Assessing the impact of property management on occupancy and retention rates in office space commercial buildings.

Abstract

The purpose of this study was to analyse the impact of property management on occupancy and retention levels in office space commercial buildings. The research objectives were; to identify the causes of vacancies and low tenant retention levels in office space commercial buildings, to determine the impact of property management on occupancy levels and client retention in office space commercial buildings, to compare the occupancy and retention levels of office space buildings managed by property managers and those that are self-managed by the property owners and to provide sustainable recommendations to improve occupancy and retention levels in office space commercial buildings.. The study was conducted in Nakasero and Kololo. The research was based on Primary data that was collected using self-administered questionnaires. The Data was analysed using mean, Graphs, pie-charts and tables. The research findings revealed that there was a significant relationship between using property managers and occupancy levels of office space commercial buildings. The findings also revealed that there was a significant relationship between using property managers and client retention in mixed use commercial buildings. The major challenges faced by property managers included; default and delayed payments, property damages, poor cooperation among tenants, bad perception of landlords about property managers, and lack of holidays. These challenges were responsible for the performance of the property managers and both directly and indirectly affect the returns on investment realized from these commercial buildings. There is a need for sensitizing the public about the need and benefits of using professional property management services. The government should emphasize and enforce the laws that guide property management in Uganda. Property managers should create and maintain a good client-manager’s relationship. There is a need to make property management services more affordable, as this would invite more landlords to use the services. Professional property management is a prerequisite for realization of better occupancy and retention rates of buildings. This avenue is inevitable for the development of the real estate sector in Uganda. The benefits it provides are so attractive.