Australian property technology company RentBetter has secured AUD $5 million from Sydney-based venture capital firm EVP, strengthening its position in the self-managed rental market. The funding will support new hires and the development of artificial intelligence tools for landlords who handle their own investment properties. The announcement comes amid rising costs and growing regulatory complexity for rental property owners across Australia.
Funding Purpose and Strategic Partnership
RentBetter plans to use the capital to recruit additional staff and build AI functionality that automates tenant sourcing, document management, rent tracking, and compliance tasks. Founder and chief executive Jeremy Goldschmidt said the business is profitable and did not need to raise, but selected EVP to accelerate expansion. EVP partner Justin Lipman will join the company board as part of the investment.
Funding History and Business Momentum
Prior to this round, RentBetter had raised $3.2 million, including a $1.9 million Series A completed in January 2022. The company has not disclosed its valuation, revenue, or growth figures, but Goldschmidt described the business as profitable. This new capital is intended to move beyond cash flow funded expansion and support a larger market opportunity.
Market Shift Toward Self Management
RentBetter estimates that between 600,000 and 700,000 Australian investment properties are currently self managed, with many owners relying on spreadsheets and manual bank transfers. Traditional property management fees typically range from 5 to 10 percent of annual rent, creating a strong incentive for landlords to consider alternatives. The company suggests about one third of Australia’s 2.2 million residential rentals are now leased without a real estate agent.
Founder Origins and Platform Capabilities
Jeremy Goldschmidt originally built the platform after managing his own investment property and questioning the value delivered by an agent. RentBetter allows property owners to advertise rentals, screen applicants against tenancy databases, coordinate repairs, sign leases, and track income and expenses. The founder previously worked as a management consultant for firms including Boston Consulting Group, Capgemini, Blackdot, and IBM.
Investor Perspective and Customer Validation
EVP partner Justin Lipman said customer feedback helped convince the firm to invest, noting that owner after owner said the platform did more than the agent it replaced. He added that tax changes, rising regulatory complexity, and a generation of investors expecting to manage finances from their phone are pushing landlords toward digital tools. The firm views RentBetter as a landing point for this shift.
Savings and Industry Reactions
RentBetter says cutting out agents and property managers can save a landlord on average between $2,400 and $5,000 in annual costs per property. Real Estate Institute of NSW chief executive Tim McKibbin cautioned that there is no evidence owners are passing on these savings to tenants. The Tenants’ Union of NSW noted that some landlords may feel less pressure to raise rents when agents are not encouraging increases.
Broader Market Conditions
Rental prices have continued to rise even as property sale prices fall. Domain data recorded Sydney rents almost 8 percent higher year on year in the three months ending June 30, partly because landlords increased rents to offset lower capital gains. Median house prices fell after federal changes to negative gearing and capital gains tax were unveiled in May.
RentBetter’s latest funding round highlights a structural shift in Australia’s rental market as landlords adopt digital tools to reduce costs and manage properties independently. While industry groups remain divided on the impact for tenants, the company’s growth reflects rising demand for alternatives to traditional property management. The capital injection positions RentBetter to expand its product capabilities and capture a larger share of the self-managed rental segment.
Source: Smh.com.au