This acquisition is a major milestone for the venture capital (VC)-backed RentRedi, resulting in an expansion of its team, providing access to a more robust set of features to users of eRentPayment and further simplifying the rental process for landlords and tenants, RentRedi said in a Tuesday (Aug. 8) press release.
“This acquisition will enhance our technology and significantly grow our customer base, positioning RentRedi as an even bigger player in the PropTech space,” RentRedi Co-founder and CEO Ryan Barone said in the release.
In addition to the growth of RentRedi’s team, Rick Sands, founder of the acquired companies, has been designated head of payments at RentRedi, according to the press release.
Moreover, the acquisition provides eRentPayment and PaymentReport customers with access to a number of new features the RentRedi platform provides, the release said. Those features include full accounting services designed for real estate investors and rental property owners, maintenance coordination, renters’ insurance, access to premium listings services and the ability to build custom pre-qualification and application processes.
The acquisition will also strengthen the platforms’ credit boosting feature by reporting tenants’ on-time payments to two major credit reporting agencies, per the release.
Taylor Beaupain, managing partner at K1 Investment Management, the investment firm that led RentRedi’s Series A funding round last year, said in the release: “This acquisition marks a significant milestone for RentRedi, signaling that the company has become a category leader in the PropTech space.”
RentRedi’s software was designed for landlords who are juggling property management with their other full-time job, Barone told PYMNTS in an interview posted in April 2022, shortly after the company raised $12 million in the Series A round.
The platform uses automation to solve common pain points for landlords, Barone said at the time.
“For them to be able to automate a lot of the manual tasks in a way that still gives them all of the oversight, all of the control, but not necessarily all of the work is really important for them,” Barone said.
In another recent development in the space, Hostaway raised $175 million in May to expand its property management software for short-term rentals. The firm will use the new funding to accelerate its expansion and continue developing its services.