Renting over buying has become the most trending aspect among millennials and Generation Z in recent years. Many statistical reports prove that the rental marketplace has taken a new dimension in terms of revenue growth. Certain products can be rented instead of bought and can save more money for consumers.
The e-commerce market has decided to follow this trend. With an effective rental marketplace platform, users can rent vehicles, clothes, properties, home appliances, and many more. The response from consumers has stimulated start-up ideas for many budding entrepreneurs.
What is a rental marketplace?
A rental marketplace is an online platform that connects the seller of the property, product, or any service to the renter who needs to rent them. The rental marketplace will get a commission from the renter and the owner on each rental that happens through the platform.
Key stats to prove the rental marketplace growth
- In the US, the rental market revenue was $13.3 billion in 2021 and is expected to reach $20 billion by 2025.
- User penetration in the vacation rental marketplace was 13% in 2021 and is expected to touch 17% by 2025.
- 64% of travelers preferred vacation rentals mainly because they get access to the kitchen and
- 49% of travelers preferred better privacy.
- Steady growth is recorded in the car rental industry. The expected annual growth rate of the global car rental business is 14.3% from 2021 to 2025.
- The global furniture rental marketplace revenue is expected to grow from $73 billion in 2021 to $139 billion by 2029.
How does the online rental marketplace function?
The working pattern of any rental marketplace is simple to understand. All you need is to build an effective rental platform with all essential features. For the rest of the operation, the platform will take over.
- First, the user will register himself with the rental platform and will start his search for property, product, or service.
- Once the request is received, the platform will list out the list of owners who are having the user-mentioned property or product for rent.
- Users can choose any one of the options and can visit the owner’s page to view more about the rental charge, product or property description, and contact information of the owner.
- If the owner is satisfied with the details given on the owner’s page he can proceed with booking the request, else can check with other owners.
- The respective owner will receive a notification about the booking request. He can either accept or reject the request. If he accepts then the user can rent the good on the requested date.
- Users can use the product or the property till the renting period is over. Once the renting process is over, the user can share his feedback and rating through the rental marketplace.
- The rental fee is paid through the platform and the admin will deduct his service charge from the rent and will transfer the rest to the owner.
How to easily build a rental marketplace platform?
Building a rental marketplace needs more market understanding. Anyone can build a platform but survival is the major challenge for any admin. Let us identify the simple steps to build the best rental marketplace that can easily beat all competition in the market.
Define your product niche
Rental marketplace may seem to be a single term but there are multiple product categories it can hold. You can rent a car, bridal accessories, rooms, a house, furniture, and many more. First, finalize the product that you want to rent.
This is very essential as each product may require a different set of features though the basic working pattern is the same. You can either focus on a particular product or service or can have multiple products in your rental marketplace.
Design your rental website
This is the most crucial part. You need to understand that you are going to earn only through this website. So more attention is needed while designing the website. Make it device responsive as 89% of visitors use their mobile phones to visit any online marketplace.
An intuitive user interface is very important and the design should be more attractive. Only then you can easily grab the attention of your audience and make them visit your platform and rent your product.
Add essential features
Features are going to give comfort to your audience while using your rental marketplace. Understand your audience and make sure you include all the necessary features in your platform. If your visitors are satisfied with your platform functionalities then they keep visiting again.
Segment features for owners, renters, and the admin and make sure all three user groups are impressed with your marketplace features. You need to know what the mandatory features required for your rental marketplace
- Social media login
- Advanced search system
- Geo-mapping location
- Push notification
- Multiple payment options
- Easy API integration
- Multi-lingual support
- 24/7 customer support
Now you are ready with your rental marketplace platform. Now it is time to go live. For this, you need to purchase a domain name from a genuine domain name service provider and a hosting server to host your platform.
There are several types of hosting and you need to choose the best hosting service for your online rental business. You are building a scalable platform so choose the best storage plan for hosting your platform.
Promote your rental marketplace
Without a proper marketing strategy, you cannot expect brand reach among your audience. To show your online presence you have multiple resources that will get you better visibility. You can make use of social media channels where 87% of your audience is active.
Make use of SEO to gain organic traffic and for instant traffic, you can utilize search engine marketing. You can have social media influencers promote your brand on their pages and you can pay commission to them.
Are you curious to build your online rental marketplace with Appkodes?
We at Appkodes have the tremendous industry knowledge and can build a perfect, scalable, and customizable rental marketplace with an effective rental script. We have served in this digital industry for more than a decade and our knowledge-rich technical experts are skilled enough to build any type of on-demand rental marketplace even from scratch.
Hope you are going to start a profitable business with an excellent and best rental marketplace. We suggest you join hands with our technology-upgraded partners and have a strong market presence.