CO-living Spaces

Points :

 Target group – millennials

o Focus – experiences and not Ownership of assets
o Mobile workforce stats – implying the need for active relocation. Flexibility faactor
o Alleviate the feeling of loneliness – community living
o All facilities / amenities: The monthly rent includes everything – from maintenance,
housekeeping, laundry and furnishing to water, electricity, Wi-Fi and entertainment
o Women friendly – security / background verification
o Landlord discrimination
o Limited inventory with Brokers
 Downtrend in house ownership
 Cost perspective:
o 9% – 12% in co-living vs 1.5-3% in renting
o 15% – 30% saving in rental costs for tenants
 No hassle of collecting the rent / maintenance
 Unit economics:
o http://bwdisrupt.businessworld.in/article/How-Co-Living-Spaces-Reshape-Real-
Estate-Industry-of-India/14-06-2017-120167/
o https://www.forbes.com/sites/suparnadutt/2018/01/16/landlord-discrimination-
and-increasing-rental-prices-are-driving-a-co-living-boom-in-india/#63894c38d5d6
 Revenue Model:
 Principal : 3Cs : Comfort, Convenience and Community

Following are the points I wanted to discuss with you:

 Agreement with Owners / Landlords and T&C of rental for tenants – Dynamics of rent
sharing / Property management agreement. Time period / contingent clauses / division of
responsibilities
 Who puts the initial money to set up
 Effect of rent-free period on business model – for tenant / operator – minimum guarantee
required
 Re-entry of Landlord – what situations can lead to it
 Tech – any unique features?
 No. of beds
 How is the working capital handled? Handling of security deposit / rent etc.
 Breakeven / Unit metrics? CAC, employee costs, Marketing etc.
 Key metrics used to track performance. – Occupancy + Realisation + CAC (2,500) + LTV (
 How do you deal with excess demand or revenue lost due to the same
 Any kind of cross – selling revenue? Promotions from clubs / restaurants / other services
