RentBetter Raises $5M to Bypass Agents in Rental Market
A third of Australian rentals now skip agents. RentBetter raised $5 million to help landlords cut costs amid rising rents.
Key points
- RentBetter raised $5 million to support landlords who skip real estate agents.
- One-third of Australia’s 2.2 million rentals are now managed without agents.
- Bypassing agents saves landlords $2,400 to $5,000 annually per property.
RentBetter secured $5 million in venture capital to disrupt the rental sector. About one-third of Australia’s 2.2 million residential leases now bypass agents.
Landlords are rejecting traditional management to reduce expenses. Agent fees typically consume 5 to 9 percent of monthly rental income.
Direct management saves landlords significant cash
Removing agents cuts annual costs by $2,400 to $5,000 per property. RentBetter reports this trend is accelerating as the market tightens.
Jeremy Goldschmidt founded the platform in 2018 after poor service experiences. He argues owners manage assets better than third-party agents.
Rents rise despite falling sale prices
Sydney house prices dropped 5.3 percent since January this year. Yet median rents rose nearly 8 percent in the June quarter.
Landlords increased rents to offset lower expected capital gains. Domain data confirms this divergence between sale prices and rental costs.
Savings rarely transfer to tenants directly
The Real Estate Institute of NSW says savings stay with owners. Tim McKibbin states there is no evidence of shared savings.
Leo Patterson Ross notes new rents depend on tenant capacity to pay. He doubts landlords will pass on the cost reductions to renters.
