finace 21 final
TRANSCRIPT
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Badilles Dormitel
A Term Paper Presented to the
University of Mindanao
Bolton, Davao City
Prof. Rowena Cinco
Finance 21
Proponents
Ellis Victor Cobarrubias
John Allen V. Marilla
Brizza Salmeo
Hannah April Ticon
March 26, 2010
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Table of Contents
Introduction ..3
About the dormitory business ..3
The Owners and Mangers Background Information ...4
Background of the Business .....5
About the Business .6
The Business and its Operations..6
Financing, Operations, Management ..7
Rules and Regulations ..7
Room Rates ....8
Marketing ..10
Future Plans ..11
Conclusion .12
Appendix ....13
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List ofTables and Figures
Tables
Table 1 Room Rates .8
Table 2 Additional Charges for Additional Occupants of Transient rooms
...9
Table 3 Charges for Additional Appliances .14
Table 4 Violation Charges .15
Figures
Figure 1 Map leading to Badilles Dormitory .16
Figure 2 Sketch of first Floor ..17
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Chapter I
Introduction
Dormitory Business
Opposite to the decreasing population of industrialized and developed
countries is the increasing population of underdeveloped and the developing
ones. In the Philippine setting, the metropolitan areas and urbanized regions are
the most populated areas of the country. A big contribution to the aforementioned
increase in the population is immigration of individuals because of work,
education etc. All of these reasons aims to achieve a common goal- to seek for
greener pasture.
In line with this, different establishments have boomed out of nowhere.
Some of these establishments are housing, town house rentals, condominiums,
apartments and dormitories. Such business ventures aims to serve the market-
the immigrants. Though they vary in their target market, they all serve a common
group- those in need of shelter as they stay in the city. The focus of this paper is
to study, analyze and visualize how the dormitory business in Davao City
operates. The proponents sampled Badilles Dormitel to represent the
dormitories in Davao City.
Hence, according to Microsoft Encarta (2009), the terminology dormitory
was from the Latin word dormire which means to sleep. Furthermore, it was
defined as a building with many different rooms used as a quarters of students
and other boarders.
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From the definition of dormitory, it is needless to say that one of their
markets is the students. Badilles dormitel is a four (4) storey dormitory located at
number 67 Arciaga Street, Davao City. The dormitel is situated at the back of the
University of Immaculate Conception - Bonifacio Campus. The dormitory is
owned by Mr. and Mrs. Romeo and Evelyn Gador.
The Owners and Mangers Background Information
The dormitory is owned by Mr. and Mrs. Romeo and Evelyn Gador. They
are both US- based doctors and they no longer have a personal and a hands on
touch of their business. However, they visit their business annually. Due to the
nature of their work, they entrusted the management and supervision of their
dormitory to their niece, Ms. Stephanie Tan Badilles.
Ms. Stephanie Badilles is a 25 year old Bachelor of Science in
Accountancy graduate of the University of the East in Caloocan City, Philippines.
She is currently connected with the Bank of the Philippine islands (BPI) as a
teller.
Since, she personally manage, the business, Ms. Badilles along with her
three (3) siblings who are still students live in the dormitory itself. She takes care
of everything with regards to the services that the business offers, from the
maintenance up to the collection of the rental payments. She also hired an
employee who can monitor the cleanliness and the problems of the dormitory
whenever shes at work.
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Background of the Business.
The Badilles dormitory was named after the owners maiden name,
Badilles. The business is in the name of Mrs. Evelyn Badilles Gador, which
makes the business a single proprietorship type. Yet, when Stephanie Badilles
was entrusted by her aunt to manage the business, the business registrations,
licenses and permits from DTI, City government of Davao and BIR is now
registered after the name of the current manager, Ms. Stephanie Badilles.
Owning and managing a dormitory and an apartment business is already
running in the blood of the owner since this type of business is also the type of
business of which most of the member of the Badilles Clan runs.
Originally, the Badilles Dormitel is an old boarding house which ran from
1980s to 1990s. It was renovated and renamed. The renovation and
improvement of the business had cost more than 1,600, 000 pesos. Aside from
these, costs for registrations and licenses to operate were also incurred after the
renovation of the old boarding house.
The total cost incurred in renovating the old boarding house was
considered by Ms. Badilles as the capital of their business. It was from the
savings and accumulated professional income of Dr. Badilles-Gador. It begun its
operations last 2001 with the management of Wendell Badilles, Dr. Evelyn
Badilles Gadors nephew.
