BARRIERS ENCOUNTERED BY APARTMENT RENTAL BUSINESS IN MANILA DONNA DALE REGIDOR LIZEL NIPAZ ALPHA MAE NOCILLADO
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.
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.
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.
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.
Definition of terms RENTAL BUSINESS -it can be operated at 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
CHAPTER II REVIEW OF RELATED LITERATURE AND STUDIES
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.
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.
The Act essentially made it legal to impose age restrictive covenants on 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.
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.
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 save much money possible on their rental accommodation.
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.
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.
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.
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.
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.
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 single market.” 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.”
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.
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.
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.
SPECIFIC PROBLEM What is the demographic profile of the respondents in terms of the following variables? 1.0 name 2.0 gender 3.0 status 4.0 estimated monthly income 5.0 financial support
BARRIERS ENCOUNTERED IN APARTMENT RENTAL BUSINESS IN MANILA BARRIERS ENCOUTERED BY THE APARTMENT RENTAL BUSINESS RESPONDENT PROFILE
NAME: AGE: [ ]30 below [ ]31-50 [ ]50above
CIVIL STATUS: single married NO.OF DEPENDENT CHILDREN: [ ] 1-3 [ ]4-6 [ ]6more
EDUCATIONAL BACKGROUND: [ ] college graduate [ ]high school graduate [ ] post graduate
PROCESS -SURVEY -OBSERVATION -UNSTRUCTED INTERVIEW
OUTPUT -TO KNOW MORE INFORMATION ABOUT THE RENTAL BUSINESS -TO SOLVE THE BARRIERS THAT BEE NENCOUNTERED BY THE APARTMENT RENTAL BUSINESS -ADVANCING ACTIVITIES
PROFILE -AGE -GENDER -BACKGROUND STUDY -STATUS -ESTIMATED MONTHLY INCOME -NO.OF DEPENDENT CHILDREN
CHAPTER 3 METHODOLOGY
INTRODUCTION Research Method is the procedure of careful investigation employing an instrument to gather information for building thesis of knowledge which provides answer to 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
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.
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.
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: ==
The computation for the degree of freedom is necessary in order to obtain the critical value (P). The formula is:
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
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.