News from the CEO: Entrata Acquires Rent Dynamics
July 13, 2023
Today, I’m excited to announce a transaction under which Entrata has acquired Rent Dynamics.
For nearly a decade, Rent Dynamics has been enabling multifamily owners and operators to empower residents to take control of their financial health and identity through rent payment reporting. With some of the largest owners and operators on the platform, Rent Dynamics is an industry leader with incredible vision, world class technology and industry expertise.
At Entrata, our perspective has always been a little different. We believe that innovation and usability makes for optimal property operations and resident experience. Since 2003, we’ve consistently delivered the best marketing, leasing, accounting, and operations tools to multifamily owners and operators around the world. That focus will never go away. However, we’re incredibly excited to expand that focus to providing an elevated resident experience that this industry has never before seen.
With nearly 20% of the U.S. population having little to no established credit, Rent Dynamics technology will bring immediate value to the 3 million Entrata-powered residents to help them inform their financial health and identity. Sitting alongside other resident products such as deposit alternative insurance, HO4 insurance, and others, this combination will enable an even more powerful and robust operating system so residents can pay rent on their terms, easily obtain compliant insurance, eliminate barriers to housing, and get the financial credit they deserve, all through Entrata.
As a customer, here are a few things you can expect from this transaction:
Native integration into workflows and reporting
Connecting disparate systems is one of the largest challenges companies face today. Through deeper technological integration, Rent Dynamics tools will be integrated into the Entrata operating system to improve reliability and performance across workflows and reporting. This will make for the smoothest leasing experience available to equip residents from the very beginning with the tools they need for a seamless lease.
Economic inclusivity and financial identity for residents
One of the most influential variables to achieving home ownership is a person's credit history. With an average minimum credit score of 620 to obtain a mortgage, owning a home may seem impossible for many. However, a person’s monthly rent payment is generally the most consistent payment they’ll make, making it a prime candidate for reporting to credit bureaus and therefore improving credit scores. In turn, an improved credit score enhances their ability to qualify for a mortgage or increased rent, gain greater access to affordable credit, and enjoy improved overall financial health.
Ancillary revenue opportunities for owners and operators
One of the most rare scenarios is a true win-win for every party involved. With rent payment reporting, both the resident as well as the owners and operator benefit from rent payments being reported to credit bureaus. Rent Dynamics' experience in resident participation and activation paired with Entrata’s broad base of more than three million residents will allow owners and operators additional ancillary revenue streams while providing residents tools to improve financial health.
These benefits will be amplified with Rent Dynamics’ participation in Fannie Mae’s new program which aims to increase the resident participation in reporting rent payment to credit bureaus by incentivizing owners and operators.
Address the current financial and housing crisis head on
The U.S. is currently in a monumental time of high inflation, high rent rates, and affordable housing shortages. While these times are trying for everyone, they are particularly difficult on the resident. Pairing rent payment reporting with existing Entrata resident tools, residents will be able to take advantage of their financial situation to pay rent on their own terms, obtain compliant insurance, gain easier access to housing through alternative forms of deposit, and get credit for paying rent in a timely manner – all through one application workflow on Entrata.
Accelerate the platform through strategic, well-supported acquisition
Entrata’s technology and acquisition philosophy is different. We believe that this acquisition will enable us to supplement our offering to help us go faster and accelerate the roadmap in providing valuable tools to make property operations more efficient and elevate their resident experience. In order for us to bring this company into our single login, we have conviction of their ability to be fully integrated to grow and thrive within the platform.
Expand the capability and value of the Entrata Operating System
Entrata’s theory, vision, and focus will always be on property operations and resident experience. That means continually improving the capability of the operating system and the value it provides to every party interacting with Entrata. Together, Rent Dynamics and Entrata will continue to create the most extensive and all-in-one Operating System to create a better living experience for every resident.
I couldn’t be more excited about this next chapter together and see this as a monumental step in providing our industry with the very best resident experience.