RentLink

Business Plan Competition

UC Berkeley
Gabriel Cheng
Andy Tang
Weixi Yen
1

FBLA~PBL
FBLA~PBL
FBLA State Executive
Executive Summary
Summary
Leadership
Conference Problem
Spring 2006

Manager’s Pain Tenant’s Pain

Project Description

Market Overview

Market Segmentation Solution

Recommendation

Implementation What if real estate property management is ran

like an E-Business?

An online web portal that links managers and

tenants can make life easier for residents and
also provide a great convenience to landlords.

FBLA~PBL
FBLA~PBL
FBLA State Executive Summary
Company Description
Leadership
Conference Mission Statement
Spring 2006
The objective of RentLink is to develop an industry changing
property management software to the multi-family housing
industry.
Project Description

Market Overview RenLink will be a web-based software that strives to reduce

stress for property manager, increase residents satisfaction,
Market Segmentation and ultimately enhance profits.
Recommendation
Immediate Goals
Implementation
• Getting investment funding from Venture Capitalist
and Angel Investors.
• Build contacts with real estate management
companies.
• Develop the product

FBLA~PBL
FBLA ~PBL
FBLA State Executive Summary
Product Features
Leadership
Conference Redefining total management solution
Spring 2006

Parking Management One-Click Rent Pay

Project Description

Industry Analysis
Legal Documents Utilities Pay
Market

Operations Visit Scheduling Community

Implementation

Financial Rent Reminders

Online Intercom

Ease of Communication Request Services

Classifieds Templates Virtual Tour

Centralized Tenant Information
4

FBLA~PBL
FBLA~PBL
FBLA State Executive Summary
SWOT Analysis
Leadership
Conference Internal and External
Spring 2006

Project Description Strengths Opportunities

Industry Analysis -Core competencies

-Innovative Product
* Efficient
Market -Geographic Expansion
* Improvement on real
-Trend Starter
estate management
Operations -Massive Market
- Cost Benefit
Implementation

Financials Weaknesses Threats

* Founders with no startup -Entrants to the market

experience -Market adoption
•Established competitors -Subject to real estate
•Pricing market impact

FBLA~PBL
FBLA~PBL
FBLA State Executive Summary
Porter’s Five Forces Model
Leadership
Conference
5 Forces Model
Spring 2006
Rivals: Possible
Exit Barrier, Entrants:
Switching cost,
Project Description Product differences Entrants Intuit

Industry Analysis

Market Substitues:
Innercircuit,
Buyers Rivals Property
Operations Buyers: Suppliers
Solutions,
Property
TenantPro
Implementation Manager

Financials Suppliers
Public Sector
Substitutes Paypal

FBLA~PBL
FBLA~PBL
FBLA State Executive Summary
Target Market
Leadership
Conference
Spring 2006 Geographic Market
• Start local in San Francisco Bay Area ~214,385
Project Description • University Housing Market ~ 5,758
• Opportunities to expand to entire California and other
Industry Analysis major cities (New York, Miami)
Market
•Sizing
Market Adoption Scenario Analysis
Operations

Implementation # rental units SF 214,385 214,385 214,385 214,385

Average # dwellings 16.32 16.32 16.32 16.32
Financials
# Dwellings 13136 13136 13136 13136
Effective Charge per $1.00 $2.00 $3.00 $1.00
unit
Market Penetration 5% 5% 5% 10%
Monthly Revenue $10,719 $21,439 $32,158 $21,439
Yearly Revenue $128,631 $257,262 $385,893 $257,262

FBLA~PBL
FBLA~PBL
FBLA State Executive Summary
Competitors
Leadership
Conference
Spring 2006

Project Description

Industry Analysis

Market
•Competitors

Operations

Implementation

Financials

FBLA~PBL
FBLA~PBL
FBLA State Executive
MarketingSummary
Plan
Leadership
Conference
Spring 2006

Project Description

Industry Analysis STEP 1

STEP 2
Market STEP 3
•Marketing Plan

Operations
• Customer Analysis
Implementation • Increase product
• Beta version testing
awareness
Financials • 3 month free trial • Strategic Alliance
• Create “lock-in” •craigslist
• Promotion

