As a follow up to yesterday’s classic Y Combinator advice on how not to die, today we discuss the primary mantra from Paul Graham and the other YC partners: Make Something People Want. How do we still make things people want in the real estate sphere?
Every YC participant gets a Make Something People Want t-shirt at the start of the batch. In the old days, they gave a black “I Made Something People Wanted” shirt after an acquisition.
How exactly do rental agents deliver a service that people want? First, it’s important to figure out your actual clients, and what must be done to close a rental deal. We dedicate part one of this series to client identification.
Client #1: Landlords with good apartments
The rental ecosystem does not exist without landlords who have a vacancy to fill, asking for a reasonable price
Client #2: Qualified renters intending to move
A qualified renter is anyone who intends to move soon and has a realistic budget for their living requirements.
Not Clients (at least not yet)
- Renters with unrealistic budgets or expectations
- Short-term renters who are better served by short-term rentals
- Landlords who are renting illegally (co-op or sublet restrictions)
- Landlords with unrealistic asking prices
- Renters with a move date too far away
- Renters 100% unwilling to trust the broker system
The non-clients are a waste of time, and smart agents do not dedicate their resources to them. Note that some non-clients CAN be converted – the usual case is renters who begin with unrealistic expectations about the NYC housing market, spend weeks in a futile search, and finally capitulate. The same goes for renters who assume brokers are part of the problem.
Most renters start off with some level of distrust, given all they have heard or even from their own experiences. Part of the agents’ job is to add value early in the process and win the renter’s trust. Demonstrate that you have great expertise, and that you are not there to waste anyone’s time. Show good apartments, ones that you know are great deals (but maybe not the best deal first, more on that later). Smart renters will realize they are better off using you than your competitors. And unfortunately, others absolutely can not be convinced and never wanted to be convinced. Don’t let them waste your time.
Editor’s Note: We updated this article to enhance readability.
