Seattle-based real estate brokerage Redfin Corp. (Nasdaq: RDFN) has begun posting rentals on its website, almost a full year after closing its $608 million cash purchase of Atlanta-based RentPath.
The move helps Redfin reach more consumers and become a more full-service real estate destination. It also increases the reach of RentPath's listings, as Redfin has 47 million monthly visitors, according to the company.
“We have an opportunity to generate as many rental inquiries from Redfin.com as from all other RentPath sites. As a result, we expect to attract more property managers to promote their listings on Redfin.com, and for Redfin.com traffic growth to accelerate,” Redfin CEO Glenn Kelman said in a news release.
Redfin first announced plans to acquire RentPath in February of 2021 before closing the deal in April. RentPath filed for Chapter 11 bankruptcy in February of 2020 and was set to be acquired by D.C.-based CoStar Group, the parent company of Apartments.com, but the Federal Trade Commission sued to block the deal, which was terminated in December of 2020.
At the time of the acquisition announcement, Kelman said offering rentals and becoming a more broad real estate destination would position the company take on competitors like Zillow.com and Realtor.com.
Redfin reported that rentals generated almost $121.9 million in 2021. Jon Ziglar, former CEO of ParkMobile, became CEO of RentPath in August. With Redfin's new rental search, users can filter by location, home type, pet policy and more.
Redfin, launched in 2006, offers brokerage, direct homebuying, mortgages and renovation services. The company is in more than 100 markets across North America and has more than 6,000 employees.
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The launch of rentals Wednesday on Redfin meets predictions last August by Redfin Chief Growth Officer Christian Taubman, who said the company was targeting March 2022 to start posting rentals on its website.
“Most people who are considering renting a new home in the next six months say they are also considering buying,” Taubman said in a news release. "Redfin gives everyone the tools to win the place that's best for them, whether that's a place to lease or buy.”
