Maximize Event Space Rental with Sharefox’s Innovative Solutions

Are you considering venturing into the world of event space rental business or looking to automate and optimize your current rental business? If so, you’re in for an exciting and potentially lucrative endeavor. Event spaces have become increasingly popular for various occasions, from weddings and corporate meetings to birthday parties and workshops. However, to succeed in this competitive industry, you need more than just a vacant space. This comprehensive guide will walk you through the process of starting and running a successful event space business, providing you with valuable insights and strategies to outrank your competitors and thrive in the market.

What is an Event Space rental?

Before diving into the nitty-gritty details of starting an event space rental business, let’s define what an event space is. An event space is a versatile location that individuals or organizations can rent to host a wide range of events. These spaces can vary in size and style, catering to different event types and preferences. They may include banquet halls, outdoor gardens, industrial lofts, football stadiums with conference rooms and even unique venues like historic mansions or art galleries.

Event spaces serve as blank canvases for clients to transform according to their event’s theme and purpose. As an event space owner, you provide the canvas, and your clients bring their creative visions to life.

Learn more about Event space rental tools 

How Profitable is an Event Space rental?

Now, let’s address the elephant in the room: profitability. Starting an event space rental business can be highly profitable, but it requires careful planning and execution. The revenue potential of your event space depends on several factors, including location, capacity, amenities, and marketing efforts.

Factors Influencing Profitability:

• Location: A prime location in a bustling city or a picturesque setting can command higher rental rates and attract more clients.

• Capacity: The size of your event space matters. Larger spaces can accommodate more guests, allowing you to charge higher rates for larger events.

• Amenities: Providing amenities like audiovisual equipment, catering services, and event planning assistance can increase your earning potential.

• Marketing: Effective marketing and online presence are crucial for attracting clients. We’ll delve deeper into this topic later in the article.

Now that we’ve laid the groundwork, let’s explore the challenges and pain points faced by both event space seekers and owners and how you can address them to make your business stand out.

The pricing for an event venue is contingent on the event’s size, but on average, it hovers around $13,000. You should aim for a profit margin of approximately 30% after accounting for labor and overhead costs.

During your initial one or two years, you may host around 15 events annually, resulting in $195,000 in yearly revenue. This, in turn, would yield a profit of $58,000, assuming a 30% profit margin.

Why start an Event space rental business 

Event space rentals represent significant capital investments that are often underutilized. 

Through full automation of rentals, each rental could potentially contribute nearly 100% in net profit, with minimal expenses. Unlike items like cars, properties typically do not depreciate significantly in value over time or with use.

Many organizations own properties that they do not rent out for various reasons, including:

• Lack of capacity to manage rentals and inventory.
• Unawareness of the potential for additional income due to other priorities.
• Difficulty envisioning the practicalities of managing rentals, such as handing over keys and ensuring proper follow-up, which may require additional staffing.

This situation is common among numerous commercial organizations.

On the other hand, some organizations do rent out properties but do so in a limited or unprofessional manner, leaving ample room for improvement and increased revenue. This scenario is prevalent among many well-suited organizations.

Customer journey with main paint points for rental merchants

To optimize your event space business, it’s crucial to understand your customers’ journey. This involves recognizing their pain points and finding solutions to make their experience seamless.

Here are some of the main issues that our clients encounter:

• Visibility Issue: The customer’s online search yields limited results, with many venues not appearing in search results on Google or Bing.

• Website Usability: Customers encounter poorly designed websites, leading to usability issues.

• Visual Shortfall. Rental venues often lack compelling visual representation.
• No Availability Insight. Absence of an availability calendar leaves customers uncertain about booking dates.

• Inefficient Booking Process: Limited booking options (phone or email) create inefficiencies for both parties.

• Payment Challenge: Balancing customer payment preferences with the need to avoid unfilled reservations is a challenge.

• Service Awareness: Customers may not be aware of or impressed by additional services offered by the venue (e.g., DJ, catering, cleaning, cutlery, security).

