Sangita Dey Creatively Solves Students? Accommodation Problem
Do you dream of moving to the metropolitan cities to pursue further studies? One of the challenges faced by most students is finding suitable accommodation. If you think you will also face the same problem, then don?t worry- Sangita Dey is there for everyone?s rescue!
Why student housing is a fast-growing business?
More and more people are moving to big cities for education and jobs. While that?s been happening for a while, what?s changed now is that a growing number of companies are now trying to tap into the needs of new migrants, especially millennials. In the last few years, besides traditional forms of rented accommodations like hostels, paying guests and shared apartments, organized accommodations such as co-living and student living have come into existence and these organized offerings come with better services and facilities.
India is a developing nation and opportunities in urban areas for employment, education and better lifestyle have been the pull factors for small city and rural population. The first challenge this migrant population faces is finding proper accommodation and students top the list.
According to the Global Student Property Report 2019, released on 7 June, ?India has the youngest population in the world, with some 18% of the 1.3 billion strong population aged between 15 and 24. More than 34 million students are currently enrolled in courses at universities across the country and this figure is expected to rise." Further, as per the survey, ?the current demand for purpose built student accommodation (PBSA) bed spaces across the country is estimated to total more than 8 million."
Besides, a large number of students come to metros to prepare for entrance exams, civil services, corporate jobs and so on. This segment has no option but to stay in private hostels and lodges. According to the Knight Frank survey, ?The majority of this accommodation is operated outside of university control by private owners. Often it is off-campus, of poor quality and with little modern value-add facilities such as Wi-Fi or laundry services."
What is the secret behind Sangita Dey?s thriving business?
Dealz Expert is an accommodation start up by a 25-year-old Sangita Dey, an MCA student from Lovely Professional University at Phagwara (Punjab). With the ambition to be her own boss, this girl from Tripura also realized she was an entrepreneur at heart. Her initial idea was to start an ecommerce market for electronics and devices. Her mentor Manish Saini, entrepreneurship division head at LPU stepped in guiding her in direction of a concept of beginning an actual estate-based service. As a pupil from one other state, the thought of beginning a PG service caught her attention.
Her business model is quite simple. For instance, if the PG has 10 rooms, they close the deal with the PG proprietor at Rs. 3,500 per room. They pay the proprietor Rs. 35,000 for one month. The fees embody upkeep as well. The PG homeowners convincingly agree on the phrases as they don?t have to individually spend money on maintenance. They then sublet each room for Rs. 5,000 and generate a revenue of Rs 15,000.
Her group invests roughly Rs. 5 lakhs per PG for maintenance, refurbishment and miscellaneous expenses. It takes about 6 months to do a complete market research including analysis, market understanding, coordination with key folks to seek out rooms and later find clients trying to hire.
The consultants at Dealz target college students from surrounding educational institutions. The students face difficulties such as discovering appropriate lodging due to budget constraints, language barriers and many others, all which make it tough for college students to find a place to stay, particularly in localities unwilling to sublet homes to outsiders.
Currently they have 22 PGs with 1,200 rooms with complete leasing rights. They generate more value by offering food catering and laundry for the tenants. This adds a substantial amount to the overall revenue. The team claims to be generating yearly revenue of about Rs. 2 crores and monthly revenue of Rs. 15 lakhs. Dealz Experts charge students according to room size and services opted for. The rent varies from Rs 4,000 to Rs 8,000 per month.
Dealz Experts focus on student accommodations in relatively smaller towns, a region ignored by the bigger players. She adds that one can expect 20 percent returns per PG, which is the best value. The numbers vary depending upon the PG and services provided. They generate 15 percent from extra services (food and laundry) and 30 percent from the construction business, which is registered under a separate firm, Juno Enterprises.
What are the qualities that define a successful entrepreneur?
So do you also want to become a ?successful entrepreneur.? Then you need to know these qualities that are seen in most successful entrepreneurs:
? They take what they do seriously.
? They are passionate about what they do.
? They find creative solutions.
? They are self-starters.
? They make it all about the customer.
? They make the big decisions carefully.
? They aren?t scared of