USA, New York
Market: Real estate
Project stage: Operating business
Also this project:
-
Find investments
- Participate in the Unicorn Battle
Idea or High Level Concept
All-in-one solution for fully automating short-term rental management, including property and channel management and a subscription-based service provider marketplace
Territory of the product or service implementation
North America
Traction and Current Status
Propzie launched in 2017 without any technology and that year alone we grew 600%! In 2018 we were able to grow another 180%, reaching a cash-flow of 500K and now we ready to scale.
Problem or Opportunity
Guest turnover: To run a short-term rental homes need to be guest-ready.
Time: Management is intensive and a full-time job
Money: Existing technologies are expensive and cost-prohibitive
Solution
Short-term Rental Automation
* Channel Management
Manage several listing websites from one place
* Subscription Marketplace
Subscribe and automate operational tasks such as
cleaning, laundry and toiletries refills
* Property management
Prepare reports and oversee performance
Customer Segments and Market
The property management business for the short-term rental market is a 13.5B industry.
In the United States alone, 260 million guests booked stays in 2017 and this number is expected to grow to 600 million by 2020.
Revenue Streams and Cost Structure
1- We take 8% to 15% from each reservation payout - (Commission based per number of units)
2- We take 9 % from each marketplace transaction
Business Model, Chanells, Metrics
Subscription based model
Competitors and Existing Alternatives
Airsorted: New in the short-term rental market with fast growth
Metrobutler: Short-term rental property management in NY
Hosttonight: New start-up competitor
Advantages or differentiators
All-in-One Solution for Full Rental Automation. The short-rental business in “auto-pilot”.
Risks
Operating Costs – Short-term rentals have several different costs that traditional long-term rentals don’t have. These costs include everything from supplying the toilet paper to replacing furniture and appliances. When deciding whether or not to join the short-term rental industry, you should carefully consider the operating costs.
Competition – With the recent explosion in new short-term property rentals popping up all over the country, competition is picking up. However, the industry is still relatively new, meaning that competition isn’t out of control and there’s still room for more.
Rental Restrictions – Another major risk to short-term rental owners are rental restrictions. These restrictions are proving to be a challenge to the fast-growing short-term rental market.
Incubation/Acceleration programs accomplishment
Starta Venture - Accelerator Program
Won the competition and other awards
NA
Presence of invention or patent
No
Money will be spent on
We will use the capital to improve product, setup customer services and get ready to scale in other majors cities.
We deliver a fantastic product by hiring exceptional developers who are not the cheap. The more features that we are able to integrate into our product, the larger the addressable market size. Our primary go to market strategy is via online marketing, specifically SEM, Social media marketing and PPC. We are build in referrals to get earned customers from realtors and brokerages but we are going to scale through that channel.
Our customer and revenue growth is therefore proportional to the amount that we allocate to marketing spend. There is no point in spending a lot on marketing if we don’t have a great product and there’s no point in having a great product if no one finds it!
