BACHELOR OF SCIENCE IN REAL ESTATE MANAGEMENT

PROPERTY MANAGEMENT SYSTEM

Property Management
• Real Estate Specialization
• Need for Skilled manager due to property complexity.
• Oversight of property

Scope of Properties handled in Property Management

• Single family houses
• Condominiums
• Townhomes
• Duplex
• Apartment buildings
• Mix use

Segments of Projects:
1. Economic 3. Mid-income 5. Luxury
2. Affordable 4. Upscale

Real Estate Management Organization Key factors

• Linking mechanism and services
• Monitoring of processes
• Appropriate skills and competencies

Property Manager
• Hired to handle the daily operations of a real estate investment
• Responsibility
1. Rent
à Setting Rent
à Collecting Rent
à Adjusting Rent
2. Tenants
à Finding Tenants
à Screening Tenants
à Handling Leases
à Handling complaints / emergencies
à Handling move outs
à Dealing with evictions
3. Maintenance and repairs
à Preventive maintenance
à Repair
4. Landlord – Tenant Law
1
 à Handle security deposits
à Terminate a lease
à Evict a tenant
5. Responsible for supervising
à Other employers (Concierge, Security)
à Vacant properties
6. Responsible for managing the budgets / maintaining records
à Operating budget
à Property records

Property Management Specialist opportunities

• Leasing
• Asset
• Corporate property management
• Association management
• Housing program management
• Office buildings

Considerations of Property Managers

1. Owner’s objectives
2. Competitive property market àLocal & Regional
3. Market Indicators à Occupancy & Vacancy rate
4. Revenue source
5. Projected expense

Facility Management
• A profession that encompasses multiple disciplines to ensure functionality of the built environment by
integrating people, places, process and technology
- International Facility Management Association

Inter-relationship Core, Non-core and Facility management

1. Core business: Business strategy, objective, plan and process.
2. Non-core business àSupport services, ICT infrastructure
3. Define facility management: Service scope & delivery, resources, sourcing model

Facility Management basic plan

1.) Develop facility management strategy
à Strategic analysis, Solution development and strategy implementation.
2.) Determine sourcing model
à Insource, Outsource, Co-source
3.) Procure services
à Prequalification
à Request for proposal / tender
2
 à Tendering
4.) Deliver services
à Mobilization à Contract management
à Transition
5.) Manage performance
à Service review
à Performance measurement
à Benchmarking

Space Management
• Process of planning space requirements, identify weakness, allocations of current necessary space to the
clients, monitoring and identify usage problems.

World Intellectual Property Organization (WIPO)

• Assists applicants in seeking patent protection internationally for their inventions
• Self-funding agency of U.N.

End user experience

• Customers are impacted by facility management
• E.g. Airport, Colleges

Value for Money

• Term long used to express the relationship between the cost of a good or service and it’s quality or
performance.

Challenges of a Property Manager

• Difficult tenants
• Long hours of work
• Need for emergency capital
• Potential liability

THE PRACTICE OF THE PROPERTY MANAGER

Role of Property Manager

• Operations Manual
• Physical and Building operations
• Financial
• Marketing
• Legal

3
 Values

Value in use
• “Property itself”
• Value to the owner(s)

Value in exchange
• Considers outside forces of property
• Appraised value

Values elements / determination

 Demand
 Utility
 Scarcity
 Transferability

Management Agreement
• Define key responsibilities of the parties
• Includes PF of property management companies

Types of Property Management Operations

1.) Fee management
à Companies are paid P.F. For operational experiences & controls.
2.) Asset management
à Investment oriented financial planning of a portfolio
3.) In-house management
à Asset managers hire professional property managers
4.) Self management
à 1 person in charge of leasing & bookeeping
à Others for maintenance
à Inefficient

Considerations in Property Investments

• Location
• Rental prospects
• Track record
• Price

4
Budget Considerations
• Net operating income (Monthly & Annual)
• Cash flow (Monthly & Annual)
• Capital reserve budget
• Bookkeeping
à Tracking of receipts & procedures

Insurance Considerations
• Protect the building structure & activities surrounding the general management of the building.
• Covers:
1. Fire
2. Property damage due to catastrophes
3. Machinery & Equipments

Security
• Comprehensive procedural manual
• 4 Dimensions:
(1) Design (2) Hardware (3) Staff (4) Management

Maintenance Plans
• 4 Steps:
1.) Assessment of property needs
2.) Identification of capabilities of on-site staff & equipment
3.) Estimating the time for each jobs
4.) Rearrangement of maintenance jobs according to staffs

Improvements
Custodial maintenance
à Day to day cleaning & up keep.

