Date post: | 06-Aug-2015 |
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Pain Points
Vacancy rate is an important concern for landlords. In NYC alone, landlords are losing over $180 million every month due to downtime on their units.
Traditional brokers are inefficient and charge prospective tenants between 8%-15% fees on annual rent.
How it Works
Meet Susan23 years old college grad$3,300 Monthly Rent Moving out in 3 Months
Meet Chris 25 years old
$3,400 Target Rent Apartment Hunting
Susan lists her apartment on
Rentity
Susan shows her apartment to Chris
Chris discovers Susan’s listing on
Rentity
Chris loves it and applies for the
apartment
Chris pays low 5% fee and Susan collects half of
that fee
1 2 3 4 5
Current Tenants make 2.5% annual rent back
when new renter found
Prospective Tenants get early access to listings,
better insights, save money
Landlords minimize vacancy rates from pre-
market activity
Rentity’s Value Proposition
Why Rentity?
The current tenant is the best advocate for the apartment, building, neighbors,
and neighborhood.
Fifty four percent of renters know that they will move out more than 3 months before their lease expires.
Eighty seven percent of Airbnb hosts in NYC are renters.
Thirty percent of renters find their apartment through social networks.
Why Now
87% 54% 30%
Market Size
$395.5BTotal Annual Rent in U.S.
$2.7BRental
Broker Fees in NYC
$6.6BPaid to Attract
&Retain renters
21,600Leases with RENTITY in NYC
1% Share of NYC Market
$900Average Fee
$3000/mo rent * 2.5% fee
$19.4MGross Revenue
Over 3 years
x =
New York City - Market Opportunity
Size
Total Rental Units = 43.6 million
Median Monthly Rent = $756
Vacancy Rate = 8.2%
Total Market Size = $395.5 billion
How
Landlord-paid fee
Price-customization
Total Market Opportunity - National
35%
61.6%
42.7%
40%36.9%
43%
42.5%
40.4%
Total Market Opportunity - International
Percent of Renters:
Switzerland 61.6%Germany 43%South Korea 42.7%Austria 42.5%Turkey 40.4%Japan 40%France 36.9%United States 35%
Highest Rents:
Hong KongMoscowCaracasSan FranciscoNew York CityLondonTokyoSingapore
Retains remaining 2.5%
Will receive 2.5% of annual rent back
Pays 5 % fee to Rentity upon signing the lease
Business Model
ProspectiveTenant
CurrentTenant
Rentity
Go-To-Market Strategy
What is our customer acquisition strategy? How will we address any liquidity concerns? What about traditional brokers/agents?
For a more detailed deck, please email [email protected]
Competitive Analysis
Advantages
● High fees ● Can market vacant
apartments● Bait and switch
● Reduced downtime ● Lower fees ● Current tenant gets
paid● Save landlords $● Pre-Market Inventory● Partnerships with
photo, cleaning, moving etc.
● Better way to search vacant apartments
● Built for current inventory
Direct Competitors
BrokersUrban Compass
Streeteasy
Emerging Startups
RadPadZenly
Hotpads
VisionBusiness Development
?DevelopmentiOS Engineer
?ProductSenior UX Designer
Team
Daniel Ahmadizadeh Nick Sillik Jennifer Sillik
? Operations TBD
TBD? Data Analytics
TBD
TBD? Community
TBD
TBD
Use of Funds - 1 Year Goal
Turnover 2,000 leases ($1,800,000 in revenue)
Implement front-end growth features
Build an efficiently-scalable backend system
Hire two full-time staff
Legal expenses
Funding?
We are looking to raise for 18 months of runway
$1,200,000
We are willing to sell up to 20% of the company
Currently accepting convertible notes (see below)