To effectively build your business in the rental market, you need a platform for individuals or companies to rent the types of property that suit them. The most famous rental property platforms around the world are Airbnb, Virbo, Respite, and Booking.
However, before you start your rental property The Myst business, you need to consider business models that will help you successfully monetize your product.
In general, the three most popular monetization models are fees, advertising, and premium features
Rental platforms may charge a fee for conducting a transaction. Airbnb uses this method of monetization by charging commission fees from both guests and property owners. The amount of the commission directly depends on the rental price: the higher the price, the higher the fees.
Advertising as an engine of trade is an attractive monetization model for rental property platforms. Real estate rental platforms can collaborate with airlines, travel and car rental agencies, or cargo carriers.
However, don’t forget that an excessive amount of ads negatively affects your loyal audience. We recommend using ads only when your target audience begins to grow.
Zillow and Trulia use advertising on their sites, but make their ads as customized and native as possible for users. For instance, their ads are connected with interior designers, retailers of home organizations, general contractors, automotive products and services, insurance, and other related services.
If none of the above models suits you, you may consider providing premium features to your customers for an additional fee. For example, you can use a premium subscription to give access to exclusive lists of the latest housing, discounts on rent, and tourist events.
Premium services have a positive impact on users’ attitudes. Such platforms as Redfin and Housing.com have successfully implemented this system and are receiving a positive response. Moreover, due to paying for some rare exclusive access, users feel more privileged, as compared to free access visitors.
However, you can focus on two or more types of monetization models of your rental platform at once. This will work effectively for the different needs of your target audience.How to Start a Rental Property Business: 5 Key Steps
In any business, the first steps are the most crucial since they build the path for the business going forward. Their thorough review is what will pave the way to success. I have outlined 5 main steps that will help you better navigate the sequence of project implementation on the market.
Even if you have an exciting idea for the rental business, you need to conduct market research and study your competitors. I advise you to start this stage BEFORE development. It’s better to have enough time to assess the risks and find solutions that are beneficial for you.