RentSpree, a profitable real estate startup helping mom-and-pop landlords, bets big on Seattle

Michael Lucarelli is looking for Seattle food recommendations — after relocating to the city earlier this year and moving his company with him.

RentSpree, which got its start in Los Angeles but is now headquartered in downtown Seattle, has built a profitable business helping landlords and real estate agents screen tenants, collect rent, sign leases, and manage rentals online.

The company, founded in 2016, serves more than 4 million users and is growing without relying heavily on paid advertising, said Lucarelli, CEO and co-founder of RentSpree.

Lucarelli, a former real estate agent, said Seattle stood out because of its concentration of real estate and proptech companies such as Zillow, Redfin, and Opendoor. The company this month hired former Redfin exec Alex Berezhnyy as chief technology officer, further anchoring its presence in the region, where more than half of the executive team is now based. It has more than 30 employees in Seattle.

“Seattle is really great for talent that balances both an aggressive growth perspective, but also building sustainable companies over time,” Lucarelli said.

RentSpree targets “DIY” landlords, typically individuals who own one to four rental units and still rely on paper applications and manual rent collection. The company’s software helps them manage the entire rental process online, from applications and leases to monthly payments.

While landlords and real estate agents are RentSpree’s core users, the company makes most of its money from renters, who pay application fees and small convenience fees for rent payments. That model has helped fuel its payments business, which is now growing about 150% year-over-year and processing hundreds of millions of dollars annually.

RentSpree also recently launched a banking-as-a-service offering that lets landlords open bank accounts through the platform, earn interest, and track expenses — pushing the company further into fintech territory.

The company’s real advantage is it’s distribution, Lucarelli said. Instead of relying on digital ads, RentSpree partners with MLS systems, Realtor associations, and real estate software platforms to reach landlords where they already work.

More than 10,000 landlords and agents use RentSpree each month. The company has rolled out new AI features to help streamline filling out forms and listing properties.

“We’re focusing on the important jobs that they’re trying to accomplish, or things that they’re doing already — and how we can make it vastly easier by utilizing AI for them,” Lucarelli said.

The company has raised $28 million to date and employs 135 people across the company in the U.S. and Thailand.