Home News Belong secures $80M to take the pain out of rental property management – TechCrunch

Belong secures $80M to take the pain out of rental property management – TechCrunch

by admin
0 comment

Historically, the landlord-tenant relationship can be controversial.

At the same time, the experience of managing and renting properties is not always smooth.

Belong toIs a start-up that aims to address both of these issues while providing lessors with a way to save money on home ownership, and to expand the services and markets it offers, $ 50 million. Raised shares in the company and secured a debt of $ 30 million. Fifthwall led equity finance at Repeater Battery Ventures, Andreessen Horowitz (a16z), GGV Capital. The round was preempted by Fifthwall, said Owen Savir, co-founder and president of Belong.

Founded in 2019 by Argentine-born Ale Resnik, Savill and Tyler Inferise, Belong is a three-sided marketplace that serves both landlords and renters.

From the homeowner’s point of view, Belong offers home management services that make it easier to own a rental home. For example, if a rental property needs repair, the startup has an in-house maintenance team that can repair it on behalf of the landlord. It also provides homeowners with financial tools to manage their investments and guarantees rent on the first day of every month. It also helps the owner to repair the property and make it rentable.

On the lessor side, Belong says they have created a system that gives them a way to build ownership of their home. For example, for each one-time rent payment, the resident will get back about 3% of the rent. This will be accumulated in your account for use as a down payment when you purchase your home, but only if it is used. Buy a home through that platform. As you can see, the company also functions as a real estate agent.

The mission is similar to that of the Proptech unicorn Divvy, but with a different model. Raised $ 200 million in a $ 2 billion valuation last August, Divvy buys homes on behalf of lessors and helps them become homeowners.

According to Resnik, a former guest entrepreneur at a16z who previously founded three other startups, Belong differs from other products in this area in that it addresses the part of property management.

Resnik said Belong’s concept was inspired by the “pain” he and one of his co-founders had when renting a house.

“I’m keenly aware of all the pain people experience when they need to rent a house,” he told TechCrunch.

As they were studying the issue, they discovered a tendency for “concerns” that more institutional investors were increasingly owning a share of the housing stock market.

“We delved into why there are no more individual homeowners, which will be a net plus for the economy,” said Lesnick. “And I found it not easy to buy and manage a home and do it in a stress-free way.”

Image credit: Belong to

Simply put, Belong takes residents out of their “second-class citizenship”, connects them with homeowners who “want to provide them with a great experience,” and those homeowners take over management to startups. I want

Resnik refused to reveal valuations or tight earnings, but Belong, based in San Mateo, California, said it almost tripled earnings in 2021. I am in debt so far.

According to Resnik, the startup has a variety of sources of revenue. For one thing, homeowners pay 8% of the rent Belong collects for the “manage the house end-to-end” service. With the built-in payment infrastructure, the lessee pays through the platform and the money comes out of it automatically. Every time a startup raises a resident of a home, they get a 6% share of the rent. Homeowners can also raise money for maintenance and repairs that need to be performed on their home.

Today, Belong operates in the Bay Area, Southern California, Miami, and Seattle, with engineering teams spread throughout Lat Am, the source of Resnik’s pride. Today, thousands of homeowners and nearly 7,000 lessors are using the platform. The company aims to expand into new markets with new capital, hire more and focus on product development.

FifthWall, a major investor, has invested in companies that help consumers streamline their home buying and selling processes. However, partner Dan Wenhold believes Belong “closes a significant market gap by providing that technology after consumers become homeowners or renters.”

“We believe Belong’s People First model raises the bar for future home rental and ownership,” he said, focusing on the retail segment of single-family home owners and lessors. He said that was a “significant differentiator.”

“These groups were traditionally underserved by offline real estate managers who didn’t use technology or a technology-first approach to solve the problem,” Wenhold told TechCrunch. “With our operations and the service professionals in each of the markets they operate, Belong brings a full-stack approach to asset management.”

In general, more and more companies are focusing on lessees.Earlier this week, TechCrunch was Arrived $ 25 Million Series A.. The startup raised money from Forerunner Ventures and Bezos Expeditions, a private investment fund by Jeff Bezos, allowing people to buy single-family rent for “only $ 100.”

My weekly FinTech newsletter, The Interchange, was published on May 1st.sign up Here Put it in your inbox.

You may also like