ASSIGNMENT 01 FRONT SHEET

Qualification BTEC Level 5 HND Diploma in Business

Unit number and title Unit 19: Research Project

Submission date 27/5/2023 Date received (1st Submission)

Re-submission date Date received (2nd Submission)

Student Name Nguyen Thi Thanh Ngan Student ID GBD210576

Class No. GBD1007A Assessor Name Nguyen Xuan Tho

Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism.
I understand that making a false declaration is a form of malpractice.
Student Signature
NGAN

Grading Grid

P1 P2 P3 M1 M2 D1

i
❒ Summative Feedbacks Resubmission Feedbacks

Grade: Assessor Signature: Date:

Internal Verifier’s Comments:

Signature & Date:

ii
2
Table of Contents
1. Introduction........................................................................................................................... 5

1.1. Background of the research ............................................................................................. 5

1.2. Objectives of the research ............................................................................................... 6

1.3. Research questions ............................................................................................................. 6

1.4. Scope of the topic ............................................................................................................... 6

1.5. Research methods ............................................................................................................... 7

1.6. Significance of the research ................................................................................................ 7

2. Literature review and hypotheses development .......................................................................... 7

2.1. Literature Review ............................................................................................................... 7

2.1.1. House renting decisions ............................................................................................... 7

2.1.2. The affect of location on the rental decisions ............................................................... 7

2.1.3. The affect of financial on the rental decisions .............................................................. 8

2.1.4. The affect of infrastructure facilities on the rental decisions ......................................... 8

2.1.5. The affect of security on the rental decisions ............................................................... 9

2.1.6. The affect of dwelling feature on the rental decisions................................................... 9

2.2. Research framework and hypotheses .................................................................................. 9

3. Research design and methodology ........................................................................................... 10

3.1. The structure of questionnaires ......................................................................................... 10

3.2. Sample and data collection ............................................................................................... 12

3.3. Methods for data analysis ................................................................................................. 12

3.3.1. Cronbach’s Alpha ...................................................................................................... 13

3.3.2. Descriptive Statistic Analysis..................................................................................... 13

3.3.3. Analysis of Variance (ANOVA) ................................................................................ 15

References .................................................................................................................................. 16

3
Table of Tables
Table 1. The table of location factors ......................................................................................... 10
Table 2. The table of location factors ......................................................................................... 10
Table 3. The table of location factors .......................................................................................... 11
Table 4. The table of location factors .......................................................................................... 11
Table 5. The table of location factors ......................................................................................... 12

Table of Figures
Figure 1. Designed by the author ................................................................................................ 10

4
1. Introduction
1.1. Background of the research
House is a location where we may live with our families, pets, and friends. House has a meaningful
and important role that the other spots can not replace since house creates lasting memories, and
also a location where we are actually free to be who we are (Webster, 2023). For a long time ago,
houses was made of thatch leaves or tiles and it just aimed to shelter and defend us against threats,
both natural and man-made action. Nowadays, living in a modern life so the demand of a house in
individuals also had a big change. A house is more than just a simple physical construction; it also
represents power, authority, and a variety of other things. A house has evolved from being
considered as a shelter to becoming a display of riches, a symbol of economic prosperity, and a
classist statement if we take a glance around (Chen, 2015). However, the fee for building a house
is extremely expensive and due to the shortage of land in a developing city in Viet Nam, many
people who are under budget or with other purposes chose to rent instead of owning. As a result,
people are forced to locate in multi-unit housing like hostel, apartments, studios, etc (VnExpress,
2023). There are a few crucial aspects to consider when thinking about renting a home. It's crucial
to first establish the financial situation and the maximum monthly rent that the tenant can pay.
Next, think about where should live and how the neighborhood in that area. Also, it is based on a
plenty of criterias to decide a housing rent. This assignment will research which factors will greatly
impact to the lodgers when renting a place to live.
Da Nang is a coastal city located in central Vietnam. Da Nang owns beautiful nature, good
infrastructure and facilities such as an international airport, an international seaport, a modern
transport network, an industrial park and the only high-tech park in the Central region, luxury
resorts, etc. Da Nang is not only Asia's leading tourist destination, but also a city worth living and
investing in. Therefore, it is easy to understand why the city of Han River has always been a place
to attract a large flow of "migrant" residents. Every year, Da Nang has 15-16 thousand immigrants,
the mechanical population growth rate is nearly 16%, while the natural increase is nearly 15%
(Huong, 2023). According to the analystic data, by the beginning of 2021, the number of foreigners
returning to Da Nang has reached 31,000 households with more than 138,000 people, out of a total
of over 1 million residents (Huong, 2023). Not only attracting Vietnamese people, Da Nang with
high quality population, integrated urban area also attracts a large number of foreigners. In the two
years of 2019-2020, in Da Nang, there are more than 4.43 million foreigners registered for
temporary residence (Huong, 2023). Particularly, the total number of Koreans in Da Nang is over
11,000 people (Huong, 2023). It is ovious that there are more and more hostels, apartments built

