A web-based platform for landlords and tenants that wish to manage the process themselves without involving middlemen like property managers has just landed $2 million in a funding round led by Cultivation Capital. Rentalutions, as the company is called, says it plans to use the funding to add new features to its platform that will allow users to automate expensive and time-consuming processes like finding and screening tenants, handling payments and managing requests for maintenance.
Rentalutions says there are more than 8 million "DIY" landlords in the U.S., who rent out a combined 24 million properties. But many of these landlords are not experienced about the rental process. That's where Rentalutions comes in, as its software is able to help these landlords save time and make more money by simplifying property listings, applicant screening, leasing, payments and maintenance.
In fact, Rentalutions' founder and CEO Ryan Coon was a DIY landlord himself, before founding the company in 2012. He said that his experience as a landlord was difficult and time-consuming, all the more so because he had a full-time job as well.
"Our vision is to ease headaches for independent landlords at a lower cost than a property manager," Coon said. "This investment will help us continue to do that at greater scale, while developing new tools for landlords and their tenants.”
Rentalutions is off to a great start, with more than 30,000 landlords and 65 tenants using its platform across 8,000 zip codes.
“Rentalutions is modernizing the way independent landlords think about and manage their rental properties. As a landlord myself, I know how difficult it can be to manage a property without any experience or comprehensive resources available,” said Cultivation Capital General Partner Cliff Holekamp, who will join Rentalutions board of directors.
“It’s refreshing to see someone tackling the challenges we face with one comprehensive solution," Holekamp continued. "Cultivation Capital looks forward to continuing to support Rentalutions as they grow and scale.”
The round, which brings Rentalutions' total funding to $3 million, also saw participation from M25 Group and Sandalphon Capital.