Amidst the ongoing pandemic-induced reverse migration, Nestaway Technologies, an online home rental company, has unveiled a partnership/franchising model aimed at penetrating smaller cities and towns across India.
Responding to Shifts in Tenant Behavior
The COVID-19 pandemic has significantly disrupted India’s home rental industry, leading to a considerable reverse migration of young individuals to their hometowns. In response, Nestaway is adapting its strategy to align with evolving consumer behavior.
Amarendra Sahu, Co-founder and CEO of Nestaway, emphasized the importance of being present where tenants are relocating. He noted a noticeable shift in consumer preferences, with tenants now seeking residences in less crowded areas and expressing a preference for reduced rent and services post-COVID.
Introduction of Franchised Services
Recognizing the need to cater to these changing dynamics, Nestaway is introducing a franchised version of its services. This approach allows local entrepreneurs to tailor Nestaway’s offerings to meet the specific requirements of customers in their respective regions.
Under this model, independent property managers will have access to the same product, technology, and expertise as Nestaway’s existing on-roll property managers.
Addressing Vacancy Challenges
Reports indicate a significant increase in vacancy rates, reaching up to 50% in cities like Bengaluru. Nestaway aims to address this challenge by leveraging its franchise model to engage with property owners and tenants in smaller towns and cities.
Business Expansion Goals
Nestaway is optimistic about the potential of its franchise model, aiming to generate at least 30% of its business from non-metro areas within the next two years. The company has witnessed a surge in owner requests from smaller towns and cities, reflecting the growing demand for rental accommodation beyond metropolitan areas.
Established in 2015, Nestaway currently boasts a network of over 50,000 tenants and 60,000 homes. With its new franchising initiative, the company seeks to extend its reach and enhance its presence in emerging markets across India.
