PropTech June Homes, which uses algorithm technology to help family owners and apartment residents find economically viable rental matches, announced this week that it has raised $ 50 million in total funding.
Funding is led by SoftBank Ventures Asia with participation from TQ Ventures (founded by Schuster Tanger, Scooter Braun and Andrew Marks), FJ Labs, K50, Reshape, Quiet Capital and angel investors including musician Demi Lovato and Scott Belsky ( founder of Behance).
The $ 50 million equity financing includes a recently raised $ 27 million Series B, as well as a previously unannounced $ 13 million Series A and $ 10 million seed funding. The capital will be used to fuel the company’s expansion into other US markets and continue its mission of creating a fairer, more transparent and efficient real estate system.
Company in six major markets
June Homes founder Daniel Mishin told GlobeSt his 4-year-old business operates approximately 1,600 apartment homes in six major markets – New York, Boston, San Francisco, Los Angeles, Washington, DC and Philadelphia.
Its business proposition to homeowners is to use its proprietary algorithm to study a market and potential tenants and allow both brokerage fees and other upfront costs to be bypassed in a simpler process. June Homes tenants can discover, apply for and move into their new home in as little as three hours, Mishin said.
June Homes has experienced 2.5x quarter-over-quarter tenant growth and 2.5x more units in the past six months.
He said his system helped reduce the time to market for vacant apartments from 75 days to 7.5 days, based on July 2020 performance. The units are fully customizable – tenants can rent furnished or unfurnished or include roommates.
June Homes takes care of the rental, paying the rent, and communicating with landlords for any issues. Apartment owners can choose to have June Homes manage the apartments or continue to use their current management company.
The company has 25.5 times fewer defaults than the industry average. In the event of a tenant default, June Homes will pay the remaining months of rent on the lease as she seeks a new tenant.
June Home tenants can opt for lease terms varying from one month to 18 months. During their first seven days in the unit, if they are not satisfied, they will not be charged rent and may move to another June Homes apartment with no moving costs. June Homes will rent an entire apartment, or look for three different people who want to rent, for example, within a 3-BR apartment.
Homeowners choose their own level of risk
Landlords can choose how much risk they want in the strategy, Mishin said, either by sharing a percentage of the rent collected or by paying a management fee.
The company’s algorithm detects apartments with untapped potential (often in poor condition) and has developed a process to inspect, upgrade, renovate and list units for rent in just under 72 hours.
“Innovation in the rental market is long overdue, and we believe that June Homes’ modern approach will solve key issues for tenants and landlords,” said Sherman Li, partner at SoftBank Ventures Asia and member of the board of directors of June Homes.
“June Homes lives at the intersection of a few trends that are having lasting effects: a broken rental system, a hybrid / remote workforce and a tough housing market. We’ve seen the June Homes team tackle space issues and redefine the market by providing more efficient and reliable services.