Chapter I

THE PROBLEM AND ITS SCOPE

Boarding houses are an important provider of low-cost, private rental

accommodation and are likely to be a key part in the cycle of

homelessness for vulnerable groups. Coutts and Johnson (2008)

describe how people cycle through various forms of low-cost and

insecure housing and homelessness. Further understanding of issues

relating to boarding houses may contribute to breaking the cycle of

homelessness and improving conditions for people living or working in

boarding houses.

Boarding-houses have been providing temporary shelter to

thousands of transients, employees, and students who have to live

away from their parents and loved ones in order to pursue their

respective endeavors. It has been observed, however, that the living

conditions in many lodging houses are far below normal living

standard. Despite efforts to encourage and promote better facilities at

reasonable rates, the present situation of those who live in sub-

standard boarding houses still needs immediate attention and action.

In every community, various establishments are needed for the

daily living of the people. Boarding House is believed to be very helpful

business in a society, especially to the people who do not have house

to live and student who want to live independently.

1
THEORITICAL FRAMEWORK

The “Ricardian Theory of Rent” states the six types of rent which are

the Economic Rent, Gross Rent, Contractual Rent, Scarcity Rent,

Differential or Situational Rent, and Quasi Rent. Economic rent may be

defined as payment made to a factor of production in excess of the

minimum amount necessary to keep the factor in its present

occupation. Ricardian rent is also known as pure rent. David Ricardo, a

British economist, defined rent as, the portion of the produce of the

earth which is paid to the landlord for the use of the original and

indestructible powers of the soil. Another assumption is that original

powers such as fertility of land are gifted by God and are not due to

human efforts of any type. The supply of land is fixed and the existing

quantity of land gifted by nature cannot be increased or decreased.

Ricardo assumed the existence of margin land which is a 'no rent land'.

It could be understood as the grade of land after which no land is

used. Assumption of perfect competition is also made. Law of

diminishing returns or increasing costs operates in agriculture.

Utilization of land for cultivation is done based on the order of fertility

of land.

The purpose objective of this study is to know the market

imperfections lead to the rise of economic rent; it would not exist if

markets were perfect, since competitive pressures would drive down

prices.

2
 Maslow (1943, 1954) stated that people are motivated to

achieve certain needs and that some needs take precedence over

others. The most basic need is for physical survival, and this will be the

first thing that motivates the behavior.

The first level of Maslow’s Hierarchy which is the safety needs of

people shows that security and shelter is one of the basic needs of an

individual. It is a place that can protect us from the elements, keep the

people warm and safe, and give the encouragement to satisfy the

other needs. Many persons live in apartment buildings or in three bed

roomed houses. They work to pay the rent or mortgage to ensure that

they have a roof over their heads so that the people do not have to

worry about the elements or losing the space (unless they lose the

ability to receive a pay check every month). With the

physiological needs having been met, it can then focus on our need for

safety, belonging, and self-esteem.

Fig

ure 1.Maslow’s Hierarchy of Needs Theory

3
 Conceptual Framework

Business
Establishment in
Barangay Del Carmen,
Iligan City

Technical Market Study Management Financial

Study Study Study
s

Boarding House Description of Form of Total Projected

Classification the Business Cost
Establishment
Boarding House Organizational Operating
Specification Total Demand Structure Capital

Process Flow Job Description Monthly

Chart Survey Data and Expense
Specification
Process General
Description Assumption
Market Strategy
Financial
Analysis
Promotional
Strategy Return of
Investment

Cash Flow
Statement

Income
Statement

Financial
Position

Figure 2.Relationship of the independent and dependent variable of

the study.

4
Statement of the Problem

The researchers aim to determine if the Boarding House is suitable to

establish in barangay Del Carmen, Iligan City and if this business will

gain profit. The researchers sought to answer the following questions:

1. Why is a Boarding House suitable to be established in the said area?

2. How can the boarders benefit from this business establishment?

Significance of the Study

The purpose of this study is to determine the significance and

feasibility of establishing a Boarding House to provide the needs and

wants of boarders in barangay Del Carmen, Iligan City. This research

work will be useful to all people who want to rent a boarding house

and to entrepreneurs as well. It provides information and idea on the

possibility upon establishing a Boarding House in the said barangay.

The study can benefit the following:

Boarders. With this study, it will be a big help to the boarders of

barangay Del Carmen, Iligan City to provide their needs and wants.

Community.This study will be able to contribute to its economic

growth. The business will pay taxes to the government in order to

increase the economic growth.

Entrepreneurs. This will give information and further knowledge if

Boarding House is profitable business in the said area.

5
Future Researchers. This study will serve as a preference and guide

for further similar studies in line with Boarding House in gathering

data.

Scope and Limitations

This research work focused only to determining if Boarding House

business is suitable and feasible to be established in order to provide

the needs and wants of the boarders and residents in barangay Del

Carmen, Iligan City. The researchers conducted feasibility study in the

barangay and formulated results.

Definition of Terms

Business Establishment. It refers to a business that will provide the

needs of the consumers.

Boarding House. A boarding house provides accommodation for a

fee. Boarding houses are sometimes called lodging houses. A boarding

house resident does not have the same control over the premises as a

tenant does. Often a resident of a boarding house only has a right to

occupy a room and to share other facilities such as a kitchen and

bathroom.

