A workspace rental platform is a great business idea with high ROI potential. It makes a living using several monetisation strategies, including fees, commissions, and advertising on a well-established platform.
If you are passionate about commercial real estate, coworking spaces, lounges, and communication, then building a workspace rental platform is the right choice for you.
In this article, you’ll learn the 6 key steps for creating such a platform and understand the business matter of a workspace sharing website more in-depth. Before you jump straight into the development – it’s always good to start with the basics.
Step 1. Understand how the workspace rental platform works
A workspace sharing website is a Platform as a Service (PaaS) solution. It connects people who want to rent an office or a co-working space directly with the hosts.
At the very core, it works as a simple listing website that allows hosts to post their coworking spaces for rent. Tenants can search and book the desired office space or room.
The main advantage of a workspace rental platform solution is that it allows for real-time monitoring and booking of a variety of co-working spaces that can be rented out on very flexible terms including hourly, monthly, quarterly, and yearly periods.
Step 2. Define the business model of a workspace sharing website
The business model of a workspace sharing website is a slight modification of a classic rental business. However, as you build your brand name, you can add your own spin to the business, and create your own perks for your customers.
When it comes to building your workspace rental platform, you should understand that it takes advantage of freelancers, entrepreneurs, and startups or in other words – independent workers and provides flexible hourly and monthly rental services.
The best thing about the workspace sharing platform business model is that it helps establish no long-term financial engagement as the general rental agreement does. Such a strategy helps focus on a much broader market.
Often, workspace rental platforms provide more functionality than just renting out spaces. They also offer additional perks like fancy design, in-office activities like ping-pong, access to the kitchen, food-courts, etc. All these fancy features help to create a perfect working environment and atmosphere for freelancers and startups.
What’s valuable in the business model of a workplace rental platform is that it helps different types of customers co-work regardless of their economic situation. While regular offices wouldn’t be interested in startups that could go broke tomorrow because they require yearly payments, the workspace sharing website is okay with that and offers flexible renting opportunities.
If you successfully establish yourself as a brand, as WeWork did, you’ll increase the likelihood of people renting from you for community purposes. The rental spaces gather a lot of like-minded people, so going there and spending no quality off-work time would be just a waste.
Take a look at this video, which breaks down the business model of WeWork to learn more about their success story.
Step 3. Outline a plan on how to create a workspace marketplace
When it comes to the development of a workspace marketplace, there are several things to keep in mind.
The first thing you should start with when you try to build a platform for rent an office space is to plan the design of your website carefully.
UX and UI for your website
Design is the first thing that catches user attention, so you have to focus on some of the most important aspects:
- Who is your audience – startups, freelancers, entrepreneurs, big corporations?
- Is it a combination of different customer profiles? How do you plan to segment your audience?
- What colour pallet do you want? Do you want it to be eco-friendly, modern, futuristic?
Don’t limit yourself planning out the website design and let the developers do the work.
A bonus tip for you. Think about your website as a global brand, but stay focused on your goal. Decide what area you want to be providing services for. Do you want to be operating in your country, region, continent, or the whole world? Depending on that, the design might be very different.
Decide what services you want to connect
There is a whole variety of services you can use to empower your workspace sharing website.
One of the most obvious services that you may want to be interested in is having an embedded Google map. However, you can go further and connect some route planning functionality to help your users not only navigate within the available space on the map but also plan their way to check out these offices.
Other services may include some tracking functionality like Google Maps, cookies, and other third parties that will help you track and segment your users.
Finally, to monetise your website, you may want to partner with some third-parties or include advertisement services on your website including widgets, links, and banners, apart from in-house ads which you will be running on your platform to help your customers promote their property.
Once you’re done with the general functionality, you may dive into more detailed features of a workspace sharing website.
Step 4. Highlight the main features of a workspace sharing website development
Essential features for a workspace rental platform can be divided into four parts:
- User-friendly listing
- Precise search
- Easy booking
- Secure payment
- Stable communication channel (notification system, social media, etc.)
- Seamless event planner
Each of these features is the core functionality of the platform that has to be running like clockwork. Well, except maybe for the event planner because it’s more of additional functionality.
Also, one of the main features is having a nicely designed and functional dashboard for hosts because they may have multiple property units at their disposal, which have to be monitored. You don’t need a dashboard for the tenants, but for the hosts, it’s an absolute must.
There might be a lot of things to organise, so to make it easier, you can analyse your competitors and see what you like, dislike, and can improve.
Step 5. Learn from your competitors before you make a workspace search marketplace
There are several absolute industry leaders with solid examples of workspace sharing websites that you should look into before you create a platform that coworking spaces yourself.
Headed by Miguel McKelvey and Adam Neumann, WeWork managed to become a gigantic coworking platform that’s worth $20 billion in 2017. The strategy is simple – they rent out office spaces to everybody who needs a desk or a whole private working space.
A lot of people use WeWork services for their well-established community of like-minded people, atmosphere, and just excellent design of WeWork locations which come as a bonus to all of the work-oriented functionality.
LiquidSpace positions itself as a flexible and fast office space provider thanks to their so-called DASH License. In other words, you’re able to agree on sharing space using a license or an agreement and not a common lease.
Founded by Leanne Beesley and Sam Marks, Coworker provides over 12,000 coworking spaces with desks, offices and meeting rooms in more than 165 countries all across the globe.
Visit their website, and you’ll find that they provide not only the coworking spaces but also a great social atmosphere and community, which is very well shown on their website.
FindWorkSpaces has a straightforward yet very clear design. They provide no sophisticated functionality; however, they are certainly killing it on the core features.
With simple listings, easy payments, and streamline advertising, they are a strong competitor in the industry.
Step 6. Think of the costs to build a workspace sharing website within your budget
Depending on the complexity and richness of features, the cost to develop a platform to rent out workspaces may vary from anywhere between $15,000 and $30,000+.
The price for such a website is based on several aspects, including:
- Website design
- Custom widget development
- Extended functionality
- Dashboard development
- Payment system creation and integration
- QA and testing, etc.
Also, it’s very common to build a mobile application for such a platform to ensure seamless access for users and increase your market share.
A website with a mobile application would easily fall into the range of $70,000 – $100,000+
Overall, the cost to build a platform for rent an office space is shown in the table below.
At JustCoded, we had an opportunity to work with an outstanding client, Crispin Jameson, a creative director at Brave New World. Together, we created a rental housing web platform called The Office Group (TOG), which provides smart office spaces, co-working rooms, business lounges, and meeting rooms.
Key facts about TOG:
- 15,000 members
- 30+ Buildings
- 2000+ companies
TOG managed to establish a large community of like-minded people and, with the help of our team at Just Coded, create a workspace rental platform that keeps uniting smart people together.
Check out the video to learn more about TOG.
If The Office Group made it – you can make it too. At JustCoded, we provide custom web and mobile development services to help you build your workspace rental platform so you can start connecting like-minded individuals and companies today.
You’ve learned plenty of names and use cases from the article, so you can analyse them and find out the exact set of features and design options you need for your workspace rental platform.
This business model is relatively simple and has substantial ROI potential, so it’s up to you to market your coworking space listing website properly and make it work for you.
If you need some help with workspace sharing website development, feel free to contact us here.