AN ANALYSIS OF RENTAL VARIATION IN RESIDENTIAL AND COMMERCIAL PROPERTY IN LOKOJA, KOGI STATE

This study examined rental variations between residential and commercial properties in Lokoja, Kogi State, with a focus on identifying current trends, factors influencing rental values, differences in rent collection methods, and the implications for property investment and management. Using a structured questionnaire, data were collected from landlords, tenants, and property managers across different parts of Lokoja. The data were analyzed using descriptive statistics, and results were presented in tables with percentages. Findings revealed that commercial rental values were significantly higher and more volatile than residential rents, particularly in prime business districts such as Ganaja, Phase II, and Old Market Road. Location was identified as the most influential factor affecting rental variation, with 85% of respondents emphasizing its importance. While residential properties relied mostly on annual rent collection (60%) with higher payment consistency (68%), commercial properties often required 1–2 years of advance payment (52%) but had lower payment consistency (49%). The study also found that high commercial rents attracted investors seeking higher returns, while the relative stability of residential rents appealed to those preferring long-term, low-risk investments. The study concludes that rental variations in Lokoja are shaped by demand dynamics, location, and property type-specific management practices. Commercial properties offer higher but riskier returns, whereas residential properties provide steadier income streams. It is recommended that investors adopt location-based strategies, diversify their property portfolios to balance risk and returns, and improve rent collection systems for both property types to enhance investment sustainability.