The iBuying model has become increasingly popular among homeowners looking for a quick sale of their property, and now a new startup is hoping to bring the concept to rentals as well.
Doorstead is pitching the idea of “iRenting”, offering to act as a property manager for landlords who own single-family rentals. The company offers a guarantee that properties will be rented out at a specific rate within a specific time period, and will absorb all of the risk, which means the landlord gets their rent even if a tenant can’t be found.
addition, Doorstead offers to handle all of the algorithmic pricing,
advertising, tenant interviews, maintenance and repairs, leases and
online payments. Pretty much everything in fact. All the property
owner has to do is pay the company a percentage of the rent they
is still a fledgling company, but so far its managed to raise $3.3
million in funding and has opened for business in five cities in the
San Francisco Bay Area. ‘
“We’re in the process of Uber-izing each step of the property management life cycle,” Doorstead’s Chief Executive Officer Ryan Waliany told TechCrunch. He added that he hopes the company can become the OpenDoor of rentals.
said he expects other companies to follow suit with their own
versions of the iRenting model. Other property management startups,
such as Mynd, OneRent, and BelongHome, currently guarantee rent only
after tenants have been found.
also dismissed any fears that the company might overleverage itself
with the guarantees it offers.
any new business model, there will inevitably be ‘unknown unknowns’
that we cannot predict—‘black swan’ events and things that we
might only be able to learn through calculated bets,” Waliany told
TechCrunch. “There are three large trillion-dollar industries:
food, transportation, and housing. At Doorstead, we have an
opportunity to completely redefine the housing value chain by
creating a new class of property management that eliminates
unnecessary vacancies. In the end, this redefinition of the value
chain allows ourselves to become the Blackstone of the future. It
seems like we’re giving everyone free money.”
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