Share your office space by the hour

Current situation

Small businesses suffer from increasing rental cost in Kuala Lumpur with a YoY rental increase of 5%-10%. In tough economic situations, over 90% of small businesses do not last over 2 years.

We’ve seen great cafes, coworking spaces, restaurants, bars and art galleries in urban areas move to a more rural side of the city so it can operate at a lower rent. But does it solve the fact that most businesses suffers from high rental cost?

Coworking trend

A few years back, offices came into the trend of coworking. I assume everyone knows coworking spaces now, as a new one pops out every week across Malaysia. And bigger coworking space operators like WeWork, WORQ, Common Ground, Co3 have significant market shares due to strategic location. It makes sense for people to have their office set up in strategic locations, but my question is, what about the ones that are located in suburb area like Shah Alam?

Coworking space in KLCC area

Rise of spaces

As more people move into coworking spaces, and working as a self-employed individual or operate a small team. Often times, they need to move around the city to acquire customers and host events on a different side of town. Here’s when spaces come in, it lets professional to own (or rent) space in their property for a few hours on a particular day. Typically rented out by coworking spaces, in the area they’re visiting as there are transparent and affordable rates.

It's an event space.. wait what?

As people have an event in a space in coworking spaces, hence the name “event space”. But after 1000+ bookings that happen on Chupspace, we see the use of space a little differently.

If you’re familiar with Airbnb, it is an online platform that allows homeowners to share their empty rooms for travellers to stay. But there’s a certain group where they would rent an Airbnb for social gathering, family reunion, or even filming. So the usage is much wider and bigger as what is intended by the founders.

Source: Shutterstock

Creating an inclusive world

So how can you, as a business owner, combine these two concepts that I’ve just mentioned (Airbnb and event space), to monetise your empty space and idle times in businesses, so that you can offset your rental & operation cost?

Here we compiled a list of possible solutions that you can use to monetise your business space:

2. Rent for small activities

You can share your space with people who are interested in having small events, meetings or a film shoot.

As you rent the space from the landlord for 24 hours and only using it for 10 hours a day. Don’t think of events like music festivals or dance parties, but more like networking events, social gathering or even small birthday parties.

Meetings

Income: RM800/month
Cost: Utilities, staffing, equipment

Challenges: People who look for meeting rooms are always very urgent, and having a staff dedicated to handling inquiries that 80% do not turn into a customer is a headache.

Events

Income: RM6000/month
Cost: Utilities, staffing, equipment

Challenges: Additional staff is required for event logistics, people visiting the office time to time and planning ahead of time.

Production

Income: RM5000/month
Cost: Utilities, staffing, equipment

Challenges: Filming sometimes include heavy machineries that may damage your flooring, and moving of furniture around for the best scene

How to: Friends referral, engage event planners, Chupspace

Chupspace makes it safe and easy to share your space and earn extra income during downtimes of your business.

Chupspace

Chupspace connects professionals to creative spaces, while helping small business owners monetise their underutilised spaces by the hour.

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How Malaysians can get higher ROI for your real estate in 2020

Malaysians love properties. It is seen as one of the safest investments by Malaysian investors, as the value of properties is always on the rise. Although there is an anticipated bubble of property in 2019, it seems nothing is stopping Malaysians to get a place of their own.

While we see new developments every day for residential properties, it does not seem like a good time for the property market, with a staggering value of RM35.5 billion of vacant properties in Malaysia alone.

Okay, some good news that will lighten you up. We find that there are several ways that you can actually pay your instalments and rentals with a little effort put in. Here we picked 4 of the best earning potential:

1. Airbnb

No doubt that Airbnb has increased popularity among Malaysians. It is one of the best ways anyone can actually make some money online while knowing people from other countries. You can make additional income with your extra bedroom, a whole house & apartment spaces for a night’s stay.

Pros: Great brand & market access
Cons: Lack privacy or need high capex to start

Income potential: RM2000+ per month
Website: https://www.airbnb.com/

2. Luggage Here

A new kid in town for the hottest tourist spot in Malaysia. The aim is to help travellers store their luggage in a spot for a minimal rate per hour at local retail stores. The startup now serves 2 major cities in Malaysia which includes Kuala Lumpur and Penang

Income potential: RM1000+ per month
Website: https://www.luggagehere.co/

3. Chupspace

Another new kid in town that helps professionals find spaces outside business hour for meetings, events, and production.

