Franchise news for daily rental apartments

Profitability of an apartment for rent on the franchise

For those who read the first time our news franchise apartment rent, be sure to view the previous article and the next, which can be found in the category News Franchises posted on the company website ArendaGroup, for better perception of a complete picture of the market of daily rent apartments. This article will look at perhaps the most important aspect of any business – its profitability and revenue structure.

– Business Rules.

Have clean, the monthly income of 500 -. $ 3,000 / month for daily rent apartments franchise system – very simple, just follow a few simple rules. In fact, the amount of your income depends on how you are willing to give all the best in your work and a bit of seasonal fluctuations in the calendar year.

Work on the franchise system, requires a clear understanding of, and adherence to established rules set out below Franchisor and goals.
• Payment of a lump-sum payment as a mandatory condition for cooperation, the timely payment of royalty to the franchisor of the profits.
• Compliance with the business standards and promoting the brand on the local ArendaGroup market daily rent apartments.
• Development of the business and offer new ideas as a full partner ArendaGroup.
• Building relationships with ArendaGroup company on the basis of mutual trust and respect.

– Establishment of the work, running costs.

• Lump-sum payment, the package concluded licensing agreements for the franchise – 3 days to familiarize with the contracts, signing them to a notary’s office, making a one-time fee for a franchise agreement, the franchisor as remuneration (lump-sum payment) in the amount of 5000doll.

• Time to get acquainted with the business franchise apartment rent, monitoring, training in the company ArendaGroupEducation and training with ArendaGroup and training – 3 months (study of daily rental business fundamentals apartments, market research, practice has worked as a business, information kits and technical documentation for the organization rental business apartments for rent on the franchise). How will your future website – you can see details by clicking on the home page nasutki.ua one of the cities – operating partners of ArendaGroup. Franchisee costs – payment for their stay in the host city, food, transportation – roughly -2000doll.

• Preparatory stage – 3 months (purchase of equipment, tools, work in the city; the establishment of business processes – 3000doll)

• Start of operation – 9 months to complete the project payback, vlozheniya- 15000doll. The gradual (over 9mesyatsev) the distribution of investments, based on the calculation – 1 apartment -. 1000doll (costs include the cost of renting apartments for a long time, and repair and preparatory work).

Total -15 months. to a full return on your investment.

Where – 25000doll, the amount of funds invested by the franchise lease flats system..

The process works:

Search for the required number of flats under delivery to customers by entering into a sublease contract with the owners of apartments or renting their own homes, in the amount of 15 apartments (figure – is conditional, dependent on the population, the demand for apartment for rent in the city of franchisees).

Advertising Campaign – active advertising, to the extent necessary and places, according to the recommendations received from the franchisor provided the franchisee to operate; (Accumulated money on advertising from the amount of daily rent apartments received business income)

Service apartment for rent – cleaning, repairs, accounting, optimization of downtime apartments and current expenditures, according to the existing regulations, necessary for a successful business daily rent apartments franchise granted for ArendaGroup campaign.

Sdacha Apartment for rent them to end users – customers for profit, the payment of royalties from franchisees received income in the amount of 100doll. (Monthly cost franchisees, as a lump sum owner biznesa- franchisor for the right to manage this business)

Profit Calculation:

1) 15doll. . * 28 = 420doll / month gross income per month with one apartment (somewhere 15doll. Wed-price one day;.. 28- the number of days of actual delivery of the apartment, less downtime competent approach to the business of the franchisee – allows to provide 90% occupancy apartments for rent).

2) 15 apartments* 420doll = 6300doll / month. – The amount of gross income received in the month of business daily rent with an average population of 300 000chel (15 optimal number of apartments for doing business daily rent apartments for the franchise).

3) 200doll. *15kvartir = 3000doll. / Month. – The amount of gross basic costs for renting apartments (200doll.- the average cost of rent 1-for apartment renovation in the heart, in the cities of Ukraine with population in 300-500tys population..)

4) 6300-3000 = 3300doll. – Your monthly gross income, net of the rent amount of apartments in the long term. How much of this amount will be able to create your net income -. 500 or 2300doll / month? And as part of operating expenses – expenses for service and maintenance of apartments? The result depends entirely on your ability to save, practical business management skills, compliance with corporate ethics, as well as strict adherence to the franchisee – the rules, regulations and guidelines of the franchisor.

RESULTS: the necessary starting point for the business daily rent apartments 25000doll. – In this case you are guaranteed to leave on earnings from 1000doll. the fifteenth month of your work.Apartments for rent from Arenda Group Optimally – the more you will find investment, the higher the quality of your services, the easier it will work, and more of your income. In the city, starting small, you can achieve a guaranteed high profits that will result from your systematic, coherent labor and a half years. Even if you are experiencing a lack of finance – you can add investment on the development of your business, gradually, from working capital. Thus, you will become the best in your city, using the correct method of conducting the business of daily rent apartments franchise company ArendaGroup

Details

Author: Сикорский Т.А.

Published: April 19, 2016