5
to locate million of migrants living in Da Nang each year. Since that, Da Nang city is a potential
environment to do this research and also a meaningful topic for many citizens. Therefore, the
report will focus on the objects renting the living place in Da Nang city to discover the factors
affects the house renting decisions.
1.2. Objectives of the research
Common goal: many objectives are expected in this research but the domain purpose is to figure
out the factors that influence the tenant's decisions when renting a place in Da Nang. Thereby
orienting solutions to meet the tenants' demands and develop the real estate industry is the goal of
this research.
Specific goal:
- Systematize the theoretical basis of factors that impact the lodgers' decisions.
- Building theoretical models and hypotheses about the relationship between house renting
decisions and other factors; namely location, financial, infrastructure facilities, security, and
dwelling features.
- Build and adjust scales for related variables.
- Analysis of factors affecting the decision of the tenants when renting a house in Da Nang city.
- Discuss the results, and propose solutions to improve the real estate industry, consider as the
available advice for other tenants to have a suitable choice and provide a reliable source of
information for the other researchers.
1.3. Research questions
From the topic of research, some questions are proposed to understand better the factors impacting
the house renting decisions:
How Location factor influences the house rent decisions of the tenants in Da Nang?
How Financial factor influences the house rent decisions of the tenants in Da Nang?
How Infastructure facilities factor influences the house rent decisions of the tenants in Da Nang?
How Security factor influences the house rent decisions of the tenants in Da Nang?
How Dwelling feature factor influences the house rent decisions of the tenants in Da Nang?
1.4. Scope of the topic
In this research, the scope of customers will investigate the group of people who rented a place
to stay in Da Nang. They could be students, or workers from many cities and move to Da Nang
city with various budget. Also, the research will be implemented from 10/5/2023 to 30/5/2023.

6
1.5. Research methods
The quantitative research method will be used to collect the opinions of all the candidates as the
reseach needs to take the polls from many areas. It is suitable to conduct an online survey and send
the form via e-mail, facebook, etc.
After collecting the survey, the Likert scale is given to evaluate the all suggested factors by the
author on the rating scale of 1 to 5, with 1 referring to "strongly disagree" and 5 indicating
"strongly agree”. In this research, the main data analysis methods that author used are descriptive
statistics, factor analysis and regression analysis methods used to identify and measure the
variables “the main factors affecting people's decision to rent a house” include in security,
financial, infrastructure facilities, dwelling features and location.
1.6. Significance of the research
This research will identify the factors that affects to the house renting decisions of citizens in Da
Nang city, give the limitations and solutions for the tenants and owners, provide the informative
material related to real estate industry to the other researchers.

2. Literature review and hypotheses development

2.1. Literature Review
2.1.1. House renting decisions
Rental housing is a term used to describe a house or apartment that is occupied by someone other
than the owner and for which the renter pays the owner a set rent on a regular basis (Landau,
2015). House renting decisions refers to the factors that contributes to the rental housing of the
tenants. The most common misconception about renting is that the tenants have to waste money
every month. That is untrue since having a place to reside always involves some sort of financial
outlay (Landau, 2015). Thus, to choose a suitable place to rent and connect in a long-time, the
tenants have to weigh up many factors such as location, financial, infrastructure facilities, security,
dwelling features, etc.
2.1.2. The affect of location on the rental decisions
Location plays an important role on customer’s place renting decisions. Customer satisfaction at
the time of purchasing property can be influenced by strategic location (Pangenggar et al., 2014).
That means when a customer looks for a place to live, they tend to prioritize the location over the
other factors. Therefore, location can increase the ability of renting a house if they satisfy its
location (Monica, 2018). Furthermore, the investment of houses placed in an ideal destination
would also contribute to profits (Hassan et al., 2021). The tenants can make good use of the
location to sell if the house locates in the centre or in the financial area. There is a resilient