A major difference between Airbnb and Chupspace is that it gives higher flexibility than Airbnb by hourly sharing. Hosts who wish to earn extra income from their real estate can now do it without losing a place to sleep.

Spaces that can be rented out could be of any kind, which includes a living room, the rooftop of a commercial building, abandoned warehouses, parking lots, museums and more.

Income potential: RM4000+
Website: https://chupspace.com

4. Some good old monthly renting

The most common way for a property to yield is finding tenants to rent your property, and you get a monthly rental to (hopefully) cover a portion of installments. While this seems like a no-brainer, actually it is not. There are scenarios where tenants might not pay your rent and utilities. Here’s some advice from experts on what if your tenant does not pay you.

Income potential: RM2000+

There may be some other ways that your property can earn income for you passively, but do bear in mind that neighbours may be upset from having strangers walking in and out of the premise, especially in residential areas.

A common way for us to prevent that is to inform the neighbours before the date of the event, or simply host with Chupspace, where tenants leave the space after each use and you can control your rental hours until 12am, and not disturb their sleep.

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Connecting people to idle spaces

Chupspace is an online space sharing platform that matches idle hidden spaces and spaces outside of service hours with people who want to borrow or rent.

Small business owners are looking for ways to cover the increasing rental cost, while entrepreneurs are looking for spaces for various purposes, from renting a restaurant during off-hours for their pop-up shop once a month to having video shoot in office desk areas at night.

Since our inception in 2018, we’ve met with entrepreneurs and companies who are constantly looking for a space that they can use. The most interesting one is a booking before Chinese New Year, where hamper companies are looking for a workshop space to pack hampers.

Why do people rent?

Office-based tech startups can always rent a place in co-working spaces, but there are other entrepreneurs who are looking for other types of locations like a yoga studio, kitchen, heritage houses and performance studio for various purposes.

While the concept of borrowing our space has always been around, there are no easy ways for people who are just starting up and not knowing people in the field. For instance, production crews have no easy way to shoot in a cafe on operation hours. Sometimes finding a location takes days or even weeks to search for and get approval from the owner.

Matching site of "people who want to lend" and "people who want to rent"

Owners who have land, buildings, and stores that they are not using had to “lease” or “sell” to use the property. Actually, there are needs such as “I do not use much, but I use it occasionally. I want to lend only for free time.” However, there was no service that could respond to such small needs.

To make it easy for people to book and share spaces, we come up with a platform that connects people to spaces that is previously unavailable. From bars in the morning, houses with tenants, vacant warehouses, private music studios and hundreds of other locations can be borrowed with 3 simple clicks.

Difference from renting from venue

As venues found online are commercialised and more expensive, a lot of times it is not the most affordable choice to go for. Commercial venues typically pay a monthly rent to landlords and sublet it at a smaller fraction (typically 1-3 days) to guests.

On the other hand, in Chupspace, we do not rent a room. The biggest difference between us and venues is that we only find borrowers and matches them, and gives the owner an opportunity to profit from their existing spaces.

Value provided by Chupspace

Attract customers

Chupspace will discover and introduce customers who want to rent a space by conducting various marketing activities on the Internet.

Management system

We provide a reservation management system necessary for operation, such as room availability, reservation status, and customer interaction.

Collection

A transaction function that collects money from users and pays the owner. It provides all the basic functions necessary for an owner to start a space rental business. Providers that provide all the necessary elements for such businesses are called “platforms”.

Creating a new ecosystem

We are creating new business value by renting and borrowing “idle real estate” by the hour. We believe that it will be a platform that can provide the one answer to current social issues, such as the problem of unoccupied houses, which will become increasingly problematic in Southeast Asia.

Join the community

Discover, list and book spaces from local hosts

Explore unique spaces

Book a space from local hosts to meet share and collaborate

Share space and earn

Make money by renting out extra underutilised spaces by the hour

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How to plan an event: A step by step guide

Businesses and individuals are constantly looking for places to throw events, have seminars or a simple offsite meeting. But finding a place that fits your need can be a painful experience.

