The rental real estate market is increasing rapidly along with the entrepreneurs actively investing in real estate.
The new situation created two leading rent trends in 2021: a house in the suburbs, where you can breathe fresh air and take a break from the hustle and bustle; and rentals of commercial property for health organizations. As a result, the rental property business is in great demand.
It has become clear that the rental market won’t be able to keep up with demand.
The rental market is projected to grow at a CAGR of 8% from 2021 to reach $2.216 trillion in 2023.Rental Business Model
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 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.Fees
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.Ads
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. kayak rental near me