Everything You Need To Know About Blueground's Operation
Blueground is a significant provider of hospitality technology. Alexandros Chatzieleftheriou, Andreas Nezeritis, Penny Papakonstantinou, and Alexis Maragkos started it as a flexible rental apartment firm in Athens in 2013. The firm rents high-end buildings and then renovates them into top-selling rentals. Following the makeover, it makes these rentals available to renters seeking bespoke living or hospitality options.
In this post, we'll take a closer look at the Blueground business model, including its business strategy, revenue model, working methods, and marketing strategies that are assisting the company's current success. We'll try to answer the most often asked questions, such as "How does Blueground work?" and "How does Blueground make money?" using this. Continue reading till the conclusion of the post to obtain answers to your questions about the company.
Business model of Blueground
Blueground understands that people are increasingly seeking opulent living with greater flexibility and mobility. In reality, adaptable and seamless real estate is becoming increasingly popular. With this in mind, the company plans to establish a network of handy, completely furnished, and beautifully decorated apartments in a variety of cities throughout the globe. The company collaborates with landlords and other property management firms to provide simple and cost-effective leasing alternatives for vacant properties.
In a word, Blueground is a tech-enabled, end-to-end property management company that aims to provide rental services to both tenants and property owners. They go beyond real estate by incorporating technology into their business processes to link CEOs and renters with fully furnished flats for mid- to long-term stays. This service is also beneficial to property owners because it increases annual rental yields.
To make the apartment look adorned and elegant, the company provides complete interior design, furniture, and property management services for each property that it leases. While launching this business, the founders assessed the market and concluded that there was a gap in the real estate network that needed to be addressed. They devised the revolutionary Blueground Business model to address this void.
Blueground created technology tools in-house to automate all company activities. Bookings and payments can be made in a couple of seconds via the internet. The official website, as well as the mobile application, assist guests in all aspects by offering all rental property information. In addition, the organisation has improved its operations by incorporating technology into its internal working processes.
It is a well-known truth that remote work is on the rise, especially with the introduction of COVID-19, when practically all organisations began giving remote work to their employees. Along with remote work, business travel is common, and people rarely agree to pay for long-term rents or leases for these frequent stays.
People like these are increasingly turning to organisations like Blueground as a one-stop shop for a better stay that is also incredibly cost-effective. Blueground is steadily establishing itself as a go-to alternative for people who are relocating or going to new places for work, short vacations, or extended stays. It works with property owners to secure long-term leases and then transforms the home into a beautiful living space for its visitors. After then, these properties are rented out on more flexible terms. Tenants can easily rent a property from the Blueground listings for a duration ranging from one to five years. The rental property rates are established on a monthly basis, which makes it easier to attract tenants.
As part of its marketing plan and to attract additional clients, the company just announced a new initiative. Blueground Bespoke was the name of the new initiative, which was established to improve the interior design of leased residences. The company's interior design team will follow a specific design framework in this programme. Each Blueground unit will have one wallpapered accent wall that will draw the attention of occupants and other visitors. These residences will also feature high-tech features, like a mirror for visitors.
Who are Blueground’s investors?
As part of its marketing plan and to attract additional clients, the company just announced a new initiative. Blueground Bespoke was the name of the new initiative, which was established to improve the interior design of leased residences. The company's interior design team will follow a specific design framework in this programme. Each Blueground unit will have one wallpapered accent wall that will draw the attention of occupants and other visitors. These residences will also feature high-tech features, like a mirror for visitors.
The company announced on October 23, 2019 that it has raised $50 million in a Series B investment sponsored by WestCap and Prime Ventures. This funding comes fewer than eight months after the company's $20 million Series A fundraising was announced. With these two funds, the total amount raised to $78 million.
What is Blueground and how does it work?
Now that you've comprehended the Blueground Business Model, let's get to the bottom of "How does Blueground work?" This necessitates a thorough understanding of Blueground's operation.
As a primary landlord, you'll confront a variety of challenges, including rental gap uncertainty, financially disadvantaged renters, and other repair-related routine tasks. You devote a lot of time and effort to keeping the property in good repair, screening tenants, and collecting rent. It can be extremely stressful for an individual to complete all of these tasks.
This was the missing link in the real estate network that Blueground discovered and successfully filled. They make your job as a landlord easier by leasing your property, and then it's their responsibility to maintain it, decorate it, attract tenants, and collect rents. The firm has a talented staff of interior designers that can turn the landlord's vacant rental property into a trendy premium apartment. This high-quality interior is only one of the many features that appeal to both landlords and tenants at first glance.
Landlords that have joined with Blueground will reap the benefits.
The following is a list of some of the Blueground's advantages.
Landlords benefit from:
The company guarantees the rental income for the entire year, regardless of whether the unit is occupied or not.
The flats are leased to Blueground for a period of three to five years by the landlords.
They find polite tenants to live in their apartments for an extended period of time (9 months on an average).
Landlords are not required to interact with their renters.
The company's co-financing of the apartment's interior, as well as furnishings and other equipment, results in more effective solutions when the property is handed over.
This raises the chances of increasing rental income while still receiving monthly rent checks.
What is Blueground's revenue model?
The landlord and Blueground agree on the rent as a first step toward earning money. Blueground pays the landlord this monthly rent if both parties agree, regardless of whether the property is occupied or not. The final rental fee charged to the subtenant is where it (Blueground) makes its money. This is how it generates revenue.
How much do they charge landlords in commission?
Blueground's business model is distinct from that of other rental marketplaces like Airbnb. In contrast to Airbnb, the landlords are not charged a commission and hence do not profit from the commissions. Blueground's profits are derived from the monthly rental rent it charges its renters.
Blueground operates in such a way that it becomes the major landlord by leasing rental buildings. The firm is in charge of finding corporate executives and expats to serve as your (landlord's) subtenants.
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