A "clear" system for renters

bunny136

New member
"Clear" at airports let you go through security quickly and painlessly. It lets airports segment fliers into two groups: verified and unverified fliers. Verified fliers move through security painlessly, while unverified fliers go through strict screening. Paying for "Clear" signals to TSA that you're a "safe" person. It reduces the screening burden.

The same principles can be applied to "tenant screening". We can lower the friction of finding a place to live by giving renters a way to get "cleared". This should lower or eliminate the cost of applying to properties.

Product: Give renters a badge demonstrating having "cleared" screening that's shareable online. Permit property managers to view info (credit score, pay stubs, etc.) w/ permission from renter.

Market: The set of all long term renters in the US. Roughly 120 million people, 40 million of which are primaries. Realistically, this product would be most useful in competitive markets like San Francisco, New York, Austin, Seattle, etc. Cumulatively, around 1 million renters.

Analysis: Similar offerings were made by Cozy in 2012. They were acquired by Costar for $68 million. Property Management Systems (PMS) provide tenant screening out of the box and many put that cost on the renter. PMSs often offer this kind of service w/ an electronic application. With many listings going digital, rental listing services like Zumper are offering services through their platform. Passive income property management services such as OneRent also provide their own suite of services. None of these services let the prospective renter use this information across multiple applications, which would reduce the cost of applying in some cases. People are moving in troves right now. This appears to be the right to execute on this (if not months ago).

Stage: Ideation w/ possible inclusion in an existing business.

Customer Acquisition Strategy: There are dozens of Facebook groups devoted to finding a roommate and a place to live. These "reverse listings" contains posts where people shill themselves to prospective hosts. A "badge" seems like a great way to convey you're above the fold. It's also free brand and marketing when they post about themselves.

Why Me: I run https://padfever.com, which serves thousands of users. It complements our existing offering.

Let me know what you guys think! Thanks!
 
@bunny136 Is the idea that the renters on "Clear" are creditworthy and vetted by "Clear"? Or is the idea that their information is consolidated and easily viewable through "clear"

What is the business model? Landlords pay for access to this?
 
@613jono At minimum screening would cover credit worthiness.

I'm still figuring out whether doing more screening or having multiple badges qualifying different screening methods would be useful.

Unfortunately, tenants are usually the ones that end up paying for this kind of stuff. So I figured tenants would pay for screening and give landlords / roommates access to specific information they request.

The business model would follow that. I was thinking $10 / check.
 

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