Ethnic bias in tenant selection in metropolitan Ibadan private rental housing market

Abstract

PurposeThe purpose of this study is to investigate the presence of ethnic bias in residential tenancy and the relationship between ethnic bias tendency of property managers/landlords and their demographic features.Design/methodology/approachData for the study were gathered from administration of questionnaires, designed with items measuring bias tendency and the driving factors on the perceived wave of discrimination on residential tenancy. The structured questionnaires were administered on an intact sample of licensed property managers/agents (practicing Estate Surveyors and Valuers) at annual Mandatory Continuing Professional Development Programme (MCPD) held in metropolitan Ibadan, the largest indigenous city in West Africa and one of the commercial nerve‐centres in the country. Data collected were analyzed using descriptive analysis, chi square and factor analysis.FindingsThe study confirmed a significant relationship between the ethnic status of the principal managers (managing directors) who were mainly Yoruba aliens and the tenants selected to fill vacancies, which implies that there is presence of ethnic discrimination in tenant selection in the area. It is also confirmed that landlord/property manager (agents) experience, environmental influence and landlord/property manager preference are the most driving factors for discriminating against tenants in the city. It is further revealed that there is a significant relationship between two demographic features; professional qualifications and ages of the property managers’ firms and bias tendency.Research limitations/implicationsThe research is limited to the metropolitan city of Ibadan, a city with expatriates and diverse ethnic groups working at different sectors of the economy. Further research and statistical tests that covers all the 36 capital cities of the country are required to examine the tenancy nature of other classes of property.Practical implicationsThe implication of the study to the practice is reinforced by the consensus character of the study with the professional body (property managers). Insight and findings prove useful in developing a blueprint for curbing acts of discrimination which needs to be well addressed in property management practice. It implies that effective property rights that protect the rights and rental market planning policy in the developing nations require further reform.Originality/valueEmphasis on tenants’ rights, campaign against racism and discrimination in the developing nations which support equal housing right for all races is the feature and uniqueness of this study.