Journal

Tenants’ Characteristics and Rent Default Tendencies in Akure Residential Property Market

Michael Ayodele Olukolajo1, Matthew Taiwo Ogungbenro2 and Amos O. Adewusi3

The rate of rent default in rental properties is on the increase with its antecedent implications on real estate investment. This study investigates tenants’ characteristics and their tendencies for rent default in Akure residential property market. Data on characteristics of 496 tenants were obtained from “acquaintance form” submitted to 19 firms of Estate Surveying and Valuation in Akure, Ondo State of Nigeria. Both descriptive and inferential statistical analyses were applied to arrive at the findings of the study. Binary Logistic regression modelling techniques revealed that prospective tenants’ occupation, availability of guarantor, recommendation letter, marital status, household size, level of education, and tenant’ tribe were found significant. The strongest predictor of rent default tendencies was household size, recording an odd ratio of 15.96. It was recommended among others that landlords and their agents should intensify efforts in minimizing rent default situation through tenants’ screening devoid of sentiments.

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