Many landlords new to the idea of Blueground frequently ask “How much is Blueground’s commission?” and “How does Blueground make their money?” Because our business model differs from that of a property manager, or a rental marketplace like Airbnb, landlords are not charged a commission. Instead, Blueground’s profits are built into the monthly rent charged to its tenants.
In short, Blueground does not take a commission from the rental income passed onto landlords. In essence, Blueground is your primary tenant and takes care of sourcing business executives and expats as your subtenants. The landlord and Blueground first agree on the rent. As your renter, Blueground pays out this monthly rent, regardless of whether the unit is occupied or not.
Blueground factors its earnings into the final rental price charged to the subtenant. Additionally, we do not charge landlords a commission in any of the cities we operate in.
When you are the primary landlord, you face the uncertainty of rental gaps and financially unfit tenants. That is in addition to the time and energy spent sourcing and screening tenants, tending to maintenance requests and collecting rent.
In working with Blueground, we become your tenant and furnish your apartment to appeal to relocated business travelers and premium tenants. Everything from property marketing to maintenance to rent collection is taken care of. Of the benefits that over 1,800 Blueground landlords currently enjoy:
Blueground pays the owners the market-value rent they would get from an individual long-term tenant. At the end of the day (or fiscal year), the return is much higher because:
Property owners can finance the furniture and equipment used to outfit their apartment, effectively increasing their property’s yield. Blueground is then able to offer an annual return on their capital in addition to returning the investment at the end of the partnership. Alternatively, landlords can also choose to keep the furniture after wrapping up with Blueground.
While you can’t measure the value of this freedom, it is definitely worth a considerable sum.
Blueground’s offering and business model are totally different from Airbnb. Platforms like Airbnb, constitute marketplaces, meaning that they show the properties on their websites, facilitate bookings and process payments.
Blueground, on the other hand, is a tech-enabled hospitality company, that provides full services to tenants as well as property owners. We go beyond being just a marketplace, we use technology to connect executives, expats, and individual renters with fully furnished apartments for mid- to long-term stays, and simultaneously make it easy for property owners to maximize their annual yield. Our vision is to help create a world where people can easily – and instantly – feel at home wherever they go.
We undertake interior designing, furnishing, and property management services to ensure properties on offer are tastefully decorated as well.
Our idea was born by evaluating the market, discovering a need and a gap to fulfill and thereby generating an innovative business plan. The Blueground concept is simple; to lease carefully-selected, high-quality properties in the most sought-after locations on a medium and long-term stay basis to individual renters and business professionals. Blueground in-house interior design team works with individual and corporate property owners to upgrade properties into best-in-class apartments.
Blueground’s in-house developed technology automates all aspects of the business. A proprietary online booking and payment platform makes booking a breeze. The mobile application covers all interactions with guests. While a multi-aspect operations system has changed internal efficiency as well.
In “How is Blueground different from Airbnb?”, we walk you through the two options and present the ideal property owner scenario for both.
Since we do not function as real estate brokers, property managers nor mediators, we don’t charge any commission for our services. Instead, we build our profits into the rental price charged to the sublessees.
Blueground works with furniture suppliers directly and gets wholesale rates for designer mid-century inspired sofas, handmade carpets, premium linens, and hotel-quality mattresses.