Rehabilitation
 Property restoration w/o change in style & floor plan

Remodeling
 Floor plan & form style change to correct functional or economic deficiency

Adaptive reuse
 Conversion with creative reuse
 Former airport tower to restaurant

5
Building Owners & Managers Association
• Composed of building owners, managers, developers, leasing
professionals, facility managers, asset managers and providers of goods & services
• Standard for measuring buildings.
• Founded in 1907
Building Information Modeling (BIM) & Facility Management (FM)
• Purpose:
1. Reduce costs 2. Improve Performances 3. Integrates systems

• Applicable systems
1. Computerized Maintenance Management System (CMMS)

2. Computer Aided Facility Management (CAFM)

6
3. Demographical Information System

4. Building Automation System

7
 5. Enterprise Resource Planning

Property Characteristics
• Suffer from Physical deterioration
• Suffer from obsolescence
à Changes expected from buildings
• Supply controlled by planning or zoning regulations
• Cash flow delivered by the property asset
à Controlled or distorted by lease contract between owner & developer
• Valuers may be influenced by the clients
• Effect of comparables

Growth of property management

(1) Simultaneous population growth & space needs
(2) Large range of Real Estate property that requires professional management
(3) Widely acknowledge specialize training and education

Trends in Properties
1. Co-living
à Hybrid of private & shared residential spaces
à 9,276 beds as of 1st qtr 2019
à Key factors:
1.) Convenience 2.) Community 3.) Cost 4.) Collaboration

8
2. Flexible workspaces
à Client can lease out space on lighter terms
à Key factors
1. Cost reduction
2. Flexibility
3. Collaboration / Innovation
4. Talent management

Tenant Reps
• Broker or agents that specializes in helping tenants find suitable spaces

PROP TECH
• “Property Technology”
• Use of I.T. to help individuals and companies research, buy, sell and manage real estate.
• Rapid technological change: Real estate industry is not spared

Impact of Technology to Real Estate

• Developing new products from traditional real estate
• New mobile world filled with apps and capabilities
à Internet reshaped consumerism
• Challenges:
1.) Commitment to adopt marketplace 3.) Learning as they go / “Relearning”
2.) Agent’s: Friend or Foe 4.) Expand beyond comfort level

Disruption
• Innovation that creates a new market and overtakes an existing market
• Displaces market leading firms, products and even industries
• Aim:
1.) Democratize information / data
2.) Maximizes profit and minimizes costs
3.) Make it easier, Better faster and cheaper

• Address with the rise of Proptech

1.) Keep up with industry use 5.) Work on your added value
2.) Invest 6.) Keep in touch with your clients
3.) Experiment 7.) Keep up with younger generations
4.) Innovate

Virtual Tour
• Simple to use
• Fast to create
• Fast to show more projects
• E.g. Panoroo
9
Alexa
• Voice technology for Real Estate (Amazon)

Why prop tech emerged?

Buyers / Renters Brokers Owners / Landlords
 No authentic data  Lack of collaboration  Property stays on market for
 Price discovery  High cost per lead long time
 Too many brokers  Lower productivity  High selling cost
 Lots of paperworks  Lot of paperworks

Prop tech Danger

• Offer free tools / data
à Collect your data à Sell it to your competitor
• Customer data privacy
• Become your competitors

Prop tech impact

• Negative impact: Traditional business models may be lost
• Positive impact:
1.) New market and opportunity
2.) Higher value service / product
3.) Saves time

Real Estate Tech companies

1.) Real Estate Search

• MLS, E.g. Property 24

2.) Agent Tools

• Apps useful in transactions
e.g. Loan calculator, google maps/waze
canva (design template)

3.) Property Management

• E.g. Appfolio, Cozy

10
4.) Facility Management
• E.g. Happy inspector
(Facility inspection)

