ANALYSING THE VARIATION IN RESIDENTIAL PROPERTY RENTAL VALUES IN MINNA AND ENVIRONS

Abstract

This study analyzed variations in residential property rental values in Minna and environs, Nigeria. The target population and sample for the study comprised of rented residential properties and tenants who are the household heads occupying the residential properties in Minna as well as all registered estate surveyors and valuers firms in Minna. Purposive sampling technique was used in the sampling procedure to pick the tenants and twelve registered estate surveyors and valuers firm. A total of 250 questionnaires were administered on the occupants of tenanted residential properties using the neighborhood approach. Geometric mean was used to obtain the rental growth rate for the period of study for two bedroom and three-bedroom flats. Standard deviation and coefficient of variation, relative important index (RII), Simple descriptive statistics were adopted in archiving the set objectives. The results indicate the rental trends for three-bedroom flat within the study period changed from1.59% in2011 to 8.36% in 2017 and in 2020 dropped to 4.61%. for two-bedroom flat within the study period changed from 1.51% in 2012to 7.92%in 2017 and dropped to 5.59% in 2020. This indicates that the variation was more in 2017across the neighborhood as the average rental value of two-bedroom flats within the study period was 24.4% for Bosso town and 13.03% for Chanchaga. For three bedrooms, shango has the highest with18.9 % while fadikpe has the lowest wit 9.9% level of variation. A number of factors such as physical, location and neighborhood characteristics of residential property determined the rental values of residential property in the study areas they played significant role in influencing tenants’ choice of accommodation in each neighborhood. The result also identified dominant factors such as condition of buildings, size of the building, number of bedrooms, number of toilets and bathrooms, quality of the neighborhood, direct access to tarred roads and presence of tertiary institution, banks and public offices influencing tenants’ choice of accommodation in each neighborhood. In conclusion, the research, indicates that there is variation in residential property rental values in Minna, Nigeria. Conclusively, variations are attributed primarily to factors that determine residential property rental values and therefore it is recommended that landlords seeking optimum return from their residential property investment should focus on improving the physical and structural characteristics of the property like the condition and size of the building, number of toilets and bathrooms and also number of bedrooms.