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We replaced rental brokers with software and filled 200 vacant apartments

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Re: We replaced rental brokers with software and filled 200 vacant apartments

#31

Post by tut-urut-utut »

cde-v wrote: post #6

Would love something like this to kill (or at least severely maim) the broker industry in NYC. 0 value added at the cost of 10-15% of yearly rent.

The assumption that software can solve this problem is simply wrong. It's the regulation change that needs to happen if you don't want that renter pay the broker "services".

For example, a new law in Germany to apply the "who hires pays" principle for brokers in the renting market basically made the renting "broker fee free" for renters. Previously, the landlords would hire a broker that needed to be paid by the renter. Why not, it doesn't cost them anything, and at least they don't need to have a contact with the potential renters. Now, that they have to pay for the brokers service themselves, it's suddenly not that valuable to them.

Re: We replaced rental brokers with software and filled 200 vacant apartments

#32

Post by jandrese »

blakesterz wrote: post #3

This was really well written, such a good read. It somehow made the phrase "Everything that can be automated is automated." less... I don't know... scary I guess. I can't put my finger on it, but giving all this up to some algorithms seems wrong/worrisome for some reason, but seeing exactly how it was done made it less so.

Using the algorithm to eliminate leeching middlemen was one of the promises of the future.

Real estate in general is full of middlemen looking for a cut and providing little to no value. The whole industry is overdue for a shakeup.

Re: We replaced rental brokers with software and filled 200 vacant apartments

#33

Post by literallycancer »

tut-urut-utut wrote: post #31
cde-v wrote: post #6

Would love something like this to kill (or at least severely maim) the broker industry in NYC. 0 value added at the cost of 10-15% of yearly rent.

The assumption that software can solve this problem is simply wrong. It's the regulation change that needs to happen if you don't want that renter pay the broker "services". For example, a new law in Germany to apply the "who hires pays" principle for brokers in the renting market basically made the renting "broker fee free" for renters. Previously, the landlords would hire a broker that needed to be paid by the rent…

So the landlords just make the rent more expensive to account for having to pay the broker, what changed?

Re: We replaced rental brokers with software and filled 200 vacant apartments

#34

Post by mschuster91 »

Landlords being able to require proof of no evictions in rent history makes sense (even though it absolutely makes life worse for people who fell on any form of hardship), but why are landlords even allowed to demand proof of no felonies?!

Re: We replaced rental brokers with software and filled 200 vacant apartments

#35

Post by apercu »

syshum wrote: post #13
KoftaBob wrote: post #9

Earlier quoted context omitted.

If I’m not mistaken, didn’t NYC enact a law last year that bans landlords from charging tenants the broker fee?

That is not how economics work... All fees are passed on to the consumer in some way, it is either a line item or hidden

True, except in this case NY is one of the few places in the world that requires such nonsense.

Re: We replaced rental brokers with software and filled 200 vacant apartments

#37

Post by __sy__ »

We started Seam (YC S20) a year ago to take on the problem of programmatic access to physical spaces (apartments, single-family homes, commercial buildings...etc).

Basically one API that can open any door (smart locks, elevators, commercial buildings...etc). We're still in private beta but feel free to reach out if you're struggling with programmatic access.

tbh, it's baffling that in 2021, this problem is still so difficult to solve. As a last point, we generally recommend against key-exhange solutions. From our experience at Sonder, people forget to return the keys and it creates a lot logistical headaches. You then have to re-key the doors...etc.

Re: We replaced rental brokers with software and filled 200 vacant apartments

#38

Post by tut-urut-utut »

syshum wrote: post #13
KoftaBob wrote: post #9

Earlier quoted context omitted.

If I’m not mistaken, didn’t NYC enact a law last year that bans landlords from charging tenants the broker fee?

That is not how economics work... All fees are passed on to the consumer in some way, it is either a line item or hidden

No, they are not.

The consumer price depends only on supply and demand. Fees don't influence none of it, only the cost of the selling party and thus his profit.

Re: We replaced rental brokers with software and filled 200 vacant apartments

#39

Post by wombatmobile »

blakesterz wrote: post #3

This was really well written, such a good read. It somehow made the phrase "Everything that can be automated is automated." less... I don't know... scary I guess. I can't put my finger on it, but giving all this up to some algorithms seems wrong/worrisome for some reason, but seeing exactly how it was done made it less so.

> This was really well written, such a good read.

The author's extreme user empathy, attention to detail, and willingness to do whatever it takes to reach a standard makes this a comforting read. You know it's going to end without disappointment, because he does whatever it takes to get good results for all stakeholders.

Re: We replaced rental brokers with software and filled 200 vacant apartments

#40

Post by tut-urut-utut »

literallycancer wrote: post #33
tut-urut-utut wrote: post #31

Earlier quoted context omitted.

The assumption that software can solve this problem is simply wrong. It's the regulation change that needs to happen if you don't want that renter pay the broker "services". For example, a new law in Germany to apply the "who hires pays" principle for brokers in the renting market basically made the renting "broker fee free" for renters. Previously, the landlords would hire a broker that needed to be paid by the rent…

So the landlords just make the rent more expensive to account for having to pay the broker, what changed?

The rent price depends on supply and demand, not on landlords costs.
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