When we have started sharing cabs and workspaces as a cheaper and more efficient option, why can’t we do the same with residential spaces? The acceptance of a shared economy around the world was the driving thought when StayAbode started operations in August 2016 with the idea of building hostels for short-term accommodation requirement. It leverages technology, design, service and branding to build co-living spaces for the rental residential real estate market at scale. “We build a mix of private and communal areas such as living rooms, kitchen, etc. Some such spaces are underutilised and our technology creates efficiency in terms of costs which is passed on to the consumer and then to the property owner,” said Viral Chhajer, co-founder & CEO, StayAbode. Real estate owners sign up their properties with StayAbode for a higher rental yield. “Our aim is to increase the rental yield from 3-4% to 10-11% on account of better space utilisation. If we are able to accommodate more people on one floor then we will be able to get a higher value out of each property,” explained Chhajer.
StayAbode has five properties across Bengaluru on its platform. It converts each property into furnished apartments for young working professionals who have come to a new city and will stay for less than a year. The start-up works on an inventory model where it picks up a property and adds a layer of services. It earns a monthly rental from each of its properties for the additional service such as housekeeping, utility bill payments, security, repairs and maintenance, among others which it is offering to its customers but the customer just pays one single price for the property. “We operate two platforms—for residents and for workforce. The residents’ app can provide information such as who lives next door, who else stays in the building, rentals, etc. This is the consumer side of things,” said Chhajer.
You May Also Like To Watch:
It is using algorithms to increase the efficiency of the services such as housekeeping and security that it is offering its customers. It uses the workforce app for monitoring, scheduling and auditing of these services. StayAbode’s margins are 15-30%. StayAbode raised angel funding from a consortium of investors led by Ishan Manaktala and Angie Mahtaney in February. It was used for technology and team building.