Feedback on new business idea appreciated

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    Feedback on new business idea appreciated

    Hey, I'm thinking of starting a new business and would really appreciate your feedback. It's just at the idea stage at the moment, so brutal honesty gratefully received!

    I've been working with a expert in machine learning (ML) and artificial intelligence (AI). We believe that we can very accurately price the rent for a property, as well as the number of vacancy days and maintenance. As a result we think we can offer landlords a new type of service to compete with traditional letting agents. Instead of charging a commission for finding a tenant, and an ongoing fee for managing a property, we would rent the property ourselves, guaranteeing the landlord income and removing the hassle of finding a tenant. We think the key benefits are:
    - We start paying you rent the same day you sign the contract
    - We pay a deposit just like a normal tenant
    - We only sublet to high quality, long term tenants (extensively vetted)
    - We carry the risk for vacant periods and maintenance
    - We handle viewings and paperwork so you don’t have to

    What do you think of this idea? Would it be appealing to you as a landlord? Are there major concerns we would need to address?

    Thanks in advance for any thoughts you have!

    #2
    Lots of agents/companies offer something similar. What would make yours different?

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      #3
      It is called "rent-to-rent", there are already hundreds of company doing that.

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        #4
        I wouldn't touch it with a bargepole. Agents already claim to find high quality, extensively vetted tenants - and they are lying too. I'd assume you were in it for a profit (at my expense) and that you wouldn't deliver on all those promises without promptly going bust - probably within 12 months.

        You did ask...

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          #5
          Thanks for the feedback @section21, @LondonSW and @StuartH !!

          What if we offered to pay a larger deposit? Or is there something else we could do that would make it exciting? I think one of the key areas we are interested in is how to offer something that genuinely delivers value to landlords and offers them exceptional service. No one likes letting agents or dodgy management businesses and we think we can do better.

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            #6
            The larger deposit would just make me assume that you intended to open a cannabis farm. Why would anyone assume that you weren't a dodgy management business? If making money from letting property was that easy, more people would be doing it and fewer wannabees would get burned fingers. Sorry.

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              #7
              There is a well known national company that offer this service already

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                #8
                Originally posted by StuartH View Post
                I wouldn't touch it with a bargepole. Agents already claim to find high quality, extensively vetted tenants - and they are lying too. I'd assume you were in it for a profit (at my expense) and that you wouldn't deliver on all those promises without promptly going bust - probably within 12 months.
                As you say. Ten bargepoles spliced together.

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                  #9
                  I dont think it's a new concept and never anything I would consider.

                  Your effectively asking a landlord to handover full rights to their property with no control at all over who it is then sublet to.

                  The size of the deposit would never be enough to persuade me. There's a lot more at risk than just damage or rent arrears and when selective licensing is applied everywhere, you will find no custom at all.

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                    #10
                    Originally posted by Wright76 View Post
                    I dont think it's a new concept and never anything I would consider.

                    Your effectively asking a landlord to handover full rights to their property with no control at all over who it is then sublet to.

                    The size of the deposit would never be enough to persuade me. There's a lot more at risk than just damage or rent arrears and when selective licensing is applied everywhere, you will find no custom at all.
                    +1

                    Absolutely spot on!
                    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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                      #11
                      Go back to the AI. Ask it to come up with a better idea.
                      "I'm afraid I didn't do enough background checks apart from checking her identity on Facebook" - ANON

                      What I say is based on my own experience and research - Please don't take as gospel without first checking the gospel yourself.

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                        #12
                        I think you may be asking a question like this on the wrong forum as the guys on here are generally clued up landlords most of whom seem to self-manage. Your business model appeals to the sort of person who wants an easy life and is probably an inexperienced landlord. As mentioned though there is a well established firm who already do this so I don't see why someone would pick a new unknown brand in preference?

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                          #13
                          Thanks everyone for your feedback!

                          I think you may be right on both fronts Goobs27 - it's probably not the target market we were actually thinking of (we were originally thinking more private landlords who wanted minimum hassle), but also it seems like the tech we have doesn't unlock that much value. As a different question, what are the main pain points you have as professional landlords? Maybe there is something else we should look at solving?

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                            #14
                            Originally posted by edbiden View Post
                            What are the main pain points you have as professional landlords?
                            Tenants and the Government....

                            Comment


                              #15
                              Originally posted by sam_cat View Post
                              Tenants and the Government....
                              yeah preferably a solution to them and letting agents would be good

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