Site: rentingissimple.com, business partners needed
Hi, I am looking for silent investors and/or active partners for 'Renting is Simple'.
The business is around matching renters and landlords. The task of finding a renter and doing the due diligence are tasks of individual property manager or individual property owner.
I want to take it away from them. Just like a headhunter/recruiter would do for work. I will do for the property rental market.
The site is already up. RentingisSimple | Lets us do the searching for you! and I have started conversations with real estate and consumers in Edmonton. The site has been up for 2 days while the idea has been in my head
In progress:
Logo design
Facebook page
Bookkeeping
Finding out Airmiles program costs
Equifax/Transunion account creation
Discussion with Boardwalk Properties
Revenue streams
1) background checks for renters
2) selling a potential renters list to property managers
3) charging properties for managing the rental process
4) ads for promoting a certain property for sale to customers
Initial ask: $500 for 10% share. I currently own 100%. Potential up for sale is 30%
Costs
a) online ads
b) set up prepaid account to provide credit checks
c) set up airmiles program* waiting for program cost
d) monthly subscriptions fees to keep the site up, toll free number and fax line
e) paying for development and admin time
f) office materials such as business cards and flyers
Ready for criticisms!
Thanks, Simon
The business is around matching renters and landlords. The task of finding a renter and doing the due diligence are tasks of individual property manager or individual property owner.
I want to take it away from them. Just like a headhunter/recruiter would do for work. I will do for the property rental market.
The site is already up. RentingisSimple | Lets us do the searching for you! and I have started conversations with real estate and consumers in Edmonton. The site has been up for 2 days while the idea has been in my head
In progress:
Logo design
Facebook page
Bookkeeping
Finding out Airmiles program costs
Equifax/Transunion account creation
Discussion with Boardwalk Properties
Revenue streams
1) background checks for renters
2) selling a potential renters list to property managers
3) charging properties for managing the rental process
4) ads for promoting a certain property for sale to customers
Initial ask: $500 for 10% share. I currently own 100%. Potential up for sale is 30%
Costs
a) online ads
b) set up prepaid account to provide credit checks
c) set up airmiles program* waiting for program cost
d) monthly subscriptions fees to keep the site up, toll free number and fax line
e) paying for development and admin time
f) office materials such as business cards and flyers
Ready for criticisms!
Thanks, Simon
Comments
I believe there are businesses offering similar services today - maybe not in your area, though. (Some even go a bit further and manage the entire process for out-of-town owners.)
Here are some questions you may have already considered. If not, you really should because investors will want to know
Have you checked into your competition? How do they make money? What are their strengths and weaknesses?
What makes your offering stand out from the others?
How will your competitors respond to your entry?
Why would an owner use your service rather than an alternative?
How will you market your service?
How will you make money? How long will it take to be cash flow positive?
Plans to expand into other markets? Franchising? How big are your target markets?
Have you got partners in place for things you are missing? Marketing / web development / accounting / legal / real estate?
And $500 is waaaaay too cheap if you have all those answers!
Best of luck.
Thank you for the luck.
Thank you for the questions!
Thank you for saying that $500 is too cheap!
Here is a short list of sites that would take traffic/potential clients away from me.
edmonton.rentfaster.ca, rentedmonton.com, Kijiji, individual property sites, rentboard.ca, gotarent.com, rentersonline.com, viewit.com, 4rent.ca, rentspot, padmapper, furnishedapartmentsedmonton.org
I did look at various sites that are in the similar market. I did not locate any that acted like a rental agent. If anyone has found something I would like to look at it.
Just by not having found many similar sites online. I did find slightly similar such as an admin person willing to help do the search but it stops there.
Most of my competitors are sites that list properties and request people to sign up to search and match their profiles. They may switch to compete and offer the same service.
As in owner, I am reading as it as a landlord or property manager. Have more applicants for a property means more choices. The alternative is to go out, do ads and find potential clients themselves. Which they have done traditionally.
As in owner, per customers? This is an added service. The concierge. Renters can go and search out properties for rent all day long for free and apply. The ones that pay for my service will weed out some renters. Not a problem.
I plan to advertise on facebook, kijiji, google search. All offer a budget ceiling. I will also mass email people on classifies wanted ads ( eg. Looking for a 3 bedroom, have dog.. etc etc) to sign up for the service.
Primary
Charge renters for verifying their credentials, up charge for urgency.
Secondary
Charge property management for an extended list of applicants. (My priority is to secure a rental property for a renter)
Ads for rental properties in an email form or listing on the site.
Ads to help rebuild credit referrals* I dont like this one but its potential
Cashflow
Currently, I am putting my hours to get the site up and running in the right direction. Startup costs have been low. Ongoing costs are less than $100 a month.
I do not expect to pay myself or shareholders until there is a positive flow.
I plan to start in Edmonton and Calgary than Vancouver, GTA than Canada wide depending on cashflow. US then international if and when that happens.
The rental market is big. One of the group that I need to get my hands on is: the military. I send out an email with no response. I know an officer who works on base that I hope to connect with their social services department.
I can take care of Marketing and basic web development. I am reaching out to someone for advanced development. Accounting. No issues. I do bookkeeping parttime and have two cousins as CAs. Good relationship with local firms. Legal is open right now. Need someone. Real estate. I discuss with a few realtors that are only interested in buying and selling.
A local competitor that offers an application for tenants at $30. They appear to be pro-property as they offer property management as a service for:
Our Edmonton property management services cost are the greater of:
$179/month or 10% of the monthly rent + GST.
The initial marketing fee for setting up your property is a one-time fee of $495+GST .
I dont think they would go head to head against me as they will only take tenant applications for the properties they only manage.
You can start on a small budget and expand once you have perfected the model. I think the way you realize the most value is to expand this rapidly if there is a market for it.
Probably to work with the armed forces you'd need to be an approved supplier. But those kind of renters are really pre-qualified. So the service for them is really no more than what an agent would provide. This is not your market.
Charging the renter a fee probably won't work. It might in a really right market. Probably the best way is charging the property owner a one time fee for the lease plus a percentage of the monthly rent for management. A few sites are very upfront about the fees and the services. You can learn from them.
Don't focus the business plan on just edmonton though. Focus on making this a franchise business with partners on every city. The value of your business is a multiple of your projected revenue. Go big or stay home.
tapatalk puts this here to annoy YOU
Also I have some ideas for you that may help if you want to pm me they may help you out.
Just going back to working the 9-430 is available but.. once in a while I like to do grind in the day = )
Some people have started a business with no clue and have made profits. Trust me I meet a lot of them.
The charge $30ish was to verify customer (renters) not to charge the owners (landlords).
I have been actually thinking of offering a share in my poker related sites if someone is interested in updating the tournaments, etc. I would basically split any affiliate revenue generated on the site going forward. I just don't have time these days to update them.
pm sent
interested
Also, find an insurance brokerage in Edmonton, they can offer tennant insurance to your renters and will likely help pay for the cost of site maintenance, etc...
Good Luck !!
Thanks for the idea on the insurance as well. I am offering a free signup now along with a $35 and $55 charge option for renters.
Working with properties (smaller ones), free to list but will have to pay $275 for a qualified tenant.
hmm
Tenant insurance is for the tenant that covers liability for personal property. I gotta look into it but I think you can get your idea above.
Insurance for everything in the world. Insurance for insurance!