding their assessment, implementation, and refund procedures. This research investigates the management of security deposits in residential properties, highlighting the challenges arising from the absence of regulatory guidelines. A survey was conducted among 86 Estate Surveyors and Valuers in the state. The data collected was analyzed using percentage analysis and mean ranking. It was indicated that while security deposits offer a degree of protection for landlords, conflicts frequently occur due to issues related to damage evaluations, delayed refunds, and unclear communication of terms. The results show that the majority of deposits are retained by landlords, with refund processes usually within one month. Significant challenges include tenant resistance to payments, mismanagement of funds by landlords, and difficulties in accurately assessing damages. The study suggests that instead of eliminating security deposits, the government should implement legislation to regulate their assessment, management, and refund processes.