Michael Lucarelli, 27
Title: Chief executive and co-founder, RentSpree
Company: RentSpree, based in Encino, is a platform that automates tenant screening.
Employees: 19
Financials: In 2018, the company reported $800,000 in revenue. It has raised $500,000 from investors to date.
What led you to start this business?
When I came to the area, it was very difficult to navigate the application process. There are multiple steps (to the rental application process); you have to fill in your information to multiple landlords. So, I saw an opportunity to streamline that process. I’m also a real estate agent. I have my real estate license in California. Working on a few transactions and working with other people who are trying to get tenants screened, I also noticed that there was a disconnect from the property side. We saw a big opportunity to streamline the process for both parties involved.
Where do you go for advice regarding your business?
I look at it as you can stand on the shoulders of people who have done it before. I was really lucky to get to have a brief conversation with the former CEO of Zillow. I was able to bounce some ideas about what we’re doing and get some feedback.
Where do you go for professional services (legal help, accounting, etc.)?
Our attorney, who does a fantastic job, is Scott Alderton of Stubbs Alderton & Markiles in Santa Monica. We wouldn’t have been able to close certain deals without him. We’re also a member of the National Association of Professional Background Screeners. There’s a lot of resources there that we utilize.
How much time/money do you spend on social media for your business?
For us, the big thing is Facebook because we work with landlords and real estate agents who tend to use Facebook a lot. We spend $5,000 to $8,000 a month on Facebook ads. It’s been very successful.
Does social responsibility play a role in your business?
Where you live has a huge impact on your overall life. I’m very aware of where RentSpree is in that process. For a lot of the people that got displaced by wildfires (last year), we waived the screening fees.
Do you encounter skepticism from investors because of your age, and if so, how do you handle it?
No matter how old or young you are if you show people that you have a track record and can execute, that can overcome a lot of the disadvantages you might have when investors see that you’re a little bit younger.
What do you do for fun?
I’ve always been an avid skier. I like to go backpacking, and I’ve done a few multiday hikes.
