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Barriers encountered by apartment rental business in manila


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Barriers encountered by apartment rental business in manila

  1. 1. Barriers encountered by apartment rental business in ManilaPresented by:Donna dale RegidorLizel NipazAlpha May Nocilladosubmitted to:Dr. Teope<br />
  3. 3. BACKGROUND OF THE STUDY<br /> The rental apartment business itself continues to<br /> adapt and re-shape as different players enter the<br /> market and national boundaries become less <br />significant. Rental business have long been a popular <br />moneymaker.<br /> The objective of rental business is to help the <br />consumers by renting instead of buying in times of <br />financial hardship .Paying rent to the owner of the <br />property may help it gain an high profit to become <br />the business successful. Aside from creating an effective<br /> business plan owners should also make a marketing<br /> plan. This kind of business can generate more profit <br />because more people seek the rental services instead of <br />buying.<br />
  4. 4. The key point in opening a rental house business <br />is the competition and necessity of the locale. The<br /> foundations of the apartment rental business <br />comes in two forms, one apartment building is <br />refitted to become separate apartments for rent.<br />Two, an apartment building is raised on an<br />empty block of land. Renting an apartment or <br />a house is one of the profitable business these <br />departmentalize and house owners are looking<br /> for real state agents who can manage their<br />property for them.<br />
  5. 5. SIGNIFICANCE OF THE STUDY<br />The study will help the firms profit and the consumers welfare and <br />its benefit. The study can also be used as references to the owners and <br />anyone interested in rental business. The study will enable the owners<br /> more effectively in rental business and to the consumers to know the<br /> possible reasons why renting is important instead of buying .The <br />study was anticipated to contribute information to serve the following <br />rental business owners and individuals. This will be an effective tool<br /> for the consumers who would intend to rent and to the owners <br />particularly in rental business. The study will help the owners to <br />know what are the problems and barriers that a rental business<br /> encountered . The study focuses on identifying the business problems<br /> and strategy can used a rental management .<br />
  6. 6. Scope and Limitations<br />The scope of the study was confined mainly in the Manila. The study<br /> focuses its attention on the barriers of the apartment rental business <br />and its functions. The study aims to know what are the barriers that <br />being encountered of an apartment rental business. Too study also the <br />responsibilities of the owners and the renters right.<br />
  7. 7. DEFINITIONS OF TERMS<br />RENTAL BUSINESS<br />it can be operated at home or in a commercial space.<br />BARRIERS<br />-the factor that serves a barocade .<br />TENANT<br />-it is the one who rent the property of the landlord.<br />LANDLORD <br />-the person who owns the property and the one managed the apartment<br />CONTRACT<br />-the agreement that specify the terms of rentals.<br />LEASE<br />-this is the rental agreement for real state.<br />
  8. 8. Chapter II<br />Related review of literature studies<br />Foreign studies <br />Local studies<br />Local literature<br />Foreign literature<br />
  9. 9. FOREIGN STUDIES<br />FOREIGN STUDIES <br />In a study published in the journal of marriage and the family ,John <br />Model and Tamara assessed the nineteenth century heyday of <br />lodging in both domestic and commercial establishments ,nothing<br /> that two categories ( from point of view of the lodger)essentially <br />competed within a single market. Model found that the nineteenth<br /> century prevalence of rooming and boarding can be associated with<br /> rapid industrialization, urbanization, and population growth,<br /> coupled with increases in the number of manufacturing employees of <br />young ,unmarried working man and women in the cities and of foreign –<br />born urban residents- although the authors stressed that lodging was far <br />more characteristic of American and migrant cultures than of foreign <br />cultures, who generally turned to lodging only as an expedient. Model <br />proposed that in an industrializing rapidly urbanizing society, rooming<br /> and boarding was so widespread as to be reasonably considered <br />indispensable.<br />
  10. 10. Mark Peel, in an article published in the winter 1992 <br />Journal of American history, focused on the lodging house in<br /> the Boston in the second half of the nineteenth century. Peel <br />elaborated on the cultural distinctions between the often boarding<br /> house and the generally working or lower-class rooming house,<br /> which was less socially structured and less supervised by landlords<br /> and hosts. Peel included that the rooming house was not just a<br /> place where thousands of migrants and immigrants first met the<br /> American city, but a potentially radical housing alternative where <br />some urban dwellers explored a very different social trajectory <br />from those entered through the boarding house ,the tenement ,or<br /> the suburban home.<br />Lisa Fine, in a study published in the Journal of Social History <br />,described five particular boarding houses in Chicago that catered to<br /> women .These boarding houses ,in the first three decades of the <br />twentieth century, provided safe, respectable, home –like, low cost<br /> housing, and a vast array of social services that allowed white-<br />collar women to lead relatively independent lives.<br />
