MI CASA – FINAL PRESENTATION
Rick Barber (MSCS)Dan Laufer (GSB)Byron Singh (MS&E)Kyle Tan (MS&E)
We spoke to 105 peopleSurveyed 98 people
2
Week 1: We want to revolutionize the home rental market
Initial idea: Become a fully integrated home and apartment rental platform for landlords, prospective tenants, and tenants
Initial target market size projection: $3B
3
Our team’s background
Rick Barber (MSCS)
• Univ. of Illinois Computer Science grad• Specializing in machine learning/data
mining in large networked datasets• Long-time interest in technology startups
Dan Laufer (GSB)
• Univ. of Virginia Systems Engineering grad• Former Bain consultant (3 years)• Former software product manager and
Director of sales strategy and analytics
Byron Singh (MS&E)
• Cornell Electrical Engineering grad• Facebook and Android application
developer• Digital circuit design engineer (2 years)
Kyle Tan (MS&E)
• Imperial College London EEE grad• Network analysis and engineering
program knowledge• Former IBM Strategy and Transformation
group intern
• Property Managers• Landlords
• Tenants
• Service Providers
• Realtors
• Streamlining process• JIT access to service p.• Better listing• Improve rent collection
• Streamline process• Improve searching
• Access to customers
• Makes property management easier for their customers • Web
• Realtors• Industry
• Web• Landlord
• Web• Direct
• Web• Direct
• Mostly Web / Automated service
• Direct for large players (ie. national realtors)
• Application Fees• Processing rental payments• Lead generation
• Computing infrastructure• Labor (Engineering & limited sales)• Marketing
• Web platform• Talent
• National realtors• Industry organizations• Payment processors
• Connecting customer segments
• Making process efficient• Adding transparency to
the system
Original version
Landlords
Realtors
Tenants
Service providers
Key
5
We then spoke with Realtors, tenants and landlords
Segment Insight learned
Landlords • Bigger players (property managers, apartment complex owners) had lots of services available to them
• Smaller landlords were generally unsatisfied with current services
Realtors • Wouldn’t go out of their way to recommend our solution
Tenants • Biggest pain was in the search itself
• Eliminated realtors as a customer segment• Focused on serving landlords as primary customers
• Landlords
• Tenants
• Service Providers
• Streamlining process• JIT access to service p.• Better listing• Improve rent collection
• Streamline process• Improve searching
• Access to customers• Web• Realtors• Industry
• Web• Landlord
• Web• Direct
• Mostly Web / Automated service
• Direct for large players
• Application Fees• Processing rental payments• Lead generation
• Computing infrastructure• Labor (Engineering & limited sales)• Marketing & sales
• Web platform• Talent
• Industry organizations• Payment processors
• Connecting customer segments
• Making process efficient• Adding transparency to
the system
Updated version
Landlords
Realtors
Tenants
Service providers
Key
8
We then tested distribution for landlords to this site
LinkedInMeetup
• Not to going to drive much traffic short term
• Can be helpful for developing a community longer term
• May be an indicator of interest/demand
Channel Overall results
Craigslist • Not a scalable or sustainable long term solution
AdWords • Very expensive and few searches being done
X
XX
Eliminated landlords as a customer segment
• Tenants • Better search of all
listings• Connected to other
services (i.e., insurance, rent payment
• Access to robust ratings
• SEO• Facebook/Twitter• Flyers?
• All Web based
• Lead generation• Processing rental payments• Eventually listing fees
• Computing infrastructure• Labor (Engineering & limited sales)• Marketing & sales
• Web platform• Talent
• Payment processors and other verticals for lead generation
• Eventually REITs
• Building listings/search• Creating some virality
amongst ratings
Updated version
Landlords
Realtors
Tenants
Service providers
Key
12
We concluded that we could successfully acquire customers
Advertising ($79.23)
New site visits (147)
Regist-rations (28)
$2.83/registration
• Facebook ads• Ad words• Craigslist emails• Craigslist ads
13
Finally, feedback from landlord interviews were very positive
Person WTP per successful referral
Quote
REIT executive $100-$150 “We know we’re not very good at online marketing. This could be a good fit”
Apartment complex owner
$50-$300 “I already pay for referrals. So why wouldn’t I do this too?”
Property manager
$100-$200 “I use craigslist, but would be open to something like this.”
Landlord $100-$200 “Lowering my turnaround time between tenants is huge.”
Competitor perspective
$12-18/lead (didn’t have to
close)
“REITs were desperate for social. They’ll be enticed by anything that smacks of being a social network.”
• Tenants
• Social connection during search
• Better search of all listings
• Largest breadth of listings
• Connected to other services (i.e., insurance, rent payment
• Access to robust ratings
• SEO• Facebook/Twitter• Flyers?
