Real estate investment firm Arrived Homes adds vacation rental properties to its platform

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Welcomed Homes A Seattle-based start-up that lets investors purchase shares in single-family homes, is adding short-term property rentals on its investment platform.

“We’re thrilled to announce Vacation Rentals launching on Arrived,” the company announced in an email sent to customers on Wednesday. “Vacation rentals are fully furnished homes that are leased for short-term stays (1-30 days) on platforms like Airbnb & VRBO.”

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“Platforms like Airbnb have helped vacation rental owners generate over $150 billion dollars in rental income from serving 1 billion guest arrivals, and yet, less than 0.5% of these guests have been able to access the wealth-building potential of this rapidly growing asset class,” CEO and co-founder Ryan Frazier declared in an announcement. 

Investors on the platform are looking to put their money into short-term rentals. In Nashville, the vacation home rental ” The Oasis” has sold all its shares in the day it began trading on Wednesday, and was featured in the trending section of the Arrived website.

The company aims to broaden its range of single-family rental properties as well as vacation rentals. It plans to also open in new markets like Florida, Texas, Nevada and Indiana. But, it could encounter obstacles as different states are taking action against rental properties for short periods by enforcing a variety of regulations regarding zoning, for instance the law signed by Honolulu Mayor Rick Blangiardi, which stipulates the owners of properties to reserve their units for a minimum period of 90 days.

Platforms for investing in real estate such as Arrived have come under fire for taking over housing inventory and driving higher prices. The company has previously defended its business model by stating that there was a need to provide “quality rental housing” for households and individuals who do not have the money or desire to purchase homes, and that it doesn’t bid on the housing inventory which would otherwise be owned by the owner.

The company was founded in the year 2019 by three veteran tech professionals such as Frazier and the CTO Kenny Cason and COO Alejandro Chouza. The company’s cap table is populated with high-powered backers , including the venture capital arm that are owned by Jeff Bezos and Marc Benioff as well as the investments of the former Zillow Group CEO Spencer Rascoff and Uber Chief Executive Officer Dara Khosrowshahi among others.

Arrived’s inventory comprises that includes 150 one-family rental houses in 27 cities across the nation, totalling greater than $55million in asset value.

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