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This study seeks to determine the feasibility and viability of Home Dormitory, a

dormitory that aims to provide its target market a place like homeA feeling like you are

with your family at your own house.


Metro Manila is the center of education in the Philippines. This encourages high

school graduates from provinces to take up their bachelors degree at the capital. Because

of this, the demand of students for temporary place to live arise one of the reasons why

dormitory businesses existed in the economy.

Dormitory or dorm in short term or hall of residence or hostel, is a building

primarily providing sleeping and residential quarters for large number of people, college,

or university students. In this industry, the proponents observed that current offerings in

the market do not provide full convenience to its lessee. This opportunity that was viewed

by the proponents became their inspiration to make a dormitory a place like home.


Many universities and colleges were built around Recto, Manila. It became a part

of what they called University Belt. The University Belt is the unofficial name of a de

facto sub district in Manila, Philippines. This refers to the area where there is a high

concentration or a cluster of colleges and universities in the city located, mainly, in San

Miguel district. Technically it also includes nearby Sampaloc, Quiapo, and Santa Cruz.

Generally, it includes the western end of Espaa Boulevard, Nicanor B. Reyes Street

(formerly Morayta Street), the eastern end of Recto Avenue (formerly Azcarraga Street),

Legarda Street, Mendiola Street, and the different side streets. Each of the colleges and

universities found here are at a short walking distance of each other.

In connection with this, the need for dormitory business arises. Schools started to

offer resident halls inside the campus. Since not all universities and colleges provide

boarding schools, businessmen find this opportunity to build off campus dormitories. As

a result, the proponents came up with the dormitory business even though there are

several and existing businesses engaged in similar activities. This paper is essential to be

able to help interested entrepreneurs on how to start up a dormitory business and

determine if it will be successful or not.

Through this study, the business project named Home Dormitory will be

evaluated if feasible or not. The proposed business is planned to be located at 1007

Bilibid Viejo Street corner, Loyola Street, Quiapo, Manila.


The proponents believe that this study is significant not only to the researchers but

also to the following persons:


This study will educate students about the aspects of a feasibility study that will

be beneficial to them in the time when they will be exposed in corporate world. This will

also enlighten them to appreciate the importance of planning and conducting a research in

making decisions.


This paper can enlighten every researcher thinking with regard to the reality of

life especially as they walk towards the path of the business world.


This study will be of great help to the future researchers who have the same topic.

This can serve as their reference and guide to gather important information about their



This is advantageous to the professors for the reason that they can gain insights on

the operation of the existing business in the same nature. They can also use this study on

their teaching profession.


This is beneficial to dormitory industry as they can use this study to obtain new

concepts on how to improve the quality of the services rendered in the market. Also, this

research can be a basis of the entrepreneurs in starting up a dorm business.


Overall, this research will be worthy to the public because all innovative ideas

starts with research that results development.


This project proposal target market are college students, employees, and others

who are studying, working and who have other engagements within the vicinity; and who

are in need to rent a room space to access the schools, workplace, and other

establishments near the University Belt, Recto. The proponents will conduct survey to the

students and employees around University Belt to know their preferred specifications of a

convenient dormitory and to determine the capability range budget of potential

customers. By means of this survey, proponents will able to evaluate the viability and

attainability of the business that will help them to forecast this projects feasibility.

Likewise, this study is basically a forecast. There will be any significant change in actual

business conditions as compared to the assumptions.

Furthermore, this study is limited only to the management, marketing, technical,

financial and social desirability aspect of the business. Any information beyond what is

mentioned above is not discussed in the study.

1.5 History of Home Dormitory

At the present time, college students especially those who are reviewing for board

exam need to have quiet and comfortable place to study wherein they can also live

temporarily. The need for a convenient lease space near the school was noticed by the

proponents of this project.

They come up to the idea of establishing a dormitory that will provide the needs

of students also those employees who are far away from their workplace bringing them

the feeling like they were at their own house.

Heart Company is established by five general partners contributing a capital to

invest in a real estate dormitory business with an objective to earn a passive income.

The business operation offers men and ladies room space that guarantee security,

convenience, clean and tranquil environment to its tenants.


The proposed partnership name is Heart Company. It is a partnership business

that derives its name from the mission of consociates to build a dormitory service with a

market positioning of dorm structure that offers home-like feeling. The viewpoint,

Home is where your heart is. is the basis of the partnerships forename.


The proposed business name is Home Dormitory. It is a dormitory business that

aims to establish a dorm which brings home away from home.


The building will be located at 1007 Bilibid Viejo Street corner, Loyola Street,

Quiapo, Manila. It is near San Sebastian Church, Ever Gotesco Mall and University of

the East Manila. The business will construct attractive amenities like cafeteria, laundry,

internet caf, mini library, swimming pool, rooftop basketball court and gym for

convenience to customers and also additional revenue to the business. Moreover,

architectural structure of the building particularly interior design of rooms will be

aesthetically planned to promote a pleasurable ambiance like home.


Name Address

Almira B. Lominog 351 Barbosa St., Quiapo, Manila

Honey Lou L. Montenegro 532 Quezon Blvd., Quiapo, Manila

Antonette I. Ocampo 1647 CB F. Varona St., Tondo, Manila

Mary Beth C. Osmea 1021 Int. 1 Mendiola Ext. Otis, Paco, Manila

Apple Pol 1350 Latorre St., Tondo, Manila

Table 1.9.1 Names and Address of Proponents

The above figure shows the proponents of this feasibility study. There are total of

five (5) proponents. One of them would be a managing partner, whom will be Ms. Almira

B. Lominog, while the rest of them would be general partners.


The geographical location is well thought by considering easy access to schools of

the tenants, tranquility of the environment, and socio-economic value of the



AMENITIES are something considered to benefit a property and thereby increase its

value. Tangible amenities can include the number and nature of guest rooms and the

provision of facilities such as elevators (lifts), free internet connection, restaurants, parks,

communal areas, swimming pools, golf courses, health club facilities, party rooms,

theater or media rooms, bike paths or garages, while intangible amenities can include

aspects such as well-integrated public transport, pleasant views, nearby activities and a

low crime rate.

