Vacation Rentals startup TurnKey secures $31 million to accelerate growth and develop new VR technologies
Vacation rental space is competitive but one startup continues to thrive. TurnKey is is a vacation rental startup started in 2012 by T.J. Clark and John Banczak. It markets and manages premier vacation rental homes in top U.S. travel destinations. To fuel its continued market expansion, development of new vacation rental technologies and positioning as a leading vacation rental hospitality brand in the US, the company announced today it has secured $31 million in Series D funding. The current round is led by current investor Adams Street Partners, with participation from existing investor Altos Ventures and two new institutional investors. This financing round brings TurnKey’s total capital raised to $72 million since 2013.
TurnKey has grown to provide full-service property management to more than 3,500 premier vacation rental homes in top U.S. travel destinations in the five years since its launch. With their dedicated in-market experts and proprietary technologies, TurnKey offers homeowners and their guests high-end experience of a fine hotel while retaining the unique benefits and authenticity of a vacation rental home. Their proprietary smart home technology – digital smart locks, FieldSync housekeeping scheduler, HomeDroid tablet, noise decibel monitors and more – integrates with local, in-market teams to ensure extraordinary vacation rental experiences for every home, every stay, every time.
“TurnKey is exceptional in that their rapid growth has been organic, as opposed to growing through acquisitions,” said Jeff Diehl, managing partner and head of investments at Adams Street Partners. “This is a seasoned online travel management team that knows how to scale and execute with precision in the $100 billion vacation rental industry. Our additional investment demonstrates our belief in the promise of the TurnKey brand, its leadership and its model.”
TurnKey provides full-service vacation rental property management through smart home technology combined with local teams to deliver 24/7 service. The company’s proprietary technology platform integrates its smart locks, decibel monitors, FieldSync housekeeping scheduler and HomeDroid tablets installed in every TurnKey home to automate time-consuming property management tasks, giving homeowners and guests a reliable, fine-hotel experience in a vacation rental.
This combination of technology and refined management processes enables TurnKey to charge an industry-low commission rate, typically half the 35-50 percent charged by most vacation rental property managers.
“At TurnKey, we’ve doubled our growth each year since 2013, while expanding into 55 top markets across the U.S.,” said T.J. Clark, TurnKey co-founder and CEO. “We are thrilled by the continued support of our investors to help us further establish TurnKey as the hospitality brand of choice for vacation rental guests and homeowners.”
“Our growth is validation of our hospitality brand and our ability to delight guests each and every time they book a TurnKey property,” Clark continued. “Today, the hotel industry has a high percentage of bookings going through a few major brands that consumers trust. Homeowners and travelers are looking for a brand they can trust to deliver consistency and quality in vacation rentals as well, and this is what TurnKey provides.”
According to Wells Fargo Private Equity Research, professional property management can drive more than a 20 percent improvement in net revenue for vacation rental homeowners when compared to self-management, yet fewer than half of vacation rental homes are currently property managed.
“The vacation rental industry is still in its infancy but growing rapidly – by 2020, it will represent approximately 20 percent of total worldwide accommodation bookings,” said Jen Ford, Chief Financial Officer at TurnKey. “In the U.S. alone, there are well over a million vacation rental homes. This capital investment will enable us to bring our proprietary technology and best-in-class management to more of those homes.”