Tenant’s Demand for Structural Attributes in Residential Properties : The Case of Ede, Nigeria

Structural attributes such as number and size of living rooms, bedrooms, toilet/ bathrooms and type of floor finishes have been identified as some of the factors that influence household’s decisions when buying or renting a residential property. This study analysed the structural attributes of five categories of residential property in Ede, Nigeria with a view to providing information that will encourage investors to consider structural improvement that will enhance rental values. It examined among others tenant’s desire for a particular attribute (and /or attribute’s size); and tenant’s willingness to pay more for the desired attribute(s). In order to determine responsiveness of willingness to pay, the study hypothesized that 90% of the respondent in each property types would express willingness to pay more for the desired attributes. Data for the study was collected through questionnaire administered to residential tenants in the study area. A total of 400 questionnaires were distributed out of which 278 were returned representing 69.5% response rate. Data collected were analysed using descriptive and inferential statistical tools such as percentile, bar charts, weighted mean score and Chi square. The result showed that larger bedroom was ranked very highly in terms of overall desire and would pay more for by all respondents. Beyond that, there were certain structural attributes that respondents across the property categories expressed willingness to pay more for. The chi-square result however revealed there is significant difference between “would pay more for” response and the expected proportion (p value < .05) for the entire selected structural attribute in all categories of residential property. The study concluded that there is evidence to suggest that 90% of tenants in Ede did not express willingness to pay more for the desired structural attribute. The study recommended that investors in the residential property submarket should take cognizance of these when making decision on house design so as to have a product that appeals to tenant’s expectations while ensuring maximization of return from investment