Feasibility Study. It is a method proposed a project.

6
 Chapter II

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter discusses the literature relating to suitable business

establishments that address the consumers’ needs and wants. It

introduces the relationship of building a business and the needs and

wants of the consumers in Del Carmen, Iligan City.

Related Literature

Chamberlain and Johnson (2001) stated that a minimum level of

housing amenity acceptable by Australian standards is equivalent to a

small flat or unit (i.e. an individual has their own living room,

bedroom, kitchen, bathroom, plus an element of security of tenure). In

South Australia most boarding houses are older properties where

lounge rooms, kitchens and bathroom facilities are shared. The few

exceptions are where new premises managed by community agencies

have been purpose-built in conjunction with state housing authorities

and incorporate features such as en-suite bathroom and toilet facilities.

Arguably, the current stock does not meet minimum community

standards as discussed above; and by this definition, people living in

boarding houses can be considered homeless. 53 There is a growing

and now significant body of knowledge and expertise in the area of

public sector provision of rooming-style accommodation.

7
This includes the aspects of:

• Design and construction of the built form

• Community sector management of facilities, and

• Partnership approaches to the funding and development of new

stock.

(Chamberlain, C. & Johnson, G., 2001)

The literature documents the changing role of the boarding

house sector in Australia, as well as the changing nature of the

clientele and the decline in stock. Studies suggest residents are

increasingly people ‘on the margins’, both physically and socially, and

that ill health, poverty, and disability, as well as loneliness and a lack

of significant relationships and support, characterize the lives of many

residents. Residents have been found to have 1 low expectations of

housing, and report both advantages and disadvantages with boarding

house accommodation. Affordability, ease of access and flexibility are

key benefits; the poor quality of stock and problems with other

residents are the major drawbacks identified. Studies suggest most

residents would prefer other, self-contained, accommodation. The last

metropolitan-wide study of boarding houses in South Australia, carried

out in 1988, identified 125 establishments and 1543 boarding house

beds. Since this study, there have been a number of more specific

studies conducted but there has not been a comprehensive analysis of

the sector. An analysis of the 1996 Census proposed that there were

8
1,299 persons living in boarding houses in South Australia on Census

night in 1996. (Adelaide City Council, 1975)

Related Studies

Local

College students from far places usually resort to stay in temporary dwellings

called boarding houses. Their living conditions in these short-term residences

may result to beneficial and/or detrimental contributions to their holistic well-

being. This study was done to find out the current conditions of Iligan Capitol

College students living in boarding houses, which is anchored on the principle

that the physical and environmental features and housing facilities of these

temporary shelters could influence the students’ lifestyle.

Data elicited through survey and interviews involving 120 student

boarders and10 boarding house owners or operators reveal that most of the

student boarders have recognized their boarding houses possessing good

features especially on the basic housing amenities; however they felt the lack of

the provisions for safety and security services implying that most operators have

violated some requirements stipulated in the Building Code of the Philippines.

Majority of the Iligan Capitol College student boarders are males (53%), under

the age group of 19 and below (58%), third year level (32%), taking BS

Criminology course (48%), and come from the other places or municipalities of

the province of Lanao del Norte (52%). They come from areas where the sources

of their family income are derived from proceeds of harvested farm products as

claimed during the interview conducted. Most of them are residing in residential

9
type of boarding houses (58%) that are walking distance (84%) or near to the

school with a monthly rental charge between P501.00 to 1,000.00. Around 57%

of the student-renters live in boarding houses with 4 or more occupants’ room

type of lodging.

The significant numbers of the boarding houses accommodate 10 to 20

boarders (38%) that are exclusively for males (40%).On the respondent’s source

of food, 82% of them prepare and cook their own food while18% buy only from

school canteen and nearby “carenderias”. More than half of the respondents

believe that their current boarding house provides them appropriate housing

facilities needed, as the total mean of the items registers 53%. As attested by the

32% of the total mean, most of these facilities do not exist in their boarding

houses. These include first aid cabinet (52%), study area (48%),fire

extinguishers (47%), and alarm system (46%); most of which concern the

safety and security of the residents. Larger part of the respondents disclosed that

there are clear and functional policies in their boarding houses on visitors (82%),

visiting time (61%),use of facilities (63%), curfew time (62%), and Do’s and

Don’ts (79%). (Adtha, N., et al.)

Living in a boarding house or dormitory is necessary for students who

come from far places. In Davao City, an observable statistics of

university students from neighboring provinces and the city’s outskirts

live in these temporary residences. However, reports reveal that these

housing facilities, most of the time, fail to consider students’ safety and

welfare. This study determined the living conditions of university

students in boarding houses and dormitories. This is anchored on the

10
premise that the physical and environmental components of these

residential facilities could affect students’ holistic well-being. Data

elicited through survey involving five hundred seventy-one (571)

respondents and focused group discussion among selected groups of

student-boarders/dormers, reveal that a student’s stay in a boarding

house and dormitory has significant contributions to his/her personal,

social, academic and emotional growth. But, this has nothing to do

with the development of his/her spirituality. Results demonstrate

further, that respondents have recognized their boarding houses and

dormitories possessing good basic housing facilities. However, they felt

the deficiency in the provisions of safety and security facilities

especially on fire escapes or exits and fire extinguishers. This

manifests that most operators have violated some requirements set

under the Building Code of the Philippines.

