The Rise of Subscription-Based Real Estate Models
The subscription model isn’t just for streaming services anymore. Companies across a wide range of industries are adopting the model in search of consistent, recurring revenue over more traditional one-time sales. And as consumers demand convenience and value, the industry is expected to continue growing. As businesses embrace the model, however, it raises questions about what is considered a proper transfer of ownership of property. Traditionally, when a purchase is made, ownership of the property bundle (e.g., intellectual, physical and moral) is transferred to the buyer. With subscription services, the property bundle remains with the owner of the service and users merely have a license to use the property. While the fox hunting example may seem outdated, ownership in property rights is still a fundamental principle of the law. In addition to the recurring revenue model, companies using subscription services can also provide customers with a more flexible experience by…