DORMITORY (dorm) or hall of residence or hostel, is a building primarily providing

sleeping and residential quarters for large numbers of people, often boarding school for

college or university students. In the United States dorm is the most common term, which

comes originally from the Latin word dormitorium.

LESSEE is the person renting a residential unit.

OWNER/LESSOR shall include the owner or administrator or agent of the owner of the

residential unit.



The management and personnel of Heart Company is conjointly responsible for

the planning, controlling, supervision, implementation of business policies and

procedures and execution of Home Dormitory house rules for orderliness and civilized

institution in achieving its objectives, by supporting a suitable business strategy to create

highest level of efficiency possible within an organization.

2.1 Objectives of the Study

The study aims to determine:

The amount of investment required for each partner.

The profit and loss sharing ratio and the percentage of partners interest.

The legal compliance in building up the business.

The hierarchy of organization, job description, working hours and the

compensation of the employees.

The company policies for the management and the house rules and regulations

for tenants.

2.2 Business Ownership

Home Dormitory is founded by college friends, Almira B. Lominog, Honey Lou

L. Montenegro, Antonette I. Ocampo, Mary Beth C. Osmea and Apple Pol. It is a

general partnership arrangement by which partners conducting a business jointly have

unlimited liability, which means their personal assets are liable to the partnerships

obligations. Ms. Almira B. Lominog is appointed as the managing partner. We decided to

entrust the business in one of the partners to assure that the business will run accordingly.

2.3 Capitalization

The following are the breakdown of each of the partners capital contribution:

Names Capital

Almira B. Lominog Php 2,500,000

Honey Lou L. Montenegro Php 2,500,000

Antonette I. Ocampo Php 2,500,000

Mary Beth C. Osmea Php 2,500,000

Apple Pol Php 2,500,000

Total Php 12,500,000

Table 2.3.1 Capitalization

The partners decided to contribute Php 2,500,000 each as a start-up capital of a

Home Dormitory, which Php 2,000,000 of it will be financed through a bank loan and an

additional cash of Php 500,000.

2.4 Mission

Home Dormitorys mission is to make a dormitory a place like home by


Best service and facilities to prioritize safety and satisfaction.

Convenient and caring environment.

Sustainable growth on our partners investment.

Mutually beneficial relationship with business partners.

2.5 Vision

To provide premium dormitory residence that offers a quality lifestyle responsive

to the changing need and preferences of the market we serve.

2.6 Core Values

Heart Company practices the H.E.A.R.T. values that stand for:

Hospitality. We treat our tenants and business partners by providing them friendly

and generous environment.

Embody the love. Expressing tenderness towards members of the institution by

performing passionate work of management and its fellow borders to show love

and kindness for each other.

Accountability. Having a sense of responsibility to ones own decision and


Respect the uniqueness of persons. We esteem and have high regard of all our

colleagues and borders, we show them our respect in the way we treat them with

consideration and dignity.

Teamwork. We trust and respect each other; therefore, we can work well together.

We help and assist one another, even if we have working responsibilities no

matter if were managers or line staff. We Home Dormitory family always pull

together to provide our tenants with the best level of service that we can give.

2.7 Company Logo

The business logo graphical illustration shows a heart and house figures that fits

the organizations mission to make a dormitory a place like home. Heart Company

advertises the slogan, Home is where your heart is. which connotes that the business

will operate by providing home away from home. The detail of the house figure is

consisting of a chimney and a window. Chimney represents warmth relationship

resembling family affection whereas the window signifies visual bridge between internal

and external environment that implies our dormitory has its way to light up inside and

outside socio-economic setting. Conspicuously, the heart shape form in the logo indicates

love the strong foundation of our service.

2.8 Organizational Structure

The following is the organizational structure of Home Dormitory:

Managing partner

Security Housekeeping
Technician Agent (2)
guard (2) Personnel (3)

Figure 2.8.1 Organizational Structure

The framework above illustrates the organizational structure that will be adopted

by the Home Dormitory. It will define how activities such as task allocation, coordination

and supervision are directed toward the achievement of organizational aims.

The top is represented by the Managing Partner who is a senior partner in charge

of a firms over-all practice and management of day-to-day operations. The bottom is

represented by the security guards, technician, agents and housekeeping personnel.

Table 2.9.1 Job Position, Descriptions and Specifications



Must be one of the

Managing Implement good internal control
of the business.
Partner She must a degree holder
Apply strategic planning to
of any business course or
determine company objectives.
Accountable for effecting change
She must be of a good
and execution of the firms
character and must
possess good leadership
She shall be responsible to direct
and lead his subordinates.
She must possess good
Provides a positive personal
communication skills
example through words and

behavior. .

Proven work experience

Security Secure premises and personnel by
as a security guard or
patrolling property relevant position

monitoring surveillance Trained security officer

equipment with diploma

Observe for signs of crime or Ability to operate

disorder and investigate detecting systems and

disturbances emergency equipment

inspecting buildings Excellent knowledge of

permitting entry public safety and security


Surveillance skills and

detail orientation

Integrity and


Perform highly diversified duties Male

to install and maintain facilitys He must be a graduate of

equipment. any computer/technical

Provide emergency/unscheduled course.

repairs of equipment. He must have at least 1

year of experience.

Use a variety of hand and power

tools, electric meters and material

handling equipment in performing


Sales representative works At least high school level.

Good in communication
With prospective customer to find
and customer service
what they want, create solutions
and ensure a smooth sales process.
Must be flexible and
To find new sales leads, through
business directories, client

referrals etc.

