Chicago, Illinois-based tenant screening platform Rent Butter has raised $3 million in a seed funding round led by RET Ventures.

The company was founded by Chris Rankin and Tom Raleigh in 2021 and targets property owners who cater for multi-family occupancy properties. It aims to help owners assess financial risk when screening potential tenants and also help tenant build a financial resume and improve their credit score, so they are not penalised for financial mistakes made in their past that can become embedded in credit scores that remain static, pending new data.

Rent Butter aims to replace how companies usually screen tenants by linking to existing systems. It uses a digital application which provides property owners with banking and credit behavior reports, instantly validates identification documents, integrates with existing CRMs and helps reduce eviction and turnover rates at multifamily properties. The platform also validates documents such as applicant ID’s income and employment records to protect owners against fraud.

It works by linking to an applicant’s bank account, so that a leasing team can access it to assess the applicant based on alternative data, including banking information, income and expense information, an analysis of their credit behavior and rent payment history.

This, the company says, gives a better indication of an applicant’s overall creditworthiness because it can show how a credit score is actually trending, based on more recent events. If the credit score is trending up, the applicant is more likely to be a “safe” tenant. If it’s trending down, the tool lets the leasing team know.

The company plans to use the new funds to expand its product range and customer numbers into conventional Class A and B multifamily and single-family rentals in 2023.

Rent Butter now has properties that include 120,00 residential units, which includes apartments and trailers that use its tool.

 

Print Friendly, PDF & Email

Related Articles