Barriers encountered by apartment rental business in

Manila

Presented by:Donna dale Regidor

Lizel NipazAlpha May Nocillado

submitted to:Dr. Teope

CHAPTER 1

BACKGROUND STUDY SIGNIFICANCE OF THE STUDY

SCOPE AND LIMITATIONSDEFINITIONS OF TERMS

BACKGROUND OF THE 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 anempty 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 theirproperty for them.

SIGNIFICANCE OF THE STUDY

The study will help the firms profit and the consumers welfare and

its benefit. The study can also be used as references to the owners and

anyone interested in rental business. The study will enable the owners

more effectively in rental business and to the consumers to know the

possible reasons why renting is important instead of buying .The

study was anticipated to contribute 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 can used a rental management .

Scope and Limitations

The scope of the study was confined mainly in the Manila. The study focuses its attention on the barriers of the apartment rental

business and its functions. The study aims to know what are the barriers that being encountered of an apartment rental business. Too study also

the responsibilities of the owners and the renters right.

DEFINITIONS OF TERMS

RENTAL BUSINESSit can be operated at home or in a commercial space.BARRIERS

-the factor that serves a barocade .TENANT-it is the one who rent the property of the landlord.LANDLORD -the person who owns the property and the one managed the

apartmentCONTRACT-the agreement that specify the terms of rentals.LEASE-this is the rental agreement for real state.

Chapter II Related review of literature studies

Foreign studies Local studies

Local literatureForeign literature

FOREIGN STUDIES

FOREIGN STUDIES

In a study published in the journal of marriage and the family ,John Model and Tamara assessed the nineteenth century heyday of

lodging in both domestic and commercial establishments ,nothing that two categories ( from point of view of the lodger)essentially competed within a single market. Model found that the nineteenth

century prevalence of rooming and boarding can be associated with rapid industrialization, urbanization, and population growth,

coupled with increases in the number of manufacturing employees of young ,unmarried working man and women in the cities and of foreign –

born urban residents- although 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. Model proposed that in an industrializing rapidly urbanizing society, rooming

and boarding was so widespread as to be reasonably considered indispensable.

Mark Peel, in an article published in the winter 1992 Journal of American history, focused on the lodging house in

the Boston in the second half of the nineteenth century. Peel elaborated on the cultural distinctions between the often boarding

house and the generally working or lower-class rooming house, which was less socially structured and less supervised by landlords

and hosts. Peel included that the rooming house was not just a place where thousands of migrants and immigrants first met the

American city, but a potentially radical housing alternative where some urban dwellers explored a very different social trajectory

from those entered through the boarding house ,the tenement ,or the suburban home.

Lisa Fine, in a study published in the Journal of Social History ,described five particular boarding houses in Chicago that catered

to women .These boarding houses ,in the first three decades of the twentieth century, provided safe, respectable, home –like, low cost

housing, and a vast array of social services that allowed white-collar women to lead relatively independent lives.

Wilson and Few (2007) are strong supporters of population rates having an impact on rental rates within cities. Gall in

(2008) noted that housing prices can be an indicator o rental rates since they are related in many aspects. Economist such as Gilder bloom and Appeal Baum even attributed changes in climate to rental rate fluctuation. The variables pertaining to

rental rate fluctuations are vast ,but have rarely been evaluated on a national scale. This aims to enhance the understanding in the

real estate rental market by furthering the studies performed by Marco(2008) so that the model used can be adapted to cities

of different sizes within the United States. By using United

States census bureau data from 2005 ,cities with populations over

100,000inhabitants will be analyzed in this study ,which gives a

decent representation of the country as whole . The focus of this

paper will be on average monthly apartment rental rates and how

crime rates ,average apartment size, household income ,number of

units within city, poverty rates ,population density, and real estate

purchase value impact the fluctuations that occur in the real state

rental market.

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.

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.

According to WALLCE(2009)in her article the landlord rights and responsibilities. It is important to protect your rights and your duties when renting a property to a tenant. In order for

both parties to succeed in a rental arrangement ,the agreement should be well thought out and understood by both parties. Most disputes in rental relationship arise when there is a

misunderstanding regarding the rights and responsibilities of both the landlord and the tenant. 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 STUDIESAccording to Marine Ballesteros , Rental housing

,opening doors for low- income households . Owning a house has always been associated to affluence ,security and stability. Many people would delay buying but would really save in

their lifetime just to have a place that they can call their own . Especially for a family

, homeownership is very important resource given the economic ,psychological and social

benefits it offers.

FOREIGN STUDIES

According to Katrina Wallace(2009) in her article the landlords rights and responsibilities ,it is important to protect your rights and

understanding your duties when renting a property to a tenant. In order for both parties to succeed in a rental arrangement ,the agreement should be well thought –out and understood by both

parties. Most disputes in rental relationships arise when there is a misunderstanding regarding the rights and responsibilities of both

the landlord and tenants. A landlord has a right to 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 ,to repair any minor

damage ,and to keep the apartment in good repair . If tenant damages the apartment ,or leaves it dirty at the end of the lease

,the landlord has the right to deduct from the tenants security deposit the cost of cleaning and repairing the apartment to bring it up to its original

condition.

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

SPECIFIC PROBLEMWhat is the demographic profile of the respondents

in terms of the following variables.1.0name2.0gender3.0status4.0estimated monthly income5.0background of the study