How Roommate-Matching Startups Help Renters in NYC
Obtaining an apartment in New York City has been covered in many movies and TV shows as a triumph to be celebrated, and rightly so. A prime living space can change the entire experience of the city. So once people have a home, they’re reluctant to let it go, even when a friendly roommate leaves.
Equally popular are the roommate horror stories. Welcoming a stranger into their home creates a difficult situation for people who need to find professional, appropriate matches to help cover the rent or sublet. It was only a matter of time before entrepreneurs looked at the rental market and decided there could be an app for that.
First, there are roommate matching services, which are more like traditional matchmaking. Some of these businesses are also taking a page from dating services. Speedroommating is based on speed dating, with the same set-up where strangers can join others in a social environment, mingle briefly, and speak more in depth if they believe it’s a match. Events are held in Brooklyn and Manhattan. Attendees wear a badge showing whether they’re seeking a room or a roomie, as well as their budget, preferred area, and other details.
Several websites not only match roommates but also review the profiles for warning signs in advance. Roomiematch even checks the person’s IP address to see where they’re really located, then filters through responses to a series of questions to look for signs of strange behavior. These are similar to the traditional rental matches that were made by housing services before the internet. The matchmaker is a cherished role, but it’s not quite the modern, quick fix many people seek, so there’s a lot of opportunities for new businesses to let people connect directly.
For renters seeking their own apartment, New York is a particularly complicated place to look because the city uses real estate brokers, who can help navigate paperwork and lead renters through the massive number of apartments available. However, according to Investopedia, the average New York broker takes 15% of the annual rent as a fee. Brokers can save people immense amounts of time, sweat, and tears. But not everyone can afford a broker or knows how to find a reliable one and avoid a scam. There’s a lot of money on the line, and many startups have stepped up to try to make renting in NYC easier.
Peer-to-peer connections and rental startups are just as valuable for people seeking an apartment. The app Inside Digs connects apartment hunters to the people leaving the apartment directly, so that they can ask questions about neighbors, noise, or other difficult to discern details. It also connects apartment seekers to brokers and even to landlords who have signed up for the service. This is also useful for people looking to sublet their apartment for the short-term.
Another service called Roomi combines questionnaires about house rules and habits with features like in-app chats, so people don’t have to share personal contact information before they’re ready. The site Leasebreak specializes in sublets, shares, and short-term rentals, which could be helpful, for example, for people who need to leave for a brief work contract out of town.
Like any startups, many of these companies seem to disappear as quickly as they arrive. Some of the problem is their own success, because when someone finds a rental, they leave the app. But there’s always going to be people moving in and out of New York, and they’re going to need help renting. Plus, it’s only getting more expensive in the city. When Forbes calculated the most expensive zip codes in 2016, New York dominated the top fifteen, with New York zip codes ranked at numbers 2, 5, 6, 7, 9, 12, 13, and 14.
Landlords are as eager to fill empty apartments as renters are to live in them, but there’s more than just personalities to match up. For people seeking an apartment, the cost and time spent searching can be daunting and prohibitively expensive. In New York, startups will continue to have room to grow and help renters in new ways.