Rental marketplace apps have made it easier for people to book accommodation just with a few clicks. They offer a range of options that traditional realtors can never provide. The rental business market is expected to grow to over US$ 335 billion by 2025, which makes room for making huge profits. Developing a rental marketplace app is an ideal solution for startups looking to make a huge impact.
Furthermore, the trend of renting over buying is growing in the United States, proving why this market is growing exponentially. Are you planning to enter this business and want to earn tremendous profits? If yes, go through this guide about creating a rental marketplace app for your idea of business.
What is a rental marketplace app?
A rental marketplace app is a digital solution for renting a property. This online platform allows users to rent property from each other or the app itself. In addition to real estate, these marketplaces have many other items, like furniture, equipment, vehicles, etc.
They have become immensely popular among people due to their extra convenience. A rental marketplace app development company adds efficient features for connecting people who want to rent their property. There is a listing fee charged by these marketplaces from property owners, whereas users are charged a commission.
A few top examples of rental marketplace apps are Outdoorsy, Airbnb, BabyQuip, Turo, Magic Bricks, and 99Acres. They have used this market adequately to impact the industry immediately.
Market size of rental marketplace app
According to Technavio.com, the online home rental services market is projected to reach US$ 21,190 million by 2027. It is mainly due to the growing demand for rental homes and high real estate prices. In the past few years, the online rental marketplace apps have grown nearly 13% CAGR.
If we talk about the major segments of rental marketplaces, they are semi-detached houses and flats due to obvious benefits. In 2020, the US’s rental market size was US$ 4.1 billion, which is projected to reach US$ 6.3 billion by 2027. On the other hand, the Chinese market is forecasted to grow at a CAGR of more than 13% in the next few years.
Other major markets with a huge demand for a rental marketplace app development company are Japan, Canada, and Germany. As shown in the above stats, most large countries have a huge demand for online rental marketplace apps.
Revenue Model of Rental Marketplace Apps
A critical factor that needs to be considered is how an online rental marketplace will make money. Although there are plenty of different methods for generating revenue, we want the most successful ones in detail below:
The most profitable method to make money from a rental marketplace app is charging a fee for every transaction. A premier example of making profits using this method is Airbnb which charges a certain fee from both guests and hosts.
The exact amount varies from platform to platform but generally stays around 3-4%. Additionally, a certain fee is charged for withdrawing money from the owners of the rental home.
The next revenue model that is used primarily by such platforms is advertising. In this system, companies pay for publishing their advertisements on rental marketplaces that charge a certain fee.
However, this model is considered a secondary model for generating extra income.
Another popular online rental marketplace method to generate revenue is charging listing fees. It is an exceptional choice for attracting owners to the platform or when someone has many items to sell.
A rental marketplace app can also follow the featured or premium listing model to give extra visibility to certain ads. It offers sufficient value to those who pay a fee for these ancillary solutions. This service gives advantages to both a mediator and an owner.
How Rental Marketplace Mobile Apps Work?
A rental marketplace mobile app works differently for a property owner or an individual looking to rent a property. Let’s look at both prospects in detail below:
- Rental property owners must create an account and verify the details after registration. It will be followed by listing the property afterwards. Make sure important details, like photos, location, trademark, etc., should be mentioned in the listing.
- The listing will go through a moderation procedure that varies from platform to platform.
- The users get notified by the platform when someone shows interest in their property. The renter can access the property owner’s contact details if allowed.
- Individuals looking to rent the property must register on the rental marketplace app and complete the verification process.
- Once verification is completed, the renter must search for the property matching their needs in the search box. Ensure the rental marketplace mobile app development company adds the desired filters to make things convenient for the users.
- They can pick the property and connect with the property owner.
How Things Work for Both Sides
- Renters and property owners can connect directly and make deals straightaway.
- The payments can be made using various integrated payment systems by the renters. There is a confirmation sent to the property listener about the payment.
- Both sides can share details once the payment gets confirmed.
- Once the rental period gets completed, both parties can give reviews about the deal.
Explore More: Property Finder App Development – Cost & Features
Features of Marketplace App Development
While performing rental marketplace app development, adding the desired functionality to the system is essential. Have a look at the major features that should be added at any cost below:
Make sure the sign-up form is easy to fill out within minutes. This step should be allowed to get completed using email or phone number. You can think about registering using social media accounts to make things easier.
