One of the most challenging parts of owning rental properties is managing them. And the burden of management is even greater for rentals outside of your local market. Fortunately, single-family rental investors have some exciting new tech solutions to look forward to after Darwin Homes, a tech start-up co-founded by Ryan Broderick and Zachary Kinloch, co-founders of DoorDash (NYSE: DASH), announced $15 million Series A funding for its property management software.
New rental-management solution
The funding round, which was led by Canvas Ventures, raised capital from venture capital firms Camber Creek, Khosla Ventures, Wave Capital, Pear Ventures, and Silicon Valley Bank, as well as angel investors Tony Xu (DoorDash), Ryan Graves (Uber (NYSE: UBER)), and Andrew Marks (TQ Ventures) with the plan to merge rental management with high tech, providing-long term solutions for landlords nationwide.
Right now, software platforms still rely on having your own team of professionals, putting a lot of pressure on the landlord or investment manager during the initial growth of the rental portfolio. Darwin Homes hopes to eliminate this gap by connecting well-vetted management companies to landlords through their end-to-end service software. The software will not only connect clients with professional management; it will also help both parties with management oversight, including accounting, leasing, inspections, maintenance, and repairs in the integrated platform.
Targeting key markets
Darwin Homes has stated its first goal is to expand services to new markets, including Florida, Ohio, Tennessee, Colorado, and North Carolina, a few states where single-family rental activity is highest. The biggest hurdle the company will face as it expands and brings this new software to the market is finding and contracting with worthwhile management professionals. Particularly, having enough people in the network to meet user demand will be key. If the company is able to pull this off and deliver the high-tech software so many of us have come to rely on as an everyday part of our lives, Darwin Homes could redefine how many of us manage our rentals.