7
connection between the living place's distance from numerous sites of essentials. The tenants tend
to consider the nearby convenience such as distances to the local business district, educational
institutions, work places, and grocery stores (Adair et al., 1996; Clark, Deurloo & Dielemn,
2006). Especially, most of the lodgets prefer to the place where is the nearest to their work spot
(Daly et al., 2003). Therefore, location make a great impact to the customer behavior on rental
decisions.
2.1.3. The affect of financial on the rental decisions
The term "finance" relates to a person's financial situation, which includes things like money, a
salary or wage, payments, the amount of interest charged, and loans (Hayes, 2023). Financial
factors that influence the decision to rent a property include the period of the payment and the
ability to pay in installments, as reflected by monthly income (Wang, 2013). In another word, the
financial aspects affecting the housing purchase decision, it not only indicates the access to the
substantial amount of budget but also show the borrowing cost. According to Paco and Raposo
(2009), financial considerations have the greatest influence on consumers' decisions to buy
products. Thus when renting a home, clients should carefully assess their financial situation before
making decision (Kaynak & Stevenson, 2012).
2.1.4. The affect of infrastructure facilities on the rental decisions
Infrastructure facilities means facilities to be built and supplied by the owner and shall include
amenities like gyms, pools, tennis courts, restaurants, and mini supermarkets. The water,
electricity supplies or public transpotration are also considered as a part of infrastructure facilities
and have a great contribution to the customer’s rental decisions. The convenience of these
amenities will give the high satisfaction and boost the rental ability in customer behavior and Khan
et al. (2017) asserted that the presence of facilities, such as a location, playground, sports area, and
institutions, is one of the most crucial factor in deciding whether to rent a house and that signified
into societal cultures should be taken into consideration. Additionally, the efficient functioning of
the amenities gives customers a feeling safe and convenient when living (Wang, 2013). According
to Yakob et al. (2012), these are some of the elements impacting consumer renting decisions to
reside the places where has the abandance of light, cleaning and security service. Wu (2010)
identified elements that affect young residents' consumption of property, including their
impression of safety, which is connected to the organization of facility services in common areas.
As a result, the infrastructure facilities play an important role in selecting a living place of the
tenants.

8
2.1.5. The affect of security on the rental decisions.
Security is defined as the additional conditions so citizens can live without having to care.
According to (Chen, 2015), one of the top concerns for buyers of real estate is security. The noise
is the security issue that people seem to care when renting a living place. Loud noises make people
not want to stay in certain areas (Weaver & Knight, 2020). Since it can negatively affect to the
tenant’s private asmosphere, the lodgers can not concentrate on working or studying productively
if living in a noisy place. Additionally, to ensure the security for a house or an apartment, the
supervision device like camera is a must to have. The camera can record many corners of the
house, building so the tenants may feel safer if there is someone break into the properties.
2.1.6. The affect of dwelling feature on the rental decisions
The primary factors that affected both customer satisfaction with their homes were the features of
their homes (Baillie, 1990) Dwelling feature is considered as the functions of a house that will
make it remarkable and distinctive amongs the others. These elements might include everything
from the most fundamental essentials, like a roof, walls, and floor, to more expensive additional
services, like a swimming pool, home theater, and smart home automation systems (Helena, 2008).
These elements not only increase the property's value but also strengthen the tenants' quality of
life overall. It is correct that when making rental house decisions, the tenants tend to have a desire
on the dwelling features. This features will help the tenants have a comfortable and enjoyable place
to live.
2.2. Research framework and hypotheses
Since the importance of rental house and an increase in the demand of tenants in Da Nang city, the
list of factors influencing to the house rental decisions will be included: location, financial,
infrastructure facilities, security and dwelling features. Here are the hypothesis developments:
H1: Location impacts the house renting decisions in Da Nang.
H2: Financial impacts the house renting decisions in Da Nang.
H3: Infrastructure facility impacts the house renting decisions in Da Nang.
H4: Security impacts the house renting decisions in Da Nang.
H5: Dwelling feature impacts the house renting decisions in Da Nang.

