June Homes, a proptech company that's using technology to fix the antiquated apartment rental experience for both everyday consumers and mom-and-pop landlords, announced today that it has raised $50 million in total funding. The funding is led by SoftBank Ventures Asia with participation from TQ Ventures (founded by Schuster Tanger, Scooter Braun, and Andrew Marks), FJ Labs, K50, Reshape, Quiet Capital, and angel investors including Demi Lovato (musician and human rights activist) and Scott Belsky (founder of Behance). The $50M in equity financing includes a recently raised $27M Series B as well as a previously unannounced $13M Series A and $10M in seed funding. Capital will be used to fuel the company’s expansion to other U.S. markets and further its mission to create a more fair, transparent, and efficient real estate system.
A June Homes apartment in NYC’s Upper East Side neighborhood. (Photo: Business Wire)
The current rental system is broken for both tenants and small landlords. For tenants, upfront costs associated with renting are exorbitant, outdated approval requirements are often unattainable, and year-long lease lengths are binding. The process of renting an apartment is cumbersome -- time consuming, slow-moving, and full of excessive paperwork. For landlords, long vacancies, broker and management fees, and COVID-related eviction moratoriums put mom-and-pop owners at risk of losing their generational wealth.
The company has built an algorithm that detects apartments with untapped potential (often in disrepair) and developed a process to inspect, upgrade, renovate, and list units for rent in just under 72 hours.
June Homes tenants can discover, apply for, and move into their new home in as little as three hours. The homes are fully customizable -- tenants can rent furnished or unfurnished, with roommates or alone, and have the option to stay for as long as they’d like (1-18 months) while paying fair and accessible prices. Unlike typical short-term corporate housing companies that upcharge tenants by up to 2x for flexibility, June Homes’ rental rates are more in line with the price range you’d expect to pay on a traditional lease.
On the landlord side, June Homes serves as a turn-key partner that eliminates broker and management fees and ensures that properties are filled with tenants 10x faster than traditional legacy systems. June Homes reduces the risk of being an owner by taking the responsibility for tenant defaults, non payments, and overall building performance.
Led by founder and CEO Daniel Mishin, a serial real estate entrepreneur, June Homes has signed on thousands of tenants across NYC, DC, San Francisco, Los Angeles, Philadelphia and Boston. June Homes has experienced 2.5x in tenant growth quarter over quarter, and 2.5x in unit growth over the last six months. The company has 25.5x less tenant defaults than industry average due to more flexible lease terms and its tenant satisfaction guarantee.
"June Homes runs much deeper than addressing a desire for flexible living, which is now table stakes in today’s world," said Daniel. "By eliminating middlemen and outdated practices from the rental system all together, tenants and mom and pop owners benefit financially and emotionally."
"Innovation in the rental market is long overdue, and we believe that June Homes’ modern approach will solve major pain points for both tenants and landlords," said Sherman Li, Partner at SoftBank Ventures Asia and June Homes board member. "June Homes lives at the intersection of a few trends that have lasting effects -- broken rental system, hybrid/remote workforce, and a challenging housing market. We’ve watched the June Homes team tackle problems in the space and redefine the market by providing more efficient and reliable services. We are excited to be part of the journey."
Since its founding, June Homes has seen early success amongst millennials and Gen Z professionals who value ease, convenience, accessible pricing, and customization.
"Finding a home should be an exciting chapter in life but instead is one of the most stressful things that our generation struggles with, and June Homes hopes to change that," said Demi Lovato, who invested as part of the company’s Series A last year.
In addition to new funding, June Homes is announcing additions to its leadership team: Chief Financial and Strategy Officer Daneel Siddiky (formerly Amazon/Audible); Chief of Staff Mauricio Zuniga (IBM); Chief People Officer Jennifer Gardner (Casper); VP of Brand Erin Abernathy (Feather); and VP of Performance Marketing Mateus Rocha (Skyscanner, Expedia).
About June Homes
June Homes is a proptech startup that’s challenging outdated practices to improve the rental experience for tenants and small mom-and-pop landlords. Founded by serial real estate entrepreneur Daniel Mishin, June Homes has created a substantially better renters experience. Members can discover, apply and move into their new home in as little as 3 hours, with no broker fees, fair market prices and 24/7 in-app messaging support. On the landlord side, June is a turn-key partner that guarantees long-term building occupancy while decreasing their expenses (no broker fees, no management fees, fewer vacancies). June Homes has served thousands of tenants across NYC, DC, San Francisco, Los Angeles, Philadelphia and Boston. The company has raised $50M in total funding from investors including SoftBank Ventures Asia and Demi Lovato (musician and human rights activist). For more information or to rent with June Homes, please visit https://junehomes.com/.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210922005157/en/