Assessing the effects of building Finishes and housing facilities on rental value of residential properties in Kampala.

Abstract

Tenants are the focus of activities in the housing market and efforts are channeled towards the satisfaction of their needs and wants. This study examines the impacts of building finishes and housing facilities to rental value in Rubaga division for better information and guide to real estate investors The objectives of the study include among others, identification the types of residential houses and the various finishes and facilities on the houses, establishment of the rent payable, Examination of Tenants Perceptions of Finishes and Facilities in Residential Properties, evaluate the contributions of these finishes/facilities to the property values and finally identifying the challenges facing both study groups and possible recommendations. The study populations were tenants and land lords in the eight settlements of Rubaga division which include; Mutundwe, Nateete, Ndeeba, Mengo Busega, Lubaga, Kabowa, Lubya and the samples were picked from each of these neighborhoods. 280 questionnaires were administered to both study groups and 23 variables consisting of various finishes and facilities were considered in the analysis. The tenants’ responses were ranked using Relative Importance Index (RII) and rental information provided by landlords based on facilities/finishes available in different types of residential houses were analyzed using T-test statistic to identify whether significant difference does exist or not between rents for properties with and without most desired variable components at 5% level of significance.