Dan Mishin – Marketer

June Homes’ Algorithm-Based Apartment Rental Platform Raises $50M

PropTech company June Homes, which uses algorithm technology to assist mom-and-pop owners and apartment residents find economically viable rental matches, announced this week that it has raised $50 million in total funding.

The funding is led by SoftBank Ventures Asia with participation from TQ Ventures (founded by Schuster Tanger, Scooter Braun, and Andrew Marks), FJ Labs, K50, Reshape, Quiet Capital, and angel investors, including musician Demi Lovato and Scott Belsky (founder of Behance).
The $50M in equity financing includes a recently raised $27M Series B as well as a previously unannounced $13M Series A and $10M in seed funding. Capital will be used to fuel the company’s expansion to other U.S. markets and further its mission to create a more fair, transparent, and efficient real estate system.

Company in Six Large Markets
June Homes Founder Daniel Mishin tells GlobeSt that his 4-year-old company operates approximately 1,600 apartment homes in six major markets – New York, Boston, San Francisco, Los Angeles, Washington, D.C., and Philadelphia.

His business proposition to landlords is to use his proprietary algorithm to study a market and prospective renters and enable both to bypass the broker fees and other up-front costs in a simpler process. June Homes’ renters can discover, apply for, and move into their new home in as little as three hours, Mishin said.

June Homes has experienced 2.5x in tenant growth quarter over quarter, and 2.5x in unit growth over the past six months.
He said his system has helped reduce the time on market for vacant apartments from 75 days to 7. 5 days, based on July 2020 performance. The homes are fully customizable — tenants can rent furnished or unfurnished or include roommates.

June Homes handles the leasing, rent payment and landlord communications over any issues. Apartment owners can choose to have June Homes manage the apartment homes or continue to use their current management company.

The company has 25.5x less tenant defaults than industry average. Should a tenant default, June Homes will pay the remaining months’ rent on the lease as it seeks to find a new renter.

June Home renters can opt for variable lease terms from one month to 18 months. During their first seven days in the unit, if they are not happy, they will not be charged rent and can more to another June Homes apartment with no charge in moving costs. June Homes will rent an entire apartment, or seek three different people who wish to rent, for example, within a 3-BR apartment.

Entrepreneur betting on real estate changing 'forever'

The real estate market is "going to change forever," according to one New-York based apartment rental agency.

During an interview on FOX Business’ "Varney & Co." Wednesday, Dan Mishin, founder and CEO of June Homes, said his company is growing to meet that demand.

"People are splitting time between cities. Younger people can't afford to sign 12-month leases," Mishin told host Stuart Varney. "So people are looking for flexibility, convenience and ease."

Mishin, who became a successful entrepreneur in his native Ukraine before moving to the United States, is quickly building one of the world’s largest housing companies—without owning a single property.

June Homes partners directly with landlords to offer tenants short-term, furnished and renovated rentals in New York City, Washington D.C., San Francisco, Los Angeles, Boston and Philadelphia.

The company never charges broker fees, and leases range anywhere between 1-18 months.

"June Homes is essentially decreasing the short-term rental prices by working with small mom-and-pop landlords versus large multi-billion dollar real estate conglomerates", Mishin explained.

"We built an algorithm that finds apartments that are in slightly worse form than other apartments, slightly cheaper than other apartments,"; he continued, "we partner with landlords, we renovate them in 72 hours and then put them back on the market under this new model".

June Homes founder Dan Mishin on how his company is meeting demand for cheap, short-term apartment rentals.

Short-term rental company finds way to lower marketplace prices
June Homes founder Dan Mishin on how his company is meeting demand for cheap, short-term apartment rentals.

The CEO added that recent demand for short-term leases among millennials is creating a supply shortage that they’re working to fix.

"Our tenant demand has grown two-point-five times just quarter over quarter," Mishin said. "We're running out of apartments in all major U.S. cities, and the demand is there".

A recent financial backing by venture investors is helping June Homes to boost supply.

"We are working with landlords to convert their multi-family or single-family homes in this new use that has a lot of demand, that decreases their vacancy time by ten times, that allows them to eliminate broker fees, management fees and stop paying various middlemen"; Mishin clarified, "Which at the end of the day, decreases the rental prices for consumers".