FBLA~PBL
FBLA~PBL
FBLA State Executive
OperationsSummary
Leadership
Conference
Spring 2006
RentLink

Project Description

Industry Analysis

Market Product Development Website Maintenance Account Management

Operations •Getting constant •Maintain and keep •Account manager

feedback to improve up to date website to provide customer
Implementation
our product support, technical
Financials assistance, and cu-
•Tailor product to
stomer service
clients

Sales Team

10

FBLA~PBL
FBLA~PBL
FBLA State Executive Summary
Implementation
Leadership
Conference Timeline
Spring 2006

Project Description

Industry Analysis

Market

Operation

Implementation

Financials

11

FBLA~PBL
FBLA~PBL
 Financials Executive Summary
Projected Revenues

2006 2007 2008

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Total Rental Units 33,843,000 34,181,430 34,523,244 34,868,477 35,217,162 35,569,333 35,925,026 36,284,277 36,647,119 37,013,591 37,383,727 37,757,564

California
Total Units 3,384,300 3,418,143 3,452,324 3,486,848 3,521,716 3,556,933 3,592,503 3,628,428 3,664,712 3,701,359 3,738,373 3,775,756
Market Penetration 0.00% 0.30% 0.40% 0.70% 1.00% 2.00% 3.00% 4.00% 5.50% 9.00% 8.00% 9.00%
RentCube Units 0 10,254 13,809 24,408 35,217 71,139 107,775 145,137 201,559 333,122 299,070 339,818

New York
Total Units 2,538,225 2,563,607 2,589,243 2,615,136 2,641,287 2,667,700 2,694,377 2,721,321 2,748,534 2,776,019 2,803,779 2,831,817
Market Penetration 0.00% 0.00% 0.00% 0.00% 0.00% 1.00% 1.00% 2.00% 3.00% 3.25% 3.50% 5.00%
RentCube Units 0 0 0 0 0 26,677 26,944 54,426 82,456 90,221 98,132 141,591

Florida
Total Units 2,030,580 2,050,886 2,071,395 2,092,109 2,113,030 2,134,160 2,155,502 2,177,057 2,198,827 2,220,815 2,243,024 2,265,454
Market Penetration 0.00% 0.00% 0.00% 0.00% 0.00% 1.00% 1.00% 2.00% 2.00% 2.50% 3.00% 3.50%
RentCube Units 0 0 0 0 0 21,342 21,555 43,541 43,977 55,520 67,291 79,291

Remainder
Total Units 25,889,895 26,148,794 26,410,282 26,674,385 26,941,129 27,210,540 27,482,645 27,757,472 28,035,046 28,315,397 28,598,551 28,884,536
Market Penetration 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.50% 1.00% 2.00% 4.00%
RentCube Units 0 0 0 0 0 0 0 0 140,175 283,154 571,971 1,155,381

Total Units 0 10,254 13,809 24,408 35,217 119,157 156,274 243,105 468,167 762,017 1,036,464 1,716,081
Cost Per Unit $10 $30 $45 $50 $50 $50 $60 $60 $75 $75 $80 $80

($ in 000s) Revenue from Service $0.00 $307.63 $621.42 $1,220.40 $1,760.86 $5,957.86 $9,376.43 $14,586.28 $35,112.52 $57,151.30 $82,917.11 $137,286.50

Total Hits to Website 0 215,343 289,995 512,567 739,560 2,502,303 3,281,751 5,105,198 9,831,506 16,002,363 21,765,740 36,037,707
Total Ads Viewed Per Visits 0 1,292,058 1,739,972 3,075,400 4,437,362 15,013,816 19,690,507 30,631,186 58,989,036 96,014,180 130,594,441 216,226,241
Ads Clicked On 0 103,365 139,198 246,032 354,989 1,201,105 1,575,241 2,450,495 4,719,123 7,681,134 10,447,555 17,298,099

($ in 000s) Revenue from Viewed Ads $0.00 $64.60 $87.00 $153.77 $221.87 $750.69 $984.53 $1,531.56 $2,949.45 $4,800.71 $6,529.72 $10,811.31
($ in 000s) Revenue from Clicked Ads $0.00 $41.35 $55.68 $98.41 $142.00 $480.44 $630.10 $980.20 $1,887.65 $3,072.45 $4,179.02 $6,919.24