5.) Construction management

• E.g. Procore (Status)

6.) Home services

• E.g. Clutter (Public storage facility)

7.) Portfolio Management

• Crowd sourcing (e.g. Realty shares)

8.) Indoor mapping

• E.g. Matterport

9.) Land Titling management

• E.g. Conveyance

P2P Lending
• Peer to Peer lending.
• Online platforms help to match borrowers with lenders and bypassing banks

11
 Considerations in Property Investment

• Location
à Buying a property in the right location is key.
• Rental Prospects
à Look for strong rental and high occupancy
• Track record
à Buy from a developer that will produce a quality product on time.
• Price
à Buy the best that you can afford w/o compromising on other consideration.
• Population characteristics
à Proportion of World’s Population living in Urban areas: 2018: 55% 2050:68%
à +2.5 Billion people (Shift from Rural to Urban areas by 2050)
à Currently: Pax/sqk (2019)
Metro Manila Density: 42,628
Greater Manila area: 19,988
National density population: 337

COMPLIANCE AUDIT AND LEASING CONSIDERATIONS

Compliance Audit
• Systematic, independent and documented verification process of objective obtaining and evaluating audit
evidence to determine whether specific criteria are met.

Objectives of Compliance Audit

• Ensuring credible regulation
• Improving compliance with legislative requirements

Roles of Auditee
• Assess compliance with legislation
• Review documents issued of the auditee
• Report findings and follow-up action

Audit Activities

Pre-site visit
• Planning and preparing for the audit
• Collecting background information
• Compiling checklists

12
On-site activities
• Conduct opening meeting
• Collecting audit evidences through:
1. Gathering information 2. Observation 3. Interviews

Post-site visit
• Evaluating audit evidence
• Compiling a compliance audit report
• Developing a follow up program

Lease
• Contract between 2 parties to enjoy another one’s property for a certain price & period

Sublease
• Lease of the property leased made by the lessee.

Lease duration
• Best determined: Contract stipulation
• Absence in contract: Term of payment

Lease fee estate – right of owner to rent and reversion of the property at the end of the lease

Leasehold – right of lessee to use and enjoy the property subject to lease terms

Causes for Ejectment by the Lessor:

A) Expiration of agreed period
B) Lack of payment
C) Violation of terms & conditions in contract

Lease contracts control Cashflow

• Distorted by the lease contract agreed between owner and occupier.
• Full right of ownership or Fragmented ownership (e.g. Time Share)
• Market influence
• Supply availability
à Inelastic supply side (Zoning regulation)

Leasing Considerations

1.) Types
• Years
• Periodic
• At will
• Gross or net
13
 • Sufferance
> Absence of objection

2.) Owned and leased inclusion

3.) Reversionary owners rights

à All rights of ownership revert to owner at end of lease term

4.) Landlord rights and responsibilities

à Rights (1) Enter premises (2) Receive payment
à Responsibility (1) Provide habitable conditions (2) Building Maintenance

5.) Tenant rights and responsibilities

à Rights: (1) Quiet enjoyment
(2) Habitable conditions

à Responsibilities:
(1) Return property in prescribed condition (4) Obey rules
(2) Use only for intended purpose (5) Give proper notice
(3) Pay rent

6.) Eviction
à Actual: Prescribe legal procedure through
a. Notice b. Judgment c. Taking of premises
à Constructive:
> Tenant vacates for landlord failure, e.g. Maintenance failure

7.) Tenants Improvements

à Ownership of and payments for improvements (per agreement)

8.) Security deposit details

9.) Cause of a termination of a lease

a. Expiration b. Performance c. Abandonment d. Breach

Leasing Problems
• Non compliance to legal aspects
• No rent escalation clause
• Unclear Charges for late payments
à Administrative fees
à Late payment fees
à Returned checks

14
Commercial Real Estate Lease
• Longer duration than Residential
• Property Value Calculation
Land Value + Building cost – Depreciation = Estimated property value

Office Space Lease Consideration

1.) Space you need

2.) Location à Foot traffic, Parking (if needed)
3.) Legal
4.) Affordability à Capacity to pay over duration
5.) Plan for the building

