Influence of Quality of Property Management Services on Property Value
Residential property is similar to other commodities in the market that has a value determined by its price (Li, Monkkonen, 2014). Several variables determine the value of the residential property. Some attributes impact its value, like location, structure, and quality of the surrounding environment. The diverse nature of residential properties makes the various stakeholders value these variables differently (Abidoye & Chan, 2016). Besides the physical attributes of a residential property, potential buyers also look into the quality of property management services’ quality. This study determined the if there is quality in the performance of property management services provided by local Property Management Companies (PMC) of residential condominiums within Metro Manila and examined if there is a correlation between the perceived performance of property management services and property value. The participants were either unit owners or tenants of various residential condominiums which are being managed by local PMC. The sample size of 157 was determined using GPower software in conducting the power analysis using 80% statistical power, small to medium effect size (.06), 5% level of significant, and five formative indicators. The paper used the Structural Equation Modeling to determine whether there is a relationship between property management services and property value. The study utilized the descriptive research design such as survey questionnaire and secondary data. The empirical results show that property management services have a significant and positive relationship with property value. The implications of the results denote that quality property management increases the value of a property and adds value to it.
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