Doorstead, a tech-forward full-service property management company based in San Francisco, announced that it has closed on $12.5 million in Series A funding in a press release.
The company provides residential landlords with an upfront rental guarantee.
The financing which was oversubscribed — meaning it raised more than was needed — and led by Madrona Venture Group and included operating executives from Opendoor, Uber and DocuSign.
Madrona Venture Group was an early investor in Redfin.
The company’s model is predicated on providing its landlord customers with a patent-pending rent analysis solution that identifies the ideal rate after processing more than an 11 million market data points.
According to the press release, within 24 hours of request for a given property, Doorstead provides a guaranteed rental rate, occupancy date and a year of cash flow for the owner.
As is common with full-service property management firms, Doorstead oversees all aspects of unit marketing, applicant screening, leasing and management throughout the term. The company states that its leasing and placement time is 57 percent faster than the industry average and that clients earn $2,300 more per year with Doorstead than their prior property managers.
Ryan Waliany, CEO and co-founder of Doorstead, said in the release that he’s excited about the stable of investors backing the company and that the company is poised to better property management nationwide.
“Starting with pricing and occupancy, we are applying deep technology and operations capabilities to eliminate all of the headaches, friction and uncertainty involved with owning residential rental properties” Waliany said. “We are just getting started in our journey to provide cash-flow certainty to all small residential landlords everywhere.”
The company works with both institutional landlords and individual investor-owners. It has two levels of service, Traditional and Guarantee. The latter provides upfront rent, negotiation and $15,000 of eviction protection.
Like many tech-enabled real estate companies, Doorstead’s 2020 was lucrative. It grew by 50 percent each quarter of the year. It now has more than $10 million in rent under management, the press release states. It’s also working with landlords in Los Angeles and Orange County.
Funds from the Series A round will be dedicated to enhancing its pricing and fulfillment technology, as well as for general product improvement and market growth.
