Virginia-based Proptech startup Till has secured US$ 8M in a seed funding round held in August 2020, led by Route 66 Ventures along with participation from MetaProp and NextGen Venture Partners.
Proceeds from the round will be used for increasing the count of landlords working with Till across new states and further enhance the flexible rent product.
Its platform serves as an intermediate between house-owners and tenants and solves the problem of renters who are unable to pay the whole amount of rent at the starting of the month. It enables them to pay their rent in installments throughout the month. Till offers a personalized payment plan to renters that match with their monthly cash flow. It claims it can help reduce evictions by landlords by as much as 50%.
The startup was founded in 2017 by Brady Nolan, Dan Buechler and David Sullivan and aims to optimize the landlord revenue by backing resident financial stability with cash-based enticements and short-term rental loans.
CEO David Sullivan was quoted to say, “We work to understand the timing and we can look at their expense loads to help them balance if they should be paying more now or more later in the month.” Tenants are able to use the platform only if their landlords are already working with Till. At present, Till is used at 170 properties that consist of 30K units in total across 14 states. “Since we first learned about Till, we have been extremely impressed by its ability to bridge the gap between the increasingly volatile income and expense patterns of renters and the more rigid financial realities of landlords,” MetaProp General Partner Zak Schwarzman said.
The CEO also said that even though this product seems to have more importance these days, during a time when people are facing severe financial problems as a result of COVID-19, he also specified that this problem is not specific to the pandemic. But nevertheless, COVID-19 has been very instrumental in aggravating the issue.
The startup also stated that in pre-COVID times, landlords have gained a lot of delinquent income yearly by charging late fees from tenants upon untimely payment of their rent. This has led to almost 3 million families getting evicted from their homes in a year hence burdening them and impacting the minorities in a bad way.
Till charges tenants US$3/month if they make all of their payments on time and US$9/month if they don’t. It also offers a rental loan service for tenants with variable rates. They believe that when renters succeed, landlords succeed too.
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