Investigating defiant attitudes in keeping lease agreement obligations in private rental housing market in Nigeria

2016 ◽  
Vol 34 (3) ◽  
pp. 221-246 ◽  
Author(s):  
Job Taiwo Gbadegesin ◽  
Harry van der Heijden ◽  
Peter Boelhouwer
Keyword(s):  
Housing Market ◽  
Significant Relationship ◽  
Rental Housing ◽  
Property Market ◽  
Content Type ◽  
Rental Market ◽  
Code Of Practice ◽  
Professional Body ◽  
Rental Housing Market ◽  
Lease Agreement

Purpose – The purpose of this paper is to investigate the nature and dimension of non-compliance (defiance) with lease agreement obligations in private rental housing market between managers (agents/private rental housing providers or landlords) and end-users (tenants – rental housing consumers), with a view to identifying challenges in rental housing lease administration in Nigeria emerging rental market. Design/methodology/approach – The quantitative data collected from practicing estate surveyor and valuers (statutorily registered agents), who manage private rental housing in their portfolios on behalf of owners and tenants, who occupy rental housing within Lagos state (the largest property market in Nigeria and West Africa). Using a theoretical model in the context of five lease agreement obligations, data collected were analyzed using descriptive and inferential statistics (one sample t-test, independent t-test and correlation). Findings – While economic circumstances (economic factors) are considered the major vulnerable factor that cause acts of non-compliance, defiance against “covenant not- to- sublet (subletting covenant (SC))” and “prompt rental payment covenant” are the two most non-compliance attitudes (precipitation events) observed from both actors. There is correlation among all vulnerability elements and precipitating events. While a significant relationship was only observed between “SC” and all vulnerability elements on the part of agents, there is significant relationship among all the vulnerability elements and precipitating events on the part of tenants. Also, while tenants attached higher significance to all the vulnerability factors than managers, both actors attached different level of priority to precipitating events. Lastly, equitable remedies and peaceful entry are the two most adopted intervention tools. Research limitations/implications – This paper is limited to seeking both the professional opinion of licensed/registered agents and the rental housing consumers-tenants. Practical implications – The research points to an increasing need for the stakeholders – Estate Surveyors and Valuers Registration Board of Nigeria (a Government parastatal) and the Nigerian Institutions of Estate Surveyors and Valuers (the constituted professional body), to establish and reform the code of practice in this direction with due consideration to the factors identified in this study. Effort also should be upgraded in the intervention techniques adopted in order to improve on emerging rental market. Originality/value – The paper explores an important aspect of lease administration in private rental housing market. It also provides platform on which the acts of defiance can be wiped out in the emerging rental market.

Empirical analysis of residential submarket conceptualisation in Ghana

2019 ◽  
Vol 12 (4) ◽  
pp. 763-787 ◽  
Author(s):  
Emmanuel Kofi Gavu ◽  
Anthony Owusu-Ansah
Keyword(s):  
Housing Market ◽  
A Priori ◽  
Rental Housing ◽  
Alternative Methods ◽  
Market Dynamics ◽  
Content Type ◽  
Rental Market ◽  
For Profit ◽  
Nested Approach ◽  
Rental Housing Market

Purpose The purpose of this paper is to empirically test for submarket existence based on an understanding of the residential rental housing market in Ghana. Design/methodology/approach Based on extant literature and market observations, the authors provide key concepts and an overview of the residential rental market dynamics in Ghana. Reseachers appreciate that submarkets may exist in the Ghanaian rental market but have ignored the empirical testing for submarket existence due to data asymmetries. Based on real estate experts and stakeholder consultations, a priori delineation of submarkets are constructed based on spatial, structural and a nested approach. Submarket existence is tested using the Kruskal–Wallis H test and Hedonic modelling techniques. Findings By using fieldwork data from Accra rental market, the analysis provides credence to the conceptualisation of submarkets and how to empirically test for same. It is argued that researchers should use alternative methods to compare results to make far-reaching conclusions. Research limitations/implications Examining the hypothesis that differential rental values exists for submarkets has implications for policy decisions to target submarket constructs differently to improve market maturity. Practical implications The research provides stakeholder investors in the rental space an understanding of market dynamics for profit maximisation, and end-users to maximise utility in deciding where to live – and as such households could benefit from making informed investment decisions on housing. Originality/value This research is one of the first attempts to empirically identify and test for submarkets existence in Ghana’s residential rental housing market.