(Brilliantes, et al. 2012).

Foreign

Boarding houses play a distinct role in the low-cost housing sector.

Boarding house accommodation can be regarded as a desirable ‘step

up’ from sleeping rough or living in squats, shelters, or other forms of

marginal accommodation. Alternatively it can be seen as an

undesirable ‘step down’ from more secure tenures such as private

rental or public housing. This study confirms that boarding houses are

a marginal housing option at the interface between homelessness and

sustainable and appropriate housing. The stories of residents provide a

11
vivid picture of people at this interface. Thus, boarding houses fulfill an

important function for a small group of people who, for a variety of

reasons, find it difficult to achieve long term ‘success’ in the

alternatives available to them as low income earners. The range of

personal, social and structural issues influences why the boarding

houses residents are not living in private rental. The personal histories

of boarders reveal stories of low income, personal misfortune,

relationship breakdown, and very often disability, health problems and

other issues, combined to create housing vulnerability and limit

options. At a social level it is likely that the same factors limit

opportunities to share housing with friends or significant others, and,

in a competitive rental market, those seen by landlords as ‘not so

desirable’ will miss out. There was plenty of anecdotal information

throughout the course of this study to indicate that some boarding

house residents have poor presentation and engage in behaviors such

as drinking, substance abuse, fighting and conflict with other tenants

that would certainly go against them being considered as ‘preferred

tenants’ in the private rental market. There are also structural issues in

relation to the rental market which mean that some people fare worse

than others, and these factors limit the opportunity for boarding house

residents to participate in the broader housing market. 69 In terms of

affordability, boarding house rental is markedly less costly than private

rental. According to this study, the average rent paid by boarding

house tenants for ‘bed and cooking facilities’ was $74 per week, in a

range from $40 per week to $105 per week. This compares with

12
private rental rates of $120 per week for a flat/unit and $160 per week

for a house for the period 2000/2001.48 While the number of private

rental properties in South Australia has been increasing49, the private

rental market has been tightening. Data for 2002 indicates that the

vacancy rate is somewhere between zero and one per cent – well

below the accepted market equilibrium of three per cent.50 Average

weekly rents for private rental have been increasing consistently since

1996 – the average weekly rental of a 2 bedroom unit has risen from

$115 pw in 1996 to $148 for the March 2002 quarter, an increase of

29% over this time. In such a tight rental market, those with the least

capacity to pay and ‘compete’ for limited stock will miss out. While

public housing generally provides a more affordable alternative to

private rental for people on low incomes, access to public housing is

now determined on a needs basis through the application of a

segmented waiting list. Total rental stock for the South Australian

Housing Trust has declined over the past decade with a corresponding

decline of new tenants being allocated housing. 51 Thus boarding

house accommodation offers an alternative tenure, especially for single

males, that is cheaper than private rental and more available than

public housing. Studies in this area indicate most residents would

prefer not to live in a boarding house. These people need decent

quality, affordable housing options, and, in some cases, support to

make and maintain this transition. (Anderson, P., et al. 2003)

13
 Nationally, renter turnover has declined from around one-in-

three renters moving each year in the 1980s and 1990s to today’s rate

of one-in-five, according to Zillow. The 55+ crowd has stayed

consistent, with 10%-15% of renters moving each year. However, the

other end of the demographic spectrum is dramatically altering renter

turnover trends. Younger renters are digging in their heels and moving

less often. The biggest drop in turnover took place in the youngest

renter group — over 60% of those aged 18-23 used to move each year

in the 1980s. In 2016, just 49% of this age group moved. The Zillow

report notes more expensive areas of the country tend to see lower

turnover rates. Renters are less inclined to move out when rents are

increasing rapidly, since they’re more likely to get a better deal by

renewing or extending their existing lease. Landlords are also apt to

compromise with a slightly below market rent for repeat tenants who

have a history of timely payment since they save money on turnover

costs. Local rent control ordinances also play a role in low turnover.

Rent control incentivizes tenants of rent-controlled apartments to

remain in place when area rents are rising, as they are in California.

It’s meant to keep long-term tenants from being forced out of

gentrifying neighborhoods, but rent control ultimately creates

enemies of landlords and tenants. (Reyes C., 2017).

The study identified 106 boarding houses in the metropolitan

area, housing approximately 1,100 people. A further nine were

identified in country areas, housing approximately 60. Thus, overall

115 boarding houses were located, with an estimated resident

14
population of 1,160. Approximately 30% of beds in the metropolitan

area are in the City of Adelaide, more than double that of any other

local government area, confirming the key role the city plays in the

provision of boarding house stock. Other LGAs that are key providers

of boarding house accommodation are Port Adelaide Enfield; Charles

Sturt; West Torrens; and Salisbury. 2 Most boarding houses are

private (for profit) operations. 19% of beds were publicly owned1 – of

these just under half were managed by Not For Profit organizations at

the time of the study. Most boarding houses are smaller premises

accommodating between 3 and 8 residents. Most boarding houses in

South Australia operate in older premises; this has implications for the

standard of stock as well as the costs of maintenance and

improvements. Standards of boarding house premises vary across the

sector. While the study was not able to carry out a formal assessment

of properties, through the course of the field work it was observed that

approximately one quarter were in poor condition. Properties owned by

the Housing Trust and operated by community groups were of

consistently good standard. The main area of expansion in the sector is

private operators buying up low cost properties in the inner suburbs as

boarding facilities, often of a size to escape Local Government

regulation (where it exists).(Chamberlain C & Johnson G., 2001).

