Amid a turbulent economy that has investors looking for the best avenues to deploy their capital, one company is looking to deliver the safe returns of real estate renting—without any of the hassles.
Rove, which raised a previously unannounced $4 million seed round, is a luxury property management company that connects property owners with short and medium-term renters looking for premium furnished stays. Investors looking to generate a higher return on their residential real estate (compared to conventional year-long leases) can sign up to have their properties listed, furnished and fully managed by Rove in exchange for a share of the revenue.
Rove differentiates itself from other “home experience” rentals by a standard of luxury that straddles a middle ground between Airbnb and boutique hotels. All of Rove’s properties are fully equipped for business travelers, families with a working parent, or remote workers. Their managed properties all come with well-designed workstations (with desks and high-speed internet), fully equipped kitchens, professionally selected furniture from elite design firms such as ZZ Driggs, a washer/dryer in the unit, and much more. Many of Rove’s marquee properties feature amenities such as private patios, garages and even indoor spas.
Many of Rove properties feature far above the standard in luxury amenities, including private patios and hot tubs even in the middle of NYC
For Rove CEO Jonah Hanig, his company’s offering unleashes a previously untapped earning potential for a segment of the real estate market that is notoriously time-consuming and difficult to enter.
“Vacation rentals are a $100B+ market, but many properties are inconsistently managed and poorly equipped for the experience modern travelers want,” says Rove Founder and CEO Jonah Hanig. “At the same time, the experience of buying short-term rental investment properties is extremely challenging and opaque. I saw from my own experience purchasing a home how difficult the renting and management process can be.”
Indeed, while short-term rentals offer up to a 70% premium over conventional leases, the time invested in managing one is tremendously high; managing a constant turnover of guests requires far more work than placing yearly tenants. Beyond that, navigating the legal complications of short-term rentals can often require expertise—with many cities having very strict regulations around what rentals can be listed on a daily or monthly basis. By furnishing and managing properties, Rove looks to streamline this process, creating one of the only truly passive short-term rental management services.
While a few competitors exist in the space, there is currently not any other luxury brand of more than 30-day property rentals in New York City, and the managed short-term rental industry is ripe for disruption. Rove’s backers certainly see this as the case, investing $4 million in the company’s seed round, led by founders and executives from Applovin, Indiegogo, ZocDoc, Tock, Lattice, Mercury, BloomTech, and many more Silicon Valley companies.
Since launching in the summer of 2021, Rove has grown from zero to more than $7 million in run-rate booking revenue and has reached 50 properties in its inventory, making them one of the fastest-growing property managers ever. The company currently operates in eight US cities, including New York City, Miami, West Palm Beach, The Hamptons, Scottsdale, and Park City.
