So, start by focusing on a single location. Also, focus on a specific niche that is often borrowed. Tools, maybe?
Allow your users to list other things, but focus on that specific niche. Hopefully you'll grow organically from there. Once your organic growth starts, kick it into gear with some advertising (especially location-based, focused on markets where you're more saturated).
I think you're absolutely right, no items, no users that can rent. Our main focus is to grow the database of items available, funny enough, our color is orange because we started as tools only, orange triggers a tool like feeling (thanks to home depot) ... We did think about broadening the categories to anything at your house, but focusing on a couple of local communities. Shouldn't make a difference if you're listing a chair or a hammer, the thing is we want to make you list something at your house.
Thanks for the feedback!!
Why not try to track down 25 individuals and get them to sign up and offer something?
Once you apply what you learn from that and have a decent product then you should think more of the advertising and marketing, everything from posters to ads on local cable tv. "Organic growth" is not enough because you have to get a large amount of participation to make something that is (i) self-sustaining and (ii) replicable in other areas
Thanks for your comments, I think so far we have been confirmed that we have to engage users in non-traditional manners.