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Technology company Entrata, which builds an end-to-end business solution for the multifamily sector, has acquired industry colleague Rent Dynamics in an all-cash nine-figure deal, according to a July 13 announcement sent to Inman.
The specific dollar amount was not disclosed.
Rent Dynamics offers software that assists landlords in reporting positive rent history to credit bureaus as well as other features to help build residents’ financial acumen.
Adam Edmunds, CEO of Entrata, said in the announcement that the company strives to balance services for both property managers and residents. Rent Dynamics’ success in that space argues that the acquisition will further augment Entrata’s ability to serve the latter.
“The combination of Entrata and Rent Dynamics will deliver a huge advance in providing much-needed tools to address a gap that has prevented millions of residents from building credit and long-term financial health,” Edmunds said. “We believe this acquisition will give property owners and operators what they need to drive loyalty, financial well-being, and, ultimately, the very best resident experience.”
Entrata’s vast technology offering spans each step of the rental workflow, from vacancy marketing to streamlining utility invoicing, and manages to maintain a focus on tenant service. It works with institutional apartment owners as well as student housing management, affordable communities, military campuses and office and retail landlords.
Through web and mobile user experiences, the software empowers residents and managers to work closely together on maintenance concerns, payment schedules, lease questions and other critical facets of long-term lease relations. It can also interface with interior technologies for environmental controls and smart connectivity, help leasing agents monitor applicant leads through a robust CRM and broadcast property benefits with marketing automations.
While there is overlap between aspects of Rent Dynamics’ flagship solution, RentPlus, there are gaps to fill in Entrata’s offering as well as features that will benefit from the added flexibility and efficiencies of the former’s credit health tools for tenants.
“We’re proud to have helped hundreds of thousands of residents to date, and are excited to be able to accelerate that effort by pairing with Entrata’s extensive suite of services,” said Quincy Rich, Chief Executive Officer of Rent Dynamics, in the announcement. “We couldn’t be more excited to join a leader like Entrata to help residents take ownership of their financial situation to provide more rent payment options and get credit for paying rent on time — all through one application workflow,” they said.
Consumer payments, such as car loans, student debt and other types have long been included in credit reports because the debt servicing companies — large banks — have the capacity to do so and because they handle the vast majority of the economy’s lending business. In short, landlords, institutional or private, never had the technical capability, and likely interest, to do so. Through its acquisition, Entrata can now offer that service.
Largely on the back of Fannie Mae’s positive rent payment program, other renter-first apps have emerged in the last 24 months to service the savings and credit-building needs of consumers. Gravy, which also reports on-time rent payments to credit agencies, collected a seed round of $2.6 million in April of 2022; and Stake, which offers banking services and cash rewards to renters for being proactive in their occupancy, secured a Series A funding round of $12 million in June 2022. Boom, which reports to all three agencies (most send rent history to two out of the three), announced a seed round of $4.5 million in June.
Financial terms of Entrata’s transaction were not disclosed. The Rent Dynamics team will assume new roles within Entrata to continue innovation and development across the platform, according to the announcement.