Common Types of Commercial Leases

1.) Gross Lease
• “Full service lease”
• Landlord pays for utilities, upkeep of building and maintenance costs
• Tenants pays for everything in 1 check

2.) Percentage lease

• Tenant pays for Base rent + an additional percentage of monthly sales

3.) Triple Net Lease

• “NNN” lease
• Owner receives base rent, Responsibility structure and capital elements of properties (e.g. Roof, parking
lots)
• Lessee pays for Taxes, Insurance and Maintenance

4.) Modified Net Lease

• Features of Gross lease and Triple net lease
• Base rent for 1st year then percentage of operating costs in subsequent years

Tenant Improvements
• “Leasehold improvements”
• Customized alterations a building owner makes to rental space as part of a lease agreement
• Aim: Configure the space for the needs of that particular tenant.
• E.g. Walls, Floors, Ceiling & lightings

15
Department of Human Settlements and Urban Development
• “DHSUD”
• R.A. 11201
• Consolidation of HLURB and HUDCC
• Transition Period: Dec 31, 2019
• Role of the new department:
• As to Human settlement and urban development
1. Primary national government entity
2. Sole and main planning and policy-making, regulatory
a. CLUP & ZO
b. Real Estate developments
c. Homeowners association
• Attached Agency: (Administrative Supervision)
1. National Housing Authority (NHA)
2. National Home Mortgage Finance Corporation (NHMFC)
3. Home Development Mutual Fund (HDMF)
4. Social Housing Finance Corporation (SHFC)
• DHSUD Hierarchy

DHSUD Bureau
• Environmental, Land Use and Urban Planning and Development Bureau
• Housing and Real Estate Development Regulation Bureau
• Homeowners Associations and Community Development Bureau

National Human Settlements Board

• Composition:
1. Director General of NEDA 4. DPWH Secretary
2. DOF Secretary 5. DILG Secretary
3. DBM Secretary 6. Attached agency head
* In case of absence, designate from agency

Human Settlements Adjudication Commission

• Reconstitution of HLURB
• Commission en banc
à 1 Executive Commissioner & 4 Commissioner
à Promulgating rules and regulations governing the hearing and disposition of cases
16
DHSUD Voting power
1. NEDA 2. Climate Change Commission 3. NDRRMC

Property Inspection and Valuation (Residential and Commercial)

Property Development
• Process by which buildings are constructed either for owners occupation or for retention or sale as an
investment

Factors affecting Real Estate Values

• Economic factors à e.g. Interest
• Environmental factors à e.g. Pollution
• Physical factors à e.g. Location, Size and condition
• Social factors à e.g. Demand for a Housing type

Reason for Valuing properties

• Ownership Transfer
• Property Investment Performance
• Loan security
• Taxation
• Insurance risk assessment
• Compensation claims
• Reporting of property assets

Property Market Cycle

17
Building Marketability
• Affected by age & physical condition.
• May require upgrading or major modification prior to offering to prospective tenants
• Value of Cost per sq ft is less than cost of new construction
• Affected by location by building

Mixed Use Development

• Growing trend to counteract the negative effects of urban sprawl
• Use of a building, set of buildings or neighbourhood for a variety of purpose
• Typical features
1. Customer service oriented businesses
2. Recreational facilities
3. Public transportation options

Covariance
• Statistical concept referring on how 2 things move together or not.
• E.g. Cost of Construction & Real Estate price

Proactive Management
• Most cost and time effective way of running the property business.
• Identify and address potential issues before it happens or worsens.

Property Inspection
• Condition Rating:
1. No repair is currently needed. Normal maintenance must be carried out
2. Minor repairs or replacement
3. Serious and Urgent repairs or replacement are necessary

Property Damages
1.) Structural roof damage
2.) Sinking & Cracking foundations
3.) Mold contamination
4.) Electrical, fire & Safety hazards
5.) Structural dry rot damage
6.) Water and moisture intrusion
7.) Collapsed water and sewer lines
8.) Signs of termite infestation
9.) Missing roofing materials, gutter and downspouts

18
Machinery and equipment included in Appraised Value

• Elevator: Passenger and Service

• Building generator
• Sub-station
• AC system
• Escalator
• Air compressor
• Smoke detector
• Motion detector
• Heat detector
• CCTV
• Garbage chute
• Sewerage treatment

