OCE paper on Achievers Land Lessor

• Main Author: Ong, Grace Teresa
• Format: text
• Language: English
• Published: Animo Repository 2006
• Subjects: Apartment houses; Real estate management; Real estate investment; Achievers Land Lessor
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/3632
• Institution: De La Salle University

Achievers Land Lessor is engaged in the business of residential apartment rental. Located in the busy streets of Rizal Avenue corner Maria Natividad Street, Manila. Present owner is in the third generation of the same line of family business. The third generation owners are mostly professionals although some are engaged in their own small businesses. Conscious effort is undertaken to preserve and grow the family business that will become their legacy. Net income seems thin and looks more like extra income for a marketing professional engaged in sales. However, being in business especially family business entails more responsibility. As early as 1992, the five door apartment had been transferred to the name of the present owner. By affiliating resources with the parent source, the present owner was able to minimize operating expenses and familiarize herself with operations. As the environment evolves, cousin consortiums and second generation businesses became friendly competitors. New entrant competitors are nearby houses structured to become two storey apartments. Since 1998, the value of real estate properties have been decreasing. Many businesses have close shop, unable to sustain the continuous increase in operational cost. Due in part to the high taxes collected each year and declining sales. It is the intention of this paper to explore three settings. These are the best, worst or normal scenarios in a politically challenged environment. Cost and revenue factors will be taken together to check the viability of the business. Under the best scenario, the owner explores the option to renovate the last vacant unit to increase chances for occupancy. All units will be rented and the economic conditions will become stable. However, unit price will increase to recover cost of renovation. While under the worst scenario, the last unit will not be occupied. On the other hand, the normal scenario continues to pursue the low cost strategy. The last unit is rented out without renovations.