What Is LeaseLock?
LeaseLock is a startup company with an AI platform that allows lessors to streamline the renting process by eliminating the security deposit. Instead, with the startup’s AI technology, lessors are able to use the fee for the platform and calculate that directly into rent for lessees. Therefore, the separate security deposit is abolished. In addition, this small fee provides $5,000 in lease insurance protection.
“LeaseLock was designed in partnership with our clients as a long-term solution to finally move the entire industry away from deposits and surety bonds,” said Derek Merrill, co-founder and COO of LeaseLock. “Residents love the fast, automated, and affordable move-in experience without any deposit or guarantor requirement. Properties in turn, get enhanced protection which leads to roughly 50% reduction in bad debt per property.”
The company was founded by Derek Merrill and Reichen Kuhl and headquartered in Marina Del Rey, California. This business is the only provider of a nationwide A-rated lease insurance program that completely erases security deposits. As a result of the effectiveness of the business, the company has been able to eliminate $50 billion in deposits nationwide and reach over 1.5 million homes. Furthermore, the business experienced a 400% increase of apartments on the business’s platform in 2020.
Some current businesses that use the startup’s AI technology are Greystar, White Oak Partners, Pinnacle, Alliance Residential Company, Avenue5 Residential, and many others. Additionally, the company has been able to receive roughly $63.5 million in total funding, with the most recent round being the largest yet amounting to $52 million.
The $52 Million Investment
The COVID-19 pandemic has exacerbated many housing problems, therefore increasing the need for an easier and more efficient program for landlords. Subsequently, the rise of the business comes during a critical time for the housing market.
The $52 million investment in the company comes from many different investors — Westerly Winds and Wildcat Venture Partners leading the way. “Security deposits are an inefficient financial instrument for all sides. Through technology, LeaseLock has intelligently solved this problem while setting the foundation for an end-to-end enterprise insurtech platform. We are excited to back the business as it continues to realize its vision,” said Karim Abdel-Ghaffar Plaza, founding partner of Westerly Winds.
With this new round of funding, the startup will be using the money to develop new products and further develop the company’s AI technology.
Startup company LeaseLock has been experiencing incredible growth over the past couple of years, resulting in the implementation of AI technology for millions of homes across the country. With this new funding, the startup will be able to continue to achieve massive growth and keep working toward eliminating security deposits for renters.
About the Author
McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.