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    Rented.com

    We connect homeowners, hosts, and investors with the world's best property managers.

    executive
    summary

    Mission

    Our mission is to help create better partnerships between property owners and property managers. By providing a transparent marketplace where homeowners can easily compare management options, Rented.com is helping property owners find better management.

    Market Size

    Our Total Addressable Market has grown from $40 billion in 1999 to $150 billion today, to a projected $204 billion by 2025, and is shifting from P2P to B2C.

    Differentiator

    As we have cemented our place as the first, largest, and most trusted market connecting owners with managers, Rented.com is uniquely positioned to take advantage of shifting preferences for more professional management.

    Margin

    Our customer acquisition model has been honed to the point that in the first year alone we get a 6X+ return on the CAC.

    Background

    We have a proven track record of execution thanks to complete alignment at any given moment on the One Metric That Matters (OMTM). Month by month and quarter by quarter, we deliver meaningful results.

    Growth

    Rented.com has averaged greater than 20% month on month compounded growth since launch.

    Round

    We are raising $6 to $8 million to accelerate our growth.

    Growth Since Launch

    GMV Signed Over Period

    Sharing Economy

    Evolution of Short-Term Rentals

    Growth of Short-Term Rentals

    The short-term rental industry has seen an explosion of growth, from $40 billion in 1999, to $150 billion, with forecasts of $204 billion in 2025.

    Market Maturity

    As markets mature, they evolve from cottage industries into large, professional industries.
    The pain associated with P2P short-term rentals is the catalyst for this market evolving into a new, dominating industry.

    Commercial Real Estate

    (Mature)

    b2c

    $9.0B

    b2b

    $6.7B

    Residential Real Estate

    (Mature)

    b2c

    $5.7B

    b2b

    $4B

    Short-Term Rentals

    (Not Yet Mature)

    b2c

    $30B

    b2b

    We are the only player in the B2B short-term rental space

    Hotels

    Industry Verticals

    Asset Owner

    REITs, Hedge funds, Investors

    Operator

    Local families, host hotels

    Flag/Brand

    Internationally recognized brands

    Distributor

    Where most booking occurs

    Guest

    Traveler actually sleeping in the asset

    Short-term rentals

    Industry Verticals

    Asset Owner

    Second homes, investment properties

    No easy way to acquire new inventory

    Operator & Flag/Brand

    Two combined verticals, currently attracting most investment

    Distributor

    Where most booking occurs

    Guest

    Traveler actually sleeping in the asset

    Sharing Economy

    The sharing economy has become painful.

    Billions of dollars are spent every year in an attempt to transform second homeowners into property managers. In order to rent a property through Airbnb, HomeAway, VRBO, or countless other P2P platforms, a property owner must assume a full time property manager role. The average P2P renter spends over 8 hours per week managing their rental property.

    The time & resource commitment required by the P2P sharing economy is simply too great for the vast majority of second homeowners. For this reason, 60% of second homes are not rented.

    8.4

    Hours

    Per Week

    Avg time required to rent a P2P property

    60%

    Second Homes

    Not Rented

    The shift from self-managed to professionally-managed short-term rentals has begun.

    Percentage of short-term rentals managed by professionals

    Economics of the Shift

    The outcome of different roles assuming responsibility for the rental property

    Homeowner Manager

    Rental Revenue

    $25,000

    Maintenance

    $10,000

    Cleaning

    $5,500

    Essentials

    $1,000

    Marketing

    $1,500

    Occupancy Taxes

    $4,000

    Total Costs

    $22,000

    Contribution

    $3,000

    Traditional Property Manager

    Rental Revenue

    $30,000

    Maintenance

    $6,000

    Cleaning

    $1,500

    Essentials

    $500

    Marketing

    $3,000

    Occupancy Taxes

    $4,800

    Total Costs

    $15,000

    Contribution

    $5,680

    Tech-Savvy Property Manager

    Rental Revenue

    $35,000

    Maintenance

    $3,000

    Cleaning

    $1,000

    Essentials

    $500

    Marketing

    $500

    Occupancy Taxes

    $5,600

    Total Costs

    $6,000

    Contribution

    $9,760

    These tech-savvy managers can generate 3.5x more revenue than a homeowner manager, allowing for additional marketing spend to grow their portfolios via Rented.com.

    Sharing Economy

    P2P Short-Term Rental Process

    Hosting in the P2P economy is not as easy as it sounds. Not only are hosts marketing and booking their homes; they’re also vetting renters, exchanging keys, changing sheets and towels, and scrubbing toilets. For the amateur host, it is an operational nightmare.

    Marketplace

    For HomeOwners

    Finding a property manager is hard.

    Typically, second homeowners do not live in the same geography as their second home, often hundreds of miles away, making the task of simply meeting and vetting property managers difficult.

    Reviewing a property manager is often impossible, with a lack of existing online experiences associated with a manager, thus making any comparison of local property managers impossible.

    Each manager utilizes a unique agreement, often containing non-standard language (with miscellaneous & hidden fees) and conditions, making comparison and vetting of these managers extremely difficult for homeowners.

    Marketplace

    For Property Managers

    Finding properties to manage is hard.

    Recruiting homeowners is not easy. It requires marketing campaigns, a sales team, and time. That’s why property managers that excel at managing homes trust us to excel at recruiting owners.

    Recruiting and onboarding new homeowners is a slow process for property managers. With the recruitment process and contract negotiations often lasting multiple months, property managers are drained of resources and time.

