iRenting
Issue 35 - June 4th, 2021
iBuying gives homesellers certainty of a sale and quick liquidity.
iRenting gives landlords certainty of cash flow.
Companies like OpenDoor, Offerpad, and Zillow have propelled iBuying into the mainstream where homesellers can submit their address and get an offer for purchase on their home within hours.
iRenting is a vertical of the proptech industry that continues to grow and gain steam as landlords search for stability and guaranteed income in their rental portfolios.
iRenting Step-By-Step
Landlord Johnny owns a single family rental home in Las Vegas, and he is sick and tired of dealing with finding new tenants and worrying about vacancy on his property.
Johnny has been managing the property himself for years and doesn’t want to sell the property, and he also doesn’t see the value in a traditional property management firm who will just stick a sign in the yard and find a tenant like Johnny knows he can do too.
Johnny hears about a new iRenting Company rolling into town who will pay him rent guaranteed every month and take on the task of finding and vetting a tenant for the property.
Johnny thinks this is too good to be true!
Johnny inputs his address into the iRenting company’s website, and he receives a rental proposal the next day!
Johnny starts receiving rent immediately whether or not there is a tenant in the home yet or not.
The iRenting company takes on the task of filling the property with a great tenant. They use technology to optimize the highest rent possible for the neighborhood, schedule tours with prospective tenants, and make the lease application and signing process a breeze for everyone involved.
iRenting companies make money off fees charged to the landlord and tenants and the margin between rents.
Landlords like Johnny love the iRenting solution because these services minimize vacancy loss, provides on-the-ground support, and guarantees Johnny rental income. Johnny may even start searching for more homes to expand his rental empire since this process has made his life so much less stressful.
Some companies to watch in this space:
Newsworthy Links To Share
STATS on the ResiRE industry from a recent survey (Inman):
REALTOR income and transaction volume declined in 2020 from 2019.
The proportion of female Realtors was up slightly to 65 percent in 2020 from 64 percent in 2019.
The median age of Realtors was 54, down from 55 the previous year.
One-third of Realtors were over 60 years old and 5 percent were 30 years old or younger.
The number of Realtors who received business from past clients remained consistent year over year at 15 percent.
Softbank-backed “unicorn” startup Katerra bites the dust. Katerra had raised over $2 billion dollars to date and had over 8,000 employees worldwide. Menlo Park-based Katerra had already been struggling to find a viable business in cheaply building properties for real estate developers when it was pushed to the edge of bankruptcy late last year, with the company blaming its latest struggles on climbing labor and material costs associated with the pandemic. The company was given one last chance after receiving a $200 million bailout from SoftBank, which reportedly bought up a majority stake after already having invested billions in the effort. (TechCrunch)
Real estate prices worldwide continue to soar. Global house prices jumped 7.3% in the 12 months to March the most since 2006. Turkey topped the list and the U.S. was fifth with its steepest increase since December 2005. Demand still outpaces supply in NYC suburbs. Single-family home listings in the bit of Long Island closest to the city rose 69% in May year on year. At the same time, purchase contracts soared 162%. (Bloomberg)
Hyperlocal neighborhood social network, Venn, announces $60 million raise to expand into more cities. Facebook, Nextdoor and many others in tech have focused on the concepts of community and neighborhoods to build connections between people and in turn offer services relevant to them. Venn is focusing first on apartment dwellers and cutting deals with building landlords to supply social networking services to their tenants. (TechCrunch)
PROPERTY HIGHLIGHT: Luxury cabin living in Colorado. This modern rustic mountain home sits on the grounds off hole #17 at Roaring Fork Club in Basalt,CO in the heart of the Roaring Fork Valley. Price tag of $6,250,000.
Enjoy serene down valley sunsets on the expanded porch next to the outdoor fireplace. Or step into the back yard where a new hot tub, creek, and Zen garden await you. On the fairway of hole #17 this cabin is easily accessible to all the conveniences and amenities the Club has to offer. This desirable and private single story cabin is offered move in ready and fully furnished. (Zillow)