He/she will be responsible in the

development of the service that

we rendered to the customer.

operate mechanized cleaning high school diploma or
equipment equivalent preferred

maintain all cleaning equipment knowledge of cleaning

and materials in a safe and and sanitation products,

sanitary working condition techniques and methods

monitor and report necessary knowledge of cleaning

domestic repairs and replacements sensitive materials

working knowledge of

operating cleaning


2.10 Working Hours and Compensation

Below is the working hours and compensation table of Home Dormitory

No. of No. of hours worked Basic salary per
person per day month
Managing Partner 1 8 Php 15,000

Security guard 3 8 Php 10,000

Technician 1 8 Php 2,800

(2 days per week)

Agent / Sales Representative 2 8 Php 10,000

Housekeeping personnel 3 8 Php 8, 000

L Monthly basic employees Annual basic employees
salaries salaries

Managing Partner 15,000 180,000

Security guard 30,000 360,000

Technician 2,800 33,600

Agent 20,000 240,000

Housekeeping 24,000 288,000


TOTAL 91,800 1,101,600

The General Manager of Home Dormitory will be given an amount of P15,000

per month and P180,000 per year in which she will complete at least 50 working hours a

week, every Monday to Saturday. Security guards, agent, housekeeping personnel

compensation will be given by the management every 15th day and at the end of each

month. The technician salary will be given per week. The Agent and Housekeeping

personnel is subject to deductions such as SSS (Social Security System), PAG-IBIG and

Withholding Taxes. Furthermore, 13th month pay will be provided at the 15th day of the

last month of the calendar year. The security guard will be under the contract of an


2.11 Profit and/or Loss Sharing Ratio

The Profit and/or Loss sharing Ratio of the partners are the following:

Table 2.11.1 Profit Sharing Ratio

Names Profit and/or Loss Ratio Investment

Almira B. Lominog 20% 2,500,000

Honey Lou L. Montenegro 20% 2,500,000

Antonette I. Ocampo 20% 2,500,000

Mary Beth C. Osmea 20% 2,500,000

Apple Pol 20% 2,500,000

TOTAL 100% 12,500,000

The partners agreed to share profits based on net income after tax which is

reflected in the tax return of the partnership that is promptly filed in the Bureau of

Internal Revenue (BIR). The partners decided to distribute the profits equally among the

partners at the percentage of their capital contribution or 20% each.

2.11.2 Loss Sharing Ratio

The partners mutually agreed to share losses based on the profit sharing ratio of

20%. All partners are equally liable for all losses beyond their capital contributions.

2.12 Gantt Chart

In the following page, Gantt chart is presented to show the planned period of pre-

operating activities. The schedule will be very useful in evaluating the effectiveness of

the organizations time management.

Figure 2.12.1 Gantt chart

2.13 Company Policies

The company policies and procedures establish the rules of conduct within an

organization, outlining the responsibilities of both employees and employers.

This policies and procedures are in place to protect the rights of workers as well as the

business interests of employers with an intention to promote a harmonious employment

relationship and healthy working environment.

2.13.1 Company Policies for Employees

The Home Dormitory is built upon principles of fair dealing and ethical conduct

of our team members. Our reputation for integrity and excellence requires careful

observance of the spirit and letter of all applicable laws and regulations, as well as

honorable regard for the highest standards of conduct and personal integrity.

The managing partner is responsible in installing a healthy and harmonious

working environment that encourages and maintains a high level of self-discipline in the

business. In minor infraction, managing partner shall exert best effort to obtain a

problem-solving approach together with the employees.

The continued success of the Home Dormitory is dependent upon our team

members trust and we are dedicated to preserving that trust. Partners and its personnel

owe a duty to Home Dormitory and tenants to act in a way that will value the continued

trust and confidence of the public.

For violation of any of the following rules and regulations, an employee shall be

subject to penalties ranging from a formal written warning notice up to, and including,


Each employee must act in accordance with the company policies, orders, rules,

regulations, guidelines and mission applicable from time to time.

Employees are required to be at their appointed work place and begin work at the

agreed starting time.

The company expects each employee to used biometric fingerprint reader every

entry and exit in the building.

Absence without leave (AWOL) or no-call, no-show (NCNS) is strictly

supervised and may result in termination.

Tardiness is coming to work after the start of his or her official work hours or

shift schedule. Every two (2) instances of reporting late for work or an

accumulation of 30 minutes whichever comes first, shall constitute one offense of


Unauthorized under-time is forbidden.

Theft, vandalism or any other abuse or misuse of company property is prohibited.

Vending, soliciting or collecting contributions on the dormitory or premises

without prior appropriate authorization from the management.

Fraud and dishonesty like acts of prejudicial to the company and breach of

confidentiality of work and information shall not be tolerated.

Falsifying company records or reports, including ones time records or the time

records of another employee are intolerable.

Posting unauthorized materials on walls or bulletin boards; defacing or removing

authorized material from bulletin boards is not allowed.

All employees should be concerned with the preservation of health. Clean and

healthy surroundings is conducive to work and appealing to customers.

The Company values the dignity of its employees and guarantees full respect for

the individual, whether were managers or line staff.

No employee shall be under the influence of using alcoholic beverages while on

duty and or the possession or consumption of illegal drugs. Any employee

arriving to work under the influence of alcohol or an illegal substance will not be

permitted to work.

Smoking inside the establishment is strictly prohibited.

Insubordination or refusal to comply with employer's instructions, unless such

instructions are injurious to the employee's safety and health.

The schedule of penalty Classification of offenses

1st to 2nd Offense Verbal Counseling Less serious

3rd to 4th Offense Written Counseling Less serious

5th to 6th Offense Final Written Counseling Less serious

7th to 8th Offense Written Warning Serious

9th to 10th Offense Written Reprimand Serious

11th Offense Final Written Reprimand Serious

12th Offense Dismissal Grave

All notices shall be explained to any employees, their supervisors or manager

regarding violations. Copies shall be distributed to all related parties and personnel


Clearing period of offenses

All offenses shall have a clearing period of one (1) year from date of commission

of the last offense.

Any repetition of the same offense within the one (1) year period shall merit the

next level of penalty as prescribed in the Schedule of Penalties per infraction. On

the other hand, all offenses committed during the period are cleansed.

However, the past infractions will still form part of the employees records and

may be considered in all other disciplinary action cases of the said employee as

the company shall be guided by the totality of the employees infractions in

issuing a disciplinary action.

