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Why Rental Homes Will Be the Next Big Thing in the Coming Future?

Why Rental Homes Will Be the Next Big Thing in the Coming Future?
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You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

The organized rental homes market is an emerging segment that holds great potential for growth in the near future. Implementation of technology tools and systems, coupled with corporatized property management services, has improved visibility, viability, and accessibility of rental homes for tenants and homeowners.

However, investments for providing organized renting services have been miniscule, at a time when the housing sector alone contributes 5-6 per cent to the country's Gross Domestic Product (GDP). Experts explain that even though the demand for rental homes has been on the rise, a significant percentage of overall market potential remains untapped. This is largely due to prevailing belief systems that may take some time to evolve. Such change is inevitable in the near future since the organized rental homes market offers wide ranging benefits to both tenants and homeowners.

Benefits for Tenants

  • Ease of operations and sense of security: Maintenance, housekeeping, security and other vital services are managed in a professional manner by registered and trusted vendors. Any type of issues can be immediately attended to via a phone call or online support channels.
  • Saves commute time and costs: All efforts are made to provide accommodation in flats located nearest to the tenant's office. In cases where this may not be possible, flats in areas with good connectivity to the tenant's office are given preference.
  • Luxury made affordable: Renting a flat at a prime location can be costly for an individual. The organized rental homes model allows like-minded individuals to share the costs and enjoy luxury living at affordable rates.
  • Comfortable lifestyle: All flats are fully furnished and have all amenities, which ensures home-like, comfortable stay without the need to invest in furnishings and amenities.
  • Social connections: Tenants new to a city can experience social isolation. Organized rental homes platform makes it possible for people to enjoy a healthy social life by sharing flats with like-minded people.
  • Last minute savior: Last minute renting is now possible with the organized rental homes platform. It makes life easier for professionals working on urgent assignments.
  • Digitized operations: All processes and procedures, from renting to living and vacating the flat, can be handled online via a PC or mobile app. This saves considerable time and effort for tenants.
  • Anytime, anywhere access: Rental homes services can be accessed anytime and from any part of the world. Tenants can simply walk in with their bag and start living.
  • No Brokerage: Absolutely no brokerage involved. Tenants only pay for what they get.
  • Trustworthy operations: All processes and transactions are documented and made available to tenants.

Benefits for Homeowners:

  • Standardized process: Homeowners stand to gain from standardized processes that make renting a hassle-free affair.
  • Reliability: Homeowners can have their peace of mind, as all tenants are verified before accommodation is provided to them.
  • Zero Brokerage: Homeowners do not have to pay any brokerage.
  • Saves time and effort: Since everything, including the property, tenants and rent collection, is managed by the rental homes service provider, homeowners can just sit back and relax. Earlier, renting properties used to be quite stressful and a tedious process for homeowners.
  • Increased earning: The rental homes model enables maximum occupancy and the best market rates, ensuring increased earnings for homeowners. Rent is transferred online into the homeowner’s bank account.
  • Transparency in operations: Homeowners can access live updates about occupancy, rents, etc. anytime they want.
  • Larger audience: Web/app based concept allows service providers to tap into a larger audience base, which helps increase occupancy rate.
  • Professional property management services: The property and its maintenance is taken care by corporatized property management service providers. Homeowners can rest assured that their property is in good hands and taken care of properly, just as they would have.

With so many benefits for both tenants and homeowners, it’s just a matter of time before the organized rental homes segment unlocks its full potential and emerges as a game changer in the rental real estate market. 

Edition: December 2016

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