Companies like Flex, Till and NestEgg have raised cash to put renters on flexible payment plans. Flex and NestEgg have gone as far as fronting monthly payments to landlords. And San Francisco-based rental marketplace Zumper followed suit this summer when it rolled out a rent guarantee for landlords. The companies make money by charging either the landlord or tenant a fee.
Since March 2020, Zumper has raised $60 million, Till has raised $8 million and NestEgg has raised $7 million from investors keen to address inefficiencies in rent collection, which have been exacerbated by the pandemic.
“Even if your tenants are paying you on time, you’re not getting money until the fifth or sixth of the month,” said Eachan Fletcher, a former Expedia CTO, who co-founded NestEgg in 2017. “That means the first week of each month for landlords is a mini cash-flow crisis.
NestEgg, which raised its Series A in November 2020, is a lease management tool for landlords that provides a rent guarantee: The startup pays landlords on the first of the month and gives tenants flexible terms to repay their debt. Fletcher said NestEgg pays landlords using a $10 million line of credit; landlords pay $9 per unit per month for the service, and the company doesn’t charge interest or fees to tenants.