Over the past five years, the process of selling a home has undergone a radical transformation sparked by the “iBuyer” – a real estate company that buys and sells properties using technology. Opendoor created the category in 2014. Several other tech-focused companies like Zillow, OfferPad, and RedFin have entered the space since.
iBuyers’ proposition is quite simple and quite compelling: Sell your home to us for a reasonable price without all the hassle, then we’ll fix it up and resell it with a margin. This is likely why, according to Mike DelPrete’s 2020 iBuyer report, the niche’s market share doubled from 2017 to 2018 and again in 2019, accounting for more than 0.5% of home sales in the states. -United.
While this technological phenomenon has disrupted home buying, a similar innovation has yet to reach the other side of the housing market: residential rental. Enter REZI, a real estate technology company on a mission to adopt and transform iBuying into a new category: iRenting.
Landlords have various costs built into the traditional rental process: including agent fees, tenant concessions, and listing times (days on market). These hidden costs can result in a difference between asking and actual rents for a newly vacant apartment of up to 35%. iRenting, however, increases net effective rents because iRenters’ technology reduces these hidden costs. Not only do landlords earn more per unit, but they also avoid taking on any credit risk from individual tenants. The iRenter becomes the landlord’s tenant and assumes the risk of finding long-term tenants to sublet the apartments.
As an iRenter, REZI enables landlords and tenants to rent apartments more efficiently. For landlords, REZI’s offer is just as compelling as iBuyers’ offer for landlords: rent your apartment from REZI for a guaranteed monthly rent, with no downtime or credit risk for tenants.
Unlike the iBuying model, REZI’s iRenter model does not include repairing, turning, furnishing or modifying the space. Instead, it relies on a suite of AI-powered technologies to correct the rental experience itself to create additional value by minimizing or eliminating vacancy and placement costs. By using data-driven pricing, personalized omnichannel marketing, contactless tours, automated due diligence, and digital leasing, REZI is able to significantly reduce rental costs and pass some of the savings on to landlords.
As the example above shows, REZI can generate 10-20% more revenue over the life of each vacant lease. REZI keeps a percentage of the incremental revenue while passing the rest on to landlords by paying them net effective rent in excess of what they receive through a traditional rental process.
Additionally, landlords using iRenters also minimize the operational headache of finding and qualifying tenants. Much like how iBuying simplifies the intricate details of selling a home, iRenting automates renting so owners can focus on high-value tasks like raising capital, improving capital or expanding. of their wallets.
In a market characterized by uncertainty and high costs, iRenters like REZI offer landlords certainty and higher incomes. As landlords seek to better manage vacancies and operational costs in the wake of the pandemic, these solutions provide seamless access to optimal rental income. The power of the iRenter model has the potential to revolutionize renting, similar to the impact of iBuying on the housing market today.
Learn more about REZI and how iRenting can improve your portfolio performance by visiting leasing.rentrezi.com.