Zumper, a San Francisco-based apartment listing and rental marketplace, has raised an additional $30 million in its Series D round led by Kleiner Perkins. After raising $178 million to date, the latest Series D funding extension of $30 million was earmarked for expansion into short-term rentals at a time when consumers demand, if not require, flexibility in housing options.
Zumper claims to be the first real estate marketplace to offer annual, monthly, and nightly options with the addition of short-term rentals.
Guests can book short-term rental listings for free using its platform, which compares over 500,000 listings from partners such as Vrbo and Booking.com. Meanwhile, landlords can now list their properties as short-term rentals to meet the growing demand among Zumper users.
Zumper, founded in 2012, claims to be the largest privately owned rental platform in North America, with over 178 million site visits per year. It has received over $178 million in funding from Kleiner Perkins, Goodwater Capital, Headline, Dawn Capital, and the Blackstone Group.
Remote working caused by the pandemic increases demand for hybrid leasing
Work from anywhere has prompted a cultural shift in daily life and is just one example of how the pandemic has accelerated macro trends in alternative housing. According to Zumper, one-third of its users are interested in flexible rentals.
According to data from Zumper’s 2021 survey of short-term rental users, short-term rentals are a means for a variety of situational stays, such as a gap in housing, migratory work, and even a stepping stone to building rental history, credit, and more, beyond the trendy use cases for short-term rentals.
According to the survey, 74 percent of users book 1-2 monthly rentals annually, and 49 percent stay in the same unit for two to six months. Short-term rentals are thus not only a way for people to vacation but also a way for them to live.
“Our brand is aspirational yet grounded. We’re not just for trendsetters and digital nomads but for those in-between leases or those trying to build a rental history. We’re a solution for many people looking for temporary housing in a growing workforce of migratory workers, like traveling nurses, construction crews, and disaster response teams,” said Shalin Amin, Chief Experience Officer of Zumper.
The startup will now directly addresses renter pain points by providing consumers flexibility by expanding inventory to offer short-term options. Zumper’s short-term listings can be booked at no additional cost to the guest, whereas other short-term rental sites, such as Airbnb, charge up to 15 percent or more.
On the other hand, landlords can now choose to list their properties short-term to meet demand, with the ability to advertise short-term and monthly rentals in front of Zumper’s over 178 million annual visits.