Abstract:
A system is provided for the storage and exchange of contracts and payments for an item. The processor of the system is configured to receive at least one communication and to present it to each of the owners associated with at least two items in a manner such that each of the owners are informed of every other of the items included in at least one communication from a potential purchaser/renter/user. The processor is further configured to receive an acceptance from any of the owners associated with the at least two items from the communication from the user. Upon acceptance the processor is configured to conduct a financial transaction between the user and the owner and communicating the same to the user and the owner.

Description:
RELATED APPLICATION 
       [0001]    This application claims the benefit of priority from provisional patent application No. 61/750,994 filed on Jan. 10, 2013, the entirety of which is incorporated by reference, 
     
    
     FIELD OF INVENTION 
       [0002]    The present arrangement provides for a system and method for exchanging advertisements and bids for rental properties between renters/buyers and property owners. More particularly, the present arrangement provides a system and method to support a binding arrangement for renter/buyers to issue a request and for property owners to bid on such request. 
       DESCRIPTION OF RELATED ART 
       [0003]    Currently, the primary method for property owners seeking to rent one or more properties is to set up an advertisement or offer to rent one or more properties and then disseminate the advertisement through any one of several traditional avenues, including newspapers, brokers, and web-based advertising. Potential renters can then seek such properties and offer either the asking rent or make a lower counter offer as depicted in  FIG. 1 . 
         [0004]    However, with this arrangement there is no clear indication to a property owner how a particular potential renter is interacting with other properties they are seeking making it difficult to negotiate with the potential renter. For example, a property owner may receive a request to rent one of their properties for 10% less than their asking price. However, in existing systems, this same property owner does not know if the same bidder is also making offers to other property owners in the same neighborhood and how much those offers are for, particularly relative to the asking prices of those other owners. This makes it difficult for the property owner who received the 10% lower request to determine the existing market for theirs and other properties in the same geographic vicinity. 
       OBJECTS AND SUMMARY 
       [0005]    The present arrangement is a unique and innovative “reverse-auction” arrangement, implemented for example through a website, where buyers can list their properties for rent as in the prior art systems. However, unlike the prior art, renters can select multiple properties, such as vacation or full time rentals, and issue a bid/price they want to pay (which may or may not be lower than the asking price) and then initiate a 24-hour binding reverse auction whereby the first of the several property owners that accepts the renter&#39;s offer ends the reverse auction and simultaneously accepts the contract as a binding rental contract. 
         [0006]    In this context, the present arrangement acts as an intermediary in the otherwise fragmented real estate market for vacation and full time rentals by creating a live, real-time marketplace whereby multiple property owners selected by the renter (supply) compete for a fixed price set by the renter (demand). Such an overall dynamic is shown for example in  FIG. 2 . This platform serves to eliminate the current inefficiencies that exist in the $400 B domestic market for vacation and full time rentals and allows the natural forces of supply and demand to better and more effectively drive any given transaction (vs. brokers or one-on-one discussions between owners and renters). 
         [0007]    Furthermore, the present arrangement may be implemented as part of a collaborative consumption movement in the hospitality market, and may be used in other similar transactions beyond rental properties that currently utilizes a broker or middleman, including, but not limited to, travel offers, real estate sales, ticket sales, car rentals, etc . . . 
         [0008]    The present arrangement benefits consumers by shifting the leverage that currently favors property owners who often play one prospective renter against the other to that of a more level playing field between one renter and multiple property owners. 
         [0009]    In addition, the present arrangement incorporates multiple social networking tools to make the experience more transparent, i.e., viewing property owners and prospective renters&#39; profiles on Facebook™ and Linkedin™ or other similar social media services. 
         [0010]    In one embodiment, the present arrangement may be implemented for free to post and search, and charges the property owner and renter a service fee (e.g. 3% and 6%, respectively) only on successfully consummated transactions. This is a savings for example to vacation property owners who currently pay broker commissions of 10% or, in some cases, monthly fees to post on various websites and to full time rental property owners who pay broker commissions of one or two month&#39;s rent (8% or 16%). 