• All Web based
• Lead generation• Processing rental payments• Eventually listing fees
• Computing infrastructure• Labor (Engineering & limited sales)• Marketing & sales
• Web platform• Talent
• Payment processors and other verticals for lead generation
• Building listings/search• Creating some virality
amongst ratings
Updated version
• REITs• Landlords
• Simplified lead generation
Landlords
Realtors
Tenants
Service providers
Key
15
Lessons learned along the way
1. It’s a crowded eco-system across the value chain
2. The search process is frustrating to everyone – users and landlords
3. We came to learn that consumers were looking for a search process that was exhaustive and trusted, which no one is doing adequately today
16
Listings Provider
Tenants
Landlords
PropertyManagers
Service Providers
Potential Landlords
Realtors
Web Info
Show, Advise, Valuate
Sell, Advise
MaintenanceFurnishing
Listings,ChecksRent Payment
Moving
CraigslistPadmapper.com
Rent.comApartment.com
Forrent.com
Credit ChecksSafetenantcheck.c
Erenter.com
Payment FacilitatorRentpayment.com
Clearnow.comOnline Cheque
Listings, ChecksRent Payment
Maintenance FindingZoospi.com
Redbeacon.comTaskrabbit.com
Schedule Tools
Yelp.com
Angie’s List
Setster.com
Find information
Servicemagic.com
Zoospi.com
Rentpost.comRentjuice.com
Buildium.comRentingsmart.co
Propertyware.com
Rentjuice.comPropertyware.co
Rentingsmart.co
Buildium.com
propertymanagemnt360
Maintenance Ratings
Trulia.com
PM Tools
17
Users hate the search process and are not fond of any of the major incumbents
1 - painful
2 3 4 5 - easy05
10152025303540
How do you rate your search experiences?
% 21% 35% 34% 8% 2%
RE Agent
Padmap
per.com
Broke
r
Craigsl
ist.co
m
Word
of mouth
Rent.com
Apartments.
com
1
2
3
4
5
Total search satisfaction by preferred vendor
Only 10% of respondents were pleased with their rental search experience
And no single provider scored particularly well
18
Customer archetype: Sara
How she searches Wants to be efficient (will use a broker if doing a
search on her own is too painful) Asks friends for recommendations
What Matters to Sara Wants to live in a fun place that is safe Doesn’t want to overpay Doesn’t have much time to hunt for a place Live with someone she trusts (moving to DC)
Influences Where friends go out/live Work location
19
Within search there are three key value propositions for users
Quantity of listings
Ratings/reviews
Social/trust
VALUE
PROP
Making search easier by aggregating and filtering
Provide more information about a locality beyond what is listed
Get advice from friends, find roommates/sublets within your network
COMPETITORS
Padmapper.comApartment.comRentjungle.com
Forrent.comRent.comTrulia.com
Mapitat.comCravify.com
Livelovely.cominhabi.com
Cazoodle.com
Streetadvisor.comDonotrent.com
Apartmentratings.comRentwiki.com
Areavibes.comSmalltown.com
Outside.in
20
We believe we can be #1 on each of these dimensions
Quantity of listings
Ratings/reviews
Social/trust
VALUE
PROP
Making search easier by aggregating and filtering
Provide more information about a locality beyond what is listed
Get advice from friends, find roommates/sublets within your network
COMPETITORS
Padmapper.comApartment.comRentjungle.com
Forrent.comRent.comTrulia.com
Mapitat.comCravify.com
Livelovely.cominhabi.com
Cazoodle.com
Streetadvisor.comDonotrent.com
Apartmentratings.comRentwiki.com
Areavibes.comSmalltown.com
Outside.inWe can already aggregate more listings than any current players
Currently no one offers the
trusted connection that
we plan to
Not our focus, but currently all of these services
provide low-quality
information; may be room for
future differentiation
here
21
We have 1000s of listings not yet mapped and are already comparable in quantity to the current #1 player
Padmapper
Mi Casa
22
Testing our message of offering a trusted community seemed to resonate
• 6 facebook connects and 3 “sign up” registrations
• 25% conversion• 1.31 pages/visit• Avg. time: 01:37
Statistics:
24
If our simplified unit economics prove correct (which still needs testing), then it’s a very viable business
• Customer acquisition: $1.41 per user, assumptions:• Historical cost (28 acquisitions for $79.23)• Every user invites 1 other person to the site (for recs, etc.)