Whether that you need to search everywhere on the internet from Google, Facebook or asking your friends to send you places on Whatsapp, chances are that they have no idea of what your event is like and may not give you the best solution.

As specific as it goes, location scouts are looking for places that can fit 50 people seated, with natural lights, sound proof, with projector, microphones, sound system and nearby LRT station. We understand that pain as we’ve been there, done that.

Things to look for when sourcing a place

As most people’s best guess is to find a cafe, coworking space or hotel for their next seminar or event, most places are not found online easily. We’ve written down several steps that you could take when you’re checking the place out.

1. Set your dates & time

Knowing the details of the event is crucial when you’re looking to find a place. The first thing that any place would want to know BEFORE they answer you any relevant details is to know if they’re able to accommodate your business.

Feel free to set a tentative date and time for your event and be flexible with it. If you really like the place, try to find a time that the space is available to rent.

2. Know the number of people and type of event

As every space is unique on its own, the number of people that they’re able to fit is different. Also, bear in mind that the owners may only accept a certain type of event that is suitable for them.

If you’re looking to have a musical rehearsal, it is less likely that places like cafes and coworking spaces can accept your request. Your best bet is to tell them immediately the type of activity that you’re planning to have.

3. Send out requests

Once you have the 4 elements in hand, start sending out requests via phone call & email. It is also important to understand who exactly are you talking to when inquiring.

Our experience of calling these places is that, the receptionist is not the person in charge and they have no clue of what’s happening. Give yourself some time to follow up with each places that you’ve asked in 2-3 days if they have not gotten back to you.

4. Site visit or recce

After you’ve sent out requests, the owners will usually asks you to visit the place and see it for yourself. Bear in mind that most places will ask you to check their place out but it’ll costs you a significant amount of time to travel and visit.

Here’s a few thing that people would look for when doing site recce:

  • Location & access

Make sure that the place exist and how to access there. How is the traffic like at your event start time? And most importantly, you can see clearly what amenities are available in the location and if you need to bring additional equipment or items.

Understand how to access the location from parking lot or main entrance is crucial, especially if the space is located inside a shopping mall or office tower. It is fairly difficult to locate if no proper guidance is provided.

  • Price

For most places, they have no fixed price for space rental. But rather, they’ll take into account the usual cost they need to cover an hour of operations when you’re renting the place.

Hotels, restaurants and cafes are priced higher based on the number of people they need to serve you, plus the amount of sales that they’re not able to generate at the time. Example, if a cafe can generate RM1000 in sales every hour, booking the space will costs you at least RM1000 per hour which does not make sense for most people.

A way to solve this is to find less packed places and the price would definitely be lower as compared to these prime locations.

  • Looks & amenities

Do the place look and feel exactly as you intended? Is the location able to fit the number of people that is coming for the event?

As most places will not show you a full set of photos that showcase their place, it is very difficult to judge whether these places suit your needs. As some use wide angle cameras to make their space look bigger which will give you a misjudgement if your decision is based solely on photos.

While it’s the norm to visit places before you place a booking, Chupspace provides you with a platform where you can easily do all the above by having these in mind when we build the website.

5. Understand the rules

All spaces are unique and hosts would have different rules & terms for their space. Ask the hosts if they allow parties, smoking or alcohol would be crucial to a successful planning.

Here’s a few things to ask the hosts before you book:

  • Overtime charges

In case you exceed the booking hours, will there be any additional charges for it. If you think that you may need additional hours, let the host know in advance so it won’t affect the next guests.

  • Additional charges

Make sure that the amenities and equipment that you need to use it included in your booking. Some places may require additional charges if you want to use the projector, additional tables & chairs and more.

  • Security deposits & cleaning fees

Usually hosts will make it clear if the booking will require additional cleaning fees and security deposits for certain events like parties.

How can we simplify it?

Planning a party or event should be fun and enjoyable, that’s why Chupspace is here to make sure the planning process is simple and easy. You can find the perfect place easily through an easy to use platform, at the same time knowing availability, price & any other information that you need from booking the place.

Connecting you to unique spaces in 5 minutes

Discover spaces that is in the dark before, check availability, get quotation instantly in 3 clicks.

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