Rent or buy, what are the odds? Analysing the price-to-rent ratio for housing types within the Northern Ireland housing market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Daniel Lo ◽  
Michael James McCord ◽  
John McCord ◽  
Peadar Thomas Davis ◽  
Martin Haran
Keyword(s):  
Housing Market ◽  
House Prices ◽  
House Price ◽  
Main Property ◽  
Property Market ◽  
Important Indicator ◽  
Content Type ◽  
Rental Market ◽  
Price Series ◽  
The Relationship

Purpose The price-to-rent ratio is often regarded as an important indicator for measuring housing market imbalance and inefficiency. A central question is the extent to which house prices and rents form part of the same market and thus whether they respond similarly to parallel stimulus. If they are close proxies dynamically, then this provides valuable market intelligence, particularly where causal relationships are evident. Therefore, this paper aims to examine the relationship between market and rental pricing to uncover the price switching dynamics of residential real estate property types and whether the deviation between market rents and prices are integrated over both the long- and short-term. Design/methodology/approach This paper uses cointegration, Wald exogeneity tests and Granger causality models to determine the existence, if any, of cointegration and lead-lag relationships between prices and rents within the Belfast property market, as well as the price-to-rent ratios amongst its five main property sub-markets over the time period M4, 2014 to M12 2018. Findings The findings provide some novel insights in relation to the pricing dynamics within Belfast. Housing and rental prices are cointegrated suggesting that they tend to move in tandem in the long run. It is further evident that in the short-run, the price series Granger-causes that of rents inferring that sales price information unidirectionally diffuse to the rental market. Further, the findings on price-to-rent ratios reveal that the detached sector appears to Granger-cause those of other property types except apartments in both the short- and long-term, suggesting possible spill-over of pricing signals from the top-end to the lower strata of the market. Originality/value The importance of understanding the relationship between house prices and rental market performance has gathered momentum. Although the house price-rent ratio is widely used as an indicator of over and undervaluation in the housing market, surprisingly little is known about the theoretical relationship between the price-rent ratio across property types and their respective inter-relationships.

Rental market and macroeconomics: evidence for the US

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vinicius Phillipe de Albuquerquemello ◽  
Cássio Besarria
Keyword(s):  
Housing Market ◽  
Public Policies ◽  
Rental Housing ◽  
Real Estate Market ◽  
Macroeconomic Shocks ◽  
Content Type ◽  
The Real ◽  
The Us ◽  
The Face ◽  
Rental Housing Market

PurposeThe aim of this paper is to assess whether the inclusion of the rental housing market affect the dynamics of the real business cycles (RBCs).Design/methodology/approachFor this investigation, the authors model and estimate two dynamic stochastic general equilibrium (DSGE) versions for the US economy, one with and one without the presence of residential rent.FindingsThe findings provide evidence that the inclusion of the rental housing market can improve the assessment of public policies and the projection of scenarios in the face of sudden macroeconomic shocks. The addition of this secondary housing market augments the effect of total factor productivity (TFP) shock on output and consumption. In addition, it increases the effect of the credit shock on the demand for housing. The latter highlights the role of credit for the real estate market. Therefore, the authors recommend that analysts and macro-prudential authorities consider adding it to their models.Originality/valueThe findings provide evidence that the inclusion of the rental housing market can improve the assessment of public policies and the projection of scenarios in the face of sudden macroeconomic shocks.

Homeownership rates of financially constrained households

2017 ◽  
Vol 10 (2) ◽  
pp. 111-123
Author(s):  
Cecilia Enström-Öst ◽  
Bo Söderberg ◽  
Mats Wilhelmsson
Keyword(s):  
Housing Market ◽  
Design Methodology ◽  
Financial Constraints ◽  
Rental Housing ◽  
Probit Model ◽  
Tenure Choice ◽  
Content Type ◽  
Explicit Consideration ◽  
The Government ◽  
Rental Housing Market

Purpose This paper aims to examine tenure choice in the Swedish housing market with explicit consideration of households’ credit constraints in combination with age and ethnic background. Design/methodology/approach Observations of some 940,000 households were used to analyse the Stockholm housing market in 2008, prior to the implementation of the mortgage cap. The tenure choice models were estimated using a two-stage instrument variable (IV) logit and probit model with ownership or renting as outcome. Findings The results suggest, as expected, that being financially restricted is negatively related to owning. In particular, financial restriction is more binding for young households and households with a foreign background than for other types of households. These two sub-groups are also known to have difficulties establishing themselves in the rental housing market, and are therefore specifically vulnerable to further financial constraints such as borrowing restrictions or amortization requirements. Originality/value The government in Sweden has become concerned with the rapid growth in household indebtedness. As a response, a 0.85 loan-to-value ratio mortgage cap was introduced in 2010. However, critics are concerned with the effects this may have on the possibility for certain households to purchase a dwelling.

