<SEC-DOCUMENT>0001140361-16-087890.txt : 20161128
<SEC-HEADER>0001140361-16-087890.hdr.sgml : 20161128
<ACCEPTANCE-DATETIME>20161128094205
ACCESSION NUMBER:		0001140361-16-087890
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20161122
FILED AS OF DATE:		20161128
DATE AS OF CHANGE:		20161128

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			APPFOLIO INC
		CENTRAL INDEX KEY:			0001433195
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				260359894
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		50 CASTILIAN DRIVE
		CITY:			GOLETA
		STATE:			CA
		ZIP:			93117
		BUSINESS PHONE:		8053646093

	MAIL ADDRESS:	
		STREET 1:		50 CASTILIAN DRIVE
		CITY:			GOLETA
		STATE:			CA
		ZIP:			93117

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Keenan Charles J IV
		CENTRAL INDEX KEY:			0001647794

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-37468
		FILM NUMBER:		162018733

	MAIL ADDRESS:	
		STREET 1:		1229 BURLINGAME AVENUE
		STREET 2:		SUITE 201
		CITY:			BURLINGAME
		STATE:			CA
		ZIP:			94010

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Keenan Capital GP, LLC
		CENTRAL INDEX KEY:			0001647658

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-37468
		FILM NUMBER:		162018734

	BUSINESS ADDRESS:	
		STREET 1:		1229 BURLINGAME AVENUE
		STREET 2:		SUITE 201
		CITY:			BURLINGAME
		STATE:			CA
		ZIP:			94010
		BUSINESS PHONE:		650-344-3332

	MAIL ADDRESS:	
		STREET 1:		1229 BURLINGAME AVENUE
		STREET 2:		SUITE 201
		CITY:			BURLINGAME
		STATE:			CA
		ZIP:			94010

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Keenan Capital, LLC
		CENTRAL INDEX KEY:			0001647363
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-37468
		FILM NUMBER:		162018735

	BUSINESS ADDRESS:	
		STREET 1:		1229 BURLINGAME AVENUE
		STREET 2:		SUITE 201
		CITY:			BURLINGAME
		STATE:			CA
		ZIP:			94010
		BUSINESS PHONE:		650-344-3332

	MAIL ADDRESS:	
		STREET 1:		1229 BURLINGAME AVENUE
		STREET 2:		SUITE 201
		CITY:			BURLINGAME
		STATE:			CA
		ZIP:			94010
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>doc1.xml
<DESCRIPTION>FORM 4
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0306</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2016-11-22</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001433195</issuerCik>
        <issuerName>APPFOLIO INC</issuerName>
        <issuerTradingSymbol>APPF</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001647363</rptOwnerCik>
            <rptOwnerName>Keenan Capital, LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>1229 BURLINGAME AVENUE</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 201</rptOwnerStreet2>
            <rptOwnerCity>BURLINGAME</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>94010</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001647658</rptOwnerCik>
            <rptOwnerName>Keenan Capital GP, LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>1229 BURLINGAME AVENUE</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 201</rptOwnerStreet2>
            <rptOwnerCity>BURLINGAME</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>94010</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001647794</rptOwnerCik>
            <rptOwnerName>Keenan Charles J IV</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>1229 BURLINGAME AVENUE</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 201</rptOwnerStreet2>
            <rptOwnerCity>BURLINGAME</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>94010</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>CLASS A COMMON STOCK</value>
            </securityTitle>
            <transactionDate>
                <value>2016-11-22</value>
            </transactionDate>
            <deemedExecutionDate></deemedExecutionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>S</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>5522</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>22.04</value>
                    <footnoteId id="F1"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>1278580</value>
                    <footnoteId id="F3"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>By Partnership</value>
                    <footnoteId id="F4"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>CLASS A COMMON STOCK</value>
            </securityTitle>
            <transactionDate>
                <value>2016-11-23</value>
            </transactionDate>
            <deemedExecutionDate></deemedExecutionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>S</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>3594</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>22.02</value>
                    <footnoteId id="F2"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>1274986</value>
                    <footnoteId id="F3"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>By Partnership</value>
                    <footnoteId id="F4"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes>
        <footnote id="F1">The price reported in Column 4 is a weighted average price.  These shares were sold in multiple transactions at prices ranging from $21.75 to $22.30, inclusive.  The reporting persons undertake to provide to AppFolio, Inc., any security holder of AppFolio, Inc., or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within the range set forth in this footnote (1).</footnote>
        <footnote id="F2">The price reported in Column 4 is a weighted average price.  These shares were sold in multiple transactions at prices ranging from $22.00 to $22.10, inclusive.  The reporting persons undertake to provide to AppFolio, Inc., any security holder of AppFolio, Inc., or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within the range set forth in this footnote (2).</footnote>
        <footnote id="F3">Mr. Keenan is the beneficial owner of 77,944 shares of Class A common stock over which he has sole voting and dispositive power.  Mr. Keenan may also be deemed to beneficially own an additional 205,056 shares of Class A common stock held through family trust accounts for which he is either a co-trustee or a beneficiary.  Mr. Keenan shares voting and dispositive power over the shares of Class A common stock held through such accounts.</footnote>
        <footnote id="F4">These shares are owned directly by Keenan Capital Fund, LP (&quot;KCF&quot;) and indirectly by Keenan Capital GP, LLC (&quot;KCGP&quot;), the general partner of KCF with voting and investment authority over these shares.  KCGP has delegated such authority to Keenan Capital, LLC (&quot;Keenan Capital&quot;), the manager of KCF.  Accordingly, KCGP disclaims beneficial ownership of these shares, except to the extent of any pecuniary interest KCGP may have therein.  As sole owner and Manager of Keenan Capital, Charles J. Keenan, IV (&quot;Mr. Keenan&quot;) may be deemed to be the indirect beneficial owner of these shares.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Charles J. Keenan, IV, Authorized Officer</signatureName>
        <signatureDate>2016-11-25</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>Charles J. Keenan, IV</signatureName>
        <signatureDate>2016-11-25</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
