One of My 2007 Predictions Comes True

I am hearing from a reliable source this evening that Consumer Source Inc. (Primedia) has purchased RentalHouses.

So how much did they purchase them for? Only time will tell when they release the public records. I will take a guess that it was 2.5 million. If I am correct with that number than I am sure the investors that put 6 million into the company will not be pleased.

The word on the street is all four of Primedia’s sites (RentClicks, HomeRentalAds, RentalHouses and Rentals) will all share the same pricing. It will be interesting to see if they go with the RentClicks strict pricing (my guess) or the RentalHouses unlimited pricing (not likely in my opinion).

We saw this consolidation happen in the vacation rental market about a year ago.

Is this good or bad for the industry when one company owns the top 3 rental sites? I am going to say it will be a bad thing for property managers because I think Primedia will not go with an all-you-can-eat unlimited plan which will tick off a lot of property managers.