Rent.com.au Sees Rising Revenue in Core Business While New RentPay Product Finds its Feet

July 30, 2021
Share this Post: 

Australian rentals specialist Rent.com.au has reported record revenue from its Q4 activities. The Western Australia based company saw revenue of A$810,000 for the quarter and positive EBITDA for the core listings business of $59k.

Despite the company milestone of having logged a 4th straight EBITDA positive quarter for the core business, shares in the ASX-listed firm tumbled in trading today and are currently down 4% from the previous close.

Rent.com.au has made no secret of its desire to expand its revenue streams and build an end-to-end experience for Australian renters. Aside from the company's core listings portal, it also offers services related to tenant referencing and pre-approval, bond financing and utilities as well as the firm's much-heralded RentPay product.

Launched in May after 18 months of development and several years after its original conception, RentPay lets tenants pay their rent via an app while enabling them to build a reliability scoring and a 'buffer' amount to protect landlords. The company has put a lot of eggs in the RentPay basket with development costs of $698k capitalised in the quarter and $273k spent on launching and optimising the product.

RentPay now has some 700 customers, but CEO Greg Bader admitted that there have been bumps on the road with his company's new product:

“It has not been without its challenges though. We are yet to find the ideal balance between the required level of security and a simple, intuitive process flow for onboarding customers. We’re still making improvements to the platform, for example, our optimisations so far have seen a doubling of our conversion rate (from App download to paying customer) in June compared with May. We are also implementing additional credit card security protocols that simplify the verification process and improve  security."

While the core portal business continues to see growth, investors - including Angel tech investor Bevan Slattery - are being asked for patience as the company turns to perfecting and then marketing its new product and optimising the core business:

“Now that the peak of the RentPay development has passed, some of our capacity can return to enabling the growth opportunities within the rent.com.au platform. We have an extensive product roadmap of new features and products to drive further profitability and help renters during the search phase of their journey. These improvements will also help transition customers to RentPay."

Despite the choppy waters of the market seen since the Q4 announcement, Rent.com.au saw its share price jump substantially from A$ 0.05 per share at the beginning of the year to A$0.32 in February after the announcement of Slattery as an investor. At the time of writing, shares are trading at A$0.10.

July 30, 2021
Edmund got to know the world of portals and marketplaces working at Mitula Group (which became Lifull Connect after the buyout in 2018). He worked directly with hundreds of portals across the world in his role in the content department for three and a half years before transferring to the SEO department to understand the inner workings of listings sites. He joined Online Marketplaces as Head of Content in March 2020.

Subscribe to our mailing list to get news updates!

Enter your email address and get updates from Online Marketplaces.

Related News

British Portals Declining Debate
UK Portals' Debate No-Show Angers Industry Commentator

There was frustration in the British estate agency industry yesterday as the so-called 'big three' portals declined to attend a...

Read More
Suburban Us Housing
Zillow and Redfin Forced to Respond to Viral Video

Real estate giants Zillow and Redfin have both responded to a viral social media video in which a realtor speculates...

Read More
Short Term Rentlas Airbnb Oyo Jll
Short Term Rentals Roundup: Airbnb Appointment, OYO IPO and a New Rival

There have been a few important pieces of news coming from the world of short-term and vacation rentals this week....

Read More
Zillow Housing Data
Zillow in Legal Battle for Cheap Local Housing Data

American real estate giant Zillow is backing proposed legislation in Michigan which would significantly reduce the cost of procuring property...

Read More

Popular News