    Not only is recruiting new homeowners difficult; it is also costly. Customer acquisition costs for property managers average from $5,000 to $10,000, but that is easily reduced by 60% to 80% with Rented.com.

    Marketplace

    The Solution

    We saw the market shifting away from DIY management and towards professional property management.

    We recognized the difficulty homeowners experienced in finding and comparing property managers.

    So we built the solution.

    Listing on Rented.com

    We want you to make money. We deliberately designed our new pricing to lower the prices of the majority of deals—which means an average savings of 22%.

    Offers submitted

    commission

    Managers bid to offer homeowners the most competitive rates with the highest ensured standard of care.
    These offers are the most submitted.

    Guaranteed Income

    With these offers, the homeowner receives a fixed amount each month regardless of occupancy. Managers provide turnkey service and bid with the highest amount of guaranteed income.
    These offers are the most accepted.

    Offer Accepted

    No longer is the entire payment due at the time of signing with the owner—we are now tying payment to your cashflows from renting the property. The fee is broken into equal monthly payments, with the first payment due at signing and the others to be paid during the Term of the contract.

    Our Platform

    Rented.com is a quickly growing marketplace that is fast becoming the default platform for connecting second homeowners and real estate investors with professional short-term rental managers—a $150 billion market.


    We make money through a combination of annual subscription fees charged to our managers (>700 on the platform) and transaction fees that average 5% of the transaction value signed. In the exploding short-term rentals market, Rented.com is uniquely positioned to take advantage of shifting preferences for more professional management.

    Offer Types

    commission

    Managers bid to offer homeowners the most competitive rates with the highest ensured standard of care.
    These offers are the most submitted

    Guaranteed Income

    With these offers, the homeowner receives a fixed amount each month regardless of occupancy. Managers provide turnkey service and bid with the highest amount of guaranteed income.
    These offers are the most accepted.

    Marketplace

    Our epiphany

    Homeowners love Guaranteed Offers

    but

    Property managers are scared of them.

    This realization was the catalyst for the creation of our newest product. With Rented-Backed deals, Rented.com now dictates liquidity in the market.

    Rented-Backed

    The Numbers

    Our Marketplace.

    Activity within our online platform.

    Supply Side

    $200MM

    Over $200MM worth of rental rights have been listed by homeowners and investors.

    Demand Side

    $100MM

    Professional property managers have created more than $100MM in rental rights bids through our platform.

    Rented Signed

    $10MM

    Through our platform, agreements between homeowners and property managers have been signed, representing over $10MM.

    Since launching Rented.com on September 30, 2015, our focus has been to shift from sales-based growth to a business driven by marketing and product. Slightly more than a year into this process, the efforts are bearing fruit. Inbound leads and their value have climbed steadily. At the same time, acquisition costs are consistently declining.

    The core marketplace continues to grow and thrive even as we tap into new lines of growth like multi-family supply and “Rented-Backed” deals. All of this combined has led to a quintupling of monthly GMV from the launch of Rented.com to today.

    Metrics & Growth

    Continuous Improvement

    Sign Rate

    We are believers in the concept of the “One Metric That Matters” (OMTM). This has allowed us to focus on the single biggest driver of our success at any given time in the company’s development.

    At the launch of Rented.com this metric was the “Acceptance to Sign” rate. If a manager made an offer and a homeowner accepted that offer, the parties should sign a contract. It seems simple and obvious, and yet at our launch, the number was less than 20%.

    With dedicated focus by the team, we were able to surpass our 90% target by Q2 2016, and we have held steady at 95%+ ever since.

    Acceptance Rate

    With victory declared on “Acceptance to Sign” the team shifted our focus to “Acceptance Rate.” As a marketplace, increasing the percentage of offers submitted that are accepted was now the biggest lever we could pull to deliver value to our customers and grow the business.

    With the initial focus on “Sign Rate,” Acceptance Rate took an understandable early dip.

    As the focus shifted to Acceptance Rate, it began to steadily climb, and it is now 3X greater than it was at the beginning of 2016. We believe this is a number we can still improve, and it remains our OMTM.

    Listing Value

    These efforts combined have enabled us to increase the expected value of every Rented.com Listing by over 10X since the launch of the site.

    For every 50 Listings, we convert 10 to signed Deals.
    With an average Deal value of $40,000 and our take rate averaging 5%, we make $20,000 on average from every 50 Listings.

    20%

    Conversion Rate

    For every 50 Listings, we convert 10 to signed Deals.

    $40,000

    Deal Value

    Each signed Deal represents $40,000 in GMV.

    5%

     Our Revenue  

    On average, we make $20,000 (5% of Deal Value) from every 50 Listings.

    Acquisition

    At the same time, building the Rented.com brand has enabled us to dramatically decrease our customer acquisition costs (CAC). This has been possible as efforts shifted from a manual sales process to an online marketing approach.

    Our efforts have proven successful thus far, decreasing our CAC by more than 90%, and we look forward to more improvements in the future.

    Round

    Product Development

    Continue to build out the Rented.com platform to stay ahead of our growth and better serve our customers.

    Marketing

    Scale our proven cost-effective marketing efforts to drive market growth.

    Awareness

    Build the Rented.com brand as THE solution for connecting second homeowners and real estate investors with the best management solutions.

    Relax. It's Rented.

    admin@rented.com

    How Rented.com works.

    Owners create a private profile to begin getting offers. With photos, a description of the home, and the dates they want it rented.

    1. Create profile

    Owners create a private profile to begin getting offers. With photos, a description of the home, and the dates they want it rented.