What is property management :

Property management is the operation, control and oversight of Real Estate as used in its most broad term. Management indicates a need to be cared of, monitored and accountability given for its useful life and condition. This is much akin to the role of management in any business.

A slight historical overview: Property Management in Ethiopian context

No, it has always existed as there are always property owners who do not want to deal or cannot deal with the day to day management of their property on their own. During the pre-Dergue time, all big names of the country, those “Dejazmach” ; “Gerazmach” and “Balabats” had an assignee that deals with their property. The assignee or “wekil” represent these big names in all matters that relates to their property. And in return such “wekil” gets compensation that would allow him to feed his family. “Wekil” was their property manager.
Proclamation 47/70 or (47/67 in Ethiopian calendar) is a big event that changed the economical organization of the country. This proclamation in parallel to the revolution and the introduction of Socialism philosophy in the Country, nationalized all extra houses in urban settings and all land. Nationalizing “extra house” should then be interpreted as an eradicating event of property manager from the country’s territory, and probably from our vocabulary.

Nearly yes. Oh no! that is really a short and mistaken answer. Properties in the privately run rental market are nationalized through Proclamation 47/70. These rented properties became under government ownership. Directives following the proclamation 47/70, put these nationalized residential properties under two distinctive jurisdiction: those set under Rental Housing Agency (RHA), at central government level and those commonly named “Kebele Houses” under local government authority and ownership. The nationalization created a paradox of ownership status by making of these properties, entities owned by everyone and nobody at the same time. So who is managing who’s property? Who is paying for the service? Who is taking care of the properties physical condition?

However, before generalizing one should admit the existence of one company that miraculously survived such national turmoil: Commercial Nominees. Commercial Nominees (CN) was established in 1965 by the then Commercial Bank of Ethiopia Sh. Co. and Mortgage Bank Of Ethiopia that are known today as Commercial Bank Of Ethiopia (CBE) and the Construction and Business Bank (CBB). CN is therefore founded and owned by the two banks but operating as an independent business entity. CN was administering properties owned by these two Banks and those these banks acquire from their bad debtors.

As we all know, the last regime was ruling with socialism ideology, discouraging private ownership and limiting the private sector. Besides, as it had nationalized extra houses, those set into the rental market, thus there was double ban in freezing or annulling the property management service as a business sector. Not only the local private economy was nearly absent, but also no fertile ground for property management services to be carried out in the country.

Later on the introduction of the mixed economy, then the current government commitment to its market led economy… are two important elements that encouraged the proliferation of the … gave dynamism to the development of privately owned properties The diaspora encouraged by relative political stability and economic dvlpt to invest in its homeland The first generation to inherit property after the nationalization…

The country’s annual growth rate is nearly close to 10%. Economic Development goes hand in hand with capital accumulation. One form of capital accumulation is investment in real estate properties. These properties are partially put into the market for rental purposes as the capital invested need to generate income. Thus someone need to manage it. The management is then either taking place with own force or outsourced company.