It’s no secret that the rental market is a mess, but Brisbane startup Rent Rabbit is fixing things. And they can get down to the ground floor and clean it up with their EOI campaign.
Founded by brothers James and Ben Pretty, the proptech start-up has been dubbed “the TripAdvisor of rental aggregators”, given its impact on Australia’s troubled rental market.
Rent Rabbit allows renters to leave anonymous reviews of their rental experience – the good, the bad and the inaccurate. Other tenants can pay to get these reviews before committing to rent.
Depending on how well the landlord treats them, it’s like moving to a place where your faithful spouse used to live… or not.
Power to rent
This ability to share reviews on rental properties gives renters some power. Before Rent Rabbit launched last year, tenants only had a checklist and a five-minute checklist to help them decide whether or not to sign a lease. Considering that the average rental contract is worth about $26,000, it’s easy to see that a platform that brings information and, crucially, transparency to the rental process has quickly gained traction.
More than 20,000 renters are using the service, which has listed more than two million properties to date. Honest reviews from users are key to Rent Rabbit’s value, and the company uses anti-fraud and verification software to ensure only verified reviews are published.
Power to the investor
With such a clearly attractive proposition, this crowdsourced platform is an exciting investment opportunity. It’s no surprise that Rent Rabbit’s current EOI campaign on the Birchal platform received almost 200 expressions of interest within 24 hours and counting.
Not only does Rent a Rabbit solve an obvious market problem, there’s also a solid business plan behind the idea. Innovation Platform makes money in four key ways:
- Only property levels are free. There is a fee to view the full review, part of which is shared with the original reviewer.
- A monthly subscription model to unlock premium features like TenantVault (where users store their rental records) and Suburban Insights.
- Promotion of income from the website.
- Affiliate and referral income from real estate agents and owners.
As a result, Rent Rabbit is growing like a rabbit. They recently launched subscription products for renters and are aiming to expand their ‘Rental Deals’ partnership offerings.
The popularity of Rabbit Rentals is supported by their growing media presence, reaching 1.4 million social media views in 30 days.
The total addressable market (TAM) size is represented by 2.97 million Australian rental households and eight million Australian renters, and Rent Rabbit estimates that their new market will reach $400 million by 2026.
Register your interest
Rent Rabbit is now seeking investor expressions of interest. If you want to own a piece of what the media is calling a “game changer,” hope so. You can register your interest on Birchal’s EOI page and watch their webinar this Thursday, August 18th at 12:30pm EST (which will be available to view on acquisition).
Always consider and document a comprehensive CSF risk warning before investing.
This article is brought to you by Startup Daily in partnership with Rent Rabbit.
Feature Image: Provided.