2.13.2 House Rules and Regulations

The rules are to promote the convenience, safety, peace and welfare of the tenants

in the dormitory and make a fair and distribution of services and facilities held out for the

tenants generally.

The Dorm is open for tenants/transients only. Mother and sister are allowed to

visit with the permission of the management. Free overnight stay for the visitor/s

(once a month only) succeeding days, visitor/s will be charged based on the

current transient rate.

Visiting Hours: 8:00 A.M. to 9:00 P.M.

Transient accommodation rate: Php250.00/night for non-aircon room and

Php350/night for aircon room.

Visitors are prohibited to use electricity (e.g. ironing of clothes, laptop and phone

charging and cooking0 and washing clothes.

Curfew Time:

11:00 P.M. (exempted: working tenants with advance

noticed/arrangement with the management). Logging ones entry and exit

of the dormitory is required to all tenants.

Management shall not be held liable for any untoward incident may happen to the

tenant outside the dormitory.

Cooking inside the dormitory is strictly prohibited. Washing of clothes (except

underwear) and ironing of clothes are prohibited except for unexpected situation.

Managements permission required. There will be a charge of Php15.00 per piece

of clothes (maximum of 3 pieces only per day.)

There will be an additional charge for the use of electricity for the following:

Laptop computer - Php300.00/month

Tenants own Electric fan - Php300.00/month

Tablet - Php300.00/month

Cellphone - Php120.00/month

TV viewing time: 3:00 P.M. 9:00 P.M.

Observe silence / no loud noise especially during sleeping time.

10:00 P.M 7:00 A.M.

Smoking inside the dorm premises is strictly prohibited.

Entering other tenants room is strictly prohibited. Dormitorys maintenance

personnel shall be allowed to enter a room when a tenant is present in the room

(except in emergency cases).

Turn-off / plug-out electrical cords from a socket when not in use. Use of lighted

candles and storage of flammable / combustible materials inside the dormitory is


Always secure your personal properties. Management shall not be held liable for

any loss or damage of such.

The cost of repair / replacement for any loss or damage of the dormitorys

property incurred by the tenant shall be charged / deducted from the tenants

deposit fee or must be paid promptly to the management.

Tenants are not allowed to do repair work in the dormitory.

Maintain orderliness and cleanliness especially in your own room and bed.

Vandalism and littering are prohibited. Tenant will be given a notice for

unsatisfactory / disorder room and bed.

No additional locks shall be placed upon any door without written consent.

Locking of each door is advised though it is for the tenants; discretion to lock

their respective door or not. The management keeps original keys door for

emergency use only.

Tampering of fire extinguishers and emergency alarm are prohibited.

No consumption, storage and sale of illegal drugs and alcoholic beverages in the

dormitory. No firearms or weapons are permitted.

Stealing of any of the lessors and tenants property is strictly prohibited and shall

be dealt with accordingly.

No pets are allowed inside the dormitory.

Management has the right to conduct a random check on your personal

belongings that are kept within the dormitory.

Management has the right to transfer the aircon-room tenant to another aircon

room when it is deemed necessary to conserve energy.

Tenants are not allowed to move to another room without permission from the


Observe courtesy / good moral conduct to everyone. Avoid foul and profane

languages that may be offensive to others.

Report immediately any accident, bad incidents, malpractices, or related problems

that happened in the dormitory to the management.

2.14 Safety and Security

Safety rules are primarily for protection of an individuals physical well-being

and health and also for the protection of business property or assets. To ensure the safety

of every tenant and employee of Home Dormitory, the company strictly observed the



The dormitory complies with the requirements of local fire safety enforcement


Fire drills involving all employees and tenants are conducted at least semi-


The fire alarm system includes automatic detection and audible alarms.

All personnel are trained in fire evacuation procedures at least once a year.

Mandatory checklist relating to fire alarm system, fire detection, emergency

lighting and portable firefighting equipment completed and recorded.


The dormitory has qualified first aiders. The company provides this facility for

both personnel and boarders. First aid requisites are checked regularly.


Security cameras are provided in certain areas as a deterrent to crime. Having a

closed-circuit television (CCTV) is a great way to increase security in our

dormitory. Not only could it help to identify criminals and stop them from

committing further crimes, it could also help to deter people from committing

crimes in the first place. CCTV can help to discourage many types of crimes

including theft and vandalism, for fear of being caught. In illuminating dark areas

we can help to deter criminals from trying to enter the dormitory, especially

because of CCTV cameras installed.

Biometric fingerprint reader device to track of each person who comes in and out

of the dormitory.

In accommodating visitors, we provide a logbook to document the records of their


When it comes to the keys, we limit the number of copies that are made, as well

as who is given access to them.


The company arranges for periodic internal inspections to ensure hazards are

identified and removed or control measures implemented.


Water hygiene assessments and regular sampling carried out. A system of water

temperature monitoring and showerhead cleaning is in place.

The dormitory maintenance staff receives training in treatment and water hygiene



Periodic electrical inspections are carried out.


Fire evacuation notice displayed in bedroom


No. of recognized fire escapes

The dormitories have two main stairs enough to accommodate the number of

rooms for tenants.

No. of accessible bedroom floors

The companies have four floors with a total of rooms.

Swimming pool

The Home Dormitory has an indoor swimming pool

Location of Hospital

The nearest Hospital is the Mary Chiles General Hospital, located about 700 m

from the dormitory, about 4 minutes by car.

Location of nearest fire station

The nearest fire station is located about 350 m from the dormitory, about a minute

by car.

2.15 Legal Requirements

As part of the business industry, Home Dormitory is legally compliant to ensure

its existence and capability to operate. Some legal application forms that must be attained

by the company are mayors permit which is to ensure that the standards are met with the

requirements of the business locale and to register at the Bureau of Internal Revenue

(BIR) for the companys Tax Identification Number (TIN).