Machinery and equipment data during inspection

• Complete name, brand, model type, country of origin
• Serial number
• Physical features
• Replacement cost & market value
• Location in the plant or building

Hotel Stars Rating

• "National Accommodation Standards" for hotels, resorts, and apartment hotels
• Standards developed by Department of Tourism

19
MICE (Hospitality Industry)
• Meetings
• Incentive
• Conferences
• Exhibition / Event

Green Building
• Integrates social and environmental goals with financial consideration in projects and of every scale and
type:
1. Energy performance
2. Restoration of a particular ecosystem
3. Fostering of community cohesion
4. Reduced dependence on the automobile

Leadership in Energy & Environmental Design (LEED)

• Green building certification program that recognizes best-in-class building strategies and practices.
• Certified by U.S. Green Building Council
• Aspects measured:
1. Building Design and Construction
2. Interior design and Construction
3. Building operation and maintenance
4. Neighbourhood development
5. Homes

20
Materials utilization
Materials of Green
buildings come from a
variety of sources
(Salvage materials,
Recycled / reprocessed
Materials)

Considerations for
Materials:
(1) Foundation
(2) Support
structure
(3) Insulation
(4) Ventilation
(5) Roofing
(6) Interior fixtures
and floorings

Example of LEED Certified Building in the Philippines:

Zuellig Building (Makati) Wells Fargo Center (Taguig)

Environment friendly Environment friendly features

features  Natural light)
 Glass panels (maximizing  Water usage efficiency
natural light)  Recycled construction materials
 Stormwater collection
21
 Building Code; Maintenance; Inspection; Health and Safety

Phases of Building Development

1. Planning 3. Design 5. Use and Operation 7. Modification
2. Development 4. Construction 6. Maintenance 8. Destruction

Soil Presumptive Bearing Capacity (Highest to Lowest)

1. Gravel

2. Sand

3. Silts

4. Clay

Concrete Frames
• Rigid frame, non-combustible, fire resistive construction.
• Supports non-bearing curtain wall systems

Typical Building Foundations

1. Strip foundation

22
2. Pad foundation

3. Pile Foundation

4. Raft foundations

Load Accumulation
• Total load on foundation
is the sum of the gravity
loads from the roof & all
intervening floors.

23
Transfer Beams
• “Trusses”
• Short span as possible.
• Transfer to supporting columns.

Structural Integrity Assessment (SIA)

• Process to determine how reliable an existing structure is able to carry current and future load
• 3 Main factors:
1. Material properties 2. Loading and Environment 3. Flaws
• Maintenance
1. Routine
à End user consultation
2. General
à Visual inspection of main elements
à Annual maintenance
3. Detailed
à Full inspection every 5 years
• 3 Categories of Anticipated failure and defects
(1) Items requiring immediate attention
(2) Placed in the maintenance plan
(3) Items that can be postponed but should be monitored and reviewed

Devices used during SIA

1. Handheld Laser Distance meter
à Measuring meters

2. Cover meter
à Measures diameter of Bars

3. Digital camera
à Photograph documentation

24
4 Fiberscope
à Flexible instrument
to view remote areas

Environmental impacts and factors in choosing plants for Building landscape

• Tree structure & shape
• Seasonality and adaptability to climate
• Speed or rate of growth
• Mature height
• Requirement for soil, water, sunlight & temp range
• Depth and extent of root structure

National Building Code of the Philippines

• R.A 6541
• Provide for all buildings and structured, a framework of minimum standards and requirements by guiding,
regulating, and controlling their location, sitting, design, quality of materials, construction, use,occupancy,
and maintenance

Building Official Qualification

1.) Filipino citizen with good moral character
2.) Licensed architect or engineer
3.) 5 years as a Member of good standing of a Accredited professional organization
4.) 5 years diversified and professional experience in building design and construction.
5.) Attended seminar workshop of DPWH

Building Official Responsibility

1. Responsible for the Building code enforcement
2. Administrative control and/or supervisor of building works
3. Undertake annual inspection
4. Ensures design plan executions
5. Power to:
a.) Non-issuance, Suspend or revocation of certificate of occupancy
b.) Issuance of work stoppage order
c.) Declaration of a dangerous building
d.) Imposition of fines and penalties

