Melbourne-based Cubbi.com, which offers tenants long-term rentals anything ranging from three months to two years, has just announced a $300,000 seed round of funding from a consortium of investors led by 1Form co-founder Chad Stephens.
Co-founder and co-Ceo Jason Gilbert who runs the company with his older brother Michael told Elite Agent that the seed funding received from Stephens was on top of the $200,000 which they had raised through private means and from their family members.
“The seed money would be used to expand our strongest locations in Australia in order are Perth, Brisbane, Sydney and Melbourne. Those four cities are split evenly,” he said.
“We also have properties in Adelaide, Canberra and other various location around Australia but not so strong.
Michael, who is now a licensed real estate agent and a former property manager with Barry Plant Real Estate, said having worked in the industry some time ago; he saw first-hand the big problem whereby landlords and tenants are just fed up using a real estate agent.
“The fees agents charge are just too high for the service they provide. People expect things to be done 24/7 now and agents simply cannot provide this,” he said.
“A seamless and transparent experience is just non-existent for both landlords and tenants. We want to change that.”
The news of Cubbi’s fresh round of funding comes during a period of intense disruption with pioneer San Francisco-based rental accommodation site Airbnb, had already turned the accommodation industry upside down, is now reportedly investigating entering the long-term rentals space.
To date, Cubbi had already empowered thousands of landlords and tenants through an online platform that provides a transparent experience, saves money and gets things done quickly.
The app automatically creates the lease for both parties to sign, collects rent and handles inspections – all online and with oversight from both tenants and landlords.
The company which is three-years-old is 100 percent Australian owned and based with the website having showcased more than 2,500 properties and with a monthly landlord visits of 10,000 people a month.
Stephens who sold 1Form to REA Group for $15 million in 2014 said: “More and more investors are going down the path of renting out their property without an agent, due mainly to excessive fees. Cubbi is in the perfect position to capitalise on this segment of the market and help both DIY landlords and those who just want to maximise the return on their investment.”
