The document discusses rental apartment businesses and provides background information. It covers several topics related to rental businesses including objectives, competition, necessary factors for starting a rental business, and the significance and scope of studies on rental businesses. It also provides definitions of key terms and discusses related literature from local and foreign sources.
This lesson talks about the introduction of accounting. This is only intended for educational purposes. This is for ABM students.
Disclaimer: I do not own the pictures used even the definitions.
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Disclaimer: I do not own the pictures used even the definitions.
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BARRIERS ENCOUNTERED BY APARTMENT RENTAL BUSINESS in manila
1.
2.
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 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
8.
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
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.
12. FOREIGN LITERATURE
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 save much 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 โthese two categories (from the point of view of the
loger) essentially competed within a single market.โ 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
โindustrializing, rapidly society,โ rooming and boarding โwas so
widespread as to be reasonably considered indispensable.โ
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?
1.0 name
2.0 gender
3.0 status
4.0 estimated monthly income
5.0 financial 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 THE APARTMENT RENTAL BUSINESS
-ADVANCING ACTIVITIES
PROFILE
-AGE
-GENDER
-BACKGROUND STUDY
-STATUS
-ESTIMATED MONTHLY INCOME
๏ -NO.OF DEPENDENT CHILDREN
๏
๏
๏
28. 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
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=โ fx/n
where;
X= weighted mean
โ 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.