Seeking Business Advice

Seeking Business Advice

Member since 2021 · 6 posts · 2 votes

Hi Bigger Pockets Community!

I am currently launching a business that connects landlords and tenants and wanted to post here to hear advice and get general feedback. The company is Nomad Leasing which facilitates long term leases for a rotating group of tenants. For example, leasees may want to spend 3 months in Charleston, 3 months in Austin, and 6 months in San Diego, and they would sign a year long Nomad lease. Nomad will leverage an algorithm that groups users to leases based on their desired locations resulting in the landlord having a full year lease term with various tenants. Benefits for the landlord include having the guaranteed occupancy of a long term tenant and the hassle of sourcing and vetting qualified tenants eliminated. The benefit for the tenant is a customized lease at prices comparable to a long term lease instead of higher daily rate airbnbs. It is a win-win for both users. With the new surge of people working 100% remote, we've received a lot of interest on the leasee side so we are interested to hear thoughts and feedback from the landlord perspective.

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  • Accountant · Lexington, KY · Member since 2019 · 100 posts · 66 votes
    4y

    I think this is a great idea! I am someone who likes to spend periods of the year in different/new cities and Airbnb or other short term rental rates keeps me from doing this more.

    As a landlord, if I am still getting quality tenants at fair market rents (or better) I think everything would be fine. I guess I would have to pay a cleaning fee like an airbnb does after each 3-6 month period and I would be concerned about a property I have in an HOA and section of Nashville that does not allow short term rentals. I'm not sure how long a tenant has to stay to get around these rules.

  • Member since 2021 · 6 posts · 2 votes
    4y

    This is really valuable feedback Matthew, thanks! HOA restrictions are definitely something to consider.

  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    3y
    Quote from @Christina Hodgkins:

    Hi Bigger Pockets Community!

    I am currently launching a business that connects landlords and tenants and wanted to post here to hear advice and get general feedback. The company is Nomad Leasing which facilitates long term leases for a rotating group of tenants. For example, leasees may want to spend 3 months in Charleston, 3 months in Austin, and 6 months in San Diego, and they would sign a year long Nomad lease. Nomad will leverage an algorithm that groups users to leases based on their desired locations resulting in the landlord having a full year lease term with various tenants. Benefits for the landlord include having the guaranteed occupancy of a long term tenant and the hassle of sourcing and vetting qualified tenants eliminated. The benefit for the tenant is a customized lease at prices comparable to a long term lease instead of higher daily rate airbnbs. It is a win-win for both users. With the new surge of people working 100% remote, we've received a lot of interest on the leasee side so we are interested to hear thoughts and feedback from the landlord perspective.

    As a landlord why wouldn’t I just sign a lease with a single 12 month tenant since the rent would be the same?
    Private Mortgage Financing Partners, LLC
  • Member since 2022 · 16 posts · 19 votes
    3y
    That is a very interesting concept. I would assume that the lease should include some kind of turnover maintenance provided (pr subsidized) by Nomad. Certainly a new traveling tenant would like to come into a freshly deep cleaned property - which would be a new, additional expense that wouldn't otherwise exist. The landlord would either need to build in that cost into the lease based on the number of expected turns, or possibly better for everyone, have a flat rate fee predetermined for deep clean, paint if necessary, carpet cleaning or other minor repairs.
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