PropTech Q&A: RentSpree CEO Talks Future Possibilities

With rising interest rates and high prices, many home buyers continue to see themselves priced-out of the opportunity to purchase a home, which has been a boon for the home rental industry. ConnectCRE recently chatted with Michael Lucarelli, the CEO and Co-Founder of Los Angeles-based RentSpree, a PropTech company providing award-winning software that connects real estate agents, owners and renters to simplify and automate the rental process from listing to lease. Lucarelli offered some thoughts on rental trends heading into 2023, and how it will affect the PropTech industry.

Q: There has been quite a bit of discussion on the economic downturn and the challenges within the housing market. How do you foresee this will impact the rental industry in 2023?

A: The economic forces at play and a potential economic downturn are likely to keep demand in the rental market strong in 2023 as buying a home will remain out of reach for many, leaving renting as the only option. While we are currently seeing a pause in rent increases, we think this is temporary and rent appreciation is likely to continue next year across many U.S. markets,, even if more akin to pre-pandemic levels.

Q: How can agents stay competitive, and how are their roles shifting based on economic trends?

A: In order for agents to remain relevant in a demanding and competitive market, they need to have the mindset of a proactive ally. They cannot be focused merely on transactions but need to become a partner and adviser to their rental clients. The days of easy sales transactions are behind us. Today, the emphasis needs to be on building long-term relationships that can last throughout a renter’s lifetime and ideally to when they become a home buyer. Agents also need to employ smart technology in order to cut down on the inefficiencies we still see all too often in this space. Think fax machines, scanners and paper checks. It comes down to how agents can deliver value to their clients. That is ultimately what will set a successful agent apart from an unsuccessful one.

Q: What do PropTechs, Agents and MLS’ need to succeed (and ensure their clients succeed) in 2023?

A:  All of the players in the rental space need to think about how they can improve a renter’s experience. Many of these platforms had ignored renters and almost exclusively focused on buyers. With the strength of the rental market today, all of these platforms and organizations need to work on creating a better infrastructure to help address and service those renter leads. And they need to collaborate, ideally seamlessly, which will benefit everyone involved.