Helping Landlords Find Tenants

Rezi began as a rental software idea focused on tenant screening, but during YC the team shifted to taking on landlords’ vacancy risk. Mitchell said they settled on the strategy by the end of January 2016 and closed their first transaction that month. The product, Upfront, lets landlords get a guaranteed lease while tenants can apply and receive a decision quickly.

Rezi focused on making showings easier to schedule and applications more secure, with decisions sometimes made nearly instantly. It checks rental history, credit, income, and employment, and Mitchell said landlords do not make the final screening decision. Rezi also models rents using features such as appliances and outdoor space; Mitchell gave an example of estimating a $57 rent increase for a one-bedroom with stainless steel appliances.

Mitchell said Rezi used debt financing to fund apartment leases, allowing equity capital to support company operations. The company grouped lease receivables to raise money, in a structure he compared to a REIT. Its main risks are vacancy and tenant performance, which Rezi assesses through pricing research, back-testing lease-up timelines, and tenant due diligence.

At first, Mitchell and co-founder Keenan called landlords listed on Craigslist and Zillow, making offers to rent vacant apartments and close within 48 hours. Rezi later learned that landlords vary widely in size and needs, so the team adapted its sales approach and kept talking directly with customers. Mitchell’s advice was to hire for the company’s immediate needs and keep iterating around the problem customers have.

Mitchell described startup life as a cycle of high confidence and fear, and said exercise, a coach, and support from his partner helped him manage it. When anxious, he steps away and writes down what he is feeling to understand the cause. He also tries to protect blocks of personal time and stay connected to the purpose behind his work.