• Booking Coordination: Manual availability checks and communication with customers consume time and can be challenging during peak seasons.

• Supplier Coordination: Manual communication with third-party suppliers about bookings and related services (cleaning, food delivery) is time-consuming.

• Key Handover: Providing physical keys to customers presents logistical challenges.

• In-Person Handover: Handing over keys in person is time-consuming.

Key Box Insecurity: Using a key box poses security concerns and maintenance hassles.

• Post-Event Oversight: Customers often forget to complete necessary post-event tasks, including cleanup.

• Manual Invoicing: The manual creation and delivery of invoices to customers after the event is a labor-intensive process.

• Payment Follow-Up: The need for follow-up procedures arises for unpaid invoices.

• Booking Adjustments: Handling customer requests for booking changes or cancellations can be cumbersome.

• Booking Coordination Complexity: Coordinating between external bookings and internal member bookings creates intricate challenges.

Sharefox Solution to event space rental

Now that you’re aware of the challenges and solutions, consider incorporating a comprehensive platform like Sharefox rental software into your event space rental business. Sharefox can transform your operation and provide a seamless experience for both clients and event space owners. It is an all-in-one platform, so Sharefox will function as your one stop solution for all your rental operations. 

The customer journey with Sharefox rental software

Let’s address all the pain points from above and see how Sharefox is handling this: 

• High Visibility on Google: Sharefox ensures your event space ranks high in Google search results with advanced SEO settings and blog functions within the Sharefox customization. 

• Beautifully Designed Website: Sharefox offers user-friendly templates and customization options, enabling you to create a visually stunning website.

See example on Event Partner rental site

• Efficient Booking System: Sharefox provides an availability calendar and easy online booking.

• Payment Flexibility: With Sharefox, clients can pay a percentage upfront when booking, reducing risk.

• Extra Services Showcase: The customer can easily see and choose many extra services before prepayment and check out.  Under the booked product customers will be able to choose additional accessories.
  
  

• Automated Operations: Sharefox automates availability checks, coordination with suppliers, invoicing, and payment follow-up

• Secure Access: Sharefox offers a secure digital lock system with SMS codes with 3rd party partners. You can have 24/7 self service rentals. 

• Post-Event Reminders: Send reminders for post-event cleanup with Sharefox 

• Booking Modifications: Sharefox is working on allowing clients to handle booking modifications themselves. 

• Seamless Coordination: Sharefox streamlines external and internal bookings.

By embracing Sharefox and implementing the strategies outlined in this guide, you can not only address common pain points but also elevate your event space rental business to new heights. 

Conclusion

In conclusion, starting an event space rental business can be a rewarding endeavor, both creatively and financially. By understanding the needs and pain points of your potential clients and addressing them effectively, you can set yourself apart in this competitive industry and in the beginning of your rental journey instead of being 5-7 years into your dream before realizing these pain points. . Invest in a well-designed website, utilize SEO strategies to boost visibility, and consider adopting a comprehensive platform like Sharefox to streamline operations and get a live availability calendar. 

Remember that success in the event space business is not just about renting out a physical location; it’s about creating memorable experiences for your clients. Offer exceptional customer service, provide a wide range of services and amenities, and continuously seek ways to improve and innovate. This is mostly doable by automating all your processes so that you have the time to create great experiences for your customers. 

What are you going to do now?

When you are ready… Here are 4 ways we can help you expand your rental business! 

1. Do you want to grow your business today? Try Sharefox rental system for free – or book a demo and get a personal expert to analyze your company’s situation, come up with solutions on how you can streamline your methods and create a more profitable company.
2. To learn more about the Sharefox rental system, read about trends and news for free, visit our blog or visit our resources section in the main menu. Here you can download guides and e-books that we also share with our customers.
3. If you want to work with the circular economy and Saas and want to be part of the Sharefox team or find out why we are one of the fastest growing rental platforms in the rental industry, see our job postings here.
4. If you have a good friend or know someone who would have found this article interesting, then feel free to share it with them via email, Linkedin or Facebook .