15
 Chapter III

METHODOLOGY

This chapter presents the research design, method in gathering the

data, research instrument, development of the research instrument,

research locale, sampling design and statistical treatment of data.

Research Design

This study used a Cross-Sectional descriptive method since it is

appropriate. This research design includes survey questionnaires and

observation. By this, it was easier for the researchers to determine the

possible business establishment that is suitable to provide the needs of

the barangay Del Carmen, Iligan City. In medical research and social

science, a cross sectional study also known as a cross-sectional

analysis, transversal study prevalence study is a type of observational

study that analyses data collected from a population, or a

representative subset, at a specific point in time. This means there is

no experimental procedure. Instead of performing an experiment, it

would simply record the information that observed in the groups that

are examining. This method is used to gather information only. The

information may then be used to develop other methods to investigate

the relationship that is observed.

16
Research Method

In this study, interview and questionnaire method was used. The

researchers visited at barangay Del Carmen, Iligan City to interview

and give questionnaires to the residents. The researchers used

interview and questionnaires method since it was the most appropriate

and easiest way to gather data.

Methods in Gathering Data

In this study, the researchers conducted a survey at barangay Del

Carmen, Iligan City where the respondents are the residents and

random people in the area. The questionnaires were made up of

questions that are related to the statement of the problem. It

wasreliable since the question that was asked in the interview was

related to the questionnaire that they answered and also the

respondents had the same questionnaire to be answered.

Development of the Research Instrument

In this study, the researchers interviewed and used questionnaires for

the respondents to conduct a survey. The content of the survey sheets

was from the statement of the problem. The researchers surveyed the

residents of barangay Del Carmen, Iligan City to determine if Boarding

House is suitable business to establish.

17
Research Environment

This study was conducted in Zone 2 and 3 Del Carmen, Iligan City. The

business establishment will be located at Zone 2 Del Carmen, Iligan

City since the area is along the street and far from disaster like flash

flood. It is one of the forty-four (44) barangays in Iligan city at

Northern Mindanao region, Philippines.

Figure 3.Map of Del Carmen, Iligan City

Sampling Design

The study used Non Probability Sampling which is the Quota Sampling

since it is the appropriate sampling design for this study. The

researchers interviewed and gave questionnaires to the respondents of

barangay Del Carmen, Iligan City.

Statistical Treatment

18
To interpret the data effectively, the researchers employed the

statistical treatment and technique:

1. Frequency and Percentage .This was used to abstract the data

from the questionnaire of the respondents that will answer.

19
 Chapter IV

TECHNICAL STUDY

This chapter comprises the following data: boarding house

classification, boarding house specification, process flow chart,

process description and boarding house layout. It explains how the

boarding house will be operated and the arrangement of the

boarding house.

Boarding House Classification

The classification of boarding house establishment, Sharlkim’s

boarding house is under the classification of residential boarding

house. Residential boarding house premises both shelter and food.

The rental of rooms within a house includes meals, Wi-Fi and other

availed of the building. The rooms will be prepared and serve in safe

and hygienic condition.

Boarding House Specification

The Sharlkim’s boarding house will provide a temporary shelter for

the people who wanted to rent. In a period of time, it will also

serve a comfortable houses and self-safe to everyone. The renters

will accommodate and have a benefit not just the boarders but also

the owners.

20
 Process Flow Chart

CHECKING SERVING PEOPLE

FACILITIES &
EQUIPMENT

HIRING OF IMPLEMENTING
PERSONNEL THE RULES &
REGULATION

ACCEPT BOARDERS ACCEPTING THE

VISITOR OF
BOARDERS

ACCEPT RENTALS PAYMENTS FOR ESTABLISHING

FOR COMMERCIAL PROCEDURE SECURITIES
SPACE GADGETS

Figure 4. Process Flow Chart

Process Description

These are the steps of the operation flow in serving the boarders:

Step 1:CHECKING FACILITIES & EQUIPMENT

Step 2:HIRING OF PERSONNEL

21
 Step 3:ACCEPT BOARDERS

Step 4:ACCEPT RENTALS FOR COMMERCIAL SPACE

Step 5:PAYMENTS FOR PROCEDURE

Step 6:ESTABLISHING SECURITIES GADGETS

Step 7:ACCEPTING THE VISITOR OF BOARDERS

Step 8:IMPLEMENTING THE RULES & REGULATION

Step 9:SERVING PEOPLE

D
o
o
r

Passageway

Figure 5.Building Layout

Legend:

-Visiting Area -Bed Spacer

-Cashier Management/
` Receiving Area - Comfort Room (CR)

-Entertainment

- Fire Exit
-Room Occupant
(Family Room) -Study Area

- Room Occupant - Karenderya

22
 Chapter V

MARKET STUDY

This chapter presents, interprets, and analyzes the data gathered.