         [0011]    The present arrangement also contemplates providing a savings to renters who currently pay service fees up to 50% higher to rent vacation properties on other websites and, depending on the market, are required to pay broker commissions of one or two month&#39;s rent for full time rentals. 
         [0012]    To this end the present arrangement provides for a system for the storage and exchange of contracts and payments for an item. The system includes an interface for receiving inputs from a plurality of owners, each including information about at least one item and proposed contracting price for the item. A first database stores the received inputs and a processor manages the first interface and the database and is configured to store the received inputs. 
         [0013]    A graphic user interface module, coupled to the processor, presents a plurality of item listings based on at least a portion of the inputs from the owners, where the interface is configured to receive at least one communication from a user seeking to contract with at least two items. The communication includes a proposed contract price for the items, and at least enough financial data of the user to complete a financial transaction with the owners for the items. 
         [0014]    The processor is configured to receive the at least one communication and to present it to each of the owners associated with the at least two items in a manner such that each of the owners are informed of every other of the items included in the at least one communication. The processor is further configured to receive an acceptance from any of the owners associated with the at least two items from the communication from the user. Upon acceptance the processor is configured to conduct a financial transaction between the user and the owner and communicating the same to the user and the owner. 
     
    
     
       DESCRIPTION OF DRAWINGS 
         [0015]      FIG. 1  is a rough schematic of the the prior art systems; 
           [0016]      FIG. 2  is a rough schematic of the present invention, according to one embodiment; 
           [0017]      FIG. 3  is a system diagram, according to one embodiment; 
           [0018]      FIG. 4  is a flow chart for owners, according to one embodiment; 
           [0019]      FIG. 5  is a screen shot of the system, according to one embodiment; 
           [0020]      FIG. 6  is a screen shot of the system, according to one embodiment; 
           [0021]      FIG. 7  is a screen shot of the system, according to one embodiment; 
           [0022]      FIG. 8  is a screen shot of the system, according to one embodiment; 
           [0023]      FIG. 9  is a screen shot of the system, according to one embodiment; 
           [0024]      FIG. 10  is a screen shot of the system, according to one embodiment; and 
           [0025]      FIG. 11  is a flow chart depicting the method of the present invention according to one embodiment. 
       
    
    
     DETAILED DESCRIPTION 
       [0026]    The present arrangement provides a system and method for accepting, storing and presenting rental offers from a plurality of property owners and further allowing a renter to make a binding offer at their own price to one or more of the listed properties. Thereafter, the system and method supports displaying the offer to each of the property owners so that they not only know that they have received an offer, but the same offer has been extended to other properties, allowing the owners to gain a better perspective on the offer. Once an offer is accepted by one of the owners, assuming the offer does not expire for time, a binding contract is automatically generated between the owner and renter and the fees to renter and buyer are charged by the system. 
         [0027]    For the purpose of illustrating each of the salient features of the present arrangement this application will be discussed in the context of vacation rentals and bids/offers between vacation home owners and prospective renters. However, this is intended only to be one example of the implementation of the invention and is not intended to be limiting. The features of the present invention may be equally applied to other situations, including but not limited to travel offers, real estate sales, ticket sales, car rentals, etc . . . 
         [0028]    To this end,  FIG. 3  shows a basic arrangement for the present system  10  having servers  12  for communicating with a plurality of renters  14  and property owners  16 . Servers  12  of system  10  are coupled to database storage  18  configured to store the various data required for accepting and storing the property details for the rental properties. Database  18  and servers  12  are further configured to store the various software and user interface modules for allowing and facilitating the offer/acceptance and transaction protocols. It is noted that in one embodiment, renters  14  and owners  16  communicate with system  10  via a mobile application on a portable electronic device. Such mobile application may be generic to the system or different versions may be available for owners  16  versus renters  14 . 
         [0029]    Turning to the implementation of the rental offer services and bid/completion process,  FIG. 4  is a brief flow chart explaining the account set up and submission process for property owners  16 . The following is a summary of one embodiment of the present arrangement. 