  11. 11. Wilson and Few (2007) are strong supporters of population <br />rates having an impact on rental rates within cities. Gall in<br /> (2008) noted that housing prices can be an indicator o rental <br />rates since they are related in many aspects. Economist such <br />as Gilder bloom and Appeal Baum even attributed changes in<br /> climate to rental rate fluctuation. The variables pertaining to rental <br />rate fluctuations are vast ,but have rarely been evaluated on a<br /> national scale. This aims to enhance the understanding in the real<br /> estate rental market by furthering the studies performed by<br /> Marco(2008) so that the model used can be adapted to cities of <br />different sizes within the United States. By using United States<br /> census bureau data from 2005 ,cities with populations over <br />100,000inhabitants will be analyzed in this study ,which gives a<br /> decent representation of the country as whole . The focus of this<br /> paper will be on average monthly apartment rental rates and how<br /> crime rates ,average apartment size, household income ,number of<br /> units within city, poverty rates ,population density, and real estate<br /> purchase value impact the fluctuations that occur in the real state <br />rental market.<br />
  12. 12. FOREIGN LITERATURE<br />This chapter presentation of literature and studies on <br />renting an apartment which the researches reviewed to<br /> provide a clearer view of the problem researches on the <br />relevant writings in the different country.<br />According to COOK(2009)investing in rent stabilized<br /> apartments present good opportunity to invest cash <br />flowing apartments buildings with upside potential.<br />Several states enacted legislation over the past 50+years to<br /> stabilize rents in the multifamily investment space. These <br />rent stabilized apartments typically rent for significantly <br />less than market rates and required owners to follow a set of <br />guidelines around raising rents and apartments maintenance.<br />
  13. 13. Before investing in a rent stabilized or rent <br />controlled building ,an investor should do specific<br /> research around how much rent can be charged and<br /> when and how units can be de-stabilized or de-<br />controlled .Investors should consider when investing<br /> in rent stabilized apartment buildings.<br />First ,consider the basic cash flow strategy. Simply <br />holding the properties guarantees an investor a set <br />amount of cash flow every month. Additionally, the <br />set rent increase allow for an investor to benefit<br /> despite changes in the market rate rent.<br />
  14. 14. According to WASHL(2009)finding and moving <br />to new apartment can be stressful process. <br />Fortunately ,some advance planning can help make <br />rental housing choices easier. Renters searching for a <br />new apartment should first decide on what they are <br />looking for. When looking for an apartment it is <br />important to remember that amenities like swimming<br /> pools, exercise rooms and dishwasher are luxuries<br /> that can drive up the prices of an apartment. Every <br />renter wants to save much money possible on their<br /> rental accommodation.<br />
  15. 15. According to WALLCE(2009)in her article the landlord rights<br /> and responsibilities. It is important to protect your rights and <br />your duties when renting a property to a tenant. In order for<br /> both parties to succeed in a rental arrangement ,the agreement<br /> should be well thought out and understood by both parties.<br /> Most disputes in rental relationship arise when there is a <br />misunderstanding regarding the rights and responsibilities of<br /> both the landlord and the tenant. A landlord has aright to a <br />expect a tenant to keep the apartment clean and in good repair<br />, and to leave it in the same condition in which they moved in. <br />The landlord can also expect a tenant to notify him of any<br /> damage to the apartment. The landlord has the right to expect <br />that the rent upon be paid in full and on time. The landlord has the<br /> right to name price, but cannot change the amount of rent during <br />the term of the lease. The tenant has the right to expect that the <br />procedures for paying rent be clear ,and that any changes in the <br />policies be announced clearly and with enough notice to comply<br />
  16. 16. LOCAL STUDIES<br />According to Marine Ballesteros , Rental housing<br /> ,opening doors for low- income households . <br />Owning a house has always been associated to<br /> affluence ,security and stability. Many people<br /> would delay buying but would really save in <br />their lifetime just to have a place that they can call <br />their own . Especially for a family <br />, homeownership is very important resource <br />given the economic ,psychological and social<br /> benefits it offers.<br />
  17. 17. FOREIGN STUDIES<br />According to Katrina Wallace(2009) in her article the landlords rights<br /> and responsibilities ,it is important to protect your rights and <br />understanding your duties when renting a property to a tenant. In<br /> order for both parties to succeed in a rental arrangement ,the <br />agreement should be well thought –out and understood by both <br />parties. Most disputes in rental relationships arise when there is a <br />misunderstanding regarding the rights and responsibilities of both <br />the landlord and tenants. A landlord has a right to expect a tenant to<br /> keep the apartment clean and in good repair ,and to leave it in the <br />same condition in which they moved in. The landlord can also expect <br />a tenant to notify him of any damage to the apartment ,to repair any minor <br />damage ,and to keep the apartment in good repair . If <br />tenant damages the apartment ,or leaves it dirty at the end of the lease<br /> ,the landlord has the right to deduct from the tenants security deposit the <br />cost of cleaning and repairing the apartment to bring it up to its original<br /> condition.<br />
  18. 18. STATEMENT OF THE PROBLEM<br />This study aimed determine what are the barriers<br /> and problems that are been encountered by the <br />rental business and what are the things to be <br />consider and preparations need before you own a <br />rental property.<br />
  19. 19. GENERAL PROBLEM<br />The researchers study the problems that been <br />encountered by the rental business. This study<br /> anticipated to contribute additional information <br />to the individuals and business taking rental <br />business.<br />
  20. 20. SPECIFIC PROBLEM<br />SPECIFIC PROBLEM<br />What is the demographic profile of the respondents in terms of the following variables.<br /> 1.0name<br /> 2.0gender<br /> 3.0status<br /> 4.0estimated monthly income<br /> 5.0background of the study<br />