2.15.1 Registering with the Security and Exchange Commission (SEC)

Basic Requirement:

1. Partnership name Verification Slip;

2. Articles of Partnership; and

3. Joint affidavit of two partners to change partnership name. (not required if stated

in articles of partnership)

4. Registration Data Sheet

Registration Procedures

1. Verify/Reserve proposed name with the Name Verification Unit.

2. Draw up the Articles of Partnership

3. If required, get endorsements from other government agencies.

4. Present six (6) sets of the accomplished forms and documents for preprocessing at

the CMRD. Only complete application documents are accepted for processing.

5. Pay the filing fees to the cashier.

6. Claim the Certificate/ License from the Releasing Unit, Records Division upon

presentation of the official receipt issued for payment of filing fee.

2.15.2 Registering with the Local Government

Registration Procedures:

1. Barangay Hall - Obtain a barangay clearance to operate the business

2. Local Government Unit (LGU) - process the mayors permit in the municipality

or city hall office.

3. Register with the BIR for taxation purposes.

2.15.3 Registering with the Bureau of Internal Revenue (BIR)

Registration Procedures:

1. Secure permanent record file number of Tax Identification Number (TIN) from

the BIR National Office in Intramuros, Manila City.

2. Register the business/trade name at the nearest DTI and BIR office. Secure and

file an application form, together with supporting papers, as follows:

Mayors Permit

Articles of Partnership

Community Tax Certificate

3. Secure authority to print books of account, invoices, receipts and other accounting

records by filling up four copies of an application form. Attach four (4) draft

copies of the material to be printed as well as a copy of the job order.

4. Register book of accounts, invoices, receipts, etc.

2.15.4 Construction Requirement - Building permit

Building Permit Requirements:

1. Properly filled-up application forms duly signed and sealed by engineers


Building Permit Forms (5 copies)

Electrical Permit Forms (3 copies)

Sanitary Permit Forms (3 copies)

2. Five (5) complete sets of Detailed Plans.

3. For construction of two-storey building:

Structural Design Analysis signed and sealed by Civil Engineer at every page

4. For construction of more than two-storey building:

Boring and Plate Load Test

Seismic Analysis

5. Proof of Property

Photocopy of Transfer Certificate if Title (TCT)

Photocopy of tax Declaration of Property-lot (Certified True Copy) 5 copies

Photocopy of Current Tax Receipt (5 copies)

6. If property is not registered under the name of the applicant:

Submit 5 copies of any of the following:

Contract of Lease

Contract of Sale

Affidavit of Consent of the Lot Owner for the construction of building/house

Deed of Absolute Sale

7. Permit Billboard (0.60 X 0.90 Plywood with the following contents):

8. Bill of Materials and Specification (5 copies) signed and sealed by an engineer

or an architect at every page

9. Locational Clearance

10. Photocopy of Professional Tax Receipt (PTR) no. and Professional Regulation

Commission PRC license of all concerned engineers and architects.

11. Clearance from the DPWH if the construction is located along National Highway.

12. DOLE Clearance

Registration Procedures:

1. Get the Requirements - Checklist and application forms from the municipals

office (Office of the Building Official). The architect and engineers then will be

the ones who will fill them up.

2. Submit the papers to the Office of the Building Official. The next stage is going to

Assessors Office. In the city hall, usually have windows where the folder of each

set of forms to be submitted.

3. Acknowledgement slip will be issued which bears the date of the status of the

application. Its usually around 10 working days.

If the application is approved and in compliant with the National Building Code,

Order of Payment will be given to pay the necessary building permit fees.

4. Present the Order of Payment at the Treasurers Office and pay the fees.

5. Photocopy the OR (Official Receipt) and bring a copy to the Office of the

Building Official releasing section.

6. After 5 working days, building permit will be released and claim it to the

releasing section of the office of the Building Official.

Chapter 3

Marketing Aspect

As the national economy improves, new dormitories are being planned to

meet the increased demand of people who are seeking for a temporary place to live while

they are studying and working distant from their house. This project will require

feasibility studies to measure market demand and to measure that the proposed business

is economically viable.

The business main objective is the satisfaction of the needs and wants of its

tenants or target market. Among the initial steps that developers of a dormitory business

must formulate is the preparation of a market study and financial projections. This study

helps to determine the specifications of demand, the profile of the target market and the

environment analysis of the industry to help interested entrepreneurs in formulating

effective marketing strategies that will endorse the business.

This chapter aims to discuss the marketing description, market survey, market

analysis and the projected sales of the proposed business establishment. Also, this chapter

will demonstrate the proponents strategy on market positioning of the business.

3.1 Objectives of the Study

This study aims to determine the following:

The market situational analysis of the dormitory industry.

The effective and efficient marketing strategy for Home Dormitory.

The market and the possible market share for the dorm lease services.

The demand forecast for the dorm lease services.

The pricing for the services offered.

The advertising approach that will be practice.

3.2 Situational Analysis

Based on Philippine Statistics Authority, the enrollment population on universities

and colleges increases from seven to nine percent (7- 9%) since academic year 2011-

2012. This signifies that as the population continues to grow there will be more students

who will enroll and will have a need to stay in a dormitory near their universities and

colleges for convenience. Most dormitories almost have the same services offered.

Competition is therefore intense, the emergence of dormitories are increasing. Ground-

breaking service to its target customer is a must to gain market share in this dynamic


Our target market is consisting of individuals who prefer to stay in a dormitory

that offers comfortable and all-inclusive place to temporarily live in. The business market

segments are those students and employees who want to rent near Quaipo, Manila and

who are looking for a dorm that offers full convenience. Home Dormitory uses

behavioral segmentation with its goal of reaching and attaining customers by appealing to

their needs and wants. The main target segment are students and employees who wants to

live in a place where foods are quickly served, laundry service is available, internet cafe

is accessible and most especially a tranquil place to relax out of a busy day. To attract the

market, we will provide them with services that they need and want. The competitive

advantages of Home Dormitory are the aesthetically designed rooms and its attractive

amenities like gym, indoor swimming pool, mini library and roof top basketball court.

