Domio, an iRenter that leases units from landlords and then subleases them to short-term guests, has raised an additional $100 million in equity and debt financing, TechCrunch reports.
The funding underlines growing interest in iRenters. Domio puts an interesting spin on the model by applying it to the short-term rental market.
It signs multi-year leases with owners of large apartment units, guaranteeing rent to landlords for a long period of time time. It then outfits the units with furnishings and decor designed to appeal to short-term rental guests.
“Our flexible master-lease model caters to our developer/landlord needs (whether it’s a single unit or full building apart-hotel conversion),” Domio says on its web page soliciting landlord partners. “We invest in our locations and treat them like we own them.”
Domio’s Series B funding round was led by CGV Capital, with participation from Eldridge Industries, 3L Capital, Tribeca Venture Partners, SoftBank NY, Tenaya Capital and Upper90, according to TechCrunch.
Upper90 led the debt financing portion of the round. Similar to how iBuyers, such as Opendoor, to purchase and then resell homes quickly, Domio will use this debt to lease, spruce up and then sublease units to travelers.
Domio markets units that are significantly larger than typical listings on the short-term rental platform Airbnb. The company’s website states that its founders want to reduce the odds that families and friends traveling to cities won’t have to stay in separate rentals. It’s trying to provide “larger spaces that focus on comfort, consistency and world-class design.”
With the $50 million in equity and $50 million in debt raised through the funding round, Domio plans to expand to 25 markets by next year, TechCrunch reports. In Phoenix, the company advertises nearly 60 listings.
Domio runs among a crew of startups that are “institutionalizing” short-term rentals, much as companies like Invitation Homes (formerly owned by Blackstone) brought corporate ownership and management to the single-family home market. Other players include Sonder and Guesty.
Domio stands out because, unlike some of these other platforms, Domio leases out units itself, rather than leasing them out on behalf of landlords for a fee, or for a cut of the rental revenue. Leavy is a variation on this concept, leasing from other renters and then subleasing their homes over much shorter time periods.
Both are bringing the iRenter model to the hospitality industry. IRenters lease units from landlords and then sublease them to tenants at a premium, or at the least, guarantee rent to landlords. Those that focus on longer-term tenants include Bungalow, Doorstead and Blueground.