Permits in Building
• Building Permit
• Ancillary Permit
à Architectural Permit à Electrical Permit à Sanitary Permit à Electronic Permit
à Civil / Structural Permit à Mechanical Permit à Plumbing Permit
25
• Accessory Permit (Specific for)
à e.g. Records Vaults, Swimming pools, Mausoleums

Requirement for Filing Building Permit

• OCT /TCT on file with RD
• Tax Declaration
• Current Real Property Tax Receipt
• If not registered land owner:
à Contract of Lease, or Deed of Absolute Sale
• 5 sets of survey plans, design plans, specifications and other documents prepared, signed and sealed over the
printed names of the duly licensed and registered professionals
a.) Engineer
1.) Geodetic 2.) Civil 3.) Mechanical 4.) Electrical 5.) Sanitary
b.) Architect
c.) Master Plumber
• Seismic analysis

• 3 stories and above

à Boring and Load Tests GAUGE

• Specific Clearances:
1.) DPWH
2.) Air Transportation Office (ATO)
3.) HLURB
4.) LGU
5.) DOT
6.) DENR
7.) DILG
8.) NHA
9.) DICT

26
 10.) Philippine Ports Authority
11.) DepEd
12.) DOH
13.) Philippine Institute of Volcanology and Seimology (PHILVOCS)
14.) LLDA
15.) MWSS
16.) DAR
17.) DA

Exceptions from Building Permit

• Open terraces on the ground (<20.00sqm)
• Sheds (<6.00sqm)
• Window grills installation
• Repair:
à Doors and windows
à Deteriorating roofs, tiles or ceilings
à Non-load bearing partition walls
à Perimeter fences & wall
à Plumbing fixtures

Building Permit Fees exemption

 Public buildings
 “traditional indigenous family dwelling
à Constructed with Native materials
à Not exceeding 15,000 pesos in price
à e.g Nipa hut

Building Height Limit

• Based on proposed use and occupancy.
• Zoning ordinances
• Aircraft clearance
à CAAP (Civil Aviation Authority of the Philippines)
à Geodetic Engineer certification if with 2km radius of nearest runway

27
Dangerous Buildings
• Significant damage due to disasters
• Part of the building detached, dislodged or collapsed
• Dilapidation, deterioration or decay
• Unstable foundation
• Fire and electrical hazard
• Lack of ventilation
• Source of pollution
• Animal infestation (pests)
• Architectural deficiencies

Building Demolition
Building official certifies it as a dangerous building

Notice of vacation 15 days or reconsideration

Or repair or renovation within 15 days of receipt

Reinspection

Decision of Secretary

Fees and Violation classification

1.) Light violation

 Failure to post
> Certificate of Occupancy / Use / Operation
> Building permit
 Failure to install appropriate safety measures for the protection of workers, inspectors, visitors,
immediate neighbors and pedestrians

2.) Less gave violation

 Non-compliance with the work stoppage order for the alteration/addition/ conversion/repair without
permit.
 Use or occupancy of building/structure w/o appropriate Certificate of Occupancy / Use / Operation.

3.) Grave violations

 Unauthorized:
1.) change, modification or alteration during construction in the duly submitted plans and specifications
on which the building permit is base
2.) Unauthorized change in type of construction from more fire-resistive to less fire resistive
 Change in the existing use or occupancy w/o Certificate of Change of Occupancy/Use/Operation

28
  Non-compliance with
1. work stoppage order for construction/demolition w/o permit
2. order to abate or demolish
 Excavations left open without any work being done in the site for more than one hundred twenty
(120) days.

