Founders of Favor launch Sunroom to assist renters
Prospective renters can book on-demand tours with licensed agents.
When they founded Favor five years ago, entrepreneurs Ben Doherty and Zac Maurais set out to build an app-based delivery service that offers speed and convenience.
Today, Austin-based Favor is owned by H-E-B and has a network of more than 50,000 runners statewide delivering restaurant meals, groceries and other purchases around the clock.
Now Doherty and Maurais are at work on their next startup: an online service called Sunroom that aims to improve the time-consuming task of renting an apartment or house.
“We see a lot of similarities between Favor and Sunroom,” said Doherty. “With Favor we took an underserved market and we figured out how to make a really low-margin business profitable. With Sunroom it was ‘How can we come in here and build a really good experience for renters? How can we give them a really easy way to see properties, and how can we streamline application process?’ ”
Using Sunroom’s website and mobile service, Austin and Round Rock renters can view thousands of properties in the Multiple Listing Service and other sources. Through the app, they tell Sunroom which properties they want to visit.
Renters can book on-demand tours with Sunroom’s licensed agents who meet renters at the property.
The idea for Sunroom came from the founders’ own frustrating experiences trying to find a rental property.
“We’ve both always been renters for years,” Doherty said. “It’s always challenging because most real estate agents want to focus on selling homes, since it’s more lucrative.”
As a result, he said, renters are often left to deal with nonresponsive agents, voicemail messages and unreturned calls.
“In competitive markets, renters miss out on the best listings if they do not tour homes quickly,” Doherty said. “Now renters can tour homes and apartments on demand.”
When renters find a property, they apply online through Sun-
room. The service is free for renters. Sunroom makes money from agents and landlords.
Sunroom currently has seven agents, who it pays about $20 an hour to do showings. About 16,000 people have registered to use the service, Doherty said.
Ashley Davis is among those who have turned to Sunroom.
When Davis was looking to rent a house in June, it was difficult trying to connect with landlords and agents.
“I always had trouble getting the tours, and when I did, they were at inconvenient times,” said Davis, who works in communications.
“With Sunroom all I had to do was click on the pictures and request a tour. They contact you by text and ask when you’re available to go.”
David ended up renting a house in the Hancock neighborhood through Sunroom. “They changed the whole experience,” she said.
So far Sunroom has relied mostly on word-of-mouth to generate business. But the company is ready to ramp up development and marketing and recently raised $1.5 million in seed funding.
Investors included Founders Fund Angel, Tim Draper of Draper Associates, Joshua Baer of Capital Factory and Active Capital.