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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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Documents

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