Wonder if it’s just me or there’s more people wanting an asset light life in a sharing economy – I don’t want to buy a house, furniture, car.. anything! As long as I’m able to use it whenever I want, I’d be happy.
I read that we have a million un-used houses in Urban India
And that we have a shortage of a 100k hotel rooms
Airbnb shows just about 200 Entire Houses available in a two month range in Delhi.
Roomorama shows just 60 serviced apartments for 2 month rental in Mumbai, costs starting from 50 Euros / day.
Rentomojo is willing to rent decent furniture for Rs. 2000-3000 per month. Capital intensive, but workable model.
And you have products like Remotelock which can let you control access without physical keys being handed around.
A search for property managers doesn’t throw up a large organized player.
Alright, so can you make an asset light model to unlock some value here?
- Take the empty house from the owner on a revenue share basis. Any revenue is better than empty house, specially since the owner has to do nothing here.
- Get it furnished by Rentomojo – include a dishwasher. Or find an ikea type company that’s super innovative with doing interiors / furniture at scale – REALLY making good use of the space.
- Install Remotelocks.
- Setup the house as a property listed across vacation / serviced apartment rental spaces.
- Guest books / pays advance and gets a password to access the house.
- Password changes at check-out, reissued to next guest.
- Include Safe-boxes, for any precious items the customer wants to keep.
- A house keeping agency is alerted after every check-out or to clean up the apartment, or just does it every day for longer stays.
- All worthwhile items in the house are on inventory list that’s checked by the housekeeping supervisor / property manager every week.
- Some stealth / damage of house furniture/items.
- Estimate in the cost of doing business.
- Since you have full access logs of the apartment, both ends can be investigated if there’s something big.
- Pay the apartment security guy a fee / month to keep his eyes open.
- Apartment CC cameras would capture if something big is being taken out. Spoons / Towels – live with it.
- Security / Permissions – Residential apartments may not want people to run guest houses in the apartments.
- Check desired security protocols and pay the RWA their fees.
- Taking a Passport Copy while checking-in is compulsory for any hotel / stay.
- Building Security Guard can click a picture of the passport when this guest arrives and uploads into system. Give him the smartphone / app
- Or put a connected camera at the apartment entrance, triggered at password entry.
- A user once verified may be exempted from doing this again and again across his bookings if he’s using the same account / mobile number that’s verified.
- Should figure a way to connect with banks / telcos for the KYC logs of the users.
At 1000-1500 / day with 50% occupancy, each empty house still earns 20-30k / month. Fancier houses bill higher. Monthly or longer term bookings come cheaper, almost close to the long term rental rates of the house in the area.
You can always apply smart algorithms to revise pricing and enable efficient short term rentals to stay attractive and get higher occupancy rates.
10,000 houses x 20,000 / month = 240 Cr / year rather conservatively.
Fundamental question – do the house-owners care about the additional income -given that they bought it for investment purposes, quite possibly with cash. I’d say at least 10% of them wouldn’t mind, if given confidence of seamless experience. that’s a hundred thousand houses.
Potential users would include
Bachelors / DINKs / Expats on mid-term assignments / Consultants in client city –
Companies could use these as guest houses, paying only on use and no fixed monthly costs.
Someone’s gotta do it. Hope they do it soon.