The analysis and interpretation of data were presented based on

the sequence of the questionnaire that the respondents answered.

These include the description of the establishment and the total

demand.

Description of the Establishment

The establishment is a Boarding House that is responsible for

serving the temporary shelter of the people. Boarding House is a

place where people want to live temporarily due to their needs and

wants. A landlord is a person who owns a house, apartments, etc.,

and rents it to other people (Tenants). They are the one who

provides the temporary room of earn boarders.

Total Demand

Based on the Barangay Chairman of Del Carmen in 2017, the

number of population in Zone 2 and 3 in Del Carmen, Iligan City is

8,941. During the survey there are 85% of the total respondents

who agreed to put up a Boarding House in their Barangay.

Total Demand

23
 Population…………………………………… 8,941
× .85
Total Demand…………………….……. 7,599.85≈7,600

Survey Data

A survey was conducted to 100 respondents in Zone 2 and 3 of

Barangay Del Carmen, Iligan City to gather necessary information

which could be used in the development of this study.

Profile:

Table 1.Profile of the respondents in terms of age

Age Frequency (ƒ) Percentage (%)

Below-18 9 15%
19-20 5 8.33
21-23 13 21.67
24-Above 33 55
Total 60 100

Graph 1.Percentage of the profile by the respondents in terms of age.

60

50

40

24 - Above
30 21 - 23
19 - 20
Below - 18
20
33

10
13
9
5
0
Below - 18 19 - 20 21 - 23 24 - Above

24
Table 1 (Graph 1) shows that in term of age below – 18 is 9 or 15%,

19 -20 has the frequency of 5 or 8.33%, 21-23 is 13 or 21.67%, and

24 – above has the percentage of 55% or 33. Hence, the most

common age that we interviewed or answered our survey

questionnaires are the person who has the aged of 24 – above.

Table 2.Profile of the respondents in terms of gender

Gender Frequency (ƒ) Percentage (%)

Male 22 36.67%
Female 38 63.33%
Total 60 100%

Graph 2.Percentage of profile by the respondents in terms of gender.

60

50

40

30 Female
Male

20 38

10 22

0
Male Female

Table 2 (Graph 2) Based on the graph it shows that most of the

respondents are female which has a percentage of 63.33%.On the

other hand, 36.67% are male.

25
 22
Female
38 Male

I.

Table 3.Number of respondents who like to have a boarding house in

barangay Del Carmen, Iligan City
Answer Frequency (ƒ) Percentage (%)
Yes 51 85
No 9 15
Total 60 100

Graph 3.Percentage of respondents who like to have a boarding house

inbarangay Del Carmen, Iligan City

26
 60

50

40

30 No
51 Yes

20

10
9
0
Yes No

The Table 3 (Graph 3) shows that there are 51 or 85% of the

respondents answered “Yes” while only 9 or 15% are “No”. This implies

that majority of the respondents which has a total of 85% agreed to

have a boarding house in their barangay.

Yes
No
51

Table 4.Number of necessarily established a boarding house in

barangay Del Carmen, Iligan City
Answer Frequency (ƒ) Percentage (%)

27
 Yes 46 76.67
No 14 23.33
Total 60 100

Graph 4.Number of respondents answered it is necessary to establish

a boarding house in your place

60

50

40

30 No
Yes
46
20

10
14

0
Yes No

The Table 4 (Graph 4) shows that out of 100% there are 46 or 76.67%

of the total number of respondents who answered “Yes” while, 14 or

23.33% are “No”. It means that majority of the respondents which is

76.67% agreed to establish a boarding house in their barangay.

28
 14

Yes
46 No

Answer Frequency (ƒ) Percentage (%)

Yes 27 45
No 33 55
Total 60 100
Table 5.Number of respondents who tried to rent in a boarding house

Graph 5.Percentage of respondents who tried to rent in a boarding

house
60

50

40

30 No
Yes

20
33
27
10

0
Yes No

Table 5 (Graph 5) shows that 33 or 55% of the respondents answered

“No” and 27 or 45% has answered “Yes”. It implies that most of the

29
respondents haven’t tried to rent in a boarding house which has the

total of 33 or 55%.

27
33
Yes
No

Table 6.Number of respondents who prefer to stay in a boarding

house

Answer Frequency (ƒ) Percentage (%)

Yes 38 63.33
No 22 36.67
Total 60 100

Graph 6.Percentage of respondents who prefer to stay in a boarding

house

30
 60

50

40

30 No
Yes

20 38

10 22

0
Yes No

The Table 6 (Graph 6)shows that among the respondents there are 38

or 63.33% who answered “Yes” and 22 or 36.67 are “No”. It signifies

that 38 or 63.33% of the respondents would prefer to stay in a

boarding house.

22

38 Yes
No

Table 7.Number of respondents who consider the boarding house as a

safe place

31
 Answer Frequency (ƒ) Percentage (%)
Yes 41 68.33
No 19 31.67
Total 60 100

60

50

40

30 No
Yes

20 41

10 19

0
Yes No

Graph 7.Would you consider the boarding house a safe place?

