Rental Values and Students’ Satisfaction in Private Hostels Proximate to the Federal University of Technology, Akure, Nigeria

Abstract

Property rental values are readily influenced by a multitude of interrelated factors such as the state of the economy, neighbourhood amenities and property characteristics. However, there is always an expectation that rental value reflects the occupier’s satisfaction from the neighbourhood and property. As such, this study examines the satisfaction of students with private hostel facilities surrounding the Federal University of Technology Akure (FUTA), and the effect these facilities have on the rental values of the off-campus students’ hostels. There are 17,307 students who reside in the private hostels off-campus, of which 392 students were randomly selected from the total population of residents living around FUTA South Gate and given questionnaires. Of the 392 questionnaires administered, 390 were retrieved for analysis, thus representing a 99.5% response rate. The data collected was then analyzed using the Weighted Mean Score (WMS), T-test Statistics, Spearman Rank Correlation and the Multiple Regression Analyses. The findings reveal that there is a significant difference in the rental price paid by satisfied and unsatisfied students. Thus, the satisfied students pay higher rents than the non-satisfied students for a single, self-contained apartment. These occupiers are found to be satisfied with facilities such as the toilet, bathroom, fencing and water supply system in the building. There is a positive relationship between students’ rent satisfaction and their satisfaction with hostel facilities provided. The regression analysis further reveals that rental value is a function of neighbourhood amenities and property characteristics. The study recommends that private hostel developers make adequate provision for functional facilities as these can increase students’ satisfaction as well as enhance residential property rental values.