barriers encountered by apartment rental business in manila
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- 1. BARRIERS ENCOUNTERED BY APARTMENT RENTAL BUSINESS IN
MANILA
DONNA DALE REGIDOR
LIZEL NIPAZ
ALPHA MAE NOCILLADO
2. CHAPTER I
3. BACKGROUND OF STUDY
The rental apartment business itself continues to adapt and
re-shape as different players enter the market and national
boundaries become less significant. Rental business have long been
a popular moneymaker.
The objective of rental business is to help the consumers by
renting instead of buying in times of financial hardship Paying
rent to the owner of the property may help it gain an high profit
to become the business successful. Aside from creating an effective
business plan owners should also make a marketing plan. This kind
of business can generate more profit because more people seek the
rental services instead of buying.
4. The key point in opening a rental house business is the
competition and necessity of the locale. The foundations of the
apartment rental business comes in two forms, one apartment
building is refitted to become separate apartments for rent.
Two, an apartment building is raised on an empty block of land.
Renting an apartment or a house is one of the profitable business
these departmentalize and house owners are looking for real state
agents who can manage their property for them. You can start making
money by renting your own or managing others house and apartments.
Rent depends on the upon many factors like location ,dimension, and
amenities.
Competitively, pricing the apartment is a great selling point, but
since this is a business venture, there must be some income
ranking.
5. SIGNIFICANCE OF STUDIES
The study will have a small profit and its benefits. The study can
also be used as reference to the owners and anyone interested
rental business. The study will enable to owners more effectively
in rental business and to the consumers to know the possible
reasons why renting its important instead of money. The study was
anticipated to contribute additional information to serve the
following rental business owners and individuals. This will be an
effective tool for the consumers who would intend to rent and to
the owners particularly in rental business. The study will help the
owners to know what are the problems and barriers that a rental
business encountered. The study focuses on identifying the business
problems and strategy and how strategy can used a rental
management.
6. SCOPE AND LIMITATION
The scope of the study was confined mainly in the manila. The study
focused its attention on the barriers encountered of the apartment
rental business and its function. The study aims to know what ate
the barriers that being encountered of an apartment rental
business. Too study also the responsibilities of the owners and the
renters right.
7. Definition of terms
RENTAL BUSINESS
-it can be operatedat home or in a commercial space.
BARRIERS
-the factor that serves a barricade.
TENANT
-it is the one who rent the property of the landlord.
LANDLORD
-the person who owns the property and the one who managed the
apartment.
CONTRACT
-the agreement that specify the terms of rentals.
LEASE
-this is the rental agreement for real state
8. CHAPTER II
REVIEW OF RELATED LITERATURE
AND
STUDIES
9. RELATED LITERATURE
According to Real State JOURNAL Research (2009) Amendments to the
fair lending act have exempted an age restriction on ownership from
fair housing prohibitions. This paper studies the economic impact
of such ownership restriction on housing values. Using American
Housing Survey data, we find that there is a significant premium
attached to the restrictive covenant when other factors are
controlled .In particular, we find that imposing age restriction on
ownership increases the housing values by anywhere from 10.5% to
12.7%. At the average house value, this is equivalent to a dollar
amount between $14,642 and $17,399.The estimates are to bust to
different specifications in hedonic equations.
The aging population has been recognized as one of the most
profound demographic changes in the United States. For instances,
census 2000 found that demographic changes in the United
States.
10. The shift is owned to fact that ,in the 1990,the nation largest
population cohorts-representing baby boomers born between 1945 and
1965 transitioned into the 35 and over age category. Over the ten
year period ,the 5054 age group (WHO WERE 55-59 in 2005)experienced
the largest percentage growth in population- 55% or 6.2 million
people. This trend will continue for the same reason, as well as
the persistent low fertility rate and growing longevity. The aging
of America has important implications for the housing and mortgage
industries for a number of reasons .To address housing needs for
aged Americans, the fair housing act has exempted from its familial
status provisions properties that satisfy the Acts 55-and older
housing condition under the 1998 amendment and subsequent changes
made under the Housing for older persons Act ,a 1995
amendment.
