Business Model Settle.co
Hello,
I am unsure if this is the right place to post, as this is my first post, but I wanted to know if anyone knows how www.settled.co and similar companies earn money. I understand they sign a long-term master lease with a landlord, furnish the place then rent it out for more money. Is that it? How can they afford to furnish the apartment and still make money? It seems like a neat idea, and wondering if something similar can work in my market, Prague, Czech Republic. I appreciate any help you can provide.
Chris
Hello Christopher, its all about unit economics and margins. Need to identify apartments in high demand locations where on a per bedroom basis its below market pricing. The higher the bedroom count the lower the per bedroom price. In NYC a 3 bedroom could be $3300, a 4 bedroom $3650 and a 5 bedroom could be $4000. The 5 bedroom is $800 per room meanwhile 3 bedroom is $1100 per room. High demand for low priced rooms.