The funding amount was undisclosed, but McCarthy Capital typically makes equity investments of between $15 million and $75 million.
The Los Angeles-based company declined to disclose the amount, but Rently COO Andre Sanchez pointed Inman to McCarthy’s website, which says the firm makes equity investments of between $15 million and $75 million in companies with annual revenue of at least $10 million and that have “growth potential, established profitability and proven managers who retain operating control and significant ownership.”
Omaha, Nebraska-based McCarthy manages more than $2.5 billion in assets and has previously invested in Guild Mortgage, United Real Estate and BiggerPockets, according to a press release.
Rently’s automated process for scheduling and verifying prospective tenants holds eight patents, and since the company’s 2011 inception, has managed more than 15 million agentless tours. The company’s mobile-forward technology leverages smart-locks and secure verification software requiring six different security checkpoints, including “selfie checks” and credit card authentication, to ensure aspiring renters are who they say they are.
The individual requesting access receives a code via text to gain access to the apartment. A credit card number must be entered, and users are charged a one-time, $0.99 fee.
Rently will use the investment cash to further develop its hardware and software offerings to real estate operators and renters, including for lease automation, and to continue to grow its intellectual property portfolio, according to the company.
“We have seen a huge acceleration in adoption for Rently, and for many years we have been looking for the right growth partner,” said Merrick Lackner, co-founder and CEO of Rently, in a statement.
“We’re very excited to be working with McCarthy Capital, a firm with a long track record of building sustainable companies. We believe this partnership will serve our clients in real estate well.”
Rently has 124 employees, according to PitchBook Data. The company works with more than 3,500 real estate operators in the U.S. and boasts that its technology reduces time on market by 75 percent and increases net operating income for property owners and managers by reducing leasing costs and generating leads.
“We strive to identify innovators in a given sector,” said Brian Zaversnik, portfolio director at McCarthy Capital, in a statement. “Rently embodies this approach to proptech. We are impressed with the way Rently has pioneered self-guided touring solutions for residential rental vacancies. Their electronic entry hardware and smart home systems simplify property management — a mature, multi-billion-dollar industry that is ripe for disruption.”
Rently has been used by scammers to cheat some renters out of deposit funds, an NBC affiliate in Columbus, Ohio, reported last month. In that story, local agent Matthew Long with HER Realtors advised renters to use an established property manager or a broker.
“The Ohio Division of Real Estate mandates that any real estate professional, anyone licensed must be present for any showing or any tour,” Long said. “If you don’t have someone meeting you there, do not give anybody money.”
Inman has asked whether Rently has made any changes to prevent similar scams from happening again and will update this story if and when we hear back.