Signboard (Residential building for Exclusive use of Owners or Non-leasing occupants )

Signboard (Commercial, Industrial, Educational, Social, Institutional, Recreational buildings & others )

29
Fire Resistive Structure
• Depend on Types of construction material and it’s thickness
à RC (Reinforced concrete) slab
à Solid masonry
• Graded on per hour basis:
> 1hr,2hr,3hr,4hr

• Intumescent glass
à turns opaque and expands to form a partially
insulating heat shield
à Integrity up to 120 minutes

Ceiling Heights
• Minimum ceiling heights with artificial ventilation:
à 2.40 meters (Floor to Ceiling) for 1 floor
à Multiple stories:
1st floor: 2.70 meters Succeeding: 2.10 meters
nd
2 floor: 2.40 meters Mezzanine: 1.80 meters

Elevators
• Installed in all private and public buildings for public use accessible to disabled persons, B.P. 344
(Accessibility Law)
• Apartments or residential condominiums of 5 storeys or more at least 1 passenger elevator shall be kept on
24 hour constant service
• Traction type or Drum type

DPWH (Philippine Road Classification)

National Roads
1. National Primary
à Directly connects and Major cities (100,000 people)

2. National Secondary
à Connects Major ports, airports to National primary roads
à Connects cities (not classified as major cities)
30
3. National Tertiary
àOther existing roads under DPWH which perform a local function.

Provincial Roads
à Connect cities and municipalities w/o traversing national roads

Municipal and Local Roads

à Roads within the Poblacion
à Roads that provides inter–barangay connections to Major municipal.

Barangay Roads
à Public road with the Barangay not covered by other definitions

Expressway
à Highways with limited access and tolls.

Bypasses
à Roads or highways that avoid a built-up area, town or city proper

RA 10752 “Right of Way Act”

• 3 means of Acquiring Real property:
1. Donation 2. Expropriation 3. Negotiated sale
• Compensation sum (Negotiated Sale):
1. Current market value of the land
2. Replacement cost of structures and improvement therein
3. The current market value of crops and trees there in.

• Taxes and Fees in the negotiated sale of Real Property for Transfer of Title from Individual to
Government:

àThe implementing agency (Government) shall pay for the account of the seller, the
1. Capital gains tax (CGT) 3. Transfer tax and registration fees
2. Documentary stamp tax (DST)

Note: Owner shall pay any unpaid real property tax.

Payment under Negotiated Sale under RA 10752

Affected Land Affected Structure, Improvement, Crops and Trees

50% on Deed of Sale execution. 70% on Deed of Sale execution.
and the rest upon and the rest upon
50% Annotation of a deed of sale on the title 30% Annotation of a deed of sale on the title OR
OR  Transfer of title in the name of the Transfer of title in the name of the Republic of the
Republic of the Philippines Philippines

31
• Expropriation procedure:
àInitiated through Office of the Solicitor General, the Office of the Government Corporate
Counsel, or their deputize government or private legal counsel.
àValue based on:
1. Zonal valuation of the B.I.R. issued not more than 3 years prior to the filing of the expropriation.
2. Replacement cost at current market value of the improvements and structures as determined:
A. Implementing agency
B. government financial institution with adequate experience in property appraisal.
C. Independent property appraiser accredited by BSP.
àIn provinces, cities, municipalities, and other areas where there is no land classification:
 City or municipal assessor is mandated, within 60 days from the date of filing of the expropriation
case to come up with the required land classification and the corresponding declaration of real
property and improvement for the area. 

Exits
• Do not obstruct exits
• Tenants should be oriented on nearest possible exits
• Fire exits: Ideally within 5 minutes everybody should be evacuated
• Floors above the first storey having an occupant load of more than 10 shall not have less than two exits
• Exit corridors:
à Not less than 1.10 meters width
• Exit door:
à Shall swing to the direction of exit travel
à Not less than 90cm and 2m

HEALTH AND SAFETY IN PROPERTY MANAGEMENT

Safety Precautions
• Key and access control system
à Use of smartcards (with small microchip)
• Outside contractors or suppliers working on-site
à Arrange someone to provide needed access
• Signage's
• Identify areas of hazards
1. Storage of flammable materials
2. Carbon monoxide build-up in basements
3. Presence of pests
4. Potential for Crime:
Mitigating measures
à Functioning CCTV
à Effective lighting
à Contracting security firms

32
 5. Electrical safety
à Overload of electrical outlets
à Functioning Back-up generators
6. Preparation for the inevitable: Disaster management
à Emergency preparedness plan
à LGU coordination

Occupational Safety and Health Standards

• Promulgated by DOLE
• Guide: Occupational Safety and Health Standards
• Main training: BOSH(Basic occupational safety and health training)
• Safety officer
à Oversees overall management of Occupational Safety and Health problems

Domino Theory
(1) Environment (2) Hazard (3) Behavior (4) Unsafe act/condition

Hazard Identification
• Recognition of things that may cause injury or harm.
• Can be a result of:
(1) Routine activities à Regular activities
(2) Non-routine à Irregularly done or 1st time done.

