The 1001 Startup Ideas – Property Management Software for Landlords from YoStartups is to develop a software to manage end-to-end workflow solution for an individual landlord. It will help landlords right from creating the listing to finalizing the tenant, collecting rent and property maintenance, etc. This will enable landlords to manage his / her property efficiently even without engaging property agents.
Market Definition for 1001 Startup Ideas – Property Management Software for Landlords
The residential real estate constitutes a major part of global real estate properties globally. Talking just about the Real Estate market in India, there is a huge demand for rental houses. According to a news in Business Standard, over 1.2 crore homes are available across India’s top 20 cities on a rental basis. The market size of residential rental brokerage in top 20 cities was $4 billion in 2015, which is estimated to grow to $12 billion in next five years.
Competitor Analysis for 1001 Startup Ideas – Property Management Software for Landlords
Considering the size of the industry there are a lot of players who are working towards streamlining the renting space, but we haven’t seen many players providing the complete end-to-end solution from the landlords perspective. For example, there are platforms like Commonfloor in India, where landlords can list their property and manage the applications but it doesn’t integrate the post renting features.
The closest one to the proposed business model that we could find is Rentalutions, a Chicago-based startup founded in 2012 and has raised $3 million in total funding till date.
Pain Point & Target Audience for 1001 Startup Ideas – Property Management Software for Landlords
The target audience for the startup is individual landlords or residential property agents owning/managing up to 20 apartment units.
Even though there is a big gap between demand and supply for the rental residential properties, there are many landlords who prefer to keep their properties locked up and do not rent it. They do so as they do not have enough time or they dread dealing with the real estate agents and brokers. They also fear renting their property to some unverified tenant, who give them trouble at some stage.
Even the landlords who go ahead and rent their properties, currently manage their properties without any established structure, leading to significant time involvement and higher chaos. On most occasions, they end up engaging property agents who charge them good some for the service. Hence, there is a need to have a solution that automates and makes the process simpler.
Value Proposition for 1001 Startup Ideas – Property Management Software for Landlords
Landlords and property agents spend a lot of time in managing their property, and the related documentations. The software will integrate the complete rental cycle into a process making renting any property a breeze for anyone. This will enable landlords to manage their property themselves without even engaging third party brokers.
The software will also guide the landlord in doing a background check of the tenant so that he doesn’t end up with tenants who turn into squatters. All in all, the software will make the landlord confident and comfortable enough to rent their properties to tenants.
Business Model for 1001 Startup Ideas – Property Management Software for Landlords
The startup will follow B2C SaaS-based business model. The startup should develop the complete end-to-end solution covering every step involved in a rental cycle. Some of the features that it must include are; property listing across popular platforms, applicant management tool, lease documentation, rental payment set-up, tenant background check etc.
The startup should keep different levels of monthly subscription for using the software with different levels of access. Some of the parameters for different subscriptions could be the number of active listing, dashboard customization, etc.
Way to market for 1001 Startup Ideas – Property Management Software for Landlords
After the initial market research and feedback, the startup should identify two metropolitan cities for the product launch. The startup does not need to wait for the application development and should launch only with the web platform.
The startup should extensively take the help of social media and blogging websites to get their word across and reach their users. The startup can also put posters around the popular residential societies which are running on rents.
The startup must have a freemium model to start with where any user can register and experience the platform. Later it can move the users to higher subscription plans.
Milestones for 1001 Startup Ideas – Property Management Software for Landlords
The startup should spend first three months in getting feedback from the customers and developing the web platform. Once the platform is ready, the startup must target to acquire 5000 users over next six months with atleast 10% paying users.
Investment Needed For Prototype for 1001 Startup Ideas – Property Management Software for Landlords
For building and testing the prototype pitch for raising $120k from angel investors or incubators. You can approach some of the real estates specific accelerator programs like MetaProp in New York or Inhab Accelerator in Hong Kong.
There should be no office rentals or salary payout; the entire budget should be apportioned for customer acquisition and technology.
Team Capability for 1001 Startup Ideas – Property Management Software for Landlords
You would need to have a full stack developer and an application developer in your team. You also need to have a member with extensive experience in Residential Real Estate brokerage to lead the Product Management.
Investors / Expert Take for 1001 Startup Ideas – Property Management Software for Landlords
Real Estate is the largest industry globally offers a huge opportunity, and has always been close to investors. The real estate technologies have simplified the traditional industry bringing more transparency and credibility in the transactions, which was otherwise purely dependent on network and relationships.
Even though the overall funding in Real Estate is not that shining as that of some of the emerging sectors like Fintech, but the sector has seen some tremendous growth and support from investors over last 5 years. 2016 saw the total investment of around $4.2 billion against $600 million in 2012, which itself presents the rising confidence among investors towards the sector.
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This 1001 startup idea article is from Yostartups, YoStartups is a Pre Accelerator and it empowers entrepreneurs to propel their business ideas into successful ventures. Yostartups’ core mission is to take the message of entrepreneurship to 1 billion people globally by 2020.
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