Smartrent, a provider of technology-powered tools and services for rental communities and other types of multifamily housing, appointed Martell president and CEO, effective immediately. Martell has been a member of its board of directors since June 2024, while also serving on two separate committees. He also currently sits on the board of real estate brokerage Compass. 

No stranger to corporate turmoil, Martell joins another company that has seen its share of challenges and negative publicity in recent years, to become its third leader in less than 12 months. 

Why is Smartrent in trouble?

Headquartered in Scottsdale, Arizona, Smartrent was founded in 2017 and began trading on the New York Stock Exchange in 2021. In late 2023, Bleeker Street Research published a report that alleged the smart locks Smartrent supplied to multifamily property owners had a known security vulnerability. The company subsequently found itself the subject of several shareholder lawsuits, as attorneys claimed the firm had issued false or misleading statements and failed to make pertinent disclosures. 

Several months later in July 2024, former CEO Lucas Haldeman was dismissed from his role, with the business entity also suspending its full-year outlook at the time. Following a months-long executive search, Smartrent appointed technology executive Shane Paladin to head the company only to see him resign, at the request of the board, in April.

Over the past year, Smartrent has seen its stock value plunge from a high mark of $2.54 per share last July to under $1.00. In May, regulators at the New York Stock Exchange warned the company it had fallen into noncompliance with its listing requirements, which stipulate its stock's average closing share price over 30 days must remain above $1.00. 

Upon receipt of such warnings, public companies are given six months to make necessary changes and regain compliance. Smartrent executives noted they planned to raise the company's per-share value above the required minimum mark within the cure period, an undertaking Martell will oversee.

"He steps in at a critical time for Smartrent, our investors and customers," Smartrent Chair John Dorman in a press release. "We're confident his leadership will enhance the quality of our execution, strengthen our market-leading position and drive meaningful, long-term value for shareholders."

What Martell did at Loandepot

Martell arrives at Smartrent after stepping down as Loandepot's president and CEO earlier this month. Loandepot announced the return of its founder and primary shareholder Anthony Hsieh to day-to-day leadership for the lender in March, appointing him to executive chair and interim CEO to replace Martell. 

Martell first joined the Southern California-based lender in the middle of a significant mortgage industry slowdown in 2022 and immediately embarked on cost-cutting measures aimed at saving hundreds of millions of dollars by this year. 

While Martell helped Loandepot reduce costs, leading the company briefly back into the black in the second half of 2024, his tenure was also marked by contentious disagreements with Hsieh over the future direction and control of its board. The parties eventually reached a compromise deal in 2023, with Hsieh holding off on new appointments for two years. 

Before joining Loandepot, Martell was a senior executive at real estate services provider Corelogic for 10 years, hired by the company as chief financial officer in 2011. He later became its CEO in 2017, overseeing the restructuring of Corelogic's businesses and also fending off multiple takeover bids. 

Corelogic, which has since rebranded as Cotality, eventually reprivatized under Martell's watch, with the chief executive leaving the company shortly thereafter.