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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

#81

Post by IggleSniggle »

988747 wrote: post #65
munificent wrote: post #57

Earlier quoted context omitted.

It addresses the principle-agent problem[0]. Yes, renters that want a broker may simply raise the rent to pay for it, but doing so affects their own bottom line because either (1) it's harder to find a renter at that higher price or (2) they could have found a renter without a broker and pocketed the higher rent themselves. [0]: https://en.wikipedia.org/wiki/Principal%E2%80%93agent_proble...

Both of those things happen regardless of who formally pays the fee: one side of the transaction has a desirable good (apartment) the other side only has money to bargain with, so it's obvious from who's pocket the fee will come from. Many times the buyer would openly raise that argument in negotiations: "You know, I have all those fees to pay, can you lower the rent a bit?". It's not like sellers are completely obli…

It has a real effect on the advertised price, and landlords are generally in a better position to reduce the cost or eliminate it altogether.

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

#82

Post by TheRealPomax »

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…

No, in the case of NYT brokers, software would solve the problem of NYC brokers, by putting them out of a job.

If you're from Germany, you have nothing to compare these people to, they run a racket that would be illegal there to begin with. They're nothing like the kind of rental agencies in Germany, they are individuals who basically figured out how to scalp entire buildings worth of apartments.

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

#83

Post by __sy__ »

dangerwill wrote: post #80
__sy__ wrote: post #37

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 d…

Speaking of logistical headaches, what happens with your system when the power goes out in a building?

Right now we have a multi-protocol hub with cellular and battery back-up. So the short answer is... nothing?

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

#84

Post by lotsofpulp »

an_opabinia wrote: post #76
literallycancer wrote: post #33

Earlier quoted context omitted.

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

> So the landlords just make the rent more expensive to account for having to pay the broker, what changed? Nothing. Clearly brokers are doing something or else people wouldn't pay for them. My theory is the broker fee has positive selection for wealthier tenants, which for every property - low or high rent - makes for an economically better tenant. Raising the rent has the same effect. We care that there's cheap ren…

I am also under the impression that one of the purposes of brokers/agents is to serve as plausible deniability against accusations of discrimination.

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

#85

Post by lotsofpulp »

tcbasche wrote: post #43

I’ve had this urge lately after dealing with idiotic and incompetent property rental managers to automate their entire industry away. I’m glad I’m not the only one

How would one automate away the fixing of toilets and performing routine maintenance?

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

#86

Post by baybal2 »

__sy__ wrote: post #37

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 d…

Code locks?

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

#87

Post by maest »

xadhominemx wrote: post #66
pishpash wrote: post #56

Earlier quoted context omitted.

That and the entire rental background check industry. $30-$50 fees for each submission of the same report on what is effectively your own data.

It’s necessary in many markets IMO. Otherwise people would just spam applications at every apartment that satisfies their broad filters.

So charge per application, with the money going towards first month's rent, if successful.

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

#88

Post by at_a_remove »

About fifteen years ago, I set up a student rental website at the behest of the rental management. The list of things they wanted to automate, even then, was astonishing. I have seen this in other situations and it has led to a kind of maxim for me -- never underestimate the number of people who think that you can automate their jobs on their behalf and that they will still have those jobs at the end of the process.

I don't like putting people out of work but that bit about replacing someone with a shell script is not entirely inaccurate at times.

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

#90

Post by joshuaissac »

988747 wrote: post #65
munificent wrote: post #57

Earlier quoted context omitted.

It addresses the principle-agent problem[0]. Yes, renters that want a broker may simply raise the rent to pay for it, but doing so affects their own bottom line because either (1) it's harder to find a renter at that higher price or (2) they could have found a renter without a broker and pocketed the higher rent themselves. [0]: https://en.wikipedia.org/wiki/Principal%E2%80%93agent_proble...

Both of those things happen regardless of who formally pays the fee: one side of the transaction has a desirable good (apartment) the other side only has money to bargain with, so it's obvious from who's pocket the fee will come from. Many times the buyer would openly raise that argument in negotiations: "You know, I have all those fees to pay, can you lower the rent a bit?". It's not like sellers are completely obli…

When the person choosing the broker is the same one that pays, it creates competition on fees. The renter cannot choose to change the agent to a cheaper one. They have to deal with whatever agent the landlord has chosen.

It works similarly when software is chosen by people who have to use it versus those who do not. IDEs and text editors are usually chosen by the users, so there is competition on usability between different options. Timesheet and other HR software are usually chosen by upper management, and the people actually using them cannot switch, so there is not the same kind of competition on usability. Instead, they compete on other things that make them more appealing to those who can make the decision.

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