(MENAFN- News Direct) San Francisco, California | October 27, 2022 03:57 PM Eastern Daylight Time
Interested in investing in Rentberry's crowdfunding campaign?
Benzinga spoke with Rentberry Inc. 's CEO Oleksiy Lubinsky about the company's history and where it is going. Here is what Lubinsky had to say:
Benzinga: What was the inspiration for Rentberry?
When Lubinsky and his coworkers worked on their previous startup CityHour, they experienced the full force of a broken rental system in Silicon Valley.
“It took us 28 days to find housing, and the rental platforms we had to go through had primitive functionality,” Lubinsky said.
The reality reported in some parts of the rental world is there is a lack of transparency and the process is not streamlined — there is little automation, and nearly everything is manual.
Lubinsky said he wanted to create a platform that provides transparency for renters and connects them to landlords in an easy and seamless way. Rentberry was a solution to a problem all too common for anyone who's ever rented.
Benzinga: What sets your platform apart from other platforms like Zillow or Trulia?
Rentberry is a platform where all rental tasks can be done in one place. There is no need to wait on a landlord to complete each step. On a platform like Zillow, everything is manual. You have to call or email the landlord on a listing you like, and then there is a lot of back and forth.
Rentberry eliminates this nuisance. Lubinsky explained that they built the platform with users in mind. A user uploads all of their necessary documentation to the platform so all rental tasks can be done in one place. The landlord can also easily see all applicants and manage next steps online. The platform was created to save renters time, money and stress.
Another aspect that sets Rentberry apart is the transparency the platform promotes. On Rentberry, an applicant can see how many applications have been submitted for a listing as well as other pertinent information. For example, an applicant can see whether a competing applicant has offered more money, is a smoker, has roommates or pets and more. By providing renters with this information, they have more power to negotiate and choose their properties wisely.
Benzinga: How does Rentberry fit into the current and future landscape of real estate?
Lubinsky shared that more people will rent than buy in the near future. He explained that the real estate landscape is going through an“uberization process.” Just as people are relying less on cars with the advent of platforms like Uber, people will be looking more toward renting than buying property.
“Between the upkeep of a home and things like property taxes, it can be a hassle to own a home,” he said.
Even when people buy homes, Lubinsky said he believes it will be later in life after a longer period of renting. Because of this, it was important to his team to create a user-friendly rental platform.
More people are also yearning for mid-term rentals. In a world of digital nomads and people working from home, not to mention people who frequently travel for education or work, the need for mid-term rentals is on the rise. Rentberry will offer a Flexible Living option on its platform.
The Flexible Living feature is for people who are looking for contracts between three and 12 months. Rental properties that are part of this program require no security deposit and are fully furnished.
These properties are ideal for someone who“knows they are going to be in Miami for three months and then onto Los Angeles for four months after,” Lubinsky said.“An Airbnb is too expensive for long-term rentals, and people shouldn't have to risk breaking their leases to secure housing.”
One of the aspects of Rentberry Lubinsky is so proud of is the platform's user acquisition. Because the platform allows users to store documentation, make monthly payments and request maintenance all in one place, people stay on Rentberry. Users' tenant profiles allow them to find housing during their next move more easily. This is especially helpful for people who are frequently moving.
Benzinga: What's on the horizon for Rentberry?
Lubinsky explains that Rentberry is looking to expand into commercial real estate and the senior housing industry.
“The senior housing industry is broken,” he said. It's rife with hidden fees and an overwhelming lack of transparency. Children, who are often the ones burdened with finding a favorable living situation for their parents, are often searching in the dark for rental properties.
Rentberry hopes to bring transparency and usability to senior housing and commercial real estate.
Benzinga: Can you describe your crowdfunding raise?
Rentberry is hosting a crowdfunding raise through Oct. 28. The company is looking to raise $12.4 million and now has raised over $11 million of its goal from about 6,500 investors.
The company has already raised over $21 million from the top venture capital funds and recognized angel investors from Google, McKinsey & Co., CBRE and Harvard Business School Alumni Angels. Lubinsky mentioned that there was also an equity bonus available to all investors. By contributing $10,000, investors can receive up to 20% in bonus shares.
Rentberry is the first closed-loop platform that makes the long-term rental process transparent and safe, offers contactless rental experience, and helps properties realize their true market price. Its patented technology allows tenants to submit custom offers and potentially save $87 billion on move-in costs that are currently blocked as rental security deposits.