Redfin announced it has entered into a complementary acquisition agreement with Atlanta-based RentPath, the owner of ApartmentGuide.com, Rent.com, and Rentals.com, for $608 million in cash. Redfin expects RentPath’s rental listings to be on Redfin.com in late 2022.
The RentPath network of websites, which connects property-management companies with qualified renters, reached an average of 16 million monthly visitors in 2020 and full year 2020 revenue of $194 million, according to a joint statement.
“RentPath has more than 20,000 apartment buildings on its rental websites, and grew its traffic more than 25% last year,” said Glenn Kelman, CEO of Redfin. “We can almost double that audience, as one in five of Redfin.com’s 40+ million monthly visitors, also wants to see homes for rent. Together with RentPath, we can create an online destination for every North American to find a home.”
The acquisition will create a fully inclusive and comparative view of home buying and home renting to anyone trying to find and compare options.
For example, it offers several strategic benefits, such as improved search experiencefor more than a third of North American adults who currently rent, whether they wish to rent, buy, sell or find a tenant.
Redfin reported it estimates that 10 million of Redfin’s more than 40 million monthly online visitors may also be interested in rental properties, which translates into better value for advertisers. Both Redfin and RentPath grew traffic by over 20% in 2020. Together they will be able to further increase traffic by bringing marketing listings directly to consumers. As a result, the process of renting an apartment will likely also improve.
“We are energized by the transformational potential of this combination to help more consumers find the right home and help property managers find residents …while giving our current and future customers, access to many more high-intent renters through Redfin’s extensive network,” said Dhiren Fonseca, RentPath’s CEO.
Amilda is a journalist and branding consultant interested in how entrepreneurs turn brilliant ideas into products and services that advance business acumen and improve people’s lives in unprecedented ways. She has covered mortgage finance for over 15 years.