Ezra Gershanok and Jacob Halbert were initially struggling to make sales for their apartment subleasing startup, Ohana. However, in the spring, they experienced significant growth with the platform gaining 1,000 new listings in New York City and sales jumping to $1.2 million in May. This growth was attributed to the implementation of Local Law 18, new regulations around short-term rentals in the city. The platform aimed to connect hosts and guests for mid-term rentals, defined as stays between 30 days and 12 months, through video calls, sublease agreements, and payments.
Local Law 18 requires New York City short-term rental hosts to register their listings, which must be for a bedroom within a unit where the host lives, with stays of fewer than 30 days and the host present during the stay. This prompted some hosts to convert their short-term rental apartments into long-term stays due to concerns about squatters. Ohana provided a safer alternative for consumers, especially for mid-term stays, which were generally not considered on Airbnb. The platform attracted interns, businesses, digital nomads, and transplants looking for short-term housing while searching for a long-term lease.
In May, Ohana sought to raise a seed round of funding and successfully secured $3 million in an oversubscribed round led by Wave Capital. Sara Adler, former head of corporate development at Airbnb, joined the Ohana board. Other investors included former executives from Zillow, Airbnb, Groupon, and venture capital firms. The funding would be utilized to hire more staff, expand in New York and later in London and San Francisco. Ohana was initially founded in 2023 with pre-seed funding from startup accelerator Neo and had gained rapid traction after achieving product-market fit.
Gershanok and Halbert, founders of Ohana, had previously worked together on The Keyper. They launched Ohana after experiencing challenges finding short-term housing for internships. The platform aimed to address the difficulties in finding mid-term housing through platforms like Facebook and Craigslist, known for scams and fraudulent activities. Ohana introduced a secure payment process through fintech company Stripe, ensuring hosts are paid only after guests successfully move in and holding security deposits until after the guest departs. Hosts set the price, with Ohana adding a 5% cut, and the final price is listed on the website.
Most clients on Ohana are individual tenants with a few apartments, although some larger clients with multiple units have also joined, including one with 70 units catering to summer interns. Prices on Ohana are below market rates, with clients renting apartments for roughly 11% cheaper than the average lease price of $3,789 per month since March. Ohana claims to have saved approximately $1.6 million in rent for over 600 people by providing more affordable mid-term sublets. The platform is looking to expand its operations and reach additional markets beyond New York City.
