What Are The Various Rental Business Models?

Posted by Amy Jackson on December 25th, 2019

“Business is all about solving people's problems at a profit” - Paul Marsden.

Commencing a purposeful business is today’s people's intent. That’s due to the opportunities in the online platform and space available. Strategic people fill the vacant space and handle the platform well to turn out successful numbers.

Business Model/ Platform = Yes, a business should be purposeful and solve the problem of people. Along will purpose the business idea has to be curated with the best business model and placed at the right platform. A business model is a company's plan for making a profit. It identifies the products or services the business will sell, the target market it has identified, and the expenses it anticipates

Robustive Team = “You need that teamwork to make that dream work”. A great team can break any hurdles and coordinate together for success.

Marketing Strategies = You may be on the right platform, but marketing strategies can show your presence to the people.

“A secret formula for successful business is = Well-defined Business Model + Robustive Team or script to land on online platform + Marketing Strategies.”

Business On Rental Platform:

The time may evolve the craze towards rental products never fades, as they are affordable, no need to maintain, short term owning and much more. Not only on the users side but also to the extreme end of business, the entrepreneurs also benefited with less investment.  

Airbnb is one such firm that has reached the pinnacle of rental business in an online rental platform. They serve both mankind and society.

Airbnb works on an aggregator business model, where the company sells their services and earns through commission fee.

Like Airbnb, there are many successful rental business models. Let’s see them now,

Various Rental Business Models?

Brick And Mortar : Well you have a space to locate your business, now for online presence go head with website module by successfully registering it to a domain. Do some digital marketing to enlarge your circle.

Bricks & Clicks : A company that is available both online and offline platforms. That user can pick products both in online and physical stores.

• World’s famous fashion rental store “Rent The Runway” and Forbes has projected it as a tech world’s next billion valuation. After reaching 5 million customer, Rent The Runway has placed physical stores in Newyork. They afford designer dresses for rental at 10 % of the retail price. A decade before, two women of New York launched their new venture “Rent The Runway”. They are an online service that provides designer dresses and accessories for rentals in a subscription base.

Peer-To- Peer Rental Marketplace : It is a decentralised internet based economy. Here two people interact directly to sell goods and services without a third party’s intervention. 

In the p2p rental marketplace, many businesses have stood strongly and provide rental services to the users. Some of the live living business on rental marketplace are,

• Boatsetter - Peer to peer boat rental services, works similar to Airbnb. They connect boat owners and renter seamlessly. With numerous listings, the option for captain to drive and much more service rejoices the renter.

• Spinlister - is a peer-to-peer bike rental company allowing people to rent a bike online, either from other individuals or existing bike rental shops. It’s like an Airbnb for bikes. Pretty handy if you’re a tourist in a city. However it obviously needs lots of people to participate.

• Tillable - A spotlight for people who are passionate about farming and searching for farmland. It is a peer-peer farmland rental site that works similar to AIrbnb. Here both the owner and renter gets benefitted.

• Justpark - Peer to peer Parking space rental on an hourly basis. Sweet steps to make parking more convenient.

Online Marketplace : An aggregation of different competitors on a single platform. They unite with product and service and stay unique with various factors. On this online marketplace, business minds have invested their rental ideas and plowed out returns.

Let me list out some,

• Peerspace : An online marketplace for space rental. They are known for their best services and cumulation of activities listed. So that people can list their space for any activities. 

• Turo - An online car booking service, known for its hour-based bookings.

Franchise : Being a non manufacturer, distributor and retailer. They broadcast the product or service. One can start a business as a franchisee in a rental platform like Rent The Room in Aussies.

• Rent The Roo franchise provides reliable audio equipment service and complete range of household appliances on a rental base.

Subscription Based Models:

The subscription business model is a business model in which a customer must pay a recurring price at regular intervals for access to a product or service. Understanding its significance many businesses follow subscription based business models. Some offers as cloud services namely “SAAS”.

Through monthly and annual subscription users are charged. In B2B for every subscription business owners get paid subscription. If it is B2C, The customers access the platform for free and charge for each service.

Conclusion:

There are various rental business models, ideas all around just a single spark and technology support can lift business.