The users should be allowed to create profiles with essential information, like name, email, photo, mobile number, etc.
Search and Filters
Make sure the search tool is perfect in a rental marketplace app allowing users to find the desired solution adequately. Also, the filters should be included in the search field to make things highly advanced. Add filters like pricing, property type, date availability, etc. to help the users.
Location plays a very important role while looking for rental apartments or flats. Integrate map to the platform to ensure users can conveniently find the property in the desired location.
Make sure reviews and descriptions are available in different languages. It can be extremely useful for extending the reach of a rental marketplace app to a wider audience.
The users should be allowed to make payments using a variety of methods for convenient transactions. The platform should have an intuitive design and guarantee the security of payments.
Benefits of developing a mobile app for Marketplace Rental Business
A platform can enjoy a great number of benefits by creating an online rental marketplace that we have mentioned below:
Enhanced Customer Experience
A well-designed rental marketplace app can give customers a user-friendly and streamlined experience that instantly boost their loyalty and satisfaction.
Better Visibility and Reach
The platform can reach a wider audience and increase its reach with the help of a mobile app to make things easier for potential customers.
A rental marketplace app development can be a wonderful tool to stand out from competitors. It can be a great choice to reinforce a brand’s identity and boost its values by improving its overall reputation.
How to Develop a Marketplace Rental Mobile Application?
A question that comes to the mind of established brands and startups is how they can create a marketplace rental platform. There is a simple process that needs to be followed.
Selecting the Solution
It is essential to know the type of rental marketplace platform before beginning the development phase. Make sure the best solution matching the needs of your business is selected. Although there is nothing bad in choosing a ready-made platform for a small-scale business, things can’t be the same for a large model.
They need a bigger & more scalable tech stack to serve a wider audience. The rental marketplace app development will go through lots of customization to match customers’ needs. So, it is crucial to choose what you will serve them.
Entering this business without conducting a discovery phase isn’t a good idea. This step allows the creators to evaluate the feasibility of the rental marketplace business. You will succeed in assessing the advantages and disadvantages before starting the development process.
The discovery phase can also assist in adequately outlining and detailing the platform’s features. It also analyses the tech stack to be used, compliance and integration factors to be considered, and the scalability of the solution for developing the ideal solution.
Implementation of Marketplace Solution
The next step is implementing a selected tech stack to develop marketplace solutions that perfectly suit the project. Go for a platform with a minimum variable product to make future upgrades convenient and better.
Cost of Developing a Rental Marketplace App
How much money will be needed to be invested in creating a rental marketplace app?
If we consider end-to-end development, the final cost can be anywhere between US$ 50,000 & US$ 70,000. From a broader perspective, factors like project management, business analysis, backend development, quality control, post-release maintenance, etc. will influence it.
On the other hand, developing an online rental marketplace can take up to 800 hours of dedicated work. If someone wants to develop an app over it, the timeframe may increase up to 1200 hours.
Why Choose Inventcolabs to Build A Marketplace Rental Mobile App?
At Inventocolabs, our professionals begin the process of developing the app by performing discovery sessions discussing the ideas with the business analysis, and developing teams. We extensively work to identify your audience requirements and perform a competitive analysis. It will help us decide what features need to be prioritized and what are compulsory for solving customers’ needs.
We have experience performing rental marketplace app development for years. Our team fully understands the difficulties associated with such kinds of developments. We have built many top-level rental platforms, like Shortlet Rentals, which have instantly penetrated the market. We have more than 150 satisfied clients, and the number is continuously growing.
Online renting marketplaces are one of the most lucrative industries due to the changing trends of people. Developing a rental marketplace app is the perfect choice one can make for having a huge business.
Are you ready to kick-start your journey in this business? Inventcolabs will be happy to help you with the best possible solutions!
Q. What are the best examples of the online rental marketplace?
Ans. A few popular examples of these platforms are Airbnb, VRBO, Turo, and Magic Bricks, which have assisted users with accessing rental services at length.
Q. What are the most crucial features of a rental marketplace?
Ans. The major features that should be included in a rental marketplace app are currency converter, map integration, dashboard, search & filter, and messenger & forums.
Q. Why should you invest in a rental marketplace app?
Ans. There is tremendous scope for making huge earnings in this segment as it is a growing business trend and has high scaling potential. A number of people search for renting properties online which makes investing in rental marketplace apps highly rewarding.