ABSTRACT

The study on the disposition towards investment in tenanted properties is with the aim aimed to determine the extent to which investment in tenanted property is significant in Ogun state. To investigate on the factors affecting the investment in tenanted properties in Ogun state. To determine the relationship between the growth in tenanted properties and the rate of investment in Ogun State. To determine the causes of disposition towards investment in tenanted properties. The study made use of primary data which are gotten from the distribution of the research questionnaires; the sample size for the study is 100. The study made use of the Pearson correlation method for the analysis. The study therefore concluded that there is significant relationship between the growth in tenanted properties and the rate of investment in Ogun State since there is statistically significantly (0.00) strong relationship (0.819) between the responses of the respondents that said that there is significant relationship between the growth in tenanted properties and the rate of investment in Ogun State and those that said that the problem of management of tenanted properties and urbanization are the causes of disposition towards investment in tenanted properties.. The study also made useful recommendation to assist the federal government and investors in decision making.

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF STUDY

Property management was carried out unconsciously and unprofessionally especially before Nigeria attained her independence. Before independence, the approach to property management was traditional in every aspect. In fact, the situation has not changed especially in rural communities. For example, man carried out simple repairs or maintenance work in the houses made of mud and thatched roof. Thus, when roots of a tree in front of a house has grown too wide, infringing into the building foundation, the owner either cuts the roots or pull down the tree. Palm fronds were cut from the bush to replace the old and defective ones on the thatched roof to check water leakages during raining season (Olayonwa, 2000).

Property management especially of high rise building which are mostly tenanted thus becomes purely a professional matter. It became necessary to employ professionally trained estate managers to look after the properties (Oyedele, 2013). Hence, many privately owned high rise buildings are now in the management portfolio of many professional firms. Also, the government through its various agencies has taken cognizance of professional services.

Today, real property management goes beyond mere collection of rent. A property manager is involved with managerial problem solving and decision making. He also performs several activities and tasks involving planning, organising, directing and controlling with respect to the portfolio of real estate assets being managed on behalf of his clients (Thorncroft, 1965; Adebiyi, 1987; Odudu, 1987). This is important since one of the features of real property that distinguishes it from other investment media is its requirement to be managed. Because of the increasing pace of technological development or innovations resulting particularly in the construction of standard structures in our cities, there is need for a trained manager who is able to cope effectively and efficiently with management problems arising from the latter. Tenanted properties such as residential houses present the greatest management challenge to the surveyor. The author’s observation of nonchalant attitude of a good number of tenants regarding the management of tenanted properties prompted the choice of this topic. Rental housing is now seen as a vital component in accommodating large number of families in developing countries. In the Nigerian urban centres, the increase in urban population through both migration and natural increase, has been absorbed to a large extent by the rental market

1.2 STATEMENT OF RESEARCH PROBLEM

Tenanted residential properties especially the low-income impose a lot of problems in its management. There is a great struggle to meet up with the investment objectives, the cost of preserving the building and satisfying the tenants.

Tenanted properties is among revenue generation set ups in Ogun state but the management tend to pose much more challenges to the management and investors; some of the problems are seen in areas of the tenants inability to pay rent, keeping the environment clean, paying of utility bills. All these may lead to the disposition of such properties and limit investment in such properties.

1.3 AIM AND OBJECTIVES OF STUDY

The main aim of the research work is to examine the disposition towards investment in tenanted properties. Other specific objectives of the study are:

1. to determine the extent to which investment in tenanted property is significant in Ogun state
2. to investigate on the factors affecting the investment in tenanted properties in Ogun state
3. to determine the relationship between the growth in tenanted properties and the rate of investment in Ogun State
4. to determine the causes of disposition towards investment in tenanted properties
5. to proffer solution to the above stated problem

1.4 RESEARCH QUESTION

The study came up with research questions so as to ascertain the above stated objectives of the study. The research questions for the study are:

1. To what extent is investment in tenanted property significant in Ogun state?
2. What are the factors affecting the investment in tenanted properties in Ogun state?
3. What is the relationship between the growth in tenanted properties and the rate of investment in Ogun State?
4. What are the causes of disposition towards investment in tenanted properties?

1.5 STATEMENT OF RESEARCH HYPOTHESIS

Hypothesis 1

H0: there is no significant relationship between the growth in tenanted properties and the rate of investment in Ogun State

H1: there is significant relationship between the growth in tenanted properties and the rate of investment in Ogun State

1.6 SIGNIFICANCE OF STUDY

The study on disposition towards investment in tenanted properties will be of immense benefit to property owners, investors and tenants in Ogun state because the findings of the research work will educate the above population on the benefit of investing in tenanted properties, the factors affecting investing in tenanted properties. The study will serve as a repository of information to other researchers that desire to carry out similar research on the above topic. Finally the study will contribute to the body of existing literature and knowledge in this field of study and provide a basis for further research

1.7 SCOPE OF STUDY

The study on disposition towards investment in tenanted properties is limited to Ogun state. The study will cover on the benefit of investing in tenanted properties, the factors affecting investing in tenanted properties

1.8 LIMITATION OF STUDY

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.9 DEFINITION OF TERMS

TENANT: a person who occupies land or property rented from a landlord.

TENANTED PROPERTY: Tenanted Property is when an owner who has let their property wants to sell it, they have two choices: To sell subject to the tenancy.