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Two technology companies have announced a partnership to offer advanced services in the single family rental space, according to a Dec. 23 press release sent to Inman.
Lessen provides a wide array of technology services to managers of single-family rentals, multifamily communities and commercial income properties, while its newest partner, Darwin Homes, offers a mobile solution for finding, applying and moving into single-family rental homes. It’s owned by publicly traded Pagaya Technologies Ltd.
Lessen reached “unicorn” status in 2021 after a $170 million Series B round of funding, its second major haul that year. Its Series A netted $35 million and was led by Fifth Wall.
In January 2023, Lessen acquired SMS Assist, a facilities maintenance technology company.
The company’s model is based on connecting landlords and their physical management teams to expedite critical functions involved with keeping rental properties operable. The web-based platform relies on a series of collaboration tools, bidding interfaces, project management oversight and rapid payment systems.
“Darwin’s value proposition lies in leveraging innovative technology for property management services,” said Jay McKee, Lessen founder and CEO, in the statement. “Lessen perfectly complements this vision, offering a single, unified platform that brings convenience, consistency and predictability to the entire workflow.”
Darwin’s value proposition rests in the modernization of property management, empowering tenants to find homes to rent, execute leases online, pay rent via a proprietary application and request repairs and other services through its communication portal. It even assists in moving coordination and utility setup.
The partnership will mesh Lessen’s broadly scalable repair and services functionality with Darwin’s suite of tenant services, with the larger goal of addressing skilled labor shortages, increasing responsiveness and reducing operational delays. Darwin will be able to automate more of the processes that serve tenants that involve outside vendors and in-house staff. Long term, the agreement should support Darwin’s ability to expand into new markets.
The single-family rental space has grown significantly in light of a national sales slump.
Institutional investors have entered the space with the intent of creating a new asset class, in part through build-to-rent communities.
Built-for-rent housing involves enterprise-level Wall Street firms, often backed by some of the biggest banks in the world, scooping up homes worth a combined billions of dollars for the purpose of renting them. Developers are also building them from scratch.
According to a July Inman report, Researchers at John Burns Real Estate Consulting have identified more than 700 new communities that include at least 25 contiguous single-family detached and attached homes for rent. In total, the firm’s research has identified 131,000 homes to be built, or a 90 percent supply increase, in the coming years.
Of its partnership with Lessen, Ryan Broderick, CEO of Darwin Homes, Inc., said the two firms will be able to optimize services for both investors and tenants.
“Darwin’s commitment to revolutionizing the rental experience through advanced technology aligns seamlessly with Lessen’s mission to disrupt and modernize the property management industry,” Broderick said in the release.