Investigating the impact of home-sharing on the traditional rental market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiuzhi Zhang ◽  
Zhijie Lin ◽  
Junghyun Maeng
Keyword(s):  
Housing Market ◽  
Relevant Literature ◽  
Rental Housing ◽  
Sharing Economy ◽  
Multiple Sources ◽  
Content Type ◽  
Level Data ◽  
Rich Data ◽  
The Impact ◽  
Rental Housing Market

PurposeThe sharing economy has enjoyed rapid growth in recent years, and entered many traditional industries such as accommodation, transportation and lending. Although researchers in information systems and marketing have attempted to examine the impacts of the sharing economy on traditional businesses, they have not yet studied the rental housing market. Thus, this research aims to investigate the impact of the sharing economy (i.e. home-sharing) on traditional businesses (i.e. rental housing market).Design/methodology/approachThe authors assemble rich data from multiple sources about the entry of a leading Chinese home-sharing platform (i.e. Xiaozhu.com) and local housing rental price index. Then, econometric models (i.e. linear panel-level data models) are employed for empirical investigation. Instrumental variables are used to account for potential endogeneity issues. Various robustness checks are adopted to establish the consistency of the findings.FindingsOverall, the estimation results show that the entry of a home-sharing platform will decrease the local housing rental price. Moreover, this impact would be strengthened in a more developed city. Additionally, this impact would be strengthened with higher prices of new houses or second-hand houses.Originality/valueFirst, this research is one of the first to study the impact of the sharing economy (i.e. home-sharing) on traditional markets (i.e. housing rentals). Second, it contributes to the relevant literature by documenting that the impact of a platform's entry is not uniform but contingent on city and housing market characteristics. Third, practically, the findings also offer important implications for platform operators and policy makers.

scholarly journals The securitization of residential rental revenue streams in Europe

2017 ◽  
Vol 10 (4) ◽  
pp. 503-518 ◽  
Author(s):  
Jaume Roig Hernando
Keyword(s):  
Real Estate ◽  
Housing Market ◽  
Risk Sharing ◽  
Rental Housing ◽  
Cash Flows ◽  
Property Market ◽  
Investment Funds ◽  
Content Type ◽  
The Usa ◽  
Residential Market

Purpose The purpose of this paper is to analyze the securitization of rental streams, a new investment and finance product introduced in the USA in 2013 that enables fundraising from large residential portfolios owned by major investment funds and investment banking. The securities are made up of non-performance loans as well as real estate portfolios of financial entities. Design/methodology/approach An academic analysis of the European securitization market is performed, as well as a broad overview of the state of the art of the rental housing market and investment property market. Moreover, a market study of Real Estate Owned (hereinafter, REOs) and Real Estate Debts is carried out to determine both the present framework and future trends. Various financial entities and real estate management companies are examined through interviews and data collection to assess the reality of distressed assets and residential portfolios owned by major investors. It introduced the Broker’s Price Opinion concept, de loan-to-value concept and the London Interbank Offered Rate. Findings REO-to-rental securitization is a step forward toward the democratization of finance through the globalization of the residential market, improving risk sharing for major and retail investors. The securitization of rental streams in Europe has not taken off, despite several issuances in the USA since 2013 with significant success where first tranches obtained a credit qualification of triple-A from the majority of the main rating agencies. Originality/value At the end of 2013, a global investment firm launched an innovative finance and investment vehicle that securitized the cash flows originating from leased residential properties. That issue resulted in considerable success and in the development of a new alternative and innovative financing source for real estate activity. Taking into account that housing is a primary need of our society, there is a strong motivation for improving the residential market, and thus, REO-to-rental securitization could help take a step forward in making the housing market more efficient.

