Opportunity: Students in Gainesville who attend the University of Florida or Santa Fe and would like to live off campus are subjected to paying for summer months they do not need and do not want to pay for when they are going back home for the summer.
Solution: My solution is simple, yet capital intensive. It would require me to purchase or take over the management of a residential building in Gainesville. After that, we would create contracts where students would have to pay a little more per month, but would not have to pay for any summer months if they do not want to. Understandably, if this goes well, other leasing companies would soon follow but that is why our competitive advantage needs to be the speed at which we implement. In the beginning we charge a little less per month than we want, potentially breaking even or even creating a small loss, but we disrupt the rental market in Gainesville so much that people are bound to hear about us and want to rent.
Good solution, but it would be a lot of work for you. If you were able to do it, that could be one way to do it. It will be interesting to see what there people's opinions are on summer leases. Good thought!
ReplyDeleteI think the idea is sound in both reason and reality, but the initial losses could prevent the eventual growth from occurring. If this idea was ever put into place, there would need to be enough economic capital to take on the initial losses before cashing in on the premise.
ReplyDeleteThe key to this being successful would be for students to believe they are getting a good enough deal to pay more per month. If the price was still competitive with other off campus housing facilities then it should do well. I wouldn't mind paying more per month if it saved me money over the course of a year. It would be interesting to see a trial run of this in a local apartment complex.
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