Property management is not an easy task, especially if you are miles away. The list of tasks includes repair and maintenance, collecting invoices, finding a tenant, paperwork, etc.
This requires a single contact person who can handle all aspects of property management.
Working in the USA, Gopal Mishra experienced a similar complication while managing one of his holdings located in Gurugram. On the other hand, his close friend Vinay Prajapati, who had already worked in the real estate industry, was looking for new opportunities in residential property management as it has witnessed an increase in demand.
Sharing a common interest in technology and real estate, the duo decided to solve this problem with technology.
Since Prajapati has already run a real estate brokerage firm since 2014, the duo decided to change the business in 2017 and enter the residential real estate services segment with a new identity – Propdial…
They are downloaded a startup and started with Gurugram, collecting property from friends and family living in the United States.
Gradually, in addition to receiving feedback, they learned the intricacies of trading and began to strengthen the business. By word of mouth, the company began gathering leads, and the numbers soon began to climb.
Providing ROI and Peace of Mind for NRI
The platform created a single Property Management Package (PMS) for clients, which includes a comprehensive property management service. BUT one-time annual fee ranging from 10,000 to 20,000 rupees is charged depending on the size of the property.
- Repair and service
- Payment / collection of bills
- Internal work
- Rental services (advertising on Propdial and other portals, marketing through brokers and termination of the lease)
- Verification of tenant credentials, tenant entry into property, legal documents
- New real estate offers
Once the client contacts Propdial, a simple agreement is signed and the company takes over the ownership. Then a special manager is appointed who accepts the keys, conducts a first-level check and reports directly to the owner.
The customer has access to his unique account, where every detailed report is downloaded, including legal documents, inspection reports, tenants, renovations, visits, etc. along with photos. Gopal says it is aimed at relief for ownersespecially considering illegal possession common in cities.
The founders noted that many clients do not want to rent out properties, but just want to support it. However, the annual fee remains the same whether the customer chooses one service or multiple options.
“We want to offer you a complete journey. We tried offering separate services, but we saw no value in it, ”says the co-founder, adding that a client living abroad does not mind paying a one-time annual fee in exchange for “Complete calmness.”
Propdial entered three strategic partnerships with – cabin.com, MyGate and ApnaComplex. While partners create a one-stop shop for their customers, a startup makes a profit by attracting new customers.
“After the establishment of partnerships, the number of potential customers increased 20 times, and the cost of attracting customers decreased, which increased our revenues. We have a first mover advantage in terms of integration with large real estate platforms and we will see more such deals in the future, ”says Gopal.
Propdial runs on mix subscription and commission… In addition to the one-time annual fee for the PMS package, the startup charges a 15-day rental fee in case a prospect is generated from their channel.
The commission is also charged for the lead received from the affiliate channel. The owner can also bring their potential tenants, in which case no fee will be charged.
The third stream of income comes from commissions / referral fees with more than 200 service partners listed on the Propdial platform.
In less than four years, the company switched to 15 cities and 7 statesincluding Karnataka, Maharashtra, Haryana, Uttar Pradesh, Telangana, Rajasthan and Delhi-NCR, property management in the amount of Rs 750 crore…
Clocking income of about Rs 1 crore in the 20-21 fiscal year, the business has shown an almost 10-fold increase in revenue over the last three to four years of operation.
“We go around 1000 qualified inquiries per month, 250-300 per week. In terms of business structure, Propdial’s internal channel manages 70 percent of NRI businesses and 30 percent of Permanent Indians (RI)while the affiliate channel does the opposite, ”says Gopal, adding that the company’s digital marketing has focused on NRI from the outset.
Propdial Delhi-NCR Team
Competition and the market
Many players work in the rental management industry such as NestAway, Homigo, CoHo, Zenify and others.
The difference between Propdial and the other players, as the co-founder explains, is that the latter is subletting the property, taking over the ownership, while the former is operating in continuous maintenance.
“Their (competitors) strive to get as much income as possible from residential real estate. The owner has no control over the choice of tenants and receives a lump sum and the company makes a commission. The goal is to take over the property, ”says Gopal.
In the case of Propdial, the goal is to take care of all the property.
“The lease agreement is concluded between the owner and the tenant at the choice of the latter. Control remains in the hands of the owner. This proposal sets us apart. In addition, we have a guaranteed income, regardless of whether the property is occupied or not, ”he adds.
According to IBEF, India’s real estate sector is expected to reach $ 650 billion by 2025.… In the seven largest cities, home sales increased by 29 percent and new additions increased by 51 percent in the fourth quarter of fiscal 21.
Residential property demand is expected to grow further as homebuyers take advantage of low mortgage loans, developer incentives and low interest rates. As the number of housing projects grows, the demand for property management is expected to only grow, along with links to major real estate players who will offer one-stop services.
Prospects for the future
In the next two to three years, the startup plans to reach 12 states / 30 cities, while aiming to earn Rs 200 crores. Today the company raised $ 500,000both internally and externally, and ready to move on to the next round.
“We plan to raise funds before Serie A in the upcoming block to the tune 2-3 million dollars to drive growth and technology development, ”says Gopal, adding that the company is in talks with multiple listing platforms for integration.