9
 Location

Financial

House renting decisions Infrastructure facilities

Security

Dwelling feature

Figure 1. Designed by the author.

3. Research design and methodology

3.1. The structure of questionnaires
To discover the factors influencing to the tenants when making house rental decisions, the research
will assess the level of customer consent. There are 17 questions in total in terms of the location,
financial, infrastructure facilities, security and dwelling feature factors.
Below is the content of location factors included three questions (L1, L2, L3), those are adapted
by (Wongsunopparat & Adam, 2023).
Table 1. The table of location factors (Wongsunopparat & Adam, 2023)

No. Symbol Location References

1 L1 The excellent location allows me to avoid the noise and (Wongsunopparat

bustle. & Adam, 2023)

2 L2 I think renting a house in a convenient location is good

for retaining value.

3 L3 Location close to the workplace or school would be an

important factor in my decision rent.

Below is the content of financial factors included three questions (F1, F2, F3) and those are adapted
by (Wongsunopparat & Adam, 2023).
Table 2. The table of location factors (Wongsunopparat & Adam, 2023)

No. Symbol Financial References

10
 1 F1 Prices greatly influence my property buying decisions. (Wongsunopparat

2 F2 I will make the appropriate property purchase decision & Adam, 2023)

based on salary and financial situation.

3 F3 Adequate financial ability is the basis for buying a

property.

Below is the content of infrastructure facilities factors included three questions (IF1, IF2, IF3) and
those are adapted by (Wongsunopparat & Adam, 2023).
Table 3. The table of location factors (Wongsunopparat & Adam, 2023)

No. Symbol Infrastructure facilities References

1 IF1 I tend to rent a property with fully infrastructure (Wongsunopparat
facilities. & Adam, 2023)
2 IF2 I am willing to rent a property with efficient facility
resources.

3 IF3 I have a high usage rate of infrastructure facilities.

4 IF4 A satisfactory infrastructure will allow me to buy a

property directly or indirectly.

Below is the content of infrastructure facilities factors included three questions (S1, S2, S3) and
those are adapted by (Wongsunopparat & Adam, 2023).
Table 4. The table of location factors (Wongsunopparat & Adam, 2023)

No. Symbol Security References

1 S1 I would like to rent a property that has an office with (Wongsunopparat

24-hour supervision & Adam, 2023)

2 S2 I tend to rent houses that require an access card to enter.

3 S3 I would like the building and the house to be checked

regularly to avoid safety hazards.

11
Below is the content of infrastructure facilities factors included three questions (DF1, DF2, DF3)
and those are adapted by (Wongsunopparat & Adam, 2023).
Table 5. The table of location factors (Wongsunopparat & Adam, 2023)

No. Symbol Dwelling features References

1 DF1 I would consider the layout and design of the property (Wongsunopparat
when making a renting decision. & Adam, 2023)

2 DF2 I prefer to rent a furnished property rather than a rough

property.

3 DF3 I would consider a property with a balcony when

making a renting decision.

4 DF4 I tend to rent property with fences and gates.

3.2. Sample and data collection

The study studies the factors affecting the tenant's decision to rent a house, so it is based on primary
data and quantitative data collection medthods collecting the opinions under survey questionnaires
from a group of immigrants who are from other provinces and some foreign visitors to Danang
city. The survey will be taken under both online and offline form. This will be sent via Email,
Facebook, and gathered the opinion directly of the tenants who living in Da Nang. It is estimated
that there will have a minimum number of 85 people people joined the survey. The more
participants conduct the research, the more explicitly the result comes out. All the samples will be
the lodgers in Da Nang so data collection system will automatically delete the cases that are not in
Da Nang city and have never rented a place in this city as well. There are three components to the
study's questions. The first section is to verify the main customer segment of this research. The
second part is the respondents' demographic information about age, income, gender, etc. The
measurement questionnaires encountered in the final section are resolved by choosing the most
appropriate scale from those provided based on the actual experience of the joiners and ensure to
keep only for the research purpose.
3.3. Methods for data analysis
From the collected data, after removing inappropriate observations and testing the reliability of
the scale, statistical work and data processing were performed using Excel and SPSS software.
The main data analysis methods used in this study are descriptive statistics, factor analysis and

