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I built a Yelp for housing. It didn't work out. Here's what I learned.

The original story is posted on my blog here: https://www.simplecto.com/one-time-i-built-a-yelp-for-housing-it-failed-here-is-what-i-learned/

I once built a Yelp for apartments/rentals. It did not work out. This is that story.

The Idea

My idea was to bring more "inside information"/ qualitative data out that would help landlords be better, and renters make better decisions.

It did not work out.

I learned a lot about the mentality of big landlords, small landlords, and renters in general.

You can't move a boulder with a toothpick

Big landlords have processes, insurance, and legal teams that optimize their business but not necessarily your living situation. They only respond when tenant organizations or larger threats are at their door. Even then things are settled quitely.

Tenants who sue are often offered settlements, but only on the condition of their silence and confidentiality. I know this first hand because of a settlement I was part of once. We were offered cash to leave move or 6 months free rent.

Fear of retribution

People are unwilling to complain about the places they live for fear of retribution from the landlord.

Angry people are more motivated than happy people.

Just like Yelp, people only seem motivated to create an account and complain.

Some users signed up, and all but a few had a bone to pick. Conclusion–only angry people are motivated enough to sign up to your site, pick the address, and write a complaint.

Happy people don't want to rock the boat. But they don't seem to go out of their way to write a positive review, either.

Smaller landlords suspicious

Many small landlords were suspicious and some were somewhat hostile to the idea of the whole project. In the end they were most accurate in identifying that only angry people will complain.

It is near-impossible to verify claims made on the site. Anyone can sign up and slander the property.

Transfer of ownership

Does the new property owner inherit the complaints on my site as well?
Privacy nightmare.

Landlords and individuals all had concerns about privacy. The resolution was down to the house, and that made everyone uncomfortable.

  • Tenants did not want to complain publicly about where they slept.
  • Landlords did not want tenants airing dirty laundry (so to speak). Even when the problems were fixed.
  • The fear of doxxing was real, even in 2010.

Landlords Dont Give a F*uck

In every city it seems there is a housing crunch. It seems that no matter how bad a property looks, how poorly it is managed, or how awful the landlord is there will be some sucker behind you ready to rent.

It simply did not matter. Demand for housing is so big that it does not matter. This was what convinced me to kill my darling.

The Big Takeaway

For me the biggest takeaway was that you go out and talk to lots of people before coding. I burned a lot of time building AND then more time talking. It was not until I got to the talking that I got kicked in the head with reality.

on February 20, 2021
  1. 3

    That’s a really good story. What are you working on now and have you put your learnings to good use?

    1. 1

      Thank you!

      The best lesson was to, as Steve Blank says, "GET OUT OF THE OFFICE!" -- If I were to do it over again I would only have a presentation with a few slides.

      I would have done a lot more story-telling and discovery with people before coding one line. That is a hard lesson to take in. It is a mistake I continue to make simply because I really enjoy building.

      There is a lot of hyper-local information asymmetry with a product like this. The data is not easily crawled, measured, or found. It is mostly qualitative. It is hard to verify. In the end, a database was not the solution.

      Rather, I think a better idea would have been to do all of the conversations with realtors, property managers, landlords, and renters. Compile those interviews into an e-book or curated list of resources. Then offer it up as, "Everything I've learned about moving 14 times in the last 15 years: Finding the right city, neighborhood, and home."

      hmmm...maybe that is not a bad idea...

  2. 2

    This hits home to us. We are in the process of thinking of a product like this and stumbling across this article was such a great read. We are trying to talk to landlords and renters now, but its getting so difficult to find people who will open up

  3. 1

    I've been thinking about that idea, maybe now and again on it, I did understand these would be issues, but not how to address them, the only semi relevant thing is in markets where they dominate like Aus, focus on the agencies as a collective of properties and how process is addressed and such
    At best this could somehow work with larger agencies putting some rating system like hotel starts to represent property and landlord upkeep and quality in some way, but it's still 0.1% likely and without resources...

    Things is the most power is with the big listing sites and they are behemoths and very tide to the listing parties...

    It's a HARD problem

    Similar slightly to 2nd hand cars, due probably it's own story