11. The Act essentially made it legal to impose age restrictive
covenantson a property and permissibly discriminate against
non-aged households. Most of these properties are located in
traditional retirement magnets. Census 2000found that suburbs with
the fastest growth in persons aged 55 and over are located
predominantly in New Sunbelt metros while suburbs with the largest
proportions of these individuals are located in Rustbelt
metros.
12. FOREIGNLITERATURE
This chapter presentation of literature and studies on renting an
apartment which the researches reviewed to provide a clearer view
of the problem researches on the relevant writings in the different
country.
According to COOK(2009)investing in rent stabilized apartments
present good opportunity to invest cash flowing apartments
buildings with upside potential.
Several states enacted legislation over the past 50+years to
stabilize rents in the multifamily investment space. These rent
stabilized apartments typically rent for significantly less than
market rates and required owners to follow a set of guidelines
around raising rents and apartments maintenance.
13. Before investing in a rent stabilized or rent controlled
building ,an investor should do specific research around how much
rent can be charged and when and how units can be de-stabilized or
de-controlled .Investors should consider when investing in rent
stabilized apartment buildings.
First ,consider the basic cash flow strategy. Simply holding the
properties guarantees an investor a set amount of cash flow every
month. Additionally, the set rent increase allow for an investor to
benefit despite changes in the market rate rent.
According to WASHL(2009)finding and moving to new apartment can be
stressful process. Fortunately ,some advance planning can help make
rental housing choices easier. Renters searching for a new
apartment should first decide on what they are looking for. When
looking for an apartment it is important to remember that amenities
like swimming pools, exercise rooms and dishwasher are luxuries
that can drive up the prices of an apartment. Every renter wants to
savemuch money possible on their rental accommodation.
14. Before investing in a rent stabilized or rent controlled
building ,an investor should do specific research around how much
rent can be charged and when and how units can be de-stabilized or
de-controlled .Investors should consider when investing in rent
stabilized apartment buildings.
First, consider the basic cash flow strategy. Simply holding the
properties guarantees an investor a set amount of cash flow every
month. Additionally, the set rent increase allow for an investor to
benefit despite changes in the market rate rent.
According to WASHL(2009)finding and moving to new apartment can be
stressful process. Fortunately, some advance planning can help make
rental housing choices easier. Renters searching for a new
apartment shoul first decide on what they are looking for. When
looking for an apartment it is important to remember that amenities
like swimming pools, exercise rooms and dishwasher are luxuries
that can drive up the prices of an apartment. Every renter wants to
save much money possible on their rental accommodation.
15. A landlord has aright to a expect a tenant to keep the
apartment clean and in good repair, and to leave it in the same
condition in which they moved in. The landlord can also expect a
tenant to notify him of any damage to the apartment. The landlord
has the right to expect that the rent upon be paid in full and on
time. The landlord has the right to name price, but cannot change
the amount of rent during the term of the lease. The tenant has the
right to expect that the procedures for paying rent be clear, and
that any changes in the policies be announced clearly and with
enough notice to comply.
16. LOCAL LITERATURE
This chapter is a presentation of literature and studies on renting
an apartment which the researchers reviewed to provide a clearer
view of the problem researches on relevant writing and studies in
the Philippines to obtain wider view on the concept regarding the
study.There are several types of rental housing. Rental housing
varies type, size construction quality, ownership, rents, kinds if
contracts and profitability. Rental has become a source of income
for low-income households. Low income owner households providing
rental accommodation to low income a tenant has become a trend.
This has provided owners additional income to invest on housing.
Low income tenants often live the same structure as their
landlords.
if you are thinking of giving home as an apartment rental there are
many things you need to do prepare it for the tenant. First, you
should the feeling of becoming a landlord. Hence, you should have
skills pertaining to management of rental properties NYC and skills
for proper fulfillment of tenant demands.
