Rentable Secures $22.5 Million for Its Apartment Marketplace

By McKenzie Carpenter | Tuesday, 03 August 2021 | Startup, Real Estate, Tech

Rentable, a real estate technology startup, announced it raised $22.5 million to scale operations of its apartment rental marketplace.

About Rentable

Founded in 2012 by three childhood friends, Rentable is a real estate technology startup company with an app that helps customers around the country find an apartment to rent through its digital marketplace. The mission of the business is to make apartment hunting easier and faster for renters and for property owners. 

Through the Rentable app, customers can search for any style apartment that fits their needs, including price, number of bedrooms and bathrooms, and whether it is pet-friendly. The startup claims that each apartment on its marketplace is verified by its team of data experts to determine that all information in apartment listings is accurate. The business even offers a rent calculation tool that lets users make informed decisions on what they may be able to afford. In addition, through the Rentable app or website, users can read monthly reports based on national apartment data. 

For landlords, the real estate marketplace company offers Apartment IQ, a service that features market data and trends. Additionally, property owners can use listing, advertising, and lead management resources developed by the business. Property owners can even list their entire portfolio of properties on the app for free. 

Although the rental marketplace startup initially launched in Madison, Wisconsin, the company has since expanded to feature more than five million apartments in cities across the entire United States (US). Furthermore, the business claims it has helped millions of people find apartments and has listed apartments from thousands of property managers.

$22.5 Million in Funding

Rentable announced it raised $22.5 million in a Series B funding round led by Susquehanna Growth Equity. According to Crunchbase data, the real estate startup previously raised $500,000 in debt financing in March 2020. 

Alec Slocum, CEO and co-founder of the business, said in a company statement, “Rentable was founded with the simple goal of fixing rental search in our hometown of Madison, and it has grown to become one of the largest rental marketplaces in the United States with next to no advertising spend. Our team is rapidly working to transform the rental experience from a classifieds model to an e-commerce model, where renters can search, tour, and apply for apartments from their couch.”

The app startup added that in 2020, Rentable was profitable for the first time as revenue almost doubled year-over-year (YOY). Moreover, the real estate company stated that its valuation increased as a result of the new funding but did not disclose specific figures. 

This growth is quite impressive considering the challenges renters may have faced last year due to the COVID-19 pandemic. The National Apartment Association reported that 22% of renters — in a survey of 1,000 — had to cancel or postpone rent payments as a result of the pandemic. 

With the new funding, Rentable will continue improving its apartment marketplace app. In addition, the real estate marketplace will increase its staff across various departments, including engineering, sales, product, and business development. Likewise, the startup plans to grow its executive staff by bringing in vice presidents of human resources, product, growth, finance, and customer success.

About the Author

McKenzie Carpenter

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.