"Landlords are not always the bad guys"

In this interview, Vermietet.de CEO Jannes Fischer talks about the tight real estate market, his start-up's record exit and the question of how to continue running a start-up within a larger company.

May 11, 2021 was a reason for Jannes Fischer to celebrate. On that day, his start-up Vermietet.de went to the Munich-based Scout24 Group. It was reportedly the largest proptech exit in Germany. Unlike many other founders, however, Fischer stayed on board after the takeover and wants to continue building his start-up.

Mr. Fischer, you want to make life easier for property owners with your Vermietet.de platform. Why are you entering such a complicated and fragmented market?

Because I know from my own experience that it is very complicated for landlords to manage a residential property. I'm not talking about large commercial providers, but people who rent out a few units. I started managing my grandparents' properties years ago and quickly realized that there was immense potential. So I decided to found Vermietet.de.

Landlords don't have the best reputation these days, especially in areas with competitive housing markets like Berlin, where they often attract a lot of criticism. Wouldn't a start-up that makes life easier for tenants make more sense?

I think this narrative is fundamentally wrong. Many private landlords use real estate to provide for their own old age. Of course they also want to earn money with it. But that doesn't mean they are being unfair to their tenants. On the contrary, the majority work well with them.

What exactly does Vermietet.de offer landlords?

Our offer starts with simple functions such as incoming rent checks. That sounds simple, but if landlords don't have to check it themselves every month, it saves a lot of time, especially if you rent out several properties. We also help with service charge invoicing and the legally compliant drafting of contracts. Tasks and contacts can also be managed and maintained via the platform and much more.

ImmoScout24 took over your start-up in 2021. How did you come together with Scout24?

We have a shared vision: we want to make complicated processes in the real estate market more digital, more transparent and therefore simpler. For example, we want our users not only to be able to manage existing tenancies, but also to rent out their properties directly. ImmobScout24 is the best partner for this. Together, we are creating a central point of contact for landlords.

And then you simply approached the Scout Group and introduced yourself, or did they approach you?

The real estate industry is highly networked and many market participants know each other. We had already worked successfully with ImmoScout24 in the past on the topic of letting. We discovered that we share the same vision and values.

Many founders say goodbye to their company after such an exit. Why not you?

I am driven by the vision, there is still a lot to do. I believe that more efficient housing management can make at least as important a contribution to ending the housing shortage in Germany as building new homes. Our partnership with the Scout24 Group brings us a big step closer to this vision.

And ImmoScout24 is letting you realize this vision? Or do you now have to coordinate every process in detail with the head office?

Not at all. We are still an independent GmbH, with our own team and our own office. So we have plenty of room to maneuver. We also have the opportunity to benefit from centralized processes and synergies.

What does ImmoScout24 expect from you on the other hand?

We are a fast-growing company; landlords now manage over 500,000 units via our platform. And we are benefiting from a generational shift in the market. Digital natives are slowly taking over property ownership in many places. Of course, they have no desire for complicated Excel tools. That's a great opportunity.

Thank you for talking to us.

Personal details: Jannes Fischer founded Zenhomes in 2016. Following the takeover by Scout24, the start-up gave rise to the companies Vermietet.de and Upmin. Fischer previously worked at Foodpanda and Rocket Internet, among others. As an investor, he is involved in Scaling Spaces, Flagship Founders and Bullfinch, among others. He has been a board member of the German Proptech Initiative since 2020. Fischer studied International Business Administration at WHU - Otto Beisheim School of Management.