17. LOCAL LAWS
As a prospective landlord ,you should be familiar with local
regulations and laws pertaining to apartment rental .Since NYC laws
are very stringent ,if you do not adhere to such regulations ,you
could be charged with legal actions. This can eventually result in
tremendous amount of loss for your NYC apartment rental business.
Depending on, which area your apartment is in whether it is in
Sotho or Lower East Side or any NYC area ,make sure you know the
local regulations on apartment rentals beforehand.
WHY PREPARING HOUSE ESSENTIAL
One of the primary aspects ,which impact the success or failure of
any apartment rental business is the house itself. This is why any
house ,which is to be ranted out should be prepared thoroughly in
advance. The other reason why preparing the home beforehand is
essential is because it establishes the good relationships between
the tenant and the landlord.
18. RECURRING BUSINESS
When your tenants are happy with the overall functionality and
quality of the apartment rental ,when they move out ,they are very
likely to give a positive feedback about the apartment to other
prospective tenants. In this manner ,you can expect your apartment
rental business NYC to grow and expand in the future.
CLEANLINESS
The first most important aspect of preparing a home for apartment
rental is to give it a thorough cleaning. This essential not only
for the items and spaces ,which can be seen but also for areas such
as the attic, cabinets ,basement etc.
19. FOREIGN STUDIES
In the study published in the journal of marriage and the family
,John Model and Tamara Hareven assessed the nineteenth century
heyday of lodging in both domestic and commercial establishment,
nothing that these two categories (from the point of view of the
loger) essentially competed within a singlemarket. Modell and
Hareven found that the ninety century prevalence of rooming and
boarding can be associated with rapid industrialization,
urbanization and population growth couple with increases in the
number of manufactory employees of young unmarried, working men and
women in the cities and of foreign-born urban residents- though the
authors stressed that lodging was far more characteristic of
American and migrant cultures than of foreign cultures, who
generally turned to lodging only as an expedient. Modell and
Hareven proposed that industrializing, rapidly society, rooming and
boarding was so widespread as to be reasonably considered
indispensable.
20. According to REAL STATE JOURNAL RESEARCH (2009) Amendments to
the Fair Lending Act have exempted an age restriction on ownership
from fair housing prohibitions. This paper studies the economic
impact of such ownership restriction on housing values. Using
American Housing Survey data, we find that there is a significant
premium attached to the restrictive covenant when other factors are
controlled. In particular, we find that imposing age restriction on
ownership increases the housing values by anywhere from 10.5% to
12.7%. At the average house value, this is equivalent to a dollar
amount between $14,642 and $17,399. The estimates are robust to
different specifications in hedonic equations.
21. STATEMENT OF THE PROBLEM
This study aimed determine what are the barriers and problems that
are been encountered by the rental business and what are the things
to be consider and preparations need before you own a rental
property.
22. GENERAL PROBLEM
The researchers study the problems that been encountered by the
rental business. This study anticipated to contribute additional
information to the individuals and business taking rental
business.
23. SPECIFIC PROBLEM
What is the demographic profile of the respondents in terms of the
following variables?
