Target Information

PetScreening is a leading pet policy management platform designed to assist property owners and managers in navigating the complexities of pet ownership within rental communities. Founded in 2017 by John R. Bradford III, PetScreening aims to create a more pet-inclusive world by providing tools that help manage not only residents' pets but also assistance animals. With a robust service offering, the company has successfully processed over 3.5 million pet profiles and serves more than 7 million rental units across various sectors including multifamily, single-family, and military base housing.

Through its innovative platform, PetScreening enables property managers to effectively enforce pet policies, thereby generating additional revenue while mitigating legal liabilities associated with pet ownership. The company has also introduced unique services like the no-cost “Amber Alert” feature for lost pets and expanded its resources with the acquisition of BetterPet.com, reinforcing its commitment to improving the experience for both pet owners and property managers.

Industry Overview

The pet care industry in the United States has experienced exponential growth, particularly with a notable increase in pet ownership since 2019. Current estimates suggest that there are approximately 180 million pets in the U.S. as of 2024, marking an 18% rise over the past five years. This surge in pet ownership has created a parallel trend among property owners and managers who are increasingly adopting pet-friendly policies to attract tenants.

However, this increase has also brought significant regulatory challenges, especially concerning assistance animals under the Fair Housing Act. Property owners must accommodate residents with assistance animals, regardless of their community’s pet policies, complicating management processes and increasing the likelihood of legal non-compliance.

Further compounding these issues, various online services offering assistance or emotional support animal letters have proliferated. Notably, the U.S. Department of Housing and Urban Development (HUD) has warned that documentation from such services may not meet the requirements for substantiating reasonable accommodation requests. Property managers are thus left to navigate unclear regulations without sufficient training or resources, leading to inconsistent enforcement of pet policies.

This challenging landscape presents both obstacles and opportunities. While managing pet policies incurs significant resources and potential liabilities for property owners, it also offers a substantial revenue stream through pet rent and pet-related services. By effectively managing and reinforcing pet policies, property owners can improve compliance, enhance tenant satisfaction, and capitalize on the growing pet ownership trend.

Rationale Behind the Deal

The recent $80 million Series B investment in PetScreening underscores the pressing need for efficient tools in the evolving real estate landscape regarding pet policy management. As property owners face mounting regulatory pressures and seek revenue generation opportunities, a solution like PetScreening becomes essential in streamlining their operations and ensuring compliance.

Investing in PetScreening aligns with the broader market trend towards increased pet inclusivity within rental communities. With its established expertise and innovative service offerings, PetScreening is well-positioned to address the needs of property managers grappling with the challenges presented by rising pet ownership and fluctuating regulations.

Investor Information

The investment in PetScreening was co-led by Volition Capital, a firm known for supporting growth-stage companies with innovative solutions. Volition's team recognized John R. Bradford III's vision for building a more pet-friendly society, as well as the company's remarkable growth trajectory within the pet policy management sector. By strategically investing in PetScreening, Volition aims to capitalize on the burgeoning demand for effective pet management solutions across the rental market.

This collaboration is more than just a financial investment; it reflects a shared commitment to transforming the rental housing landscape by enabling better pet policies and enhancing the overall rental experience for both property owners and tenants. As the partnership develops, both parties anticipate leveraging their expertise to maximize the value of PetScreening's offerings.

View of Dealert

From an expert's perspective, the investment in PetScreening appears to be a sound decision in the context of the increasing challenges faced by property owners and the growing pet ownership demographics. The company's ability to streamline pet policy management while generating ancillary revenue through pet rent makes it an attractive proposition for landlords wanting to mitigate risks associated with non-compliance.

Furthermore, PetScreening's innovative approach, such as its Amber Alert service and the recent acquisition of BetterPet.com, indicates its readiness to adapt and evolve in an increasingly competitive market. This adaptability not only enhances the company’s offerings but also solidifies its position as a market leader.

Moreover, the potential for significant untapped revenue in pet-related services indicates that the company’s growth trajectory is likely sustainable. By effectively educating property managers and providing them with the necessary tools, PetScreening can transform the challenges posed by pet regulations into advantageous opportunities.

Overall, the Volition Capital investment in PetScreening represents a strategic move that has the potential to yield considerable returns, driven by a shift towards more inclusive and regulated pet policies within the real estate sector. Investors can be optimistic about the trajectory of PetScreening as it continues to lead innovation in the pet policy management space.

View Original Article