scholarly journals The Impact of Migration on a Regulated Rental Market

REGION ◽  
2020 ◽  
Vol 7 (1) ◽  
pp. 35-48
Author(s):  
Adam Alexander Tyrcha
Keyword(s):  
Housing Market ◽  
Internal Migration ◽  
Rental Housing ◽  
Foreign Born ◽  
Limited Ability ◽  
Rental Market ◽  
Migration Flows ◽  
The Impact ◽  
The Relationship ◽  
Rental Housing Market

Throughout the 20th century, the Swedish rental market has generally been heavily regulated, with both a rental queue in place, as well as generally fixed rents, with limited ability to vary these. Though these systems remain in place, in the 21st century, a number of deregulatory measures have been taken. Meanwhile, evolving migration flows and strong humanitarian migration in particular have continued. These developments combined mean that now more than ever, impacts of migration on the rental housing market are increasingly likely. This paper investigates the relationship between foreign-born and internal migration and rents on the housing market. Findings suggest that foreign-born migration, and refugees in particular, impact rents, especially in major cities.

scholarly journals What Explains the Differential Treatment of Renters Based on Ethnicity? New Evidence From Sydney

2016 ◽  
Vol 54 (1) ◽  
pp. 107-136 ◽  
Author(s):  
George Galster ◽  
Heather MacDonald ◽  
Jacqueline Nelson
Keyword(s):  
Civil Rights ◽  
Housing Market ◽  
Rental Housing ◽  
Crime Rates ◽  
Differential Treatment ◽  
Contextual Analysis ◽  
Market Forces ◽  
Rental Market ◽  
New Evidence ◽  
Rental Housing Market

This article conducts the first contextual analysis of ethnic-based discrimination in an Australian rental housing market: metropolitan Sydney. Logistic regression is employed to investigate how the likelihood of five behaviors by rental agents that may favor Anglo home seekers varies according to characteristics of the agent, home seeker, dwelling, and neighborhood. We find that several forms of discrimination favoring Anglos are consistently more likely in neighborhoods characterized by lower crime rates and shares of renter households, regardless of the ethnicity of the agent. Other patterns are consistent with the hypothesis that, in general in the Sydney rental market, agents regardless of ethnicity are motivated to discriminate by statistical discrimination. Our result that profit, not prejudice, drives discrimination implies that it will prove resilient to unfettered housing market forces and changes in societal ethnic tolerance, but instead, must be addressed through enhanced civil rights enforcement strategies.

scholarly journals Online rental housing market representation and the digital reproduction of urban inequality

2019 ◽  
Vol 52 (2) ◽  
pp. 449-468 ◽  
Author(s):  
Geoff Boeing
Keyword(s):  
Housing Market ◽  
Smart Cities ◽  
Rental Housing ◽  
Search Costs ◽  
Poverty Rate ◽  
The Internet ◽  
Urban Inequality ◽  
The Usa ◽  
Housing Search ◽  
Rental Housing Market

As the rental housing market moves online, the internet offers divergent possible futures: either the promise of more-equal access to information for previously marginalized homeseekers, or a reproduction of longstanding information inequalities. Biases in online listings’ representativeness could impact different communities’ access to housing search information, reinforcing traditional information segregation patterns through a digital divide. They could also circumscribe housing practitioners’ and researchers’ ability to draw broad market insights from listings to understand rental supply and affordability. This study examines millions of Craigslist rental listings across the USA and finds that they spatially concentrate and overrepresent whiter, wealthier, and better-educated communities. Other significant demographic differences exist in age, language, college enrollment, rent, poverty rate, and household size. Most cities’ online housing markets are digitally segregated by race and class, and we discuss various implications for residential mobility, community legibility, gentrification, housing voucher utilization, and automated monitoring and analytics in the smart cities paradigm. While Craigslist contains valuable crowdsourced data to better understand affordability and available rental supply in real time, it does not evenly represent all market segments. The internet promises information democratization, and online listings can reduce housing search costs and increase choice sets. However, technology access/preferences and information channel segregation can concentrate such information-broadcasting benefits in already-advantaged communities, reproducing traditional inequalities and reinforcing residential sorting and segregation dynamics. Technology platforms like Craigslist construct new institutions with the power to shape spatial economies, human interactions, and planners’ ability to monitor and respond to urban challenges.

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