On the heels of receiving $5.7M in seed funding, San Francisco-based startup HomeShare announced Tuesday it has expanded to Los Angeles.
The site that helps match roommates, move them in and offers other resources will provide its services to Greystar’s 300-unit Next On Sixth apartments in Koreatown.
“LA makes so much sense for HomeShare because it is the nation’s worst in terms of rent affordability,” Homeshare CEO and founder Jeff Pang said.
In Los Angeles, the average share of income spent on rent is 48.4%, which is higher than San Francisco at 42.4%, he said.
“There is such a massive shortage in workforce housing and middle-income residents. It is hard for professionals,” Pang said. “That’s why we are so excited that HomeShare can help offer more budget-friendly solutions for living in the city.”
Founded in 2016, HomeShare is described as a shared housing platform.
The company seeks out renters for individual bedrooms or living rooms converted into bedrooms within an apartment. HomeShare services the residents' leases for the property owner. It will interview potential tenants and create a housemate profile by using special algorithms to match roommate compatibility and preferences.
The company does not charge any upfront fees and receives a small percentage of the rent, Pang said. The leases are 12 months or longer.
For example, in San Francisco a HomeShare-provided bedroom with a bathroom can go for $1,700 a month, half of what a typical one-bedroom, one-bathroom apartment rents for in the city. In LA, HomeShare's entry level rate is $825/month, about half of the average rent for a one-bedroom apartment in the city.
He said the roommate matchmaking service has a less than 2% fail rate. The HomeShare process has helped more than 1,000 people find housing and save them money, he said.
“We are a matchmaker for housemates,” Pang said. “We match housemates then those residents sign leases directly with one of our partner properties.”
Along with Los Angeles, HomeShare has a growing presence in San Francisco, Silicon Valley, New York and Seattle.
Pang said in the coming weeks, the company is planning to partner with a second property in Los Angeles and expand more in San Francisco and Seattle.
Ideally, HomeShare will expand in all of the major metros, including cities such as Boston and Washington, D.C., he said.
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