1.0name
2.0gender
3.0status
4.0estimated monthly income
5.0financial support
24. BARRIERS ENCOUNTERED IN APARTMENT RENTAL BUSINESS IN
MANILA
BARRIERS ENCOUTERED BY THE APARTMENT RENTAL BUSINESS
RESPONDENT PROFILE
NAME:
AGE:[ ]30 below[ ]31-50[ ]50above
GENDER:
CIVIL STATUS: single married
NO.OF DEPENDENT CHILDREN:
[ ] 1-3 [ ]4-6[ ]6more
EDUCATIONAL BACKGROUND:[ ] college graduate
[ ]high school graduate
[ ] post graduate
25. MONTHLY INCOME: [ ] 7,000below
[ ] 7,001-15,000
[ ] 15,000-abovE
IN GENERAL, HOW WOULD YOU RATE THE APARTMENT RENTAL BUSINESS AS ONE
OF THE GAINING MORE BUSINESS PROFIT
________VERY POOR
________POOR
________SATISFACTORY
________VERY SATISFACTORY
26. CONCEPTUAL FRAMEWORK
PROCESS
-SURVEY
-OBSERVATION
-UNSTRUCTED INTERVIEW
OUTPUT
-TO KNOW MORE INFORMATION ABOUT THE RENTAL BUSINESS
-TO SOLVE THE BARRIERS THAT BEE NENCOUNTERED BY THEAPARTMENT RENTAL
BUSINESS
-ADVANCING ACTIVITIES
PROFILE
-AGE
-GENDER
-BACKGROUND STUDY
-STATUS
-ESTIMATED MONTHLY INCOME
-NO.OF DEPENDENT CHILDREN
27. CHAPTER 3 METHODOLOGY
28. INTRODUCTION
Research Method is the procedure of careful investigation employing
an instrument to gather information for building thesis of
knowledge which provides answerto problem. This research will
encounter necessary methods and techniques in order to collect data
to be used in the study. This will undergo research design,
respondents of the study ,instruments ,procedure in data gathering
and statistical treatment of data.
3.1 RESEARCH DESIGN
The descriptive research has been used in the study. This was
deemed appropriate because the research attempted to analyze what
are the barriers encountered by the rental business in
Manila.
3.2 POPULATION AND SAMPLING TECHNIQUE
29. 3.3 RESPONDENTS OF THE STUDY
The researchers will able to gather information from people who
owned an apartment rental business, believing that they have the
greater knowledge of the study. The respondents were the
individuals taking rental business.
3.4 INSTRUMENTS USED
The researchers will going to used questionnaires as its major
instruments for data gathering which is commonly used in studies.
The content of the questionnaires were made to gather more
information on the study.
30. STATISTICAL TREATMENT OF DATA
The data that will be gather from the respondents were
statistically be tabulated ,will analyzed and were going to be
presented on tables embodied in the study. The researcher will
applied the following statistical treatment of data for the
solution to the problem.
FREQUENCY- these tools facilitate the tallying and counting of
frequencies based on each item or category.
PERCENTAGE- used to qualify the actual response given by the
respondents regarding the questionnaire. This will be computed by
dividing the number of responses by the number of respondents and
the quotient will multiplied by one hundred.
31. Percentage Formula
%=f/nx100
Where:
%=percentage
F=frequency
n=total number of respondents
2.CHI SQUARE
CHI SQUARE- a statistical calculation used to test how well the
distribution of a set of observed data matches a theoretical
probability distribution.The calculated value is equal to the sum
of the squares of the differences divided by the expected
values.
WHERE:
= =Chi square
Fo=observed frequency
Fe=expected frequency
This is the formula for chi square:
==
32. The computation for the degree of freedom is necessary in order
to obtain the critical value (P). The formula is:
df= (r-1)(k-1)
Where:r = number of rows
k = number of columns
df= degree of freedom
Hypothesis
Ho = there is no significant variation between the obtain/actual
and expected frequencies
Ha = There is a significant variation between the obtain/actual and
expected frequencies
Where:
Ho = Stands for Null Hypothesis
Ha = Stands for Alternative Hypothesis
33. 3.WEIGHTED MEAN
Another statistical technique used by the researchers was the
weighted mean. It was used to determine the averages responses of
the different options provided in the various parts of the survey
questionnaire used. The method is used in conjunctions with the
likert scale. It was solved by the formula
X= fx/n
where;
X= weighted mean
fx/n= the sum of all the products of f and x ,being frequency of
each weight of each operation
N= total number of respondents
4.RANKING
This is a descriptive measure to describe numerical data in
addition to percentage. Ranking was used in the study for the
comparative purpose and for shrink the importance of items
analyzed.