Letter to Investors
Dear potential investor,
What a pain to find a perfect match in the apartment hunting game. Renters have to go through several platforms to gather information to find a dream place while landlords have to go through many processes to rent out their properties. Three out of four millennials search an apartment via their mobile device. They also tend to contact more landlords on average than renters of other generations. Older millennials contact 5.3 landlords on average, compared to an overall average of 4.71. RentZen is an all-in-one platform which provides both parties smooth and seamless user experience 24/7. It enables them to save time and help improve their lives by focusing on what’s more important to them.
Business Model and Strategy
Data1 shows about 60% are millennials and 90% of them use technology to search for a new home. They are tech -savvy with a busy life who appreciate finding a dream place with a click of buttons including a virtual tour and videos. They prioritize flexibility and convenience. By targeting this segment, we will build a long-term loyalty and revenue stream for years to come. By integrating a core strategy with digital, RentZen will offer a competitive advantage over competitors. We will expand the target segment and locations as the business grows. There are more unfurnished apartments constructed after 20112. We will also look into an upselling opportunity to partner with furniture stores who offer virtual furnishing (i.e. IKEA).
● General: Landlord posting fee, transaction fee from payment processing and markup on credit report and background check
● Advertising Revenue: Banner advertisements , Renters insurance, Movers, Home furnishings
Measurement of outcome
Since RentZen is a new product, the first desired outcome will be to raise an awareness and recognition of the brand. Campaign launch is initiated by a kick-off party in May which aims to drive awareness and engagement before a high rental season in summer. Various digital tools will be used including website, mobile app and marketing channels such as email and social media. We will measure the outcome using various metrics-conversions, bounce rate, page views and social engagement. We will also integrate qualitative research including comments on posts and leverage focus group to map out customer journey to point out pain points. We will continuously monitor the metrics and make an improvement where necessary.
Thank you for your consideration.
Amy, Anthony, Crystal, Kelly, Kristin, Meg
1 An Anatomy of a Millennial renter (https://www.mysmartmove.com/SmartMove/blog/anatomy-millennial-renter-infographic.page)
2 “ Unfurnished rental units : 1976 to 2016 completions”, U.S. Census Bureau, Survey of Market Absorption of new multifamily units