Like most of other businesses Badilles dormitory was bombarded with
numerous problems as they were starting up and even until now. Some of these
problems that the dormitory encountered include theft, water and electricity
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shortage, electrical repairs, and plumbing. It was only in the 1st quarter of 2009
when Stephanie Badilles started to handle the business.
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Chapter 2
About the Business
Financing, Operations, Management
Badilles Dormitel is a dormitory-hotel housed in a four storey building with
fourteen (14) rooms. The business is located at the heart of the city where its
target markets, the students and the young professionals, are found. The rooms
of the dormitel varied in terms of the number of occupants, size, facilities and
fees. The rented rooms of the dormitory are situated in the second, third and
fourth floor of the building. The first floor divided into three- the residential area,
the garage and the visitors lounge.
A room at the second floor can cater one to five individuals. In addition,
Second floor rooms are equipped with queen sized beds, cable connected
televisions, cabinets, chairs, and hot and cold shower. Consequently, a room at
the third and fourth floor is limited only up to 2 occupants. These rooms were fully
furnished and each were provided with ceiling fan and air conditioner, cabinet,
double deck beds, table, and a hot and cold shower. All rooms are able to
connect to the internet since the whole building is a Wi-Fi Zone.
As a requirement by the regulatory agencies such as the City Government
of Davao and the Bureau of Fire. Badilles dormitory has two fire exits and each
floor has a fire extinguisher. It has five lavatories located at the third floor and is
accessible to all the occupants of the building.
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In addition, the building is secured from theft or any problem, nuisance
and uneasiness due to outsiders and trespassers since the building is built with a
gate after another a gate is constructed outside the building, after the first gate,
another gate erected and the stairs is locked with another gate. Furthermore, the
building is well monitored because of the CCTVs planted through out the
building.
Income and its Management
Badilles Dormitel is a dormitory with only two employees, a manager and
a housekeeper. The housekeeper, Tita Faullilan, sees to it that everything is
arranged and on its proper placement. She is compensated on a monthly basis.
The employees salary, the light and water expansion, internet connection cost,
faulty electrical wiring repairs plumbing and other indirect costs are the common
monthly expenses of the business which cost them more than 15 000 pesos. On
the other hand, the net income after all the expenses of the business is at a
minimum of 25 000 a month.
The sole decision maker for immediate decisions about the business is
under taken by the manger- Ms. Badilles. Ms. Badilles sees that boarders follow
the imposed rules and regulations of the dormitory. She also handles the
collection of the rental payments, moreover, she handle the accounts of the
business.
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Rules andRegulations.
Like any other apartments and dormitories Badilles Dormitel has set its
own rules and regulation which it had adapted from the guidelines set by the
monitoring government and private monitoring agencies and organizations.
First, the term of payment of Badilles Dormitel is one month advance and
one month deposit. Any appliances and other personal equipments that will be
consuming energy or water will be charged accordingly. Washing, hanging and
ironing of clothes are prohibited.
In addition, cooking, drinking of alcohol, smoking, loitering and vandalism
within the dormitory premises are strictly prohibited and charges are set forth
accordingly. For dorm type rooms, females who are caught bringing males or
individual not of their kinship are charged with a violation fees. SEE
APPENDICES for a complete list of violation and additional charges.
The gates will be closed at 10:00 pm, however, the tenants are provided
with duplicate keys for their room and for the gate.
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Room Rates
Solo Transient
Air-conditioned
Non Air-conditioned
Air-conditioned
Non Air-conditioned
Daily 150 120 550 420
Weekly 1 000 800 3 800 2 900
Monthly 2 500 1 500 10 000 9 000
3 Months 7 300 4 300
6 Months 14 500 8 500
1 Year 29 000 17 000Single
occupant(per month)
5 000 3 000
Table 1. Room Rates.
Shown in Table 1 are the room rates of Badilles Dormitel. The dormitory
has 14 rooms. Rooms may be Solo or transient either air-conditioned or not. Solo
rooms are the rooms in the 3rd and 4th floor. Third (3rd) floor rooms are for female
tenants/ boarders and the fourth floor rooms are for the male boarders. A solo
room caters only up to 2 individuals per rooms. The room rates for solo rooms
stated above are per head. Renting a solo room wouldnt mean that you will be a
solo or single occupant of the room.
