EFFECT OF TENANT DISCRIMINATION ON PROPERTY INCOME IN BIRNIN-KEBBI, NIGERIA

Purpose: Landlords and agents sometimes discriminate in selecting tenants, ignoring the fact that the key factor in property investment is the ability of a property to generate the expected return. This study investigated the effect of discrimination against tenants on the income-generating capacity of properties in Birnin-Kebbi, Nigeria.

Design/methodology/approach: The study population comprises 2 practising estate surveyors and valuers and 28 estate agents in the study area, totalling 30 property agents, which also served as the sample size. The study administered a questionnaire augmented with an oral interview for data gathering. The research retrieved and analysed twenty-one (21) questionnaires, representing 70% of the questionnaires administered. A simple frequency table, percentages, and a paired samples t-test were employed for the analysis.

Findings: The result shows that religion and ethnicity are the major types of discrimination that exist in the study area. It also indicated a significant difference between the Expected Income (M=176666.67, SD=83431.61) and Actual Income (M=83988.14, SD=53756.24); with a large effect size (Cohen’s d =1.32 > .08) on actual income compared to expected income. The study concluded that tenant discrimination has a great effect on property income.

Research limitations: This study was limited to the rental values of residential and commercial properties in Birnin Kebbi

Practical implication: It recommended the enactment of legislation by the Government that will outline criteria devoid of any form of discrimination to be adopted in selecting tenants by landlords, estate surveyors and valuers (ESVs) and other estate agents.

Originality/value: The study revealed the percentage loss of annual income due to the void created by discrimination and the loss as a result of properties being subjected to rent reduction to facilitate occupation by tenants approved by the landlords to avoid the void.