- The current rental market is pretty awful.
- Agents charge anywhere from 7-12% + an advertising fee + a couple weeks rent per 12 mo lease. Agents also require tenants to fill out the same forms over and over again, requesting their life story, passport, bank details, mother’s maiden name and references. This process is also rarely successful for most people who apply.
- Self advertising results in less exposure and a longer period of time without rental, costing almost the same. It is also a huge hassle for most people.
- Renters — especially disadvantaged ones (we will not cover all profiles yet).
- Leasers – especially those on the line between using an agent and self-leasing.
- Allhomes – Rental listings generally handled by agents. Application processes involve filling out long, detailed forms with minimal communication. Expensive for property owners.
- Gumtree – casual listings, unintuitive interface for searching housing. Requires significant effort on the behalf of property owners
- ANU Housing – Essentially Gumtree, though with a more specific audience.
- Flatmates – More focused on share accommodation. Monetization techniques such as early bird messaging reduce its usability.
According to the 2011 Australian census, of the 1.7 million private rentals, 1.2 million are managed by real estate agents and 500,000 by private individuals. This number is growing rapidly each day as the younger generation becomes lifetime renters. Our platform targets both wealthy investors renting through real estate and more price sensitive home owners.
> We would like to initially target the ACT, where we are experienced and have connections. Sydney, Melbourne and Seattle would be the next likely candidates for expansion. Even capturing only 5% of the rental market in Canberra is approximately $4,400,000 p/a from a 5% brokerage fee alone.
> Our project is scalable, and could potentially roll-out to all of Australia/Worldwide, however we do have to ensure that all the internal cogs are working perfectly. Although this is not a moonshot, it does have the potential to be one.
We may expand into parking and home-purchasing in the future.
> It is becoming increasingly likely that the younger generation will be eternal renters.
> For homeowners and investors, agents are expensive, charging 7-12% + additional fees. Self-listing is time consuming and impossible if out of the state. Self advertising also risks lost rent from having no occupants and bad tenants.
> Real estate is a huge, and frankly, outdated market.
> We want to manage the entire process, combining the role of allhomes and agents with a intuitive site fuelled by machine learning. Homes can be rented in one click, in a timely manner. With fewer real estate agents, we can handle significantly more properties with this technological backing.
> Our team is very technically savvy. Max is skilled at Machine Learning. David, You and Atlas are capable web developers. Implementation is not a problem. Atlas is also a certified real-estate agent in the USA and You has connections with a local real estate company.
> We are looking for a mentor with business experience and potentially experience/connections with real estate companies.
The Customer Experience
We can divide our customer base into tenants and landlords:
- Can find our listings on competitor’s sites such as Gumtree and Allhomes
- Our website would show detailed listings with 3d tours
- Facebook Housing groups
Real Estate Agencies:
- Call them directly and introduce ourselves and what we intend to do to help the real estate agents’ sides
- We will reach out to price-sensitive landlords through direct marketing on platforms like Gumtree/etc
- Landlords will list on our site by listing the address of their property, then sending us the keys in person or via mail.
- We have strong development skills. We are all individually capable of quickly building a responsive website/app. Two of our members have strong backgrounds in machine learning and working with data
- One of our team members has a real estate license (in the USA).
- Networks. We need to meet the right people, and also figure out the direction of our business better.
- Financial resources to allocate to our team members as well as future team members
- Knowledge in the subject
- Real Estate agent or property manager would be a bonus