Above all, affordability of our quality service is measured to ensure our customers


3.3 5C Analysis

In establishment of the Heart Company of its dormitory business, the proponents

examine information about the internal, macro-environmental and micro-environmental

factors within the industrys environment. The use of 5C Analysis in examination of the

factors is shown in the illustration below.


Climate Competitors

Collaborators Customers


Heart Company has a goal and objective to provide a dormitory a place like home

which makes it a well-established organization that do not only focus on business

profitability but as well as on customers satisfaction and dormitory industrys

improvement or innovation. Market positioning of the project is well thought to easily

identify and inform the target market segment who are known to be the students and

employees. The success of the services offered is hypothetically evaluated as efficient

and effective if implementation of internal controls and strategies stated will be strictly



Engaging in a competitive market requires knowing who your competitors are. It

serves as an external threat because we businesses people compete with other

organizations for the same customers. Another is that, other customers may tend to have

an option if they dont have enough capacity to pay a dorm like ours. On the contrary,

they are going to have an option of obtaining just a boarding house instead of dormitory.

Home Dormitory studied its competitors in the environment like Monchere Dormitory

and Sunrise Dormitory, who both provide same services but lack in convenience and

accessibility of tenants extra needs. This became the competitive advantage of Home

Dormitory because our place also offers other services like internet caf and laundry

service in partnership with other entrepreneurs who will lease a commercial space in our



The demographics of our market are employees and students who are willing to

rent for all-inclusive dormitory and can afford to pay an acceptable price. In advertising

our service, aside from traditional practice of making flyers and tarpaulin, we also create

pages on facebook and twitter in reaching our target market since the segment are mostly

youth who are actively involved in social media. Furthermore, in achieving Home

Dormitorys objective in providing full convenience, we also compromises in our tenants

wants by spoiling them with other amenities like gym, indoor swimming pool and rooftop

court for them to have a place to chill out or do some recreational activities that can also

help them to socialize to one another.


In providing best quality service, Home Dormitory intends to be in partner with

trusted agencies and suppliers to create innovative and creative ideas in increasing the

likelihood of gaining more business opportunities. Home Dormitory decided to acquire

services of Soliman Security Agency at Ermita, Manila to hire competent security

personnel and Fusion Designs at Concepcion Uno, Marikina for overall construction

services. Additionally, Home Dormitory will offer business proposal to trusted franchised

entrepreneurs of internet caf (The Net.com), laundry services, water station,

convenience store (7 Eleven) and quick-food service cafeteria who have also an objective

of providing improved socio-economic service to the market.


The government greatly affects in all businesses thats why compliance to laws and

regulations is observed by the proponents of this project. The proponents will courteously

follow the Republic Act 9653 or otherwise known as Rent Control Act of 2009 in the

operations of the business. Also, we will ensure that the construction of the dormitory

will be in accordance to the National Building Code of the Philippines and other local

provisions in Manila relating to construction. Another concern of the government in the

business is the rights of the employment and the paying of taxes. In our case, definitely,

there will be health benefits, proper handling of the employment and many other

advantages to the employees. Our business will not be abusive with the workers; instead,

they will be treated in the right way. But still, there will be a gap between the higher

employees than the lower workers such that respect and discipline will be observed. In

terms with their wages, they will be paid according to their nature of work or positions so

that there will be a fair valuation of wages in the employees and scheduled release of

payments will be strictly followed.

We assure to our customers or tenants that our materials are technologically advanced

such as the computer services which our partner, The Net.com offers. Also, we assure

them that our place is environmentally friendly. Some of the environmental friendly

products are paints and tiles that we are going to use. We will order these products in the

industries that use less chemical content. We will also practice proper sanitation of

trashes in the dormitory and commercial space units. Most especially, foods that our

trusted partners going to produce in the cafeteria and 7 Eleven are highly assured to be


3.4 SWOT Analysis

Strengths Weaknesses
- all inclusive dormitory - Company has no reputation (as of yet)
- tranquil environment - future debt rating
- attractive ameneties - high loan rates are possible

Analysis Threats
- Large target market are seeking out an
affodable and good quality accommodations
- Pre-existing student accommodations
- Growing population of our target market
segment - Unreliable tenants, chance of them not
- Tenants prefer to stay in a peaceful
environment in the city where business center - Rising cost of utilities expense
is found
- increasing rates of interest


Home Dormitorys competitive advantage is that it does not only provide convenient

services but also attractive amenities that tenants wishes to have. Moreover, tranquility of

our environment is a plus factor because it is a specification of the market commonly

students who need to focus on their studies.


Home Dormitory as a new entrant in the market, we have not been able to develop a

reputation. As we are a service, we are intangible, meaning a reputation cannot be built

until we have satisfied customers. Another thing is future debt rating must be high to

finance cash for operations but on contrary high loan rates are possible because of

fluctuating inflation rates.


We will be providing students with the opportunity to rent accommodation that is

of high quality among others but at an affordable and justifiable price. Likewise, we will

promote a peaceful and organized environment in the city which is a demand of our

prospective clients. Since there is a huge growth of the population on our target market,

the proponents forecast increase demand on the dorm industry.


Pre-existing student accommodations, for example the University Residences,

will be a threat because they have extensive marketing plans in place and are established

in the industry, especially with university or college students. Rising cost of utilities and

interest expense are also factors to consider in companys financial management.

3.5 Marketing Strategy

Home Dormitory uses the following marketing strategies:

The company scheme the business to provide a high quality dorm at a fair price.

The proponents attract the tenants by including functional amenities in the dorm

that will satisfy the clients.

Aside from the room lease space, the business also earns other income from

commercial lease space to maximize the

The business is a gender neutral dorm to cover larger scale target market.

The management personnel have a pleasing personality in accommodating or

communicating with the clients.

3.6 Methodology

Descriptive research method is used in this thesis-feasibility study. This research

method gives a comprehensive in-depth analysis of the service being studied. It serves as

a fact-finding tool that permits adequate interpretation of the results of the survey made

by the researchers. It is a kind of research method that provides information about the

present situation particularly on the current trend of the service.

