This app helps renters cash in on resident referral bonuses
Rentgrata connects people searching for apartments with the current residents of apartment communities. The prospect can communicate with their peers and receive personalized feedback from someone who actually lives in the building. If the prospect signs a lease, the prospect and the resident split the referral reward paid out by the property manager, which is typically between $500 and $1,500. By facilitating this prospect-resident communication, we provide property managers with warmer leads, and the amount they spend to pay out a referral reward is far less than what they are paying for an average apartment broker lease commission. The apartment broker is the taxi driver to our Uber.
In addition, we help increase the sense of community at these properties and keep the residents renting there longer. What occurs in these conversations is nothing short of amazing – residents are responding to simple questions with entire paragraphs to help get new renters through the door, and complete strangers are bonding and becoming friends.
From a user experience standpoint, think of us an Apartments.com, except you can chat with current residents and both people make money if you move in. However, by adding a third side to our marketplace, the current resident, we have greater potential for repeat and daily active users than any of the incumbent listing services available.
Since launching our first version in the App Store back in August, we’ve gotten buy-in from some of the largest property managers in Chicago and beyond, and prospective and current residents alike want this product to become widely adopted due to its benefits and differentiators from anything else out there. We currently have about 80 buildings in Chicago on board, with about 8,000 units, including those managed by ZRS, PPM, Marquette, CA Ventures, and Morguard, among others.
Chicago startup Rentgrata wants to solve this problem. Its resident referral platform connects apartment hunters with their would-be neighbors.
“If you think about the two main avenues millennials use to find apartments, they’re either asking their friends for recommendations or turning to sites like Zillow or Craigslist,” said co-founder Ben Margolit. “What we’re basically developing is a combination of the two.”
The user links their Facebook account to the Rentgrata app and fills out a brief profile, selecting a handful of interests like sports, pets and concerts. When an apartment seeker clicks on a building, they see a list of any tenants they’re Facebook friends with. If none of the user’s friends live in the building, the app displays a list of tenants with mutual interests.
Apartment hunters can message current tenants to ask questions about the building and neighborhood. This feature is especially useful for those new to a city who don’t know anything beyond what they’ve read online. If the prospective tenant gets the answers they want and decides to move in, both parties can collect a referral reward, if offered.
The idea for Rentgrata was formed last summer. Co-founder Zach Sloan met a friend on his pool deck who had just moved into the building. Neither person knew the other lived there, which caused Sloan to miss out on a $1,000 referral opportunity.
These missed opportunities are a problem for property managers as well.
“They have these resident referral programs in place for a reason,” Margolit said. “They want residents to bring in their friends because those who do so and earn a reward are more likely to re-lease at a property.”
Buildings don’t have to pay to be on the platform, but Rentgrata does charge a flat fee (based on building size) per lease signed. Margolit said property managers have been helpful in promoting the app, sending email blasts to residents and letting the company put flyers up in elevators and attend building events.
The Rentgrata team has three founders (Margolit, Sloan and Sam McArtor) and recently made its first hire, an iOS developer. It has 31 Chicago properties signed up on its platform with an average size of around 100 units per building (total, not vacant). The goal is to get to 500 in the next four to six months.
Learn more at https://www.rentgrata.com/
Receive apartment leasing, apartment marketing and management ideas, trends and tools when you join our FREE! “Too Great To Wait” E-mail Subscription! This information is NOT available in any other place.