Rent Pricing Strategies: Effects on the
Profitability of Boarding Houses in Tamag, Vigan
City
Possible Questions:
What prompted you to propose this study?
As students here in UNP, we can see a lot of establishments
like apartments, transients, dormitories and boarding houses. Most in
our group are tenants, so we are aware of the different rent prices of
boarding houses here in Tamag. That's why we, the researchers, want
to know how they come up with that rent price or their pricing
strategies and its effects on their business profitability. Do those
boarding houses having a lower rent per month be more profitable
than those who have higher rent prices, or those in between?
Problems (Gaps)
1. (JOLINA) Most of the boarding house owners, especially
those new in the industry, as well as their tenants are not
aware of the various pricing strategies. So, this research will
provide them with a better understanding about its concept,
importance and connection to profitability.
2. (AILEEN) Since boarding houses vary in terms of rent pricing,
we want to know the basis of owners in setting up their prices.
If none, this research will provide them information about how
to properly price their rent for equal benefit of them and to
tenants.
3. (AILEEN) Most of the past research and related studies about
pricing strategies focused only on those in merchandising and
manufacturing businesses. So, in this study, we want to focus
only on knowing the effect of various rent pricing strategies on
the profitability of boarding house businesses, which is a
common business in Tamag.
What possible contributions can this study yield? (Significance
of the Study)
1. (AILEEN) This study will provide a better understanding about
the various rent pricing strategies.
2. (AILEEN) This study will determine different factors to
consider in setting up rent prices.
3. (AILEEN) This study will explore additional rent pricing
strategies that owners can use or adapt in their businesses to
convince customers in renting their boarding houses.
4. (JOLINA) This study will help tenants in evaluating whether
their rent payments are reasonable enough for the
comfortableness the place can provide and satisfaction as to
the quality of management.
5. (JOLINA) This study will help future researchers as it will
serve as their basis in identifying areas of research as well as
serve as reference material.
What legal basis can you mention that supports?
-
(AILEEN) Republic Act No. 9653 or Rent Control Act of 2009
(AN ACT ESTABLISHING REFORMS IN THE REGULATION
OF RENT OF CERTAIN RESIDENTIAL UNITS, PROVIDING
THE MECHANISMS THEREFOR AND FOR OTHER
PURPOSES)
-
(AILEEN) The State shall, for the common good, undertake a
continuing program of encouraging the development of
affordable housing for the lower income brackets and other
beneficiaries. Toward this end, the State shall continue to
protect housing tenants in the lower income brackets and
other beneficiaries from unreasonable rent increases.
What theory can you anchor in this study?
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Objectives
1. (AILEEN) To determine the various rent pricing strategies
used by boarding houses in Tamag, Vigan City and explore
additional strategies that will be applicable and beneficial to
them.
2. (JOLINA) To identify the factors that influence the rent price
of boarding houses.
3. (JOLINA) To ascertain the effect of adjusting the rent price of
boarding houses on its profitability.
Convenience Sampling Technique - The
researchers will use convenience sampling technique. The
consideration by the researchers in choosing this sampling
technique is the availability and willingness of
landlady/landlords (10 boarding houses) of boarding houses
here in Tamag, Vigan City. (AILEEN)
3. Data Collection Method
Survey Questionnaire - The researchers will be
using survey questionnaires as the primary instrument to
gather data. This includes formulated series of questions to
identify rent pricing strategies of boarding house businesses
and its effect on their profitability. (JOLINA)
4. Data Analysis Method
Methods:
1. Research Design
a. Quantitative Approach - this is carried out by
describing primary data sourced from questionnaires.
(AILEEN)
b. Exploratory Research - It will be used to discover
other concepts and rent pricing strategies that owners
can adapt and utilize. (JOLINA)
Statistical analysis – This will be employed to
determine whether the rent pricing strategies have an effect on
boarding house business profitability and to analyze the factors that
affect it. (JOLINA)
Locale of the Study
(AILEEN) The study will be conducted in Tamag,
Vigan City. The questionnaire will be distributed to the
selected boarding houses which will be the respondents of
this study.
Respondents
c.
Casual Research- It will be used to know the effect
of various rent pricing strategies on boarding houses’
profitability. (AILEEN)
2. Sampling Technique
(AILEEN) 10 -15 boarding houses will be chosen as
respondents based on the availability and willingness of the
landlady/landlords.
Population
Boarding Houses in Tamag, Vigan City (Ilista py
ba agijay boarding houses jy Tamag?)
Definition of Terms
1. Rent - This is the amount paid for the use or occupancy of a
boarding house whether payment is made on a monthly or
other basis.
2. Pricing Strategies - This is the method and procedures
boarding houses employ to determine the rates they charge
for the use of their property.
3. Profitability - It is a situation in which boarding houses are
generating a profit. It is the measure of a boarding house’s
profit relative to its expenses.
4. Boarding House - It is a house in which lodgers or tenants
rent one or more rooms on a nightly basis, and sometimes for
extended periods of weeks, months and years.
Theoretical Framework
(JOLINA) The formulation and investigation of the proposed research
will be based on Forman and Hunt, 2005:133. It says that a whole set
of complex factors affects the pricing decision. When developing
pricing strategies, analyzing factors that are internal to the
organization, as well as factors that are external to the organization's
operations should be done.
Existing Rent Price Strategies:
1. Cost-based - Cost-based pricing is the practice of setting
prices based on the cost of the goods or services being sold.
In terms of boarding houses, it is based on the cost of
maintenance, utilities and other factors. A profit percentage or
fixed profit figure is added to these costs, which is the actual
rate of rent in the market.
2. Demand-based - Any pricing method that considers
fluctuations in customer demand and adjusts prices to fit the
changes in perceived value that come with them.
3. Competition desired-profit - A pricing strategy which is
based on the prices of competitors in the market.