Page 87 - SHELTER

CASE STUDIES

Table 3: Sample Co-Living Establishment for Financial Analysis

Typology No. of occupancy No. of Built-up Area Total monthly Per bed Deposit Total
beds units area per per bed area fee fee (INR (Refundable)
unit (sq. (sq. ft) (sq. ft) Including per (INR)
ft) mess annum)
(INR)
Air Conditioned 50 2 25 170 85 4250 15000 1,80,000 30,000 2,10,000
(AC) Double
seater with
attach Bath
complaints against CoHo a huge opportunity or market Table 4: Area Statement for Calculation
& Nestaway regarding for these formats exists. It is a
bad service. Nestaway has good market for the startups as Particular Built-Up Area
severe customer care issues. the rental yield is quite high and (BUA) (sq. ft)
Almost 90% of their tenants hence it is profitable for both the Net room area 4250
have faced customer care property owner and the rental
problems. agency. It is also profitable from Recreation / 250

ii. Pricing: Your space and CoHo the user point of view that most common rooms
tenants have talked about the of the major hassles of taking a Retail (shops) 1,280
high price charged by these place on rent in a new city are
formats. being addressed by the rental Mess 300
iii. Restriction: In the case of agency. Admin/ office 250
both Your Space and CoHo Financial feasibility Analysis
different kind and degree of for the supply mechanism Common area / 1,583
restrictions have not gone for co-living rental versus passages etc.
down well with tenants. conventional rental Total 7,913
iv. Moving out clause: Moving A sample feasibility analysis Area per bed 158
out from Nestaway homes has been done for the business (sq. ft)
is considered as an event model of a service provider
full of hassle by tenants. All i.e. co-living company with Area per room / 317
three formats are accused standard assumptions vis-à- unit (sq. ft)
of misuse of high demand vis the renting model of an
as in the market there is no individual owner. mechanism. In co-living business
competition. Although these Sample model for Co-Living model, average value paid to the
start-ups have a novel idea, Companies (Service Provider) landlord is approximately 40%
implementation has emerged in Noida/Gurgaon of the rent per bed per month.
as a challenge. Hence 40% rent value covers the
Together these rental agencies From the feasibility analysis average market rental of that
(Table 3,4,5,6,7 & 8), it can be
have not even captured 4-5% inferred that co-living rental particular location. However,
of the total market whereas 60- offers a more attractive yield and there is an upper limit on the
70% rental housing stocks can financial feasibility indicators rent-paying capacity of the
be easily be converted to either vis a vis conventional rental for tenant. Entry-level professional’s
of these three formats. Clearly the same property to the supply average salary as per consumer
survey is INR 0.6 – 1 million per

October 2020 Volume 21 No. 2-SHELTER 85