Hazard Control (Reverse Pyramid)

33
Risk Matrix
 Likelihood X Consequence

Accidents
• Unexpected, unplanned and unwanted events that results to harm to people, causes damage and loss to
properties.

Incidents.
• Includes near miss + Accidents

Unaccepted common reasons for Accidents

1.) “Oras na niya” 2.) “Malas lang” 3.) “Tanga kasi” 4.) “Kasama sa trabaho”

True primary cause of accident

1.) Unsafe act à e.g. Using defective equipment
2.) Unsafe condition à e.g. Poor ventilation

Property Development, Redevelopment and Quality Facility Management

Property Development
• Risky business with many challenges
1. Planning approval risk 3. Legal and regulatory risks
2. Interest rate risk 4. Exceeding construction budget
• Can be financially rewarding
• Experience matters

3 ways of Property Development

• Erection of new buildings
• Demolition of existing buildings and replacement with new one’s
• Improvement of existing buildings

34
 Development Team
Developer
• “Key person in a development project”
• Coordinates professionals or consultants who assists and advice developers
à 1.) Consultants 7.) Interior design and furnishing
2.) Surveyors 8.) Catering advisers
3.) Architect 9.) I.T. Consultants
4.) Property valuers 10.) Financial and Tax advisors
5.) Real estate sales team 11.) Construction coordination
6.) Heating and ventilation

Types of Development
1.) Demand led development
• Development due to identification of actual unsatisfied demand in the market
2.) Supply led development
• Building property with as wide appeal as possible.

Ultimate goal of development: Financial viability

Development decision

35
Physical inspection and examination
• Load bearing capacity (foundations)
• Access (ingress & egress)
• Natural drainage
• Services proximity
• Defined gap (existing use & propose plans)
• Neighboring properties
à Desirability or Associated stigma
e.g. Putting up a mall near a wealthy subdivision
Hotel on a previous cemetery

Property Developer Characteristics

• Optimism, imagination and practical vision
• “Thick skin” despite criticism and sound decision making
• Development schemes
• Thorough understanding of:
1.) Property market 2.) Construction process 3.) Financial aspects

2 main types of money to complete a development

Short term finance

• “Development finance”
• Cover the costs during the development and construction process.

Long term finance

• “Funding”
• Cover the cost of retaining ownership of completed development as an investment

Basic Development Equation

Project Manager
• Employed to manage the professional team and the building contract on behalf of the developer.
• Compensation: Salary or Percentage of total building contract sum.

36
Reason for not meeting anticipated profits
• Shortfall in expected returns
• Increase in the forecast costs of development

Urban and Rural Land Use

Close to city center

 Offices then industrial then
residential then rural

Property Redevelopment
• Property with serious, incurable physical or functional deficiencies that the improvements must be torn
down and/or redeveloped for another use.

37
Property Redevelopment major risks
 Acquired property was never attractive to the general public
 Long wait for Public Infrastructure projects
 Environmental issues
 Neighborhood social issues or problems

Property Redevelopment Key players

• Private property owners
• Redevelopment authorities
• Zoning officers
• Structural engineers
• Demolition contractors
• Surveyors
• Environmental expert

Business Continuity Program

• Vulnerability threat that needs a BCP
à Natural disaster à Data integrity penetration
à Man made disaster à Name or product reputation damage
à Technical malfunctions à Unstable market
• Assessment of Hazard identification, risk assessment and business impact analysis.
• Headed by a Program coordinator
• May have a:
1. Crisis management team 2. Incident management team 3. Local response team
• Aftermath:
1. Have a incident notification flowchart 2. Adjusting to the “new normal”

Digital Concierge
• Operated in a pre-conditioned / template format to get specific services like maintenance.
• E.g. Ringrob

38