Yet, if a boarder wants to be the sole occupant of the solo rooms, his
monthly payment for both air-conditioned and non air-conditioned rooms will be
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the 200% of the regular fee per head. And so it means paying for the supposed
rent fee of the supposed-to-be room mate.
On the other hand, the last two columns of table 1 depict the room rates
for the transient rooms. Transient rooms are rooms of a capacity of up to five
occupants. Room rate for transient rooms stated above is good only for 2
persons. There will be additional charges for every additional occupant of the
transient rooms.
Air-conditioned Non Air-conditioned
CHILD ADULT CHILD ADULT
Daily 80 150 60 120
weekly 500 1000 400 800
Monthly 1890 2500 1 370 2765
Table 2. Additional Charges for Additional Occupants of Transient rooms
Since each transient room is able to cater five persons in one room,
additional charges are charged accordingly to the occupants in excess of the
maximum allowed number of occupants. Occupants of the transient may both be
male or female, a couple or a mix of male and female boarders. Additional
charges for additional person in the transient room are shown in table 2.
Marketing
Marketing is defined by Ignacio (1977) as the endeavor to identify,
develop, and bring together the forces of supply and of the demand for a product
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or service. To bring together into parity the aforementioned forces, different
marketing strategies have been employed.
Boarding houses or dormitories provide service to their market. It is a fact
that dormitory business is one of the booming businesses not only in Davao City
but also in the whole country. As long as there are immigrants, student from rural
areas wanted to study in the cities, as long as there are young professionals who
wanted to move out from their parents and live on their own, and as long as there
are individuals who cannot afford to buy their own houses, then the house rental,
dormitories, and apartment business will not die and will not be out in the
circulation.
On the other hand, though there is a big market for the dormitory and
apartment business, there is still a thwart to the said industry. Apartments and
dormitories who are not capable of satisfying their tenants will surely fail since
the boarders have a lot of boarding houses and dormitories to choose from.
Thus, it can be concluded that competition in this industry is tough.
This competition is one of the reasons why a lot of dormitories, apartments
and condominiums have imposed different marketing strategies in through their
pricing and promotions. Badilles Dormitory competes against other dormitories
through a pricing strategy to attain a better share of the market. They have varied
rental fee or rent rate to cater varied market. There are rooms which students
can afford and rooms intended and designed for the young professionals.
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Badilles Dormitel also had spent money for their promotions. They had
printed out tarpaulins, banners, signage, and flyers. Aside from that, they also
have daily advertisements on the classified Ads section of Sunstar (a local
newspaper). Badilles Dormitel also has its own blog site-
badillesdormitel.blogspot.com as a part of their promotions and information
dissemination.
Future Plans
Badilles Dormitel has no more plans for expansion. The owner who
annually visits the business is no longer interested of expanding the business.
On the other hand, Badilles dormitel plans that in the future they will do
improvement on their facilities and security measures. Ms. Stephanie Tan
Badilles also pointed out that she plans to intensify their marketing instead of
building another branch of Badilles dormitel.
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Conclusion
In this type of business, a lot of grounds and factors must be taken into
consideration. To be able to be profitable, the management should ensure that
everything is aligned with the attainment of the goals of the business. Everything
must be polished, from the maintenance up to financial operations, to smoothen
the progress of the business. Planning, leading and controlling the resources of
the business sh for it will surely lead top what you expect.
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APPENDICE
S
Appendix 1
Table 3. Charges for Additional Appliances
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Appliances Day week Month
Computer/ laptop
10 50 150
Computer/ laptop (WIFI
use)
15 100 300
Radio/CD player
7 35 100
Television
7 35 100
Television (with Cable)
14 70 200
Lamp Shade
5 30 75
Iron
35 140 500
Refrigerator50 190 700
Other appliances
At most 100
*Any undeclared Appliances: Double Charge
Appendix 1
Table 4. Violation Charges
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Dover LaneBAKESHOP
Violations
Penalties
Washing 100 .00
Hanging 100 .00
Ironing 500 .00
Cooking 200 .00
Mess 100 .00
Smoking/ Drinking Liquor/ Alcohol 200 .00
Visitor(for dorm type) 200 .00
Vandals 200 .00
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Residential Area
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1st Floor
Documentations
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Outside view of Badilles Dormitel
Visitors lounge
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Stairs leading to the second floor
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POLICIES, NOTICES, RULES AND REMINDERS
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Tarpaulin
Licenses and Permits
Business Plate Number
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License to Operate
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