TheKatil.com business model is a subscription based revenue model. The core business is long stay monthly rental income (80%) and short stay add-on rental income (20%), and the investor who take over the business can upsell to tenants who are keen to subscribe to hospitality services, as extra income, from hosting guest with local experiences (for short stay guests) and regular cleaning, online grocery purchases, and laundry services (for long stay guests).
Strength & Opportunity
TheKatil's mission is to provide affordably luxurious rooms for rent for working professionals who are looking for:
1. Fully furnished private hostel rooms
2. Shared facilities (living hall, bathroom and toilet) with regular cleaning & maintenance service
3. Include aircond and wifi
4. Fully furnished
5. Include utilities
6. Flexible rental contract (1 day/week/month/year)
7. Convenient Access to public transportations/LRT/MRT
1) Employed ‘Working Professional’ Market Size: Malaysia Labor Force Survey May 2019 statistics showed an increase of 1.9% from 2018 to 15m employed workforce among 15-64 years old. For 18-35yo working professional target market who will consider renting, the estimated market size would be 70% x 15m x 50% = 5.25m working population
2) LRT/MRT users: Estimated 20% of Malaysians use public transportation or 1m 18-35 working professional population. Malaysia’s rail network that includes the LRT, MRT, Monorail, Express Rail Link and KTM Komuter is still unable to efficiently serve the Klang Valley’s estimated 7.2 million people over an area spanning 2,800sq km, which the government is working towards building more transit oriented development to deliver better convenience to Malaysians.
3) Income Earning: Salaries in urban areas were found to be higher at RM2,415 (median) and RM3,274 (mean) and TheKatil rental fees is RM800 per month for singles (24.4% of mean income) or RM450 per month for couple/friends to share per room (13.7% of mean income). iMoney in its April 2019 survey found that the median amount being paid for renting a room in the Klang Valley was RM680 , therefore TheKatil rate is consider moderate for graduates or junior working professionals to rent a room with complete amenities, utility bills, hassle free and convenience to get to LRT/MRT stations since its within the 50/20/30 budgeting model, whereby:
Eg. Income is RM2500
1. 50% income (RM1250) goes towards needs and necessities (rent, bills, transportation, groceries, insurance, etc)
2. 20% income (RM500) goes towards savings or debt payments,
3. 30% income (RM750) goes towards wants like entertainment, eating out, travel and shopping.
4) Housing affordability: About 73% of unsold properties in the country are also not affordably-priced, according to Bank Negara director of financial surveillance Qaiser Iskandar Anwarudin. In Kuala Lumpur, for example, the actual house price median is RM793,000 while the maximum affordable level is RM454,000