subleases

Real estate subleases with the Simple Room Method

Continuously updated on the real estate market, the protagonist of resumptions, stalls, downturns and often hopes of imminent exploits by real estate operators and beyond, we have realized over the last few years that there is a market in Italy that deserves as much attention and on which more and more qualified real estate agents are trying their hand as a main or secondary activity, often dedicating real physical corners within their agencies.

We are talking about the rental market, which is becoming an essential resource in the mix of daily activities of real estate professionals. Today, however, it is our intention to investigate in particular a branch of this interesting sector, also in light of the latest news published by the Immobiliare.it research office, according to which in the 14 most populated cities from outside the office, rents are increasing for the third consecutive year, with prices up by + 9% compared to 2016. In fact, we will talk about real estate subleases, with particular attention to those that interest university students.

In order to analyze the world of real estate subleases and to understand how this sector can become a lasting and growing source of income even for a real estate agent, we asked for the intervention of a professional who has made this branch of leases his profession.

We are talking about Francesco Zeni, co-founder of  Stanzasemplice®, the first franchise system for subletting rooms for university students, with whom we had a chat to fully understand how to maximize profits through a simple but little known method. Like that of real estate subleases.

Francesco, before entering the world of Stanzasemplice, tell us a little about yourself, your team and your experience in the real estate sector.

Hello to all WeAgentz readers, my name is Francesco Zeni and I have always had a passion for real estate. A passion that took a long time to develop, since for many years I worked in a completely different sector, dealing with fashion and beauty.

But the passion for real estate and automatic annuities pulsed strongly inside me, when in 2011 I started, together with a dear friend of mine, to do some small real estate buying and selling operations.

I was so excited about it that I decided to follow my instinct and devote myself entirely to real estate, aware that to become an excellent investor and entrepreneur I would have had to train and dedicate time to this activity.

In 2013, fascinated by the possibility of generating automatic income thanks to other people’s properties, I concluded my first real estate sublease in the city of Trento, together with my dear friend Nicola (who in the meantime has become my partner).

Yes, this first sublease has opened up a world for us, I can say it aloud. We quickly realized that through this unexplored niche in the real estate sector it is possible to generate automatic income with very little capital, risk-free, with properties that are not yours and without limits.

Since this first operation, a lot of water has passed under the bridge, we have completed dozens of operations, and many have gone well, some less well.

But thanks to the experience accumulated over the years we have managed to create the Stanzasemplice® Method, a system that is currently present in 15 Italian cities thanks to our franchising. We have collaborators all over Italy. People who have fully embraced the Stanzasemplice® Method.

This thing fills us with satisfaction, but we are still at the beginning. In fact, our system can be exported to as many as 46 Italian cities (the university cities that from our analysis are able to support this business).

What is Simple Room today and where did you start from?

Stanzasemplice® is the first subletting system for rooms intended for university students.

The seemingly trivial subletting that follows the process I rent an apartment, sublease the rooms, make money on the difference… actually hides a lot of pitfalls and difficulties, I don’t hide it.

Thanks to our direct experience we have been able to automate the entire process and make sure that the revenues generated can be truly automatic, and all this without having to hire anyone, keeping fixed costs to a minimum.

All this was possible only thanks to our direct experience, the mistakes we made and the thousands of tests done. Now the Stanzasemplice® Method is tested and working, this is the most important thing.

Let’s analyze the concept of the automatic annuity. Why unlike the tourism sector/landlords for short periods, with Stanzasemplice it is possible to benefit from certain and automatic income, without having to burden the company with recruitments and fixed costs?

By applying the Stanzasemplice® Method it is really possible to automate the company without weighing it down with fixed costs.
In fact, you can grow indefinitely (depending on the potential of your city) without having to hire employees and without charging the company with fixed costs.

The same cannot be said for short-term rentals, for which no matter how organized you may be, you will always have to consider checking in, checking out, cleaning, changing sheets etc. …

None of this is required with student subleases. In fact, you will be able to generate excellent monthly income by exploiting external collaborations, without having an office and with almost all the costs that we can define a variable.

We work on twelve-month contracts, so if you do the job right at the beginning (applying the Method rigorously) for a year you can do it without thinking about it and enjoying your income.

Where is the Stanzasemplice franchise currently present in Italy, where will it arrive and with what numbers in the short and long term?

To date, Stanzasemplice® (only a year and a half after its official launch) is present in 15 Italian cities, such as Rome, Milan, Parma, Florence, Ancona, Trieste, Verona, and Bari.

There are some parameters that we must observe to understand if the city can support this type of business. As mentioned before, there are 46 Italian university cities that lend themselves to this activity, and the interesting thing is that today we have very few competitors.

By the end of 2021, we expect to have 75 affiliates who, thanks to the application of the Method, will be able to offer a perfect solution to the tens of thousands of university students accustomed (unfortunately) to living in bad conditions, very often without a contract and with safety levels. Almost non-existent.

How did you manage to make real estate subleases to students in Italy regulated, both from a legal and fiscal point of view?

I must admit that on more than one occasion we have come to the point of wanting to throw in the towel, in Italy it is really difficult to extricate yourself between regulations and laws.

Before launching the franchise it was essential for us that everything was clear, transparent and applicable, which is why we have been communicating for years with the Revenue Agency to find a definitive solution.

In fact, the real estate subleases, regulated by art. 1594 of the civil code, have never been conceived as a real business activity. It took several inquiries before receiving a satisfactory answer.

To this was added a team of lawyers and accountants who worked with passion on this project, to finally make real estate subleases a legal and regulated business activity. Needless to say, this was crucial for us, without it the franchise would never have taken off.

How is it possible to conclude dozens of transactions that generate at least € 1,000 of monthly cash flow by investing very little capital and minimizing the risk?

All this is possible by rigorously applying the Stanzasemplice® method. Nothing is left to chance, let’s face it. From the acquisition of new apartments, to the renovation, to the interception of students to sublet the rooms to, to the automation of the whole process.

Without a doubt, having good capital allows you to accelerate the results, but even with little money it is possible to conclude the first operation. The first operation that generates cash flow allows you to finance the second and so on. It is a self-sustaining business, this is the strength of our method!

The risk is almost nil because in the event of an error it is possible to quickly return the property to the owner without losing money. With your own home, this is impossible.

What is the ideal profile of a candidate for the Simple Room real estate franchise?

Our ideal candidate must be willing to study the method and apply it with scientific rigour.

Open-minded and a lot of ambition, passion for real estate and above all the sincere will to solve a big problem for thousands of Italian university students. Let’s not forget that Stanzasemplice® was born for this very reason.

We ask for your impression of the current moment of the real estate market, in particular that of rentals. What future is on the horizon?

My incurable optimism makes me look with enormous positivity at the real estate investment opportunities that our country offers us. We must strive to see the real estate operation with an investor mentality and without emotions. Very difficult for an Italian, I know, but if we manage to take this step forward we will realize that our cities are full of fantastic opportunities. A real estate investor mentality places the focus on cash flow and capital gains.

There are huge spaces and many real estate niches that bode well for the next few years. I am deeply convinced that the right mental predisposition decides the winner in any historical period.

As far as leases are concerned, more and more property owners will be exasperated by the management of their assets, who will seek the possibility of total management of their assets in external partners.

In your opinion, how important are new technologies and the “digital” sector for the development of the real estate ecosystem in Italy?

I consider this a very important aspect! Thanks to new technologies, professionals have the opportunity to create relationships and networks.

All this a few years ago was unthinkable, now we have a great opportunity to exploit, it would be a shame not to.

Tags: , , , , , , , , , , , , , ,