RealPage touts its software as a real asset to real estate managers. The company's on-demand software platform is designed to make the property management process more efficient, enabling owners and managers of single- and multifamily rental properties to oversee their accounting, leasing, marketing, pricing, and screening operations from a single, shared database. The centralized system helps with managing incoming and outgoing residents and overseeing property functions, from hiring plumbers to training staff. Its customers include most of the top 10 largest multifamily property management companies in the US. RealPage went public in 2010.
RealPage filed its IPO on the heels of a few years of rapid growth in terms of employees, customers, and products. It has also been using acquisitions to fuel expansion, purchasing Software-as-a-Service (SaaS) provider Vigilan, which serves the assisted living industry, in 2012. The company's products allow its customers to manage care information, labor costs, billing, and compliance, boosting RealPage's on-demand software offerings in that market. Also that year the company paid $6 million to buy RentMineOnline, which provides SaaS marketing driven by social sites, such as Facebook and LinkedIn, for the multifamily rental industry.
In 2011 Compliance Depot, a provider of risk management and compliance services for the real estate industry in 2011. The deal continued the company's strategy of expanding its portfolio of products and services for the rental housing market. That year, it also paid $4.5 million in cash for SeniorLiving.net, a Web-based lead generation and placement service for the senior housing market. In a related move in 2011, RealPage acquired Multifamily Technology Solutions, which operates the MyNewPlace website. Both the SeniorLiving.net and MyNewPlace acquisitions boost RealPage's origination and syndication operations.
In 2010 the company bought the assets of Domin-8 Enterprise Solutions, an on-premise property management system company. (It is migrating customers that use its on-premise software to the Domin-8 on-demand platform). Late that year RealPage bought Level One, a provider of apartment leasing services, for $54 million in cash and a deferred payment of $8 million. The company combined the acquired assets with its CrossFire apartment sales and marketing software product line to form a package that includes software as well as leasing support services.
The company's expansion has been both a boon and a bane, however, as the cost of the resources needed to support the increasing size, complexity, and diversity of its business has resulted in a history of operating losses. That likely won't stop RealPage from continuing to invest in developing and enhancing its products, but it may at some point turn to equity or debt refinancings to secure additional funds. It intends to use certain net proceeds from its IPO to pay unpaid dividends and pay down debt.
Meanwhile, its in-house sales organization is focused on renewing existing customers and attracting new ones. As it jockeys for retention, RealPage competes primarily against traditional software vendors, application service providers (ASPs), and software-as-a-service (SaaS) providers. It also competes with newer market entrants as technologies are developed. Key competitors offer enterprise resource planning products and services that include both software and ASP delivery platforms targeted at the multi-family real estate market. Other rivals offer products and services in specific niches, such as applicant screening, customer relationship management, payment processing, renter's insurance, revenue management, and utility billing. Web portals and searchable databases, such as Apartments24-7.com and Spherexx.com, which offer apartment marketing and leasing services, pose additional competition.
RealPage's on-demand software is its primary revenue segment and consists of an integrated software platform that provides a single point of access containing data on residents, prospects, and properties. The software is generally licensed under one-year customer subscription agreements. A smaller portion of the company's revenue is generated from professional services, which include consulting, training, and implementation services.
RealPage was formed in 1998 to acquire Rent Roll, Inc., which marketed and sold on-premise property management systems for certain multi-family housing markets. Three years later it released OneSite, its first on-demand property management system. – less
13 salaries reported
$12.87 per hour
4 salaries reported
$13.84 per hour
3 salaries reported
$56,004 per year