Table 7 (Graph 7) shows that out of 60 respondents 41 or 68.33% who

agreed that the boarding house is a safe place while, the remaining

31.67% said “No”. It implies that most of the respondents said that

boarding house is a safe place to stay.

32
19

Yes
41 No

33
II.

Table 8.Number of services that the respondents want to avail in a

boarding house
Answer Frequency (ƒ) Percentage (%)
Wi-Fi 57 15
Study Area 45 11
Karenderya 29 7
Computer Shop 32 8
Store 35 9
Laundry Shop 28 7
Living Area 28 7
VisitingArea 32 8
CCTV 27 7
Entertainment 12 3
29 7
 TV 28 7
14 4
 Radio

 Videoke
Total 396 100

Graph 8.Percentage of services that the respondents want to avail in a

boarding house?

34
60

50

40 Videoke (Entertainment)2
Radio (Entertainment)
30 57 TV (Entertainment)
Entertainment
45
20 Visiting Area
32 35 32
29 28 28 27 29 28 Living Area
10 Laundry Shop
14
0 Store
0 Computer Shop
i a a e op a a ) ) )
i-F Are ery hop or re
V
re CT ent ent ent Karenderya
W y n d rS St y Sh g A g A C m m m Study Area
ud are ute dr ivin sitin in in in
St n L r ta rta rta Wi-Fi
K mp u Vi e e e
La nt Ent Ent
Co (E ( e(
TV dio ok
Ra ide
V

Table 8 (Graph) Shows the following services that the customers

want avail. Wi-Fi has the highest percentage which contains 15%

followed by study area with the percentage of 11%. While, Store

has a percentage of 9%, fourth are visiting area and Computer shop

with a percentage of 8%.Followed by Karenderya, CCTV, Laundry

shop, Living area, TV and Radio Entertainment with a percentage of

7%.Lastly, Videoke has a percentage of 4%. Therefore, most of the

respondents want to avail Wi-Fi in the Boarding House.

Chapter VI

35
 MANAGEMENT STUDY

This part shows the organization and management aspect of the

study which includes the form of business organization

structures, job description and specification of the owner and

staff, market strategy, and its promotional strategy.

Form of Business

The Boarding House will be managed by the owner/s and it will

have its business located at barangay Del Carmen, Iligan City.

The Boarding House aims to satisfy the needs and wants that

will be served to the residents and also the business will help the

barangay to allocate the needs of temporary shelter to the

residents in the said area.

Organizational Structure

A Boarding House carries a lot of responsibility, and as the

owner manages the business, he or she will ensure the

availability of temporary shelter, and satisfaction of each

boarder.

The operation of the business deals with the equipment of

the Boarding House, budget constraint, preferences and

optimization includes income, quality, rental fee and safety and

securities.

Boarding House Department Structure

36
 Landlord/Owner

Security Guard Cashier Maintenance

Figure 6. Boarding House Structure

Job Description and Specification

Landlord/Owner

A landlord is the owner of a house, apartment, condominium, land

or real estate which is rented or leased to an individual or business,

who is called a tenant (also a lessee or renter).A landlord owns a

house, building, or property and rents it out to other people.

Security Guard

A security guard is someone whose job is to protect a building or to

collect and deliver large amounts of money. A person employed to

protect buildings, people, etc., and to collect and deliver large sums

of money. Security guard (also known as a security officer or

protective agent) is a person employed by a private party to protect

the employing party’s assets (property, people, equipment, money,

etc.) from a variety of hazards (such as waste, damaged property,

unsafe worker behavior, criminal activity such as theft, etc.) by

using preventative measures.

Cashier

37
It is an employee who handles the financial transactions of a

company. In most situations, a cashier works directly at a cash

register, ringing up the customer's purchases and collecting their

payment. Cashiers are found almost anywhere a customer can

purchase an item, such as supermarkets, restaurants, and retail

stores.

Maintenance

It performs general cleaning and minor maintenance duties in

maintaining library building, adjacent walks and grounds, and

equipment in clean, orderly and functional condition. Provide

assistance to staff, visitors and other employees as necessary.

Market Strategy

Sharlkim’s Boarding house will give the customer’s needs and wants

in order to satisfy them. The Boarding house will offer a comfortable

and satisfaction to each customer. Sharlkim’s boarding house will

maintain the profile of the establishment by offering attractive

rooms and affordable services for everyone. The employees are

well-trained and have enough skills to their designated task. This

boarding house will be uniquely different from existing boarding

house in the said area by its design and by availing the Wi-Fi,

Entertainment, Study area, Computer shops and etc. for every

costumer.

Promotional Strategy

38
The business will attract a customer by giving a flyers and posting it

in social media by using the website of the boarding house to let

everyone know the existence of Sharlkim’s boarding house. The

owner will give the customer a free breakfast every Sunday or an

inexpensive desk for each room to enjoy their staying at the

boarding house and maintain their loyalty on the business.

Chapter VII

39
 FINANCIAL STUDY

This part shows the financial aspect of this study which includes the

computation of the total projected cost, the general assumption and

financial break-even point, return of investment and payback

period.

