Costockage: Monetize your extra room [Geektime Conference]
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Photo Credit: PR

Costockage connects users who have available space with those who want to rent it, based on a period of time, storage space and the amount of stuff they want to keep.

Photo Credit: PR

Photo Credit: PR

Congratulations! you have decided to spread your wings and move from your parents place to a place of your own. In most cases, and it doesn’t matter where you want to settle in, you’ll have to carefully choose what you want to move with you as your storage space has probably just been significantly reduced.

The French start-up company Costockage wants to help users to save and store the objects they don’t need for the current move, but may be needed in the future. This can be done with the help of generous users who live nearby and have a spare room.

Renting rooms as a storage closet

On our quest for our last apartment we found a pretty good unit, including a spacious kitchen, a living room with balcony, recently renovated bathroom and two bedrooms (in case we need to invite friends for a long time stay). For man singles, the second bedroom is rapidly becoming a “work room”, which usually accommodates all the boxes and stuff they don’t want to leave strewn around the house. This means not only that these people don’t earn from the extra room, they probably pay for it every month as part of the rent. Costockage wants to help such people make the extra room profitable, even if there are no tourists to rent it out to.

In order to do so the company wants to use the room, attic, basement or any available space to offer up as rent-able storage space.
This model is simple: you have  space that someone else could use and are even willing to pay for. In fact, this model is more convenient than the existing model on Airbnb, since you won’t have to host some strangers coming in and out whenever they want. Instead your acting as host to a bunch of stuff. And ‘stuff’ doesn’t complain.

In Europe and the states its not uncommon for people have to be paying a monthly fee to a warehouses and other services in order to keep their belongings. Typically, the storage options are warehouses outside the main cities, which means that the renters will be required to pay not only the cost of months of rent, but also the very high transport costs – just because they’d rather not throw out the couch or the bed their great-grandfather built with his own hands.

The company’s website connects users who have available space with those who want to rent it, based on a period of time, storage space and of course, the amount of stuff they want to keep. The system allows users to talk to each other and discuss the conditions before the payment, so they can be sure they chose the right place and the right people to take care of their belongings.

Photo Credit: PR

Photo Credit: PR

Focus on Europe

Costockage was established in November 2012 by Mickael Nadjar and Adam Levy Zrauberman. After Nader moved to Israel, he decided to take advantage of Israel’s ecosystems in order to hire a talented team of developers. So while Costokage’s development team is sitting at the company’s office in Tel Aviv, the company’s headquarters are in France, where Adam handles the marketing and business development.

Costockage believes that their solution is a revolution in storage due to the fact that it allows users to store their belongings at close to half of the market’s cost, including the insurance. The company has already completed the phase of the Proof of Concept, which found that users in France are willing to use various storage options, as long as they’re cheap, and of course, landlords are interested in making money from space they don’t use at home.

While there are several companies that offer similar models already in the market, Costockage believes that their secret to success lies in just two letters: UX.

The main focus of the company since its founding was to resolve the relevant issues for the users, such as calculating the amount of the storage space, the option to rent for a short or a long period of time, a mechanism to transfer funds via a secure system, and of course, the insurance for various products.

Apparently, the company’s investment has paid off and in spite of the fact that it’s still in its pilot phase, Costockage’s website now serves around 12,000 users who have around 200 applications and more than 60 orders per month. According to the company they see an approximate increase of 20 percent each month in all these figures. On the website you can find a total of 18,000 square feet of rental space, which is equivalent to an area of ​​six warehouses.

It seems that users are very satisfied with this new possibility as the average rental time is no less than five months, while the average cost amounts to about 400 dollars for between 3 to 4 square feet worth of space. On 50 percent of the transactions the tenant renews the contract for another period.

The company, which already began its first financing round, is interested to continue expanding its platform into other cities throughout Europe and eventually to offer storage solutions to users all over the world.

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Henn Idan

About Henn Idan


Lover of gadgets, apps and technology in general. Somehow among her many activities, which include, destroying cellular devices for the sake of science and an obsessive preoccupation with social networking, Idann finds time to write an article or two for Geektime on new applications, promising startups and product reviews for pretty much every new gadget that has ever hit the market – ever.

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