Doorstead is a startup that helps property owners rent out their properties. It currently works only with individual property owners and not with businesses that manage properties. The main attraction for property owners to use this service is the promise of guaranteed monthly payments of the full rental cost, even if the property is not rented out. The startup has data on 11 million rental properties and uses a patented AI algorithm that accurately predicts the likelihood of a property being rented out quickly at a certain price. Prices for rental can change based on changes in the rental market and can be adjusted either manually by the owner or automatically within a pre-agreed range with the service. The cooperation between the property owner and the service starts with a property inspection and then the service takes care of the advertising, tenant screening and rent collection.
The challenges faced by property owners in trying to rent out their properties through intermediaries, who often promise high rental prices that do not match market conditions. This can lead to owners losing money and potentially even losing the property due to inability to make mortgage payments. The author argues that the goal of a business founder should not be to earn money from a specific idea or technology, but rather to find the most profitable market or problem to solve.
The development of artificial intelligence (AI) technology is making it possible to more accurately predict fluctuations in prices and earnings based on a known set of parameters. This means that more businesses will adopt models of guaranteed payments, which attract customers by promising stability. AI algorithms can be used to profit from these models, as seen in the example of a current startup. The author suggests that this is a recent change in the business landscape and poses the question of which other industries could adopt a model of guaranteed payments to attract customers, and what kind of data sets would be necessary for AI to be effective in these areas.