Landlords see a number of issues when trying to fill a vacancy in their property.
But new startup Doorstead wants to take on the risk and the work for you. It acts as a property manager for single-family homes, but guarantees you rent at a specific rate starting in a certain number of days, even if it can’t fill the house or apartment. It also handles all the algorithmic pricing, advertising, tenant interviews, repairs, maintenance, leases and online payments in exchange for 8% of rent. Owners just sit back and receive the money, making it much easier to profit off of distant real estate. The startup claims to earn users 3% to 9% more than other property management models.
Doorstead’s approach to the hot sector of “iRenting” has attracted a $3.3 million seed round co-led by M13 and Silicon Valley Data Capital, and joined by Venture Reality Fund and SOMA Capital. They’re betting on Co-Founders Jennifer Bronzo, whose parents ran a construction and property management firm, and Ryan Waliany, who worked in product at Uber after his recipe platform Kitchenbowl was acqui-hired.
“I grew up going to job sites and learning about construction,” Bronzo says. “In the recent decade, my family purchased a lot of properties in the Bay and they needed help filling capacity. I saw so many opportunities in property management because of how antiquated the industry is.” Doorstead is now operating in five cities around the San Francisco Bay Area.
As consumers grow accustomed to zero-friction services, that approach is branching into bigger and bigger sectors like the trillions paid for long-term rentals. Waliany, Doorstead’s CEO, explains, “We’re in the process of Uber’izing each step of the property management life cycle.” The startup is hoping to become the OpenDoor of rentals.
Read more here
Join us November 12-15 for the Property Portal Watch Conference Madrid 2019.