Factors Influencing the Occurrence of Rental Arrears among Tenants in Awka, Anambra State, Nigeria: Evidence from 2015 to 2025

Abstract

Rental arrears constitute a major challenge in the management of income-generating properties, as they can disrupt rental cash flow and affect the financial performance of property investments. This study examined the factors influencing the occurrence of rental arrears among tenants in Awka, Anambra State, Nigeria, over the period 2015–2025. A descriptive survey research design was adopted, and primary data were collected in 2026 through structured questionnaires administered to tenants, landlords, and property managers in selected neighbourhoods of Awka and its surrounding communities. A sample size of 384 respondents was determined using Cochran’s formula. Of the 384 questionnaires administered, 336 were retrieved and found valid for analysis, representing an 87.5% response rate. The data were analysed using frequencies, percentages, mean scores, and standard deviations. The findings revealed that loss of employment or reduced income recorded the highest mean score (Mean = 5.00; SD = 0.00), followed by unexpected financial obligations such as medical expenses, school fees, and family responsibilities (Mean = 4.86; SD = 0.38). Poor personal financial planning and budgeting recorded a mean score of 4.85 (SD = 0.41), while rising inflation and cost of living recorded 4.82 (SD = 0.49). High rent relative to tenants’ income recorded a mean score of 4.57 (SD = 1.03). The results indicate that respondents perceived income instability, unexpected financial obligations, financial planning practices, inflation, and rent affordability as important factors associated with rental arrears. The study recommends that landlords and property managers adopt appropriate tenant assessment procedures, monitor rental payments, establish clear communication channels, and consider structured payment arrangements for tenants experiencing genuine temporary financial difficulties. The findings are descriptive and reflect respondents’ perceptions; they do not establish statistical relationships or causation.