Entrata says new acquisition will help renters build better credit
Utah’s Entrata has earned its way to a market leadership position by innovating software for the multifamily housing industry. On Thursday, the company announced a nine-figure deal to acquire Logan-based Rent Dynamics, a decade-old tech startup that’s developed tools to help renters build credit histories and financial health.
Entrata said it has acquired 100% of the equity in Rent Dynamics and will be able to provide residents with increased access to financial tools designed to positively impact their financial futures.
“Since Entrata’s founding, we have made tremendous strides in streamlining property operations by creating tools that improve both the operator and resident experience,” Entrata CEO Adam Edmunds said in a press release. “Today, our vision for how we can drive the industry forward has greatly expanded.
“The combination of Entrata and Rent Dynamics will deliver a huge advance in providing much-needed tools to address a gap that has prevented millions of residents from building credit and long-term financial health. We believe this acquisition will give property owners and operators what they need to drive loyalty, financial well-being, and, ultimately, the very best resident experience.”
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Founded in 2003, Entrata has developed a cloud-based software suite that automates many of the tasks that come with managing multifamily developments and has been among Utah’s fastest growing tech companies since its launch. In a Deseret News interview last fall, Edmunds noted Entrata’s robust growth continues and the company is now processing some $25 billion in payments from tenants who reside in over 20,000 apartment communities across the country that are managed with the help of the company’s software platform.
Resources to fuel Entrata’s product development and market growth got a huge boost back in 2021 when the company secured a $507 million round of venture funding after bootstrapping, or self-financing, the operation since inception.
Utah Jazz owner and Qualtrics co-founder Ryan Smith helped lead Entrata’s debut funding round along with private equity giant Silver Lake and Vivint Smart Home founder Todd Pedersen, with participation from Dragoneer, Domo founder and CEO Josh James, and other investors.
Earlier this year, Silver Lake showed how bullish it is on Utah tech concerns when it snapped up Qualtrics from majority owner and German software giant SAP in a deal valued at $12.5 billion. SAP acquired Qualtrics in November 2018 when it inked a mammoth deal to acquire the Utah-born customer experience innovator for $8 billion. SAP later spun Qualtrics off, but retained a majority position, in a 2021 public stock offering that raised $1.5 billion in fresh capital.
While Entrata’s software has helped owners of multifamily housing developments find new efficiencies in their operations, the company says it is also focusing on its broader customer base, the millions of residents who live in its clients’ properties.
In a Deseret News interview Thursday, Entrata Chief Marketing Officer Nico Dato said the company will integrate Rent Dynamics’ credit building tools into a software suite that already offers other renter perks like insurance access and payment plans for security deposits.
“We want to make it really efficient for operators to run great properties,” Dato said. “But we’re also focused on the resident experience and making it truly, truly perfect.”
Rent Dynamics has worked to solve a major, and long-running, issue in a U.S. consumer credit realm that’s mostly ignored on-time rent payments as reportable transactions. Rent Dynamics was one of three companies chosen to participate in a program launched by mortgage-backing giant Fannie Mae last fall to help address the reporting shortfall.
According to Fannie Mae, its pilot Multifamily Positive Rent Payment Reporting program is aiming to help renters build their credit histories and improve their credit scores. The program enables eligible multifamily property owners to share timely rent payment data through a vendor network to the three major credit bureaus for incorporation in the renter’s credit profile. Fannie Mae said the new reporting will help build equitable access to credit and “remove unnecessary obstacles in a consumer’s housing journey, whether they choose to rent or aspire to own a home.”
“We’re proud to have helped hundreds of thousands of residents to date, and are excited to be able to accelerate that effort by pairing with Entrata’s extensive suite of services,” Quincy Rich, Rent Dynamics CEO, said in a press statement. “Together, Rent Dynamics and Entrata will continue to build the most comprehensive, all-in-one operating system to create a better experience for every resident.
“We couldn’t be more excited to join a leader like Entrata to help residents take ownership of their financial situation to provide more rent payment options and get credit for paying rent on time — all through one application workflow.”