         [0030]    In a first step  50 , system  10  enables an interface to receive a request for an account set up for property owner  16 . At step  52 , property owner  16  enters various identification information to generate an account, including, but not limited to user name, password and other security and banking information required to complete the transaction discussed herein. An optional step  54  may includes system  10  performing verification on property owner to verify banking information and to prevent fraudulent accounts. Once an account is set up, property owner  16  may log out, However, assuming property owner  16  is likewise ready to list a rental property, at step  56  property owner  16  begins a new listing operation and provides system  10  with the relevant information for the listing. Such information may include but is not limited to, the name and location of the property listing (e.g. rental) the available times for rental, the cost for rental, the dates on which property owner  16  will offer such a deal, additional notes on the property, photographs, contact information for additional questions from prospective renters etc . . . . As noted above, the rental example is exemplary only and any addition steps or modification, such as for property sales, commercial properties, travel etc . . . may be included. 
         [0031]    Once this information is saved, at step  58 , the listing is generated in system  10  associated with property owner  16  and made available in the pool of listings according to its various searchable characteristics as discussed in more detail below. Other steps or information required to fulfill the requirements of the system may be added or supplemented as needed. 
         [0032]    Turning to the renter side, the following description explains the process from a renter side, showing various screen shots for assisting in explaining the process. Such screen shots and descriptions of the renter bidding process are exemplary. It is understood, that different screen arrangements and other manners for progressing through the offer/acceptance processing are within the contemplation of the present invention. 
         [0033]    Upon arriving at a system  10  homepage  200 , renters  14  can choose to either “Plan your next vacation”  210  or “Rent your next home”  212  as illustrated in screen shot  FIG. 5 . As shown in  FIG. 6 , in order to provide an example, of the function of system  10 , the present description uses an assumption of a potential renter  14  looking to rent a vacation property from owners  16  in East Hampton, N.Y. from November 11 th -16 th  and wants to pay $1,000/night. After entering that information on homepage  200  above, search results  214  appear as depicted in  FIG. 6 . 
         [0034]    As shown in  FIG. 7 , renter  14  can click on any of the results properties to find out more details, view pictures, learn more about owner/host  16  (i.e. through their Facebook™ or Linkedin™ profile), read previous renter&#39;s reviews, etc . . . 
         [0035]    Next, the user can select from list  214 , various properties from owners  16  to add to their auction/offer cart  218 . As an example, referring to  FIG. 8 , renter  14  has added six (6) properties  220   a - 220   f  to cart  218 , Prior to submitting a binding offer and initiating a reverse auction, potential renter  14  is able to review their ‘Auction Cart’  218  and compare/contrast their selections. 
         [0036]    Referring to  FIG. 9 , after the renter engages the offer, such as a “Launch My Auction” icon, a 24-hour (or other set duration) live reverse auction begins whereby all property owners  16  from offer cart  218  are notified via email and system  10  mobile app that their property has been selected for a reverse auction and the binding offer from renter  14 . The first property owner  16  to accept the offer, e.g. by hitting an “Accept offer now” tab  220  ends the reverse auction and closes/accepts the binding offer. 
         [0037]    Upon the successful completion of the reverse auction, the credit card of renter  14  is debited and payment is made to property owner  16  less any service fees accepted by system  10 . Renter&#39;s  14  and owner&#39;s  16  contact information is shared with each other through system  10  to arrange details of their trip. A closing page screen shot  222  is shown in  FIG. 10 . 
         [0038]    Further to the above summary and screen shot walk through of an auction via system  10 , please see the following steps corresponding to the flow chart in  FIG. 11 . As an initial phase, renters  14  come to the home page and have a choice to either “Plan your next vacation” or “Rent your next home” as shown in  FIG. 5 . Similar to other prior art websites, renters  14  can search for properties by selecting various criteria, i.e., location, dates, # of guests, amenities, etc . . . using a detailed, customized searchable database. See e.g.  FIG. 5-9 . 
