Estate management is defined as the supervision and direction of interest held on land or landed property towards achieving some optimum benefit.
These benefits may not necessarily be financial but political power, social status, prestige, etc.
Estate management can also be defined as the systematic process of planning, coordinating, directing and controlling interest held on land or landed property to achieve some optimum benefits.
But we go further, we must distinguish between two related concepts: estate management and business management.
The differences between estate management and business management are explained below;
1. Estate management is mainly concerned with the supervising and directing of interest held on landed property whereas business management is concerned with managing, organizing, and supervising business activities.
2. Business is mainly concerned with making profits, while estate management is directed toward earning some optimum benefits from land or landed property.
Remember, that this benefit may not be financial but can be political power, social status, and other goals.
3. The subject matter of estate management is immobile, whereas, the subject matter of business management may be mobile.
Aims And Objective Of Estate Management
1. Making profits for prospective estate owners is one of the important aims of estate management.
This is particularly true for private owners where the owner is usually satisfied with the occupation of his house in exchange for the rent he will receive.
This is, however, not always the case in government houses, where satisfying social needs (like accommodation) may be the primary reason for estate ownership.
2. To satisfy the economic needs of people of the society, especially accommodation.
Estate management seeks to satisfy the economic needs of individuals which may range from accommodation to productive activities.
3. For prestige and powers. As we generally think, ownership of land bestows a lot of prestige and power on the owners.
This is largely due to the shortage of public housing occasioned by steady population growth.
Hence, Individuals with numerous estate ownership are conferred special privileges.
4. Earning Social benefits is made easy. Social benefit, which is very popular among public estate owners is easily earned as land can now be obtained by the government to meet the needs of the people.
Dimension Of Estate Management
Estate management is not just concerned with rent collection, There are different dimensions to estate management, which are:
1. Economic dimension
2. Legal dimension
3. Social dimension
4. Technical dimension
5. Environmental dimension
Economic dimension
This is probably the most popular dimension of estate management. Earning optimum returns from investment is the core of this dimension.
Competent estate managers should have proper knowledge and information about the market.
Having proper knowledge of the market (such as the prices of properties) would help him know the property that would yield huge returns.
Also, estate managers should assess and investigate past market performance.
This would serve as a basis for future forecasting methods and techniques that will yield maximum returns.
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Legal dimensions
This is probably the most complicated dimension of estate management. Different interests could co-exist on a property.
There may be overlapping or distinct rights in this interest.
Hence, it is the responsibility and duty of the estate managers to manage the various rights that could exist in an estate.
Doing so would avert all possibility of conflicts of these interests.
Social dimension
Proper and equitable distribution of landed property is the major focus of this dimension.
Estate managers should allocate landed property in a way that will promote social contact and cordiality.
This means the estate should be designed and organized in a way that will stimulate positive contact with community members.
Furthermore, estate managers should be capable of employing managerial skills that will enable the owner to meet his/her social obligation.
Technical dimension
This focuses on the technicality of the estate management profession.
Estate Managers should have practical knowledge of engineering and construction so they can understand the different aspects of a property.
This would ensure he recommends reasonable and productive designs to the developer.
This recommendation will aid the efficient management of property by the estate manager.
Environmental dimension
Here, we are looking at estate management from the lens of the surrounding environment.
Estate managers should arrange the estate of their clients in a way that will not clash or conflict with environmental policies.
He must know the laws and legislation of the land and must abide by them.
Experienced estate managers would structure estate in such a way that it conforms to environmental guidelines.
Estate managers, for example, should ensure that waste is properly disposed of so as not to constitute disturbance or nuisance to the community.
Is estate management a science or an art?
Estate management is both science and art.
Estate management is a science because it applies some scientific and mathematical methods to solve real estate problems and answer questions in the field.
For instance, property valuation, a branch of estate management, uses quantitative and scientific methodologies to calculate a property's value.
Estate management is also an art because it involves the use of common sense and technical expertise to address practical problems, which are unique to the owner
It requires one’s experience, technical knowledge and decision-making skills.
Hence, estate management is both an art and a science.
That's all! Did you have a question? Feel free to tell me in the comment box.
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