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There’s a lot more to running rental properties than buying houses, finding tenants, and collecting rent. Real estate investors also need the right professionals to clean and turn over their properties between tenants, perform maintenance and repairs in a timely manner, and even tackle renovations as needed.
But finding, vetting, coordinating with, and paying all these professionals can be incredibly time consuming. This is especially true if you own multiple properties or a multifamily property. That’s why many rental property investors choose to hire a property manager rather than try to handle it all themselves. But if it could all be a lot less hassle, more investors might consider managing their own properties so they could keep more of that revenue in their pockets.
That’s where the latest real estate property technology (proptech) unicorn comes in. The Scottsdale, Arizona-based company closed a $170 million Series B funding round on Nov. 30, bringing its valuation to over $1 billion. Lessen’s marketplace platform automates the entire property services process for property owners from start to finish.
Let’s look at what Lessen is doing for rental property owners and what the company’s plans are for the future, as well as explore whether Lessen might be a good solution for your property management needs.
Good help is hard to find
The thought of coordinating with contractors for your various needs across several properties can be overwhelming. If one property needs a turnover cleaning and painting, another has some weird stuff going on with the electricity, and you need a roofer at a third, it can be hard to know where to even begin.
Making matters more difficult, reliable professionals who do great work are in high demand and can be hard to book in a timely manner. And for that matter, how do you even know who’s reliable?
Lessen’s platform currently has more than 2,000 carefully vetted service providers in over 30 markets. The company attracts these professionals by offering guaranteed timely payments and a way to keep steady work coming in, as well as a platform for streamlining their workflows. And because investors aren’t always sure exactly what the work will entail, Lessen employees can help define the scope before making the job available to contractors on the platform.
Lessen is also looking at the long-term problem of an increasing number of trade workers aging out and fewer stepping up to take their place. As the company continues to scale, it has plans to attract new talent into the trades — and onto its own platform — with offerings like apprenticeship and onboarding programs.
Could Lessen help you manage your investment properties?
According to Lessen CTO Chris Bee, while the majority of Lessen’s current client base is institutional investors, the system works just as well whether you’re a real estate investment trust (REIT) or an investor with a few rental properties or an apartment building.
If you’d like to manage your own rental properties but feel too overwhelmed at the thought of trying to coordinate all those moving parts, you may want to take a closer look at Lessen. The company’s platform may just give you the confidence you need to take that step.