Table 9. Total Projected Cost

PROJECTED COST
Pre-Operating Expense Php25,000
Permit/Licenses 8,000
DSL with Telephone 2,000
Advertising Expense 3,000
Operating Capital 2,098,300
Total Php2,136,300

Table 10. Operating Capital

BREAKDOWN OF OPERATING CAPITAL

Furniture & Fixture Php90,000
Supplies 70,000
Land 438,300
Building 1,500,000
Total Php2,098,300

Table 11. Monthly Expense

Amount Yearly
Utilities Expense Php7,100 Php85,200
Salaries Expense 26,000 312,000
Advertising Expense 2,000 24,000
Miscellaneous Expense 1,000 12,000
Total Php23,300 Php433,200

Table 12. Schedule of Salaries and Wages

40
 Position Amount Yearly
Cashier Php10,000 Php120,000
Security Guard 7,500 90,000
Maintenance 8,500 102,000
Total Php26,000 Php312,000

Table 13. General Assumption

Year 1 Year 2 Year 3

Rent Income Php 1,440,000 1,584,000 1,742,400

Utilities(Expenses) 85,200 89,460 93,933
Salaries(Expenses) 194,400 194,400 Php194,400

Table 13 shows the financial assumption of the said boardinghouse.

It state above the different rent income that the business can

acquire in the succeeding years. While in the utilities expense it

shows the increasing amount of the business on the following years.

The salaries expense shows the constant amount of the salaries on

the succeeding years. Rent income increases 5% in every

succeeding year while the expenses increases 10% to cover up the

other expenses.

Financial Analysis

Break-even Computation

Fixed Cost

Salaries Php 26,000

Total Fixed Cost Php 26,000

Return on Investment Computation:

41
Net income will increase 5% every year

Given:

1st year net income: Php1,069,062

2nd year net income: 1,122,515.10

3rd year net income: 1,178,640.86

Total Projected Cost: Php2,136,300

Table 14. Return of Investment

Year 1 Year 2 Year 3

Net Income Php 1,069,062 1,122,515.10 1,178,640.86

1,069,062+1,122,515.10+1,178,640.86
Average Net Income =
3

3,370,217.96
=
3

= Php 1,123,406

AverageNetIncome
Return of Investment =
TotalProjectedCost

¿ 1,123,406
2,136,300

= 0.525865×100 %

= 52.59%

Total Projected Cost / Average Net Income

Payback Period =
1 /12

2,136,300/1,123,406
= 1/12

= 22.82≈23 months

42
 Projected Cash Flow Statement

For the Three Year-Period

Cash Flow Operating Activities

Rent income Php1,440,000
Less: Payment for Salaries 312,000
Payment for Utilities 85,200
Payment for DSL w/ Telephone 24,000
Payment for Miscellaneous 12,000
Total cash flow from operating Php1,006,800
Cash flow from financing activities 0
Cash flow from financing activities
Initial investment of owner 2,136,300
Payment for start-up requirement 2,136,300
Total cash flow at the end of the year Php1,006,800
Table 15. Projected Cash Flow Statement

43
 Projected Income Statement

For the Three Year-Period

Income Statement
Rent Income Php1,440,000

Less: Payment for salaries 312,000

Payment for utilities 85,200
Payment for DSL w/ Telephone 24,000
Payment for Miscellaneous 12,000
Depreciation expenses 203,333
Start-up expenses 38,000
Net income as of the end of the year Php1,069,062
Table 16. Projected Income Statement

44
 Projected Financial Position

For the Three Year-Period

Asset
Cash Php1,006,800
Furniture & Fixtures 90,000
Accumulated Depreciation 30,000
Supplies 70,000
Accumulated Depreciation 23,333
Land 438,300
Building 1,500,000
Accumulated Depreciation 150,000
Total assets as of the year Php3,308,433
Liabilities & Owner’s Equity
Liabilities Php 0
Owner’s Equity 3,308,433
Total liabilities & owner’s Php3,308,433
equity
Table 17. Projected Financial Position

Chapter VIII

SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMENDATIONS

This chapter present the summary, the major findings, conclusion and

recommendations of the study on “The Sharlkim’s Boarding House: A

45
Feasibility Study” from the findings, conclusion, were drawn and

recommendations were presented.

Sharlkim’s boarding house is believed to be helpful business in

a society and it aims to ensure the safeness and effective use of the

boarding house. Thus, having a boarding house in a barangay will be

great help to the residents in temporary living on it aside from it will

accommodate their needs; it will also help the residents lessen their

time and money. It is widely believed that that living in a boarding

house can acquire some benefits to the students and people who want

to have a temporary shelter, satisfaction and comfortable stay in a

period of time.

The researchers conducted a survey through feasibility study at

barangay Del Carmen, Iligan City. Last January 8, 2018 they gave

survey questionnaire to the respondents who are the residents of the

barangay. The questions are related to the statement of the problem of

this research work.

Summary of Findings

By using the analysis of data, the researchers found out that in table 1,

most of the respondents that we interviewed or answered the survey

questionnaires are the person who has the age of 24-Above. Table 2, it

shows that most of the respondents are female. In table 3, shows that

most of the respondents who agreed to have a boarding house in the

said place. While in table 4, estates that majority of the respondents

agreed to have a boarding house in their barangay. In table 5, it

implies that most of the respondents have not tried to rent in a

46
boarding house. Table 6, signifies that almost of the respondents

would prefer to stay in a boarding house. Considering this results,

boarding house is advantageous to the barangay and its resident.