12
regression analysis methods used to determine the main factors affecting visitor's house renting
decision of the tenants.
3.3.1. Cronbach’s Alpha

Definition: Cronbach's alpha is a statistical measure used in research studies to analyze the
reliability or internal consistency of a scale or set of related items. It is often used in domains such
as psychology, social sciences, and education to assess measurement consistency and guarantee
that scale items measure the same underlying construct. Cronbach's alpha has a value between 0
and 1, with a higher value indicating better internal consistency or reliability. The coefficient is
derived using the correlations between the scale's items, taking into consideration both the average
inter-item correlation and the number of items in the scale (Matt & Howard, 2021).
Formula: The formula for α Cronbach's coefficient is:
α = Nβ/ [1 + β (N - 1)]
β is the average correlation coefficient between the questions.
Interpretation: The alpha coefficient has a value between 0 and 1. A higher alpha score generally
suggests stronger internal consistency (Matt & Howard, 2021). The following are some frequent
interpretation guidelines:
α > 0.9: Excellent internal consistency
0.8 < α ≤ 0.9: Good internal consistency
0.7 < α ≤ 0.8: Acceptable internal consistency
0.6 < α ≤ 0.7: Questionable internal consistency
α ≤ 0.6: Poor internal consistency
3.3.2. Descriptive Statistic Analysis
Definition: Descriptive statistics analysis includes investigating, summarizing, and presenting
data to gain insights and comprehend the properties of a dataset. It provides a quantitative overview
of the data's essential features, allowing researchers to efficiently explain and interpret the dataset.
Descriptive statistics assist in summarizing the key features of the dataset. Calculating measures
of central tendency (such as mean, median, and mode) to establish the usual value, as well as
measures of dispersion (such as range, variance, and standard deviation) to analyze the spread or
variability of the data, falls under this category (Bhandari, 2023).
Descriptive statistics:
Mean: the average number.
Sum: total.
Std.deviation: standard deviation.
Minimum, maximum: minimum value, maximum value.

13
Df: frequency.
Std error: standard error.
Median: is the variable quantity of the criterion of the unit standing in the middle position in the
series of variables.
Mode: is the expression of the most frequently encountered criterion in the population or in the
distribution series.
Interpretation: Researchers can use descriptive statistics to summarize a dataset and draw useful
inferences. They provide a quick description of the essential aspects of the data, such as the
distribution's center, spread, and shape (Bhandari, 2023).
3.3.3. Analysis of Variance (ANOVA)
Definition: ANOVA (Analysis of Variance) is a statistical technique used to analyze the
differences between the means of two or more groups. It determines whether there are statistically
significant differences in the means of different groups based on the variation within and between
the groups (Bevans, 2022).
The null and alternative hypotheses
Null hypothesis (H0): This hypothesis assumes that there are no significant differences between
the means of the groups being compared (Bevans, 2022).
Alternative hypothesis (Ha): This hypothesis suggests that at least one group mean is different
from the others (Bevans, 2022).

14
References
Adair, A., Berry, J., & McGreal, S. (1996). Valuation of residential property: Analysis of
participant behaviour. Journal of Property Valuation & Investment, 14(1), 20-35.

Baillie, S. (1990) Dwelling features as intervening variables in housing satisfaction and propensity
to move, Housing and Society, 17(3), pp. 1–15.

Bevans, R. (2022) Simple linear regression: An easy introduction & examples, Scribbr, [online]
Available at: https://www.scribbr.com/statistics/simple-linear-regression/ (Accessed 27 May
2023).

Bevans, R. (2022a) One-way ANOVA: When and how to use it (with examples), Scribbr, [online]
Available at: https://www.scribbr.com/statistics/one-way-anova/ (Accessed 27 May 2023).

Bhandari, P. (2023) Descriptive statistics: Definitions, types, examples, Scribbr, [online]

Available at: https://www.scribbr.com/statistics/descriptive-statistics/ (Accessed 27 May 2023).

