- Country: Ghana
- Industry: Real Estate
- Stage: Start-up
- Investment size: $500,000 / min. $200,000
- ROI: 200% in 5 years
- Type of investment: Debt, Equity
A micro rent finance (MRF) is a system of rent finance whereby a company rents and pays the rent to the landlords and marginally distributes it to tenants to pay daily.
Micro rent finance is a system of rent whereby houses (rooms) are rented from landlords with full negotiations then graduating it into daily payments by our customers. The processes are: renting, furnishing, searching for tenants, determining daily rent, housing practices and payment.
Rooms are identified, negotiated, and rented by the company. The negotiations entail the agreement between the landlords and the company on our business process. All the documentations will be in the name of the company. The minimum period for which we will rent a property will be 3 years. The landlords will be paid fully.
FURNISHING THE ROOMS
The company will provide all the necessary items that make living in the rooms enjoyable; they may include bed, beds sheets, foams, TV, DVD, Multi-TV, DSTV fan and many more.
This is where we search for prospective tenants who support to our rules and regulations. We will be looking for people who will sleep in our rented rooms for daily rent. There will be 3 to 4 people in a room with separate rooms for opposite sex.
The marginal daily rent will be 0.7$
DETERMINATION OF DAILY RENT (Kumasi)
The daily marginal rent (DMR) will be the determining base given the prevailing economic conditions.
The daily marginal rent will be calculates as follows:
DMR = Total Daily Income - All Expenses +0.7USD
Therefore, the marginal daily rent will be 0.7USD
Daily Rent in Kumasi = 0.7USD
Every member must follow the following house rules:
• Members must register with membership cards
• Any deliberate destruction of properties must be restored
• There should be no perching
• No opposite sex visits
Payment will be done at the office of the company before 6.00 pm.
The main marketing tools may include posters, banners and radio advertisement.
By 5 years’ time we will be moving into other regions and buying a whole house for our operations. Again, we will be building our own houses to use based on the micro rent finance model.
The micro rent finance will be employing a lot of people. However, we will employ six people initially. They are 2 marketing officers, one receptionist, two supervisors, one accountant and a manager.
Our competitors are providers of rooms for rent that needs to be paid in advance rents as well as real estate developers. Our advantage is that we do not require our custmers to pay huge amounts in advance but only a daily rent of 0.7$
Use of financing
The table below represents the percentage of the uses of the amount for the items that require funding:
• Rent: 70%
• Furnishing: 20%
• Salary: 10%
Opportunity for the investor
We are seeking for finance in the amount of 500,000 USD against an equity share of 30%-50% or debt finance at 3% annually for a period of 5 years.
For more details about the current proposal and further finance sector investment opportunities in Ghana, please contact us.
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