         [0039]    At a first step  100 , unlike other prior art websites, renters  14  enter the price they are willing to “offer” for either their vacation or full time rental. (E.g. only one offer per auction). See for example screen shot  FIG. 9  and offer box  220 . In step  102 , renters  14  select as many properties that fit their criteria (regardless of the property owner&#39;s asking price) and add them to their “Auction Cart”  218 . 
         [0040]    Prior to initiating the reverse auction, renters  14  may be required to register at the web site which includes electronically signing either a pre-approved lease or vacation rental agreement in addition to providing credit card information to secure their offer. 
         [0041]    At step  104 - 106  from  FIG. 11 , if renter  14  is satisfied with the cart contents, he receives an auction summary and can edit the auction if they desire. At steps  108 - 112 , once renter  14  has fulfilled the requirements to start the auction, they authorize payment and submit a binding offer that starts the auction. After renter  14  hits a “Launch My Auction” icon, a 24-hour live reverse auction begins whereby all property owners  16  in auction bin  218  are notified (via email and the system&#39;s mobile app) that theft property has been selected for a reverse auction and of the binding offer of renter  14 . 
         [0042]    Property owners  16  are able to see all the other properties selected by renter  14  as part of the reverse auction, i.e., their “competition.” Property owners  16  are provided with a detailed profile of the prospective renter  14  and links to their Facebook™, Linkedin™ or other social media site accounts. 
         [0043]    In step  114 , the first property owner to hit the “Accept offer now” tab (see  220  in  FIG. 9 ) ends the reverse auction. Upon the successful completion of the reverse auction, the credit card of renter  14  is debited. Vacation renters  14  are charged the full amount of their rental and full time renters  14  are charged two months rent in addition to a security deposit or some other agreed upon amount. In step  116 , booking details may be generated to produce records of the transaction for renters  14 , owners  16 , and system  10 . 
         [0044]    After the rental or vacation or, otherwise after the term of the agreement, renters  14  are able to post reviews after their stay and rate their experience enabling property owners  16  to establish a social profile within system  10  itself. Similarly, property owners  16  are encouraged to post reviews of renters  14  enabling renters  14  to establish a positive social profile on system  10  potentially making it easier for them to secure accepted offers from other owners  16  in future transactions. 
         [0045]    In addition to the above described features, additional features and embodiments may be applied to the structure and steps outlined above. For example, in a first embodiment, the present arrangement may offer renters  14  the ability to join the network whereby prospective renters  14  can partner with each other and jointly submit a binding offer for a property. This feature expands the universe of properties for renters  14  and tenants for property owners  16 . For example, a vacation property owner  16  may be looking to rent their house only for the entire month of August and a renter  14  may only be interested in two weeks in August. By joining the present system  10 , renter  14  can learn of other likeminded renters  14  looking to rent for two weeks in August and they may be able to jointly offer a price for the entire month of August (possibly with each renter  14  signing separate rental agreements and being responsible for their respective times spent in the house). 
         [0046]    Similarly, if a renter  14  is looking to lease an apartment for six months and a landlord  16  is only willing to accept a one year lease, that renter  14  can identify another renter  14  looking to lease the apartment for the other six months. By renters  14  combining theft respective demand curves to accommodate certain restrictions on landlords  16  supply, the present system  10  can further enhance the overall efficiencies of the marketplace. 
         [0047]    In another embodiment, prospective renters  14  who are interested in a particular house and believe it is fairly priced may be able to bypass the above described reverse auction process and offer owner  16  their asking price by clicking on an “Instant Booking” tab next to each property listing. 
         [0048]    In other embodiments, system  10  may include a mobile application, where vacation renters  14  are able to take pictures and videos of their trip and by the evening of their check out date, they automatically receive a fully edited picture/video montage set to music in their inbox courtesy of the system  10 . 
         [0049]    While only certain features of the invention have been illustrated and described herein, many modifications, substitutions, changes or equivalents will now occur to those skilled in the art. It is therefore, to be understood that this application is intended to cover all such modifications and changes that fall within the true spirit of the invention.