Hometime, a rental-management startup based in Sydney, has raised $1.5 million in seed funding to shake up the long-term rental market by making short-term rentals more profitable and easier. Hometime offers property management services for Airbnb users and other short-term rental market players to deliver “above market returns” for their rentals in comparison to the long-term rental market. The startup has two main services: a full-management style service that prices, markets and manages a user’s short-term rental and a housekeeping service that helps users maintain and clean their rentals between guests. The seed funding will be used to grow Hometime in Sydney and Melbourne and expand its reach in Australia. The startup will also increase hiring to expand its current team of 15. The funding round was led by tech accelerator Asia Principal Capital. Hometime has already serviced 500 properties in Sydney and Melbourne and its user base is growing at a “double-digit rate” every month since its launch in 2016.
Changing the Rental Market Norms
The short-term rental industry is rapidly growing in Australia, largely due to the success of Airbnb and Stayz. As a result, companies like Hometime and MadeComfy are taking advantage of this trend, with MadeComfy catching the eye of prominent investors including Rolf Hansen and Peter O’Connell, co-founders of Amaysim, and Cliff Rosenberg, former managing director of LinkedIn Australia.
According to Hometime, the company is strategically targeting property owners who may be considering long-term rentals by offering higher-than-expected yields in the short-term rental market. “We’re operating in a highly attractive and relevant market, and any business directly servicing the Airbnb-style platform will experience strong demand,” says Thomson, a representative of Hometime.
“It Takes More Time Than Anticipated”
According to Thompson, startups should anticipate a potentially extended fundraising process and prepare accordingly.
Thompson recommends that entrepreneurs begin seeking investment well in advance of the time when they predict running out of capital. He also advises startups to reach out to a wide range of investors and customers, as it often takes more time than expected to secure funding.
While the fundraising process for Hometime was relatively quick, Thompson warns that not all startups will have the same experience. Entrepreneurs should be prepared for the possibility of a prolonged capital raising process and plan accordingly.
“Organizing the necessary paperwork and securing funding can take more time than anticipated,” Thompson notes. “It’s important to leave some extra time to account for potential delays.”
