REI Hub co-founders Jon Carrier (left) and Adam Hamilton at last year’s RVA 25 celebration.
Two landlord-focused software companies – one local and one based in Colorado – have officially joined forces.
Richmond-based REI Hub, which sells accounting software to landlords, was recently acquired by property management software-maker TurboTenant.
REI Hub co-founder Jon Carrier said the deal came together as a way for the Shockoe Bottom-based company to introduce its customers to a wider range of services and also sets the stage for REI to grow by tapping into TurboTenant’s client base.
Carrier said REI Hub customers were interested in more features beyond accounting, and the acquisition helps address that need without the company devoting energy to building out new capabilities.
“It came down to an issue of focus. We knew what we were good at,” Carrier said. “We didn’t want to stray out of our lane.”
Carrier said the acquisition also allows REI Hub to build on the success it has had through an existing partnership with TurboTenant. In 2022, the two inked an agreement allowing TurboTenant to resell REI Hub’s software. While TurboTenant offered features such as tenant screening and online rent collection, it lacked an in-house accounting product, and REI Hub filled that gap.
REI Hub. (Screenshot)
That partnership was a lucrative one for REI Hub, which was the third-fastest-growing local company by revenue in BizSense’s most recent RVA 25 rankings. The TurboTenant partnership accounted for about a quarter of REI’s business by the time of the acquisition, Carrier said.
“It’s been a really good working relationship for a number of years,” Carrier said.
With the deepened relationship, Carrier said REI Hub is in a better position to further expand its business with TurboTenant’s client base of 700,000 landlords nationwide.
“The Rolodex of customers they have, there is a lot that’s untapped there. And a chance to serve more landlords and make that bookkeeping process easier,” Carrier said.
Carrier, who launched REI Hub with Adam Hamilton in 2019, said the company has had 15,000 clients over the course of its existence and has customers in all 50 states.
Its customer base is landlords who typically have up to 10 rental properties. Access to REI Hub’s software costs $9 a month for users with up to three rental units to $48 a month for users with more than 20 units, according to the company’s website.
Carrier said conversations about an acquisition started in the spring and lasted a couple months. He said the discussions wrapped up quickly because of the two companies’ existing familiarity with each other. The deal, which closed in the late summer, was announced in December. Terms weren’t disclosed.
Since the acquisition, REI Hub maintains its own branding and continues to serve customers directly. The company’s team of six workers was retained as part of the deal, and REI Hub intends to continue to operate out of its headquarters at Startup Virginia, a business incubator in Capital One’s Michael Wassmer Innovation Center.