It’s about motivation, said Robert Henrichs, describing the co-founders of Kansas City-based Simplifyy’s decision to invest $4.75 million in the RentTech startup.
“There is a lot of confidence around the venture because the founders have years of industry experience and recognize it is primed for disruption,” said Henrichs, who is responsible for marketing at Simplifyy. “In the traditional multifamily/apartment space there has been little motivation for innovation on the operations side of the business from traditional property management companies.”
Simplifyy has developed the first end-to-end total solution for multifamily property owners to reduce expenses, increase revenues, and ultimately enhance ROI, he said. After working in closed beta since 2018, the company launched in October behind the investment from its three founders: multifamily owner-operator Paul Worcester, technology guru Jake Lisby, and apartment/technology investor Russell Reitz, said Henrichs.
The startup is powering more than 500 multifamily units in Kansas City today and is on pace to be supporting 3,000 units by the end of 2020, he added. It’s a significant goal in the antiquated U.S. multifamily apartment industry, which totals 20 million units holding $3 trillion in real estate value, Henrichs added.
“Property management companies spend $0.03 on capital improvements for every dollar spent on wages. By contrast, the rental car industry, disrupted by ride-sharing players such as Uber and Lyft, spends $2.53 on capital improvements for every labor dollar,” he said. “Multifamily property owners are looking for ways to leverage technology to optimize their properties, but there has been no single solution up until Simplifyy.”
Click here to learn more about Simplifyy.
Simplifyy covers core property operating expenses including advertising, administration, and office payroll for one monthly price. Additionally, Simplifyy Communities — free to residents — features free mobile applications, screening, leasing, rent payment, 24/7 tours and concierge, maintenance reviews, resident rewards, community engagement, and smart home technology through Simplifyy’s strategic partner, Kansas City-born smart home leader Homebase AI, Henrichs said.
Click here to read more about Homebase, one of Startland’s Kansas City Startups to Watch in 2019.
“Leveraging advancements in smart home technology is a cornerstone of the Simplifyy business model. Simplifyy not only partners with Homebase but is also an equity investor, paving our path towards streamlined implementation of smart home technology,” Henrichs said. “The partnership is made stronger by the two companies’ HQ’s being a few blocks away from each other.”
The strategic partnership with Homebase helps Simplifyy implement the new approach to property operations, he added.
“Utilizing technology like smart locks we are able to coordinate 24/7 self-guided tours with ease, speed up the maintenance response time, and give residents the ability to better handle access to their unit,” Henrichs said.