Chen, B. (2015) The analysis of household owning/renting house during and before the financial
crisis, Journal of Economics, Business and Management, 3(5), pp. 514–519.

Chen, B. (2015) The analysis of household owning/renting house during and before the financial
crisis, Journal of Economics, Business and Management, 3(5), pp. 514–519.

Clark, W., Deurloo, M., & Dieleman, F. (2006). Residential mobility and neighborhood outcomes,
Housing Studies, 21, 323 –34

Hassan, M. M., Ahmad, N., & Hashim, A. H. (2021). Factors Influencing Housing Purchase
Decision. International Journal of Academic Research in Business and Social Sciences, 11(7), 429-
443.

Hayes, A. (2023) What does finance mean? its history, types, and importance explained,
Investopedia, Investopedia, [online] Available at:
https://www.investopedia.com/terms/f/finance.asp (Accessed 16 May 2023).

Helena, C. (2008) The meaning of dwelling features conceptual and methodological issues,
Amsterdam, IOS.

Hương, T. (2023) Xu Hướng ‘di cư’ VỀ Thành Phố đáng Sống Đà Nẵng, Báo Kinh tế đô thị,
[online] Available at: https://kinhtedothi.vn/xu-huong-di-cu-ve-thanh-pho-dang-song-da-
nang.html (Accessed 15 May 2023).

Kaynak, E., & Stevenson, L. Comparative Study of Home Buying Behaviour of Atlantic
Canadians. Home Buying Behaviour, 3-11. 2007.

Khan, P.A.M., Azmi, A., Juhari, N.H., Khair, N., Daud, S.Z. Housing Preference For First Time
Home Buyer in Malaysia. International Journal of Real Estate Studies, Volume 11 Number 2.
2017.

Landau, J. (2015) Smart strategies for sharing, subletting, and renting an apartment, New York,
Rosen Publishing.

15
Matt, D. and Howard, C. (2021) Introduction to Cronbach’s alpha, Dr. Matt C. Howard, [online]
Available at: https://mattchoward.com/introduction-to-cronbachs-alpha/ (Accessed 27 May 2023).

Monica, E. (2018). Pengaruh Harga, Lokasi, Kualitas Bangunan dan Promosi Terhadap Minat Beli
Perumahan Taman Safira Bondowoso. International Journal of Social Science and Business, 2(3),
141-149.

Pangenggar, G., Hidayat, W., & Sendhang, N. (2014). Pengaruh Kualitas Pelayanan, Lokasi, Dan
Fasilitas Terhadap Keputusan Pembelian.

Stephanie (2023) Factor analysis: Easy definition, Statistics How To, [online] Available at:
https://www.statisticshowto.com/factor-analysis/ (Accessed 27 May 2023).

VnExpress (2023) Tin Tức Kinh Doanh bất động Sản - Thị Trường nhà đất, vnexpress.net, [online]
Available at: https://vnexpress.net/kinh-doanh/bat-dong-san (Accessed 15 May 2023).

Wang, C. (2013) Influencing factors analysis of house prices based on multiple linear regression,
Applied Mechanics and Materials, 415, pp. 722–725.

Weaver, R. and Knight, J. (2020) Advancing Housing Security: An analysis of renting, rent
burden, and tenant exploitation in Erie County, NY, SSRN Electronic Journal.

Webster, M. (2023) House definition & meaning, Merriam-Webster, Merriam-Webster, [online]

Available at: https://www.merriam-webster.com/dictionary/house (Accessed 15 May 2023).

Wongsunopparat, S. and adam, M. (2023) Factors influencing customer choice decision of

Property Management Company in Bangkok Thailand, Journal of Empirical Economics and
Social Sciences.

Wu, W. Y., Yau, O. H. M., Lu, H. Y. (2012). Feng Shui Principles in Residential Housing
Selection. Psychology & Marketing, 29(7), 502-518.

Yakob, H., Yusof, F., & Hamdan, H. (2012). Land-use Regulations towards a Sustainable Urban
Housing: Klang Valley Conurbation. Procedia - Social and Behavioural Science, 68(0),578-589.

16