Modern Message Acquisition: Key Details, Impact, and What Comes Next

RealPage's acquisition of Modern Message marks a significant development in the real estate industry. By integrating Modern Message's Community Rewards platform with RealPage's existing solutions, the merger aims to enhance resident engagement and loyalty. This strategic move is expected to provide property management companies with a comprehensive toolset to improve resident retention and satisfaction.

What Is Modern Message?

Founded in 2012, Modern Message offers the Community Rewards platform, a loyalty rewards system tailored for the multifamily housing industry. Its core services include automated engagement campaigns, resident insights, digital incentives, and easy rewards redemption. Unique selling points include a Resident Intelligence Hub for continuous feedback, instant digital incentives, and tools to boost online reputation scores. The platform also claims to save on resident turnover costs and provides a customizable white-label app for brand reinforcement.

Who Acquired Modern Message?

RealPage is a leading provider of property management software and related services, focusing on enhancing operational efficiency, resident experience, and revenue growth for multifamily property managers. Key products include the LOFT™ app for leasing and living, DemandX Platform for demand forecasting, G5 Marketing solutions, and Knock CRM for leasing teams. RealPage also offers tools for online leasing, resident screening, revenue management, and utility management. The company leverages advanced technologies like AI to maintain its market leadership.

When Was Modern Message Acquired?

RealPage acquired Modern Message on January 22, 2020. This acquisition came at a time when the real estate industry was increasingly focusing on digital engagement and resident loyalty solutions. The integration of Modern Message's Community Rewards platform with RealPage's existing tools aimed to address these trends by enhancing resident satisfaction and retention. This strategic move was particularly relevant as the industry faced the challenges of the COVID-19 pandemic, which underscored the importance of robust digital engagement platforms.

Why Was Modern Message Acquired?

• Market Expansion: RealPage's acquisition of Modern Message represents a significant market expansion. Modern Message's platform is already adopted by over half of the property management companies in the NMHC Top 50, and the acquisition will allow RealPage to offer a more comprehensive resident engagement solution to a broader audience. Additionally, Modern Message serves over 5,000 communities in 49 states, comprising more than 1.8 million residents, indicating a substantial market presence.
• Technology Integration: The integration involves combining Modern Message’s Community Rewards platform with RealPage’s ActiveBuilding resident portal. This integration aims to create a complete renter engagement solution that includes features like a points-based rewards program, enhanced communication tools, and a user-friendly mobile interface compatible with various property management software platforms. The combined platforms will offer a comprehensive resident portal that includes payments, resident communication, and loyalty services.
• Competitive Advantage: The combined platform is expected to provide a competitive advantage by offering exceptional resident engagement, which drives increased leasing, retention, and eCommerce transactions. The platform also aims to improve property reputation, a key factor in lead-to-lease conversion rates, and provide a data-driven solution for benchmarking engagement and reputation. The Community Rewards platform distinguishes itself by incorporating an automated rewards program that incentivizes resident engagement, helping properties build stronger communities and improve online reputations.

Acquisition Terms

• Acquisition Price: The acquisition price was not publicly disclosed.
• Payment Method: The payment method was not specified in the available information.
• Key Conditions or Agreements:
  • The completion of the acquisition is subject to standard closing conditions.
  • RealPage plans to retain Modern Message’s employees and move operations to RealPage's headquarters in Richardson, Texas.
  • The integration aims to combine Modern Message’s Community Rewards platform with RealPage’s ActiveBuilding resident portal to enhance resident engagement and property value.

Impact on Modern Message

The acquisition of Modern Message by RealPage has led to significant operational changes, including the relocation of Modern Message's employees from downtown Dallas to RealPage's headquarters in Richardson, Texas. This move aims to streamline operations and foster closer collaboration between the teams. The management structure remains largely intact, with key figures like John Hinckley and Mike Ivey continuing to play pivotal roles. The integration of Modern Message's Community Rewards platform with RealPage's ActiveBuilding resident portal is expected to enhance the overall product offering, providing a more comprehensive resident engagement solution.

On the product front, the merger has resulted in a richer, more integrated platform that combines resident engagement, loyalty programs, and communication tools. This enhanced offering is designed to boost resident retention, satisfaction, and property reputation. Employee reactions have been overwhelmingly positive, with co-founders expressing excitement about the new opportunities. Customers have also responded favorably, noting the increased value and functionality of the combined platform. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly, ensuring a smooth and efficient transition.