• User referral lead generation: $75, assumptions:• 10% of users post referral• Of those, 20% convert into signed leases
• Site generated lead generation: $150, assumptions:• 5% of users (incremental to above) convert into signed
lease
Revenue
Cost
$1.50
Avg. customer value
$7.50
-$1.41
$7.59
• Propery Managers• Landlords
• Tenants
• Service Providers
• Realtors
• Streamlining process• JIT access to service p.• Better listing• Improve rent collection
• Streamline process• Improve searching
• Access to customers
• Makes property management easier for their customers • Web
• Realtors• Industry
• Web• Landlord
• Web• Direct
• Web• Direct
• Mostly Web / Automated service
• Direct for large players (ie. national realtors)
• Application Fees• Processing rental payments• Lead generation
• Computing infrastructure• Labor (Engineering & limited sales)• Marketing
• Web platform• Talent
• National realtors• Industry organizations• Payment processors
• Connecting customer segments
• Making process efficient• Adding transparency to
the system
Version 1
Landlords
Realtors
Tenants
Service providers
Key
• Propery Managers• Landlords
• Tenants
• Service Providers
• Realtors
• Streamlining process• JIT access to service p.• Better listing• Improve rent collection
• Streamline process• Improve searching
• Access to customers
• Makes property management easier for their customers • Web
• Realtors• Industry
• Web• Landlord
• Web• Direct
• Web• Direct
• Mostly Web / Automated service
• Direct for large players (ie. national realtors)
• Application Fees• Processing rental payments• Lead generation
• Computing infrastructure• Labor (Engineering & limited sales)• Marketing
• Web platform• Talent
• National realtors• Industry organizations• Payment processors
• Connecting customer segments
• Making process efficient• Adding transparency to
the system
Version 2
Landlords
Realtors
Tenants
Service providers
Key
• Landlords
• Tenants
• Service Providers
• Streamlining process• JIT access to service p.• Better listing• Improve rent collection
• Streamline process• Improve searching
• Access to customers• Web• Realtors• Industry
• Web• Landlord
• Web• Direct
• Mostly Web / Automated service
• Direct for large players
• Application Fees• Processing rental payments• Lead generation
• Computing infrastructure• Labor (Engineering & limited sales)• Marketing & sales
• Web platform• Talent
• Industry organizations• Payment processors
• Connecting customer segments
• Making process efficient• Adding transparency to
the system
Version 3
Landlords
Realtors
Tenants
Service providers
Key
• Tenants • Better search of all
listings• Connected to other
services (i.e., insurance, rent payment
• Access to robust ratings
• SEO• Facebook/Twitter• Flyers?
• All Web based
• Lead generation• Processing rental payments• Eventually listing fees
• Computing infrastructure• Labor (Engineering & limited sales)• Marketing & sales
• Web platform• Talent
• Payment processors and other verticals for lead generation
• Eventually REITs
• Building listings/search• Creating some virality
amongst ratings
Version 4
Landlords
Realtors
Tenants
Service providers
Key
• Tenants • Better search of all
listings• Largest breadth of
listings• Connected to other
services (i.e., insurance, rent payment
• Access to robust ratings
• SEO• Facebook/Twitter• Flyers?
• All Web based
• Lead generation• Processing rental payments• Eventually listing fees
• Computing infrastructure• Labor (Engineering & limited sales)• Marketing & sales
• Web platform• Talent
• Payment processors and other verticals for lead generation
• Eventually REITs
• Building listings/search• Creating some virality
amongst ratings
Version 5
Landlords
Realtors
Tenants
Service providers
Key
• Tenants • Social connection
during search• Better search of all
listings• Largest breadth of
listings• Connected to other
services (i.e., insurance, rent payment
• Access to robust ratings
• SEO• Facebook/Twitter• Flyers?
• All Web based
• Lead generation• Processing rental payments• Eventually listing fees
• Computing infrastructure• Labor (Engineering & limited sales)• Marketing & sales
• Web platform• Talent
• Payment processors and other verticals for lead generation
• Eventually REITs
• Building listings/search• Creating some virality
amongst ratings
Version 6
Landlords
Realtors
Tenants
Service providers
Key
• Tenants
• Social connection during search
• Better search of all listings
• Largest breadth of listings
• Connected to other services (i.e., insurance, rent payment
• Access to robust ratings
• SEO• Facebook/Twitter• Flyers?
• All Web based
• Lead generation• Processing rental payments• Eventually listing fees
• Computing infrastructure• Labor (Engineering & limited sales)• Marketing & sales
• Web platform• Talent
• Payment processors and other verticals for lead generation
• Building listings/search• Creating some virality
amongst ratings
Version 7
• REITs• Landlords
• Simplified lead generation
Landlords
Realtors
Tenants
Service providers
Key
• Tenants
• Social connection during search
• Better search of all listings
• Largest breadth of listings
• Connected to other services (i.e., insurance, rent payment
• Access to robust ratings
• SEO• Facebook/Twitter• Flyers?
• All Web based
• Lead generation• Processing rental payments• Eventually listing fees
• Computing infrastructure• Labor (Engineering & limited sales)• Marketing & sales
• Web platform• Talent
• Payment processors and other verticals for lead generation
• Building listings/search• Creating some virality
amongst ratings
Version 8
• REITs• Landlords
• Simplified lead generation
Landlords
Realtors
Tenants
Service providers
Key