Outsourced versus in-house property management. an examination of the impact of property management on commercial property performance in Nakasero Parish , Kampala.

Abstract

Ugandan, the real estate sector in Kampala has witnessed heightened growth, with tenants increasingly demanding improved property management services. All this amidst limited empirical studies to determine what really matters to choose a property management method. The study investigated the impact of outsourced and in-house property management on property performance indicators. The specific objectives of the research included; to determine the extent to which in-house and outsourced property management contribute to higher occupancy rates, to assess the impact of outsourced and in-house property management on rental income and to evaluate the impact of in-house and outsourced property management on tenant satisfaction levels. The research examined occupancy rates, rental income, and tenant satisfaction levels across twenty commercial buildings in Nakasero parish Kampala, Uganda. The research adopted a descriptive survey design. Questionnaires that sought to answer the research objectives were issued to a sample size of 120 respondents that included tenants and property managers from twenty buildings and ten were managed in-house, while the other ten utilized outsourced property management firms. The study revealed that outsourced property management may lead to superior outcomes. That included potentially increased occupancy rates, reduced vacancy periods, and higher rental income. Tenant satisfaction was also enhanced through improved responsiveness, maintenance quality, and overall experience. The findings highlighted the potential benefits of outsourcing, such as access to specialized expertise, economies of scale, and dedicated focus. However, the importance of considering a property's specific context (size, type, location) was emphasized. Landlords should weigh the potential advantages of outsourcing against the need for control and customization when making a decision. The research contributes to the ongoing discussion on property management strategies by providing empirical evidence on the performance of outsourced and in-house models. The findings inform landlords in their decision-making processes, ultimately leading to optimized property performance and value creation.