Do it, and innovate real estate investing too. Fix those crappy contracts and low liquidity markets. Make it easier to move capital into these markets. These units could solve so many problems
Rent the Backyard (YC S19) wants to build a studio apartment in your yard
31–40 of 154 posts
Re: Rent the Backyard (YC S19) wants to build a studio apartment in your yard
#32Can someone more familiar with the Bay Area housing issues and this company’s approach to increasing housing explain or analyze this for a non-Bay Area audience? I ask because this currently is Bay Area only.
I will try. In the US, there is the concept of Accessory Dwelling Unit - essentially, you can build a small shed in your backyard with a much simpler process, including the paperwork, permit, etc. If you are a homeowner, you can do that yourself - it means taking care of the permits, finding a construction company, etc, and putting money down, probably in the ballpark of 100-150k to do a good job. After this, you can…
If you do this with "Rent the Backyard", or by yourself, it means your house can't be sold until you pay the loan.
You probably thought of this already, but I have to ask: What if "Rent the Backyard" is the lender? Couldn't they have a provision in the loan contract allowing the homeowner to move out? What if Rent the Backyard forms an entity with the homeowner, and sells the lot to the entity?
Re: Rent the Backyard (YC S19) wants to build a studio apartment in your yard
#33The price (50% plus an ownership stake in a structure on my property) seems absolutely insane. Does the ownership stake mean that I can't stop leasing the studio if I want to?
I think most people who really want to do this will work with a local contractor instead.
Re: Rent the Backyard (YC S19) wants to build a studio apartment in your yard
#34It seems like the biggest innovation here would be bringing down the price of building a standalone studio apartment. These units probably cost cost $120k+ to build/install? It would be neat if there was a (high quality) $50k kit homeowners could buy and assemble themselves, almost like IKEA furniture.
It would be neat if there was a (high quality) $50k kit homeowners could buy and assemble themselves, almost like IKEA furniture.
There was a New England company that sold complete kits for small houses with pier and beam foundations, designed to be constructed by two fit adults, including the fasteners! I think they went out of business in the 2000's.
EDIT: I just found another company doing almost the same thing: https://www.shelterkit.com/gallery.html
Re: Rent the Backyard (YC S19) wants to build a studio apartment in your yard
#35So this is Uber but for backyards?
Any moment now someone is going to come up with Uber, but for toilets. I can see it: it'll be called something like Petey Potty, the app will let you connect with Potty Providers and you'll get to use their toilet for a fee. The company will have an ostensible plan of making money by taking a cut off the Potty User fee, and charging a standard fee to Potty Providers. It will be wildly popular in dense urban areas and business districts where it's hard to find a public toilet and around kebab places and it will be hailed as a lifesaver for individuals with Krohn's disease who need to be able to access a toilet with very little warning. There will be an article in Wired and an outraged article in The Guardian (there will be outrage, no questions). The company will lose money for the first ten years of its existence, then it will be sold to Uber, probably, or possibly Yelp.
Oh and- there will be a review system on the app. With five little smiling turds rather than stars.
Re: Rent the Backyard (YC S19) wants to build a studio apartment in your yard
#36It seems like the biggest innovation here would be bringing down the price of building a standalone studio apartment. These units probably cost cost $120k+ to build/install? It would be neat if there was a (high quality) $50k kit homeowners could buy and assemble themselves, almost like IKEA furniture.
It would be neat if there was a (high quality) $50k kit homeowners could buy and assemble themselves, almost like IKEA furniture. There was a New England company that sold complete kits for small houses with pier and beam foundations, designed to be constructed by two fit adults, including the fasteners! I think they went out of business in the 2000's. EDIT: I just found another company doing almost the same thing: h…
All the companies doing this seem to be small/unsuccessful/brand new. Maybe there's some fundamental problem with the business or maybe no one has nailed it yet?
Re: Rent the Backyard (YC S19) wants to build a studio apartment in your yard
#37I love anything that creates more housing in the bay, but these are 30-year contracts! I can't even imagine getting into a 30 year contract with a company that might not exist in 30 months. What happens when the start-up goes under, or gets acquired, etc? Is the loan made directly to a third party bank?
The contract then binds the acquirer. The more problematic aspect is committing them to buy out the rental on sale of their house.
Re: Rent the Backyard (YC S19) wants to build a studio apartment in your yard
#38Seattle has an innovative project called the Block project which puts a tiny home into a volunteer's back yard.
Candidates are homeless individuals who have been working with social workers for at least 6 months and are a good fit with the "landlord" which is the homeowner of the hosting site.
The Individual pays minimal rent to cover utilities (hopefully subsidized via the government and facilitated by social workers). The lease is for 5 years with the goal of helping the individual get back on their feet to a traditional housing situation. The project is from the Facing Homelessness organization. They have placed 4 or 5 individuals at this point.
Re: Rent the Backyard (YC S19) wants to build a studio apartment in your yard
#39Earlier quoted context omitted.
It would be neat if there was a (high quality) $50k kit homeowners could buy and assemble themselves, almost like IKEA furniture. There was a New England company that sold complete kits for small houses with pier and beam foundations, designed to be constructed by two fit adults, including the fasteners! I think they went out of business in the 2000's. EDIT: I just found another company doing almost the same thing: h…
All the companies doing this seem to be small/unsuccessful/brand new. Maybe there's some fundamental problem with the business or maybe no one has nailed it yet?
What if an Amazon company started putting together such kits? Perhaps there would be a way this could be done for small margins, sort of as a no-loss-leader to generate more Amazon customers?
Re: Rent the Backyard (YC S19) wants to build a studio apartment in your yard
#40So this is Uber but for backyards? Any moment now someone is going to come up with Uber, but for toilets. I can see it: it'll be called something like Petey Potty, the app will let you connect with Potty Providers and you'll get to use their toilet for a fee. The company will have an ostensible plan of making money by taking a cut off the Potty User fee, and charging a standard fee to Potty Providers. It will be wild…
Have you seen Urinetown? https://en.wikipedia.org/wiki/Urinetown