Being a landlord is hard work.
From advertising properties to screening applicants, getting contracts signed, collecting rent and security deposits and tracking and scheduling maintenance, managing even a few units can feel like a full-time endeavor.
For individual property owners, hiring a full-time manager would mean sacrificing a significant portion of potential earnings, so many landlords end up spending their nights and weekends managing their properties.
, a Chicago-based one-stop-shop for landlords and recent graduate from New York City’s MetaProp real estate accelerator, is looking to change that.
“Every landlord has to do the same five things, so we should be able to develop software that helps them automate all these traditionally manual processes,” said co-founder and CEO Ryan Coon (pictured right). “If big institutional owners can figure out how to automate things with software, there should be a simple way for part-time landlords to do it as well.”
For landlords with vacant properties to fill, Rentalutions increases efficiency by letting them complete a single form per listing, which in turn is automatically posted on a number of tenant-facing websites including Zillow, Trulia and Craigslist. When potential tenants apply, landlords can send them an email encouraging them to submit an online application.
Once an application has been submitted, the Rentalutions platform runs automated criminal background and credit checks, and lets landlords approve or deny applications directly on the application dashboard. For approved tenants, Rentalutions also handles leases — with customizable lease agreements that comply with state requirements. Moreover, the platform allows tenants to pay rent and submit maintenance requests online.
In addition to saving time, Rentalutions seeks to reduce liability for landlords by protecting tenants social security numbers and other sensitive data using 128-bit encryption. Needless to say, this is a huge step up from storing sensitive data in unencrypted email inboxes or filing cabinets.
According to Coon, the biggest challenge in designing the platform was ensuring it was accessible enough to gain mass adoption. While some landlords who use the platform do have tech backgrounds, a large portion of the company’s potential client base are middle-aged old-school landlords who may not be as comfortable with technology. Rentalutions has spent a lot of time and energy on designing its application specifically with those users in mind.
The company’s revenue comes from a subscription model. For $25 monthly, landlords can manage up to five units, with $50 and $99 options for landlords managing up to 15 and 30 units, respectively. In addition, prospective tenants pay $45 for credit and background checks. Rentalutions also partners with businesses looking to get in touch with tenants and landlords, one example being insurance providers.
Although joining the MetaProp accelerator program involved extensive travel to New York, the company has deep roots in Chicago and no plans to leave anytime soon.
Rentalutions was one of the first companies to join 1871 after its 2012 founding, and Coon is excited about the growth of the city’s tech ecosystem, which he said has an edge on either coast as a market for quality employees. Moreover, he believes the city’s Midwestern “do more with less”-mentality means Chicago companies are better equipped to keep thriving than their coastal peers if funding becomes harder to come by — as some analysts speculate it may.
Though user acquisition has taken longer than originally expected Rentalutions has gained a lot of traction over the past year. Today, over 18,000 landlords use the platform across over 5,000 ZIP codes. At the end of August 2015, the company raised $750,000 in seed funding, turning down additional inbound inquiries. Over the next few weeks, its six-person team is growing to seven, with further expansion to come.
Images via Shutterstock and Twitter.
Have a tip for us or know of a company that deserves coverage? Shoot us an email or follow us on Twitter @BuiltInChicago.
