Demand for rentals amid housing crisis has helped fuel software provider's growth
RentSpree – which bills itself as the industry's premier end-to-end rental management software provider – announced it has closed $17.3 million in Series B financing. The development brings the total amount raised to nearly $28 million, company officials added.
“These additional funds give us the ability to further our product offerings and to pursue our mission to provide best-in-class, easy-to-use tools that modernize the rental process for everyone involved,” Michael Lucarelli, CEO of RentSpree, told Mortgage Professional America. “We constantly strive to improve our already existing tools and functionality and expand offerings. Most recently we added our rent payment feature to further simplify especially renters’ lives as well as Agent Tools, which is intended to help agents to be more deliberate and effective in supporting their rental clients. We are looking to add early next year a feature that reports on-time rent payments to credit bureaus to support renters in building a positive credit history. These types of additions are intended to make it easier for renters to potentially buy a home in the future."
Officials said the investments will help the company expand product offerings for both renters and agents and secure additional strategic partnerships, furthering its mission to help the real estate industry embrace a growing nation of renters.
This latest round of funding is led by Green Visor Capital. The fintech venture capital firm is joined by new investors Rally Ventures, the California Association of REALTORS (CAR), Venture MLS, ECG-Research, KEC Ventures, and Gaingels, with participation from existing investors 645 Ventures and Vesta Ventures.
Read more: RentSpree grows again with fifth MLS partnership
“We recognized a marked shift toward renting that has been years in the making,” Michael Walsh, general partner, Green Visor Capital, said in a statement provided to Mortgage Professional America. “That transformation has only accelerated over the last 24 months. RentSpree is well-poised to continue leading the industry through these changing dynamics due to its partnerships, product innovation, and momentum.”
Demand for rentals has exploded against a backdrop of rising mortgage rates that have made it more expensive to buy a home. As a consequence, RentSpree officials said the funding will be used to further empower renters, agents, and landlords with new tools, such as rental payment. Case in point: RentSpree has seen an average monthly increase of rent collected via this latest feature by more than 30% year to date. Given this trajectory, RentSpree is on track to process more than $160 million in rental payments over the next 12 months, officials said.
By providing decision-enablement resources, RentSpree will assist renters in better understanding their finances on their real estate journey, company officials added. These tools are designed to help solve financial pain points, set renters up for success in the rental market, and allow them to reach their long-term goals. In concert, the company is equipping agents and brokers with the tools necessary to seamlessly diversify their client portfolio and income, as well as support their rental clients’ transition to homeownership in due time.
“ From RentSpree’s start, we wanted to create an easier and more effective process to qualify renters,” Michael Lucarelli, CEO of RentSpree, said in a prepared statement. “In time, we realized that we were only scratching the surface of unmet needs within the market, such as streamlining marketing, facilitating payments, and helping consumers build wealth.”
“With the introduction of new tools and plans for strategic partnerships in today’s hot rental market, it is our goal over the next 24 months to have 30%+ of all active U.S. agents leveraging RentSpree, and together, we will assist millions of rental clients annually.”
Read next: RentSpree milestone speaks to rise of long-term rental market
The round of Series B funding comes on the heels of RentSpree ranking in the top 13% of Inc. 5000’s fastest-growing companies of 2022, officials noted. In addition, RentSpree recently reached one million users across the country as a result of partnerships with more than 250 of the nation’s top multiple listing services (MLSs), associations, brokerages, and proptech platforms. This growth trajectory is on track to heighten with this latest investment, officials said.
“While our members predominantly service clients seeking to buy and sell real estate, we recognize that many people are renting much longer today compared with any other point in history,” C.A.R. president Otto Catrina said in a prepared statement.
“We have been collaborating with RentSpree already for more than five years to ensure our members have access to technology to address rental needs, and we are excited to take this significant step in helping RentSpree transform the real estate ecosystem.”
According to its corporate literature, Los Angeles-based RentSpree is a provider of award-winning rental software that helps seamlessly connect real estate agents, owners, and renters to simplify and automate the entire rental process, from listing to lease.
The all-in-one platform is known across all 50 states for its easy and secure interface and suite of rental tools, including tenant screening, rent payments, marketing and renter management. To date, RentSpree has partnered with more than 250 of the most influential MLSs, real estate associations and brokerages to serve over one million users in the U.S. RentSpree is ranked 625th on Inc. 5000’s fastest-growing private companies in 2022.