A questionnaire was prepared by the proponents and was handed out to different

students and nonstudents around Quiapo, Manila. These questions and interviews are

essential in obtaining valid and accurate data which is often not found in books,

magazines, periodicals, and others. (See Appendix for Questionnaires). With the method

implemented, the proponents are expecting more or less accurate projection of demand

for its business.

3.7 Population of target market

Home Dormitory caters all-inclusive lease space to university students and

employees who want to rent in a convenient place wherein they can stay in which all their

needed services are readily available. Moreover, Home Dormitory is a local business. It

covers extensive market, the university students and employees.

The researchers used stratified method in the survey. Students around the

University Belt were given survey questionnaire to acquire pertinent information that will

be useful in consideration of the target markets needs and wants. The researchers

selected a total of two hundred (200) respondents as sample size of the study.

3.8 Demand Analysis

The proponents considered the market demand by conducting the survey based on

the population of the target market who are the college students and employees. Stratified

sampling method was used in choosing the respondents of the survey. Home Dormitory

will be built at Bilibid Viejo Street corner, Loyola Street, Quiapo, Manila where

universities and colleges exist. In contemplation with this, the proponents conducted the

survey to the students of University of the East Manila (UE), The National Teachers

College (NTC), Centro Escolar University (CEU), Technological Institute of the

Philippines (TIP), Far Eastern University Manila (FEU) and other schools to identify

their specifications on a dormitory. Aside from this, we also conducted survey to the

tenants of the existing dormitories around Quiapo namely Monchere Dormitory, Sunrise

Dormitory and Maria Dolores Dormitory to acquire information that will be useful for us

in analyzing improvements on the current market offerings.

The sample size of the respondents is computed using the generally accepted

formula based on the number of questions. The proponents applied twenty (20) times the

variable. By doing so, the survey questionnaire that composes of ten (10) questions is

computed to have a sample size of two hundred (200) respondents.

In summarizing the results of the survey, the proponents demonstrate the

outcomes by using graphical representation for the readers to easily visualize and analyze

the comparison of the results. Shown in the following pages are the graphs and tables

included in the survey questionnaire and interpretation thereto.

Respondent's Gender
100 85


Female Male
Figure 3.8.1 Respondents Gender

Table 3.8.1Respondents Gender

Number of respondents Percentage

Female 115 57.5%
Male 85 42.5%
Total 200 100%

Interpretation: Most of the respondents are female consisting of 57.5% of the sample

target market population while almost half are male comprising 42.5% of the


Analysis: We can anticipate in these results that there will be more female tenants than

male but the number of male is significant because it is almost half of the population.

With these results, the proponents may establish a neutral-gender dormitory to provide

services to both market segments.

Age bracket
140 121
20 13 7
16-20 21-25 26-30 31 above
Figure 3.8.2 Number of respondents according to age bracket

Table 3.8.2 Number of respondents according to age bracket

Number of respondents Percentage

16 -20 121 60.5%
21 - 25 59 29.5%
26 - 30 13 6.5%
31 and above 7 3.5%
Total 200 100%
Interpretation: The graph shows that dominant are respondents whose age range from16

to 20 consisting of 60.5% of the total population. Next to that is the 21-25 year old which

composes of 29.5% of the respondents. Then the 26-30 year old which is 6.5% of the

segments population. Lastly, the 31 and above that compromises the remaining 3.5%.

Analysis: We can conclude in this figures that majority of the possible tenants will be

youth whose age range from 16 to 20 year old. Through this, the proponents can infer that

innovative ideas on dormitory business are considered by the majority of the market.

Respondent's Profile (Student / Employed)


50 33

Student Employed

Figure 3.8.3 Number of respondents who are students and employed

Table 3.8.3 Number of respondents who are students and employed

Number of respondents Percentage

Student 167 83.5%
Employed 33 16.5%
Total 200 100%

Interpretation: The diagram shows that 83.5% of the respondents are students and

16.5% of it are employed.

Analysis: We can infer in this that since the location of our business is located at

University Belt, majority of our tenants will be students who need to have a tranquil place

to study.

How much do you pay for living in the
dorm per month?
50 21 12 18
Php 3,000 - 4,000 Php 5,000 - 7,000 Php 8,000 - 10,000 Others

Figure 3.8.4 How much do you pay for living in the dorm per month?

Table 3.8.4How much do you pay for living in the dorm per month?

Number of respondents Percentage

Php 3,000 4,000 103 51.5%
Php 5,000 7,000 67 33.5%
Php 8,000 10,000 12 6%
Others 18 9%
Total 200 100%
Interpretation: The chart demonstrates that most of the respondents are willing to pay

for a dorm at Php 3,000 to Php 4,000 which represents 51.5% of the respondents.

Subsequent is Php 5,000 to Php 7,000 paying capacity which is the 33.5%, followed by

Php 8,000 to Php 10,000 that comprises the 6% and lastly, the 9% who indicated below

Php 3,000 paying capacity.

Analysis: The proponents can conclude in this outcome that majority of our target market

is looking for an affordable dorm to stay ranging from Php 3,000 to Php 4,000.

How many minutes are you willing to travel to
reach your school or workplace?
50 31

5 - 15 minutes 15 - 30 minutes 30 - 60 minutes

Figure 3.8.5 How many minutes are you willing to travel to reach your school or

Table 3.8.5 How many minutes are you willing to travel to reach your school or

Number of respondents Percentage

5 15 minutes 103 51.5%
15 30 minutes 66 33%
30 60 minutes 31 15.5%
Total 200 100%

Interpretation: The diagram illustrates that 51.5% of the respondents are willing to

travel to reach their school or workplace for 5 to 15 minutes, 33% says 15 to 30 minutes

and 15.5% considers travelling for 30 to 60 minutes.

Analysis: Herein, we can conclude that our possible tenants are near the location because

most of them consider that their dormitory will be near their school or workplace having

a 5 to 15 minutes travel time.

Do you prefer to have an aircon room?






Figure 3.8.6 Do you prefer to have an aircon room?

