Rental marketplace definition
A rental marketplace is a type of online marketplace where individuals and companies can rent different types of goods from one another.
A rental marketplace connects individuals or companies who have products that they wish to rent out temporarily to consumers who want to rent items, without the need for long term ownership.
The best known example of a rental marketplace is probably Airbnb which connects property owners with people in need of short term accommodation.
Since Airbnb, rental marketplaces have become increasingly popular. People can now rent just about anything with platforms like Turo offering short term car rentals to Fat Llama for the rental of items such as electronics, sports equipment and so on.
What are some examples of rental marketplaces?
Rental marketplaces can be used to find and rent almost any type of product. For example, there are rental marketplaces that focus on renting:
- Event equipment e.g. PeerSpace
- Home furniture e.g. Feather
- Outdoor gear e.g. Outdoorsy
- And so on.
The common denominator across all of these marketplaces is that they offer a space for property owners to monetize assets that are rarely used.
Looking to build your own marketplace? We know from experience that it is best to focus on a niche set of products targeted at underserved and/or passionate communities. Read how to come up with a great idea for a marketplace for more information.
What are the essential features for rental marketplaces?
There are three main categories of online marketplace: product, service and rental.
Each of these marketplaces has roughly the same set of essential features however, because of the unique nature of the transactions that they facilitate, there are some quite major differences there are differences in the feature sets required.
Product marketplaces focus on inventory management and shipping logistics, service marketplaces prioritize features like scheduling and task management, while rental marketplaces emphasize aspects such as availability, calendars and item condition tracking. These nuanced variations ensure that each type of marketplace caters specifically to the distinct needs of buying, selling, or renting within their respective domains, offering users a tailored and efficient online experience.
Some key features that are often specific to rental marketplaces include:
- Availability calendars: Users can set and view availability dates for rented items, helping renters and owners manage schedules efficiently.
- Item condition tracking: Enables detailed documentation of the condition of rented items before and after transactions to ensure accountability.
- Security deposits: Facilitate the collection and refunding of security deposits to protect owners from potential damages to rented items.
- Rental duration options: Allows users to specify rental durations, whether hourly, daily, weekly, or custom, providing flexibility for different types of items.
- Pickup and return coordination: Features to schedule and coordinate the pickup and return of rented items between owners and renters.
- User reviews with item-specific feedback: Reviews not only for the renter or owner but also for specific items, aiding others in making informed rental decisions.
- Insurance options: Integration of insurance offerings to cover potential damages during the rental period, providing added security for both parties.
- Item listings with usage guidelines: Detailed item descriptions including usage guidelines, care instructions, and any specific terms for renting.
- Renting history: Allows users to track their past rental transactions, fostering trust and accountability within the community.
- Renewal and extension options: Enables users to easily renew or extend rental periods if mutually agreed upon, enhancing user convenience.
How much does it cost to build a rental marketplace?
The cost of building a rental marketplace can vary widely based on several factors, including the complexity of the platform, the features you want to incorporate, the technology stack chosen, and the development resources used.
From experience, we estimate that it costs around $50,000 and takes between 6 – 8 months to build a rental marketplace from scratch using code.
To lower the cost and shorten the time to build a rental marketplaces, Dittofi has developed a suite of feature rich, open source rental marketplace templates.
Each template is built on a modern, high performance technology stack (React and Google Go) and have carefully designed features that are specific to rental marketplaces. You can take these templates and customize them either by directly accessing the code or by using Dittofi’s hybrid no-code platform to rapidly customize the templates without coding.
Learn how to build a marketplace on Dittofi.
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