Assessment of Initial Rent Financing Methods and Rent Sustainability among Residential Tenants in Ibadan, Nigeria

This study explores the relationship between initial rent financing methods and the sustainability of rent payments among residential tenants in Ibadan, Nigeria. A descriptive survey design was employed, and primary data were gathered through a structured questionnaire administered to 309 residential tenants who have occupied their rental properties for two years or more. The analysis utilized statistical techniques, including Chi-square tests and Binary Logistic Regression, to explore the associations between tenants' socioeconomic characteristics, initial rent financing methods, and outcomes related to rent sustainability. The findings indicate that tenants employed various strategies to finance their initial rent, including personal savings, cooperative society loans, bank loans, thrift contributions (ajo/esusu), salary advances, and financial assistance from friends and family. Thrift contributions and cooperative society loans were identified as the most commonly utilized financing methods. Notably, tenants who relied on personal savings exhibited a significantly higher likelihood of being able to sustain their rent obligations over time. In contrast, those who depended on borrowed or informal sources demonstrated a greater tendency toward rent unsustainability, though not all differences reached statistical significance. The study concludes that the method of initial rent financing plays a pivotal role in influencing future rent sustainability. Therefore, it recommends the promotion of a saving-oriented rent culture, the enhancement of financial literacy among tenants, and a comprehensive reevaluation of housing policies aimed at addressing long-term affordability challenges.