Table 3.8.6 Do you prefer to have an aircon room?

Number of respondents Percentage

YES 121 60.5%
NO 79 39.5%
Total 200 100%

Interpretation: The illustration shows that out of 100%, 60.5% of the respondents are in

favor of having an aircon room while 39.5% are not.

Analysis: In the results, the proponents can infer that most of the prospect tenants are

willing to have an aircon room so we can assume that most of our clients are seeking for

a convenient and proper ventilated place to live.

Choose other service accommodations or
amenities you are interested in while
staying in a dorm.
200 183

150 125
90 93
100 72 69

Cafeteria Library Laundry Internet caf Gym Swimming
service pool

Figure 3.8.7 Choose other service accommodations or amenities you are interested
in while staying in a dorm.

Table 3.8.7 Choose other service accommodations or amenities you are interested in
while staying in a dorm.

Number of
Rank over 200
respondents agreed
Cafeteria 1 183 91.5%
Laundry service 2 125 62.5%
Internet caf 3 93 46.5%
Library 4 90 45%
Gym 5 72 36%
Swimming pool 6 69 34.5%

Interpretation: The diagram proves that majority of the respondents choose to have a

cafeteria which signifies 91.5%, followed by laundry service contains 62.5%. Afterwards,

internet caf comprises of 46.5%, next is library consists of 45% then gym composes

36% and lastly, swimming pool having 34.5%.

Analysis: Those amenities which are voted higher than 50% by the respondents are

indeed the necessity.

Are you willing to have roommates?


Figure 3.8.8Are you willing to have roommates?

Table 3.8.8Are you willing to have roommates?

Number of respondents Percentage

YES 118 59%

NO 82 41%

Total 200 100%

Interpretation: The graph indicates that 59% of the respondents decided to have

roommate/s while 41% do not agree to have roommate/s.

Analysis: As a result, we infer that majority of respondents agreed to have roommate/s

because it is advantageous for the minimization of their personal expenses.

If yes, what do you think is the appropriate
number of people can stay together in a room?
80 67
40 31
20 4
2 - 3 persons 4 - 5 persons 6 - 7 persons 8 and above

Figure 3.8.9 If yes, what do you think is the appropriate number of people can stay
together in a room?

Table 3.8.9 If yes, what do you think is the appropriate number of people can stay
together in a room?

Number of respondents Percentage

2 2 persons 67 56.78%
4 5 persons 31 26.27%
6 7 persons 16 13.56%
8 and above 4 3.39%
Total 118 100%

Interpretation: the above presentation shows that the respondent who agreed to have

roommates out of 100%, 56.78% wants 2-3 persons, 26.27% for 4-5 persons, 13.56% for

6-7 persons and 3.39% for 8-above persons.

Analysis: we conclude that the respondent who decided to have a roommate are willing

to stay in the dormitory to experience a different lifestyle that help them to improve life

with their roommates

What time do you prefer the curfew
should be?
66 65

10:00 PM 11:00 PM 12:00 PM Others

Figure 3.6.10 What time do you prefer the curfew should be?

Table 3.6.10 What time do you prefer the curfew should be?

Number of respondents Percentage

10:00 PM 66 33%
11:00 PM 47 23.5%
12:00 PM 65 32.5%
Others 22 11%
Total 200 100%

Interpretation: The graph illustrates that 33% of the respondent would like to have a

curfew in 10:00 pm, 23.5% for 11:00 pm, 32.5% for 12:00 midnight and 11% for the

respondent who wants a curfew beyond the choices.

Analysis: As a result of above presentation the respondents want to have a curfew that

will secure them for the unnecessary events might happen to them.

3.7 Sales Projection

The above figure shows the projected sales revenue of the Home Dormitory for

the first year of business operations. It indicates the monthly revenue starting from the

month of January to December. The projection considers seasonal demand in computing

the revenue of different types of services offered.

Financial Assumptions

The proponents forecast that on the first three months of the year which is January

to March the tenants presumed to come back in the Home Dormitory from

Christmas vacation.

From April to May, is the peak fall of the company sales due to the summer

season wherein students are in vacation from studying.

On the month of June to September, the proponents assume that the rooms are

fully occupied because it is the mid of the first term of universities calendar.

The rooms are not fully occupied by October because of term break and again will

be fully occupied on the month of November.

By December, monthly revenue decline by reason of Christmas break.

Costing per room and commercial space for lease are justly stated and classified

at a reasonable price. Explicitly, the difference of aircon and fan room is

quantified to be at a maximum of Php 1,000.

3.8 Marketing Mix





The proposed business offers lease space of dormitory rooms and commercial

space of a building. The building has four floors wherein you can find the commercial

space in the ground floor and the three floors that compose of different room types.

Below is the schedule of different types of room at each floor.


The proponents of Home Dormitory based on the price of each room type based

on cost plus reasonable markup. The rules of payment will be one month advance and

one month deposit and mode of payment will be in cash basis only. Shown below is the

price of each room type.


The location of the business will be at 1007 Bilibid Viejo Street corner, Loyola

Street, Quiapo, Manila near universities and colleges that is very appropriate because the

market environment has an existing and increasing demand.


In promoting our service, the proponents decide to do the following advertising


a. Announcement of the future business existence by posting a tarpaulin at the place

before, during and after construction of the building stating COMMERCIAL


number indicated for interested tenants.

b. Flyers will be distributed across the vicinity to inform the target market and

attract prospective clients on the services we will offer.

c. The proponents will advertise the business in a facebook and twitter page since

our prospective tenants are mostly youth who are engaged in social media.

d. Ten percent (10%) discount will also be given to clients who will reserve to rent

before or during the construction of the business.

Tarpaulin will be posted on the place of business before, during and after

construction promoting the erection of Home Dormitory at the vicinity. This will inform

the public, especially the target market about the future existence of the business.

Flyers will also be distributed around the area of Home Dormitory most especially

near university and colleges to inform our prospective customers. The proponents

decided to print one thousand copies of flyers that are going to be disseminated in the