ANALYSIS OF FACTORS RESPONSIBLE FOR RENT DEFAULT IN RESIDENTIAL PROPERTIES IN ABUJA

Abstract

This study examined those factors responsible that are responsible for rent default among  residential property tenants in Abuja, Nigeria with a view to come up with information that will enhance the profitability of the residential properties and practice of property management in Nigeria. The study takes cognizance of data from practicing estate surveyors and valuers and residential property tenants in the study area. Questionnaire administered to solicit for information from the household respondents and estate firm. A total of 200 questionnaires were administered (in which 100 questionnaires were administered on 100 practicing Estate Surveying Firms in Abuja and 100 questionnaires were administered on households who are residential tenants in the study area).  Simple random sampling technique was used in the selection of the tenant respondents as well as the Estate Surveying firms. The tenants response reveal a total figure of 91 returned questionnaires filled which is 91% while we have 100 returned questionnaires filled by the Firms making 100%. To analyses the data collected, descriptive and inferential statistics were used. Findings from the study revealed that the most ranked factor influencing rent default in the study area is unstable income ranked as the first by the Estate surveyors while tenants views reveals that outrageous rent is ranked first. Similarly, the least factor influencing rent default in the study area according to tenants is loss of job. It is therefore concluded in the study that relevant issues highlighted such as proper generation of Bio-data forms before admitting the tenants should be encourage which will guide careful selection of  tenants. Rent administration also can be done quarterly to assist those income earners that are daily earners or wages and even salary, all these, if carried out properly can minimize the problem of rent default in the study area.