The real estate market is “going to change forever,” according to one New-York based apartment rental agency.
“People are splitting time between cities. Younger people can’t afford to sign 12-month leases,” Mishin told host Stuart Varney. “So people are looking for flexibility, convenience and ease.”
Mishin, who became a successful entrepreneur in his native Ukraine before moving to the United States, is quickly building one of the world’s largest housing companies—without owning a single property.
June Homes partners directly with landlords to offer tenants short-term, furnished and renovated rentals in New York City, Washington D.C., San Francisco, Los Angeles, Boston and Philadelphia.
The company never charges broker fees, and leases range anywhere between 1-18 months.
“June Homes is essentially decreasing the short-term rental prices by working with small mom-and-pop landlords versus large multi-billion dollar real estate conglomerates,” Mishin explained.
“We built an algorithm that finds apartments that are in slightly worse form than other apartments, slightly cheaper than other apartments,” he continued, “we partner with landlords, we renovate them in 72 hours and then put them back on the market under this new model.”
The CEO added that recent demand for short-term leases among millennials is creating a supply shortage that they’re working to fix.
“Our tenant demand has grown two-point-five times just quarter over quarter,” Mishin said. “We’re running out of apartments in all major U.S. cities, and the demand is there.”
A recent financial backing by venture investors is helping June Homes to boost supply.
“We are working with landlords to convert their multi-family or single-family homes in this new use that has a lot of demand, that decreases their vacancy time by ten times, that allows them to eliminate broker fees, management fees and stop paying various middlemen,” Mishin clarified, “which at the end of the day, decreases the rental prices for consumers.”