Residential properties are globally recognized as essential part of human life where dealings between landlords and tenants would continue in perpetuity. They encompass bundles of unique characteristics affecting willingness to pay by prospective tenants looking to rent. Therefore, the need to ensure that the common property resource embedded in a property is not over-consumed by landlords to the detriment of market rent and tenants’ welfare is imperative. This study examines the impact of negative externality created by location of graves within residential properties in an unregulated informal property market. In the absence of hedonic expression of values on the observed negative externality, the study applied stated choice method to collect choice data from respondents. In specific term, the research methodology involves the use of choice based conjoint analysis for research design and data collection. Data analysis involves application of basic Multinomial logit model for parameter estimation at aggregate level. In order to overcome the shortcomings of this model, parameters were further estimated using Hierachical Bayes model which allows individual estimation of level effect and internal model validation. Estimation of average contribution of attributes to the tenants' choice process shows a departure from previous studies that found rent as the major factor affecting possibility of renting a residential property. Grave has the greatest impact on probability of choosing a residential property, with 22% contribution to decision to rent. Model also reveals that tenants are willing to accept between 15% and 20% discount of property's market rent to rent a property with grave; however, the discount vary across different location of graves within the residential properties.