Table 7, it implies that the boarding house is a safe place to stay

according to the respondents while in table 8 it shows the benefits of

putting up a boarding house in the said barangay. It shows that among

of all benefits they want to avail, Wi-Fi is the most needed. Lastly,

boarding house can gain profit in barangay Del Carmen, Iligan City.

Conclusions

The conclusions below were drawn based on the findings of the study.

The researchers concluded that most of the respondents lived

in Zone 2 and 3 want a boarding house establishment that is suitable

in their needs and wants. The respondents prefer to have a Wi-Fi

among the following availability. Also the most appropriate place that

the boarding house establishment must be build is along the street.

Recommendations

In this study the researchers have the following recommendations that

can help to enhance and develop this study.

1. Entrepreneurs

With this study, the entrepreneurs might help them to be

aware about the area where they are going to establish the

boarding house and the services that they should avail for

their customers or renters’ satisfaction.

47
 2. Future Researchers

The researchers recommend this study for the future

researchers who have the similar study to use this as their

basis references and foundation ofconducting a feasibility

study about boarding house.

REFERENCES

Anderson, P., et al. (2003).It’s No Palace Boarding Houses: the

sector, its clientele and its future. From
http://www.dcsi.sa.gov.au/services/research/research-reports?
a=8784
Boarding House Meaning

http://dwell.org.nz/images/documents/Anyone_can_live_in_a_boar
ding_house_cant_they.pdf

https://www.senate.gov.ph/lisdata/86187173!.pdf

48
Cashier Meaning. From

http://www.businessdictionary.com/definition/cashier.html

Chamberlain, C. & Johnson, G. (2001). The Debate about

homelessness, Australian Journal of Social Issues, Vol 36 No.1.
From
http://onlinelibrary.wiley.com/doi/10.1002/ajs4.2001.36.issue-
1/issuetoc
Landlord/Owner Meaning. From

https://www.vocabulary.com/dictionary/landlord

Saul, M. (2017). Maslow's Hierarchy of Needs. From

https://www.simplypsychology.org/maslow.html

Maintenance Meaning. From

https://www.webjunction.org/documents/webjunction/Maintenance
_Job_Descriptions.html

Narayan, L. (2015). Recardian Theory of Rent. From

,https://www.slideshare.net/luxminy/ricardian-theory-of-rent-
46384548

Security Guard Meaning. From

https://www.collinsdictionary.com/dictionary/english/security-guard

Valderama J., et al. (2013).Living Conditions of Iligan Capitol

College Students in their Boarding Houses. From
http://www.academia.edu/10702539/Living_Conditions_of_Iligan_C
apitol_College_Students_in_their_Boarding_Houses
https://ejournals.ph/form/print.php?id=565

APPENDIX A

Sample Unanswered Questionnaire

The Sharlkim’s Boarding House: A Feasibility Study

Name (Optional): ______________

Age: ____
Gender: ________

49
Directions: Read the following statements below. Put a check (√) on the space provided
that is corresponds to your answer.

Test I

Yes No
1. Would you like to
have a boarding
house in your place?
2. Is it necessary to
establish a boarding
house in your place?
3. Have you ever tried
to rent in a boarding
house?
4. Would you prefer to
stay in a boarding
house?
5. Would you consider
the boarding house a
safe place to stay?

Test II
Directions: Read the following statements below. Put a check (√) in each word if you
agree.
1. What are the services that you want to avail in a boarding house?
o Wi-Fi
o Study Area
o Karenderya
o Computer Shop
o Store
o Laundry Shop
o Store
o Laundry Shop
o Living Area
o Visiting Area
o CCTV
o Entaertainment
o T.V.
o Radio
o Videoke
o Oters please specify. ________

APPENDIX B
Letter to the Respondents

50
 APPENDIX C

Letter to the Barangay

51
 APPENDIX D

DOCUMENTATION

At barangay Del Carmen, Iligan with the Secretary

The Barangay hall of Del Carmen, Iligan City.

52
This is the logo of barangay.

Having a picture with the secretary of barangay Del Carmen, Iligan

City

Asking of how many populations that barangay Zone 2 and 3 Del

Carmen, Iligan City have and if it is okay for them to conduct a
study there

53
At Zone 2 Del Carmen, Iligan City with the respondents

At Zone 3 Del Carmen, Iligan City with the respondents

Gathering data at barangay Del Carmen, Iligan City

54
 APPENDIX E

Researchers Information

Name: Arleen Colacion

Grade and Section: ABM(12) Turquoise

Address: Park. San Francisco Brgy.Villa

Verde Iligan City

Age: 18 years old

Birthday: July 3, 1999

Contact number: 09993931921

Name: Kimberly Clair Q. Coralde

Grade and Section: ABM (12) Turquoise

Address: Purok 13 Canaway Tibanga, Iligan

City

Age: 17 years old

Birthday: July 25, 2000

Contact number: 09068455171

55
Name: Shahanie A. Pantao

Grade and Section: ABM (12) Turquoise

Address: Zone 5 Del Carmen, Iligan City

Age: 17 years old

Birthday: October 24, 1999

Contact number: 09079671292

56