Managing a property is not an easy task, especially when you are sitting miles away. The to-do list includes repairs and maintenance, collecting bills, finding a tenant, preparing paperwork, and more.
This requires the need to have a single point of contact who can handle all aspects of property management.
Work in the United States, Gopal Mishra suffered a similar complication while managing one of his properties located in Gurugram. On the other hand, his close friend Vinay Prajapati, who was already operating in the field of real estate, was looking for new opportunities in management of residential buildings as he witnessed an increase in demand.
Sharing a common interest in technology and real estate, the duo set out to solve this problem using technology.
As Prajapati already ran a real estate brokerage firm since 2014, the duo decided to pivot the activity in 2017 and enter the residential real estate services segment with a new identity – Propdial.
They primed startup and began operations from Gurugram, taking over the properties of friends and relatives living in the United States.
Gradually, they learned the ropes, in addition to getting feedback, and set out to strengthen the business. With just word of mouth, the business started getting leads and soon the numbers increased.
Providing ROI and Peace of Mind to NRIs
The platform has created a single Property management package (PMS) for clients, which includes an end-to-end service for property management. A single annual subscription in the range of Rs 10,000-20,000 is charged, depending on the size of the property.
The services include:
- Repairs and maintenance
- Payment / collection of invoices
- Interior work
- Rental services (advertising on Propdial and other portals, marketing through brokers and tenant finalization)
- Verification of tenant credentials, tenant’s move into the property, legal documents
- New real estate offers
As soon as a client approaches Propdial, a simple agreement is signed and the company takes over the property. A dedicated manager is then assigned who takes over the keys, performs the first level control and reports directly to the owner.
The customer has access to his single account, where every detailed report is uploaded, including legal documents, inspection reports, tenant leads, repair work, visits, etc., as well as photos. Gopal says this is aimed at relieve the owners, especially given the illegal possession widespread in all cities.
The founders observed that many clients do not want to rent real estate but simply maintain it. However, the annual fee remains the same whether the customer chooses to opt for a single service or multiple options.
“We want to offer a complete trip. We tried to offer separate services but saw no value in it, ”explains the co-founder, adding that the customer living abroad is not afraid to pay a one-off annual fee in exchange for “total peace of mind”.
Propdial concluded three strategic partnerships with – Housing.com, MyGate and ApnaComplex. While the partners create a one-stop-shop for their clients, the startup is making gains through the acquisition of new clients.
“Lead generation has multiplied by 20 after partnerships, while the cost of acquiring customers has decreased, thus increasing our revenues. We have a pioneering advantage in terms of integration with large real estate platforms, and more such transactions will be seen in the future, ”said Gopal.
Propdial works on a mixture of subscription and commission. In addition to the one-time annual fee on the PMS package, the startup charges a 15-day commission on the rent, in case the tenant prospect is generated from their channel.
A commission is also paid on the lead generated by a partner channel. The owner is free to bring their own potential tenants, in which case no fees are charged.
The third revenue stream is from invoiced commissions / referral fees of more than 200 service partners referenced on the Propdial platform.
In less than four years, the company has set foot through 15 cities and 7 states, including Karnataka, Maharashtra, Haryana, Uttar Pradesh, Telangana, Rajasthan and Delhi-NCR, management of properties worth Rs 750 crore.
Pointing a turnover of around Rs 1 crore in FY20-21, the company has grown almost 10 times the last three to four years of operation, in terms of revenue.
” We are moving 1,000 qualified requests per month, 250-300 per week. In terms of business composition, Propdial’s internal channel manages 70% of NRI companies and 30% of Resident Indians (RIs), while the partner channel contributes on the contrary, ”explains Gopal, adding that the company’s digital marketing has focused on NRIs from the start.
Delhi-RCN Propdial Team
Competition and market
Many players operate in the residential rental management space 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 operates in the subletting of property by taking ownership, while the former operates in the end-to-end service.
“Their (competitors) are focused on generating as much income as possible from residential property. The landlord has no control over the choice of tenants and receives a lump sum while the business pays a commission. The goal is simply to have the property occupied, ”Gopal explains.
Whereas, in the case of Propdial, the goal is to take care of the entire property.
“The rental contract is signed between the owner and the tenant according to the latter’s choice. Control remains in the hands of the owner. This proposal sets us apart. In addition, there is a guaranteed income for us whether the property is occupied or not, ”he adds.
According to the IBEF, the India’s real estate sector set to reach $ 650 billion by 2025. In the top seven cities, home sales rose 29% and new launches by 51% in the fourth quarter of fiscal 21.
Demand for residential real estate is expected to continue growing as homebuyers take advantage of low mortgages, developer incentives and low interest rates. As the number of housing projects increases, the demand for property management is only expected to increase, along with mergers with major real estate players to provide end-to-end services.
The startup plans to reach 12 states / 30 cities over the next two to three years while aimed at saving income of Rs 200 crore. To date, the company has raised $ 500,000, both internally and externally, and is ready to participate in his next round.
“We are plans to raise pre-series A funds during the next quarter up to 2-3 million dollars to fuel growth and develop technology, ”Gopal explains, adding that the company is in discussions with several SEO platforms for integration.