The Impact of Student Population on Rental Value Around the Polytechnic Neighbouhood (Case Study of Rufus Giwa Polythecnic Owo)
Chapter One
OBJECTIVES OF THE STUDY
The following are the objectives of this study:
- To examine the impact of student population on rental value around Rufus Giwa Polytechnic, Owo.
- To examine the relationship between student population and rental value.
- To examine the impact of distance from Rufus Giwa Polytechnic Owo on the residential rental value.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
INTRODUCTION
Residential property rental values have been discovered to depend on various factors. However, it is often difficult to identify the appropriate variables that will explain residential sale and rental values. Sirmans and Benjamin (1991) while carrying out a survey on rent determinants classified them into three categories. These are: property specific attributes (including location and socio-economic factors), management specific factors (rental concessions, property management and length of residency) and finally, vacancies. Studies by Gunterman and Norbin (1987), Jud and Winkler (1991) show that property specific factors affect rent significantly and positively. According to Robert (1996), rent varies with the quality of housing. Oduwaye (2004) revealed that access to good roads, drainages, electricity among others increase property values. Many factors interplay to create property value, this could be economic, institutional, environmental and infrastructural factors (Bello and Bello, 2006). Olujimi (2010) opined that infrastructural facilities are likely factors that may affect rental value of residential properties in Nigeria since they are regarded as booster to the social well-being of the city dwellers. Whereas Ibrahim (2011) revealed that the presence of facilities in a building cause high preference, keen competition for properties and thus, high rental values, while the absence of facilities results in low patronage, disincentive to people, attraction of poor tenants and consequently, low rental values. However, the importance of accommodation type and location to the success of a residential property cannot be overemphasized. According to William and Berry (1980), a prospective occupier considers the nature and extent of the accommodation offered in terms of number and arrangement of bedrooms for convenience in use, water supply, electricity and the condition of repairs of all parts of the building. In respect of the situation, the prospective occupier will consider the property in general amenities of life, proximity to employment center, school and recreational facilities. But, this scenario occurs when there are enough options from which a wouldbe occupier can choose from. In a situation where demand is in excess of supply, the bargaining power shifts to the landlord, and the tenant who knows that he has little or no option will have to pay with or without the presence of facilities. Prior to the creation of Ondo State in October, 1976, the residential property market in Akure was dull as rental values were generally low. However, with the creation of the State, and Akure being the state capital, residential property rental values started to increase progressively over the years. From 1980s to early 1990s, residential properties in the core and transitional areas of Akure metropolis accommodated the majority of people living in Akure metropolis. It was also observed that tenants still enjoyed monthly payment of rents till early 1990s. The common types of residential properties then were tenement buildings and flats. The average rental value of a three bedroom flat and a room in the late 1980s and early 1990s was ₦120 and ₦20 per month respectively. Before and some years after the establishment of the Federal University of Technology, Akure, most areas around the institution were bushy and cocoa farms. Residential property market around the Federal University of Technology, Akure started booming in the mid-1990s. With the expansion of the University and subsequent increase in staff and students’ population, residential property’s market sprang up in response to the increasing demand of staff and students for accommodation within the neighbourhood of the Federal University of Technology, Akure causing residential property values to be on the increase. The residential properties in low and medium density areas such as Ijapo, Alagbaka and Okuta Elerinla government residential areas are known to command high rental values in Akure metropolis primarily because of the quality of the properties. However, it has been observed that residential properties in the neighbourhood of the Federal University of Technology that are of lower quality command same and sometimes higher rental values than rental residential properties in the government residential areas.
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to the impact of student population on rental value around the polytechnic neighbourhood
Sources of data collection
Data were collected from two main sources namely:
(i)Primary source and
(ii)Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
Population of the study
Population of a study is a group of persons or aggregate items, things the researcher is interested in getting information on the impact of student population on rental value around the polytechnic neighbourhood. 200 staff of Rufus Giwa polytechnic, Owo were selected randomly by the researcher as the population of the study.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the impact of student population on rental value around the polytechnic neighbourhood. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of student population on rental value around the polytechnic neighbourhood
Summary
This study was on the impact of student population on rental value around the polytechnic neighbourhood. Three objectives were raised which included: To examine the impact of student population on rental value around Rufus Giwa Polytechnic, Owo, to examine the relationship between student population and rental value, to examine the impact of distance from Rufus Giwa Polytechnic Owo on the residential rental value. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of Rufus Giwa polytechnic, Owo. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made HND2 students, HND 1 students, OND 2 students and OND 1 students were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
The paper show the trend of rental values of selected accommodation types against the population growth of students living in the private rented sector and the positive correlation between these two variables. The paper also reveals that an average of 80.79% of the population of students of Rufus Giwa polytechnic lived in the private rented sector. Furthermore, it has given an elaborate account on the relationship that exists between distance from the Rufus Giwa polytechnic, Owo and rental values of residential properties selected
Recommendation
It is therefore, recommended that the government and higher education institutions should be encouraged to make a clear and definite statement concerning provision of on campus accommodation. This will reduce the pressure on the private rented sector; mitigate high rents and exploitation of students. Also analysis of the likely impacts of higher educational institutions on local rental market should be integral to the establishment and expansion plans of every higher educational institution.
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