Roofstock has acquired RentPrep, a firm that offers tenant screening solutions that are said to be currently in use by over 100,000 landlords. Roofstock recently raised $240 million at an almost $2 billion valuation, thus providing capital for more M&A activity. The terms of the deal were not disclosed.
Roofstock is an interesting real estate investment marketplace that enables smaller investors to purchase rental property and then provides tools to manage the real estate. Roofstock also services institutional investors.
Roofstock said it aims to leverage the RentPrep service to improve upon the tedious and time-consuming process of tenant screening. RentPrep is a “comprehensive, digital tenant screening company that allows landlords and property managers to perform credit, criminal, and other background checks efficiently.” The service aims to be quick and accurate as well as compliant with the Fair Credit Reporting Act.
Individual investors can order screening reports from RentPrep’s website, and property management clients can integrate RentPrep into their own solution by leveraging RentPrep’s APIs.
Gary Beasley, CEO and co-founder of Roofstock, said that RentPrep offers a technological solution in a space in need of innovation:
“The company is a natural fit for Roofstock as we continue to expand our platform to deliver best-in-class solutions for investors across all phases of the property ownership lifecycle.”
Steve White, CEO and founder of RentPrep, said they are excited to join the Roofstock team and build on the company’s momentum.
RentPrep is Roofstock’s third acquisition in less than two years and fourth since its founding. Last year, Roofstock acquired Stessa, a free online investment management solution for real estate investors, as well as tech-enabled property manager Great Jones, which Roofstock integrated into its property management service.
Since its founding, Roofstock has facilitated more than $5 billion in transaction volume on its platform, including both individual investor transactions as well as institutional owners.