($ in 000s) Total Revenue from Ads $0.00 $105.95 $142.68 $252.18 $363.86 $1,231.13 $1,614.62 $2,511.76 $4,837.10 $7,873.16 $10,708.74 $17,730.55

($ in 000s) Total Revenue $0.00 $413.58 $764.10 $1,472.58 $2,124.72 $7,189.00 $10,991.05 $17,098.04 $39,949.62 $65,024.46 $93,625.85 $155,017.05

12

FBLA~PBL
FBLA~PBL
 Financials Executive Summary
Projected Income Statement

1 2 3 4 5 6 7 8 9 10 11 12
2006 2007 2008
($ in 000s) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Total Revenue $ - $ 414 $ 764 $ 1,473 $ 2,125 $ 7,189 $ 10,991 $ 17,098 $ 39,950 $ 65,024 $ 93,626 $ 155,017
YoY Growth 0.0% 1638.2% 1338.4% 1061.1% 1780.2% 804.5% 751.8% 806.6%
Operations Related Salaries & Benefits $203 $203 $203 $203 $225 $297 $325 $348 $515 $521 $543 $543
Servers & Software (For Hosting RentCube) $10 $30 $50 $50 $50 $50 $50 $100 $100 $100 $150 $150
Total Cost of Revenue $ 213 $ 233 $ 253 $ 253 $ 275 $ 347 $ 375 $ 448 $ 615 $ 621 $ 693 $ 693
Gross Profit $ (213) $ 181 $ 511 $ 1,220 $ 1,849 $ 6,842 $ 10,616 $ 16,651 $ 39,335 $ 64,404 $ 92,933 $ 154,324
YoY Growth -968.3% 3688.9% 1977.1% 1265.3% 2026.8% 841.3% 775.4% 826.8%
Margin NM 43.7% 66.9% 82.8% 87.0% 95.2% 96.6% 97.4% 98.5% 99.0% 99.3% 99.6%
Sales & Marketing Salaries $130 $130 $130 $130 $268 $268 $311 $371 $431 $473 $493 $493
Sales & Marketing Expenses $ - $ 62 $ 115 $ 221 $ 319 $ 1,078 $ 1,649 $ 2,565 $ 5,992 $ 9,754 $ 14,044 $ 23,253
General and Administrative Salaries $31 $31 $31 $31 $128 $128 $128 $169 $254 $254 $254 $290
General and Administrative Expenses* $8 $7 $18 $18 $22 $72 $100 $68 $108 $168 $68 $79
IT (computers, servers, software) $10 $10 $10 $50 $30 $30 $30 $500 $50 $50 $50 $100
R&D $0 $0 $0 $0 $100 $100 $100 $100 $500 $500 $500 $500
Operating Expenses $179 $240 $303 $449 $866 $1,676 $2,317 $3,772 $7,336 $11,199 $15,409 $24,714
Operating Income $ (392) $ (60) $ 208 $ 770 $ 983 $ 5,166 $ 8,298 $ 12,878 $ 31,999 $ 53,205 $ 77,524 $ 129,610
YoY Growth -351.1% -8759.6% 3885.2% 1571.7% 3154.8% 929.9% 834.2% 906.4%
Margin NM NM 27.3% 52.3% 46.3% 71.9% 75.5% 75.3% 80.1% 81.8% 82.8% 83.6%
Income Tax Expense (Benefit) $ (137) $ (21) $ 73 $ 270 $ 344 $ 1,808 $ 2,904 $ 4,507 $ 11,200 $ 18,622 $ 27,133 $ 45,364
Net Income $ (255) $ (39) $ 135 $ 501 $ 639 $ 3,358 $ 5,394 $ 8,371 $ 20,800 $ 34,583 $ 50,390 $ 84,247
YoY Growth -351.1% -8759.6% 3885.2% 1571.7% 3154.8% 929.9% 834.2% 906.4%
Margin NM NM 17.7% 34.0% 30.1% 46.7% 49.1% 49.0% 52.1% 53.2% 53.8% 54.3%

13

FBLA~PBL
FBLA~PBL