Self-management rental platform scores $1.9m Series A to help Aussies manage their own property
Self-management rental platform RentBetter has today announced it has closed a $1.9 million Series A capital raising round, bringing the proptech’s total capital raised to $3.2 million to date.
The platform equips everyday landlords with the same tools and services real estate professionals rely on to lease and manage residential properties but at a fraction of the cost.
As a result, RentBetter has become increasingly popular amongst Aussie landlords keen to take property management into their own hands.
Catalysed by the consumer behavioural shift towards online self-serve platforms, plus more Aussies looking to save money especially since the pandemic hit, subscriptions to the platform have increased by more than 250% YoY, with the average landlord saving approximately $2,000 per year, per property.
RentBetter Founder and CEO Jeremy Goldschmidt (pictured) said more landlords had become dissatisfied with the traditional property management model and more Aussies than ever had become motivated to increase their level of control over their investment property- and recoup some cash in the process:
“A lack of trust in intermediaries and improved technology has driven a shift in consumer behaviour towards self-serve platforms. Canva, Employment Hero, Uber, Airbnb, and Expedia are all classic examples. The property industry has been slower to adopt the change, but it is starting to accelerate, with recent data showing a third of landlords are self-managing,” he said.
“I purchased my first property about 15 years ago after working hard to save up for my nest egg. Despite being a busy young professional, I knew to save money I could take control and have a crack at managing my own investment property. It turned out to be a great idea, and over the years I created ‘cheat sheets’ that I shared with family and friends who wanted to do the same- which were distributed far and wide. The demand for self-managing was evident, and from there we built RentBetter to meet that need,” said the Sydney-based father of three.
In Australia, the residential property leasing and management market is worth more than $6 billion according to IbisWorld and comprises around 2 million landlords who own roughly 3 million rental properties. RentBetter plans to use its latest injection of capital to fuel its next phase of growth with the intention to acquire 5 per cent market share, representing 150,000 subscriptions.
Goldschmidt, a former consultant with Boston Consulting Group and strategy consultant for ANZ bank said this growth would be achieved by continuing to demonstrate to Aussie landlords that taking control over their investment was not only financially rewarding, but also a fulfilling experience made more efficient through technology.
“If you ask around, you’re likely to find most landlords generally do not feel they are getting value for money and are quite frustrated with the service provided. RentBetter can save the average landlord tens of thousands over the life of an investment, and if you have more than one property, that’s a meaningful saving that can be re-deployed towards additional investments. Getting smarter about how you manage your investment is crucial to the yield it bears over its lifetime. There is a viable, financially beneficial alternative to using an agent, and RentBetter is it,” he said.
In part due to its impressive growth and potential to capitalise on a lucrative market niche, RentBetter has also attracted notable board members including Tony Breuer, who brings more than 30 years of investment banking experience at Gresham and Ata Gokyildirim, an experienced growth executive having worked with several Israeli startups including Sedric and Difftone.
Tony Breuer, RentBetter Chairman said, “Rental property management is one of the largest markets in Australia, and the disruption taking place is multi-faceted. RentBetter has a strong following with DIY landlords who use simple technology to take control and save considerable money.”