Anyone have experience with Nomad?

Question

Hi, has anyone has experiences with Nomad? I see they offer leasing and guaranteed rent as well as overall property management. Wondering if folks have used this service and liked it. The idea of guaranteeing rent regardless of vacancy is super appealing!

Greg Weik · Answer

Hi @Kelly Rao, we compete with Nomad in the Denver property management market, so I'm familiar with their business model.

The short version is this:  If you're willing to pay (considerably) more for the security of guaranteed rent, they are probably worth hiring. Just keep in mind you are paying a significant premium for that peace of mind.

My personal opinion is that a competent Property Management Company (PMC) will not need any gimmicks.  A competent PMC will simply rent your property to the best tenants -quickly- and they will charge a nominal fee to manage your investment property with competence. Your rent will roll in each month and you will be kept apprised of everything you want to know about (maintenance, renewals, etc.)

There are a lot of gimmicks out there, such as eviction protection plans, free maintenance plans, etc. and Nomad is well aware that "guaranteed rent" sounds like a great selling point.  I tip my hat to their next-level gimmickry.

The truth is, all rent is almost always entirely guaranteed.  A good PMC screens for and attracts the right tenants, for a much lower price. I say that as someone who has managed thousands of properties in a 15-year time frame.  It's exceptionally rare for rent to not be paid, especially to the point of having to file an eviction.  With Nomad, you're paying a lot of extra money for a guarantee that is not necessary with skilled and experienced property management combined with masterful recommendations for property condition; i.e. what a property needs in order to be rent-ready to the degree that qualified candidates will be attracted to rent the property.

If it seems to be good to be true, it is.

Drew Sygit · Answer

@Kelly Rao

@Greg Weik and I don't see eye-to-eye on much, but have to agree with him 100% on this one.

Have seen several companies offer similar guarantees in Metro Detroit area - and they are all out of business now.

Richard Baird · Answer

From personal experience for the first time, dealing with no bad properties they are very incompetent at their job and handling business. These people are actually so incompetent that my landlord was talking to me about switching companies.

Larissa Senna · Answer

I'm also in the same boat - trying to see if Nomad is a good option for me. I have two doors in the Dallas area. I tried to find a qualified tenant around May for about a month, I had everything in place (application, rental criteria, lease agreement, background check co., tours, etc) however, many applicants had evictions and poor credit history (low credit score doesn't bother me, but when you have 7-10 credit card and personal loans in default, it's a serious red flag.) The process was frustrating and exhausting, so mid-June I decided to do Airbnb because my units were vacant. I have been doing fairly well, taking in consideration the little time I'm on it, but it's a lot of work. I have to screen (chat with them) every new guest to make sure they have good reviews and the real purpose of their trip. There's also all the expenses w/ housecleaner and essentials for the house. I don't like the fact that you can't charge a deposit (even hotels charge $50/day as refundable deposit) and for all the work, I don't think it's worth it my time.

I would really appreciate feedback about Nomad services. I'm also going to look into Ziprent and a new one I've heard, Ownerrez. I would like to be somehow hands-on because based on my experience with property management companies, I do not like them, and I would not trust my units 100% with them. Here in Texas, the ones I had experience with, did not do much to maintain my properties. I want to be involved somehow, that's why I thought Nomad would be a good option because they give you thresholds to choose the level of involvement you can have. My husband is a general contractor so I'd def be using his company for handyman services, so I wouldn't need their vendors for that. I already have Smart locks installed, so I just really need help with finding good tenants and the initial screening/leasing process and responding to emergency calls/work orders.

Thanks

Na Monke · Answer

Be sure to do your own due diligence. Greg works for a competitor and the company has 2 stars on Yelp. https://www.yelp.com/biz/real-...

Pranay Dua · Answer

@April Mattin i am seriously considering them for my rental properties in LA. I am trying to compare them with Ziprent. Ziprent doesnt offer much except their low monthly fees. I would really appreciate if you can share your present experience with Nomad Lease. Also if you can share a referral link as they offer $500 to both the parties involved. I would really appreciate if you can respond. I have one condo and one SFH coming up for rent in LA

April Mattin · Answer

So, I was able to renegotiate to the 4% fee instead of the 7% I was on. So I still use them for a few of my properties. I don't know if you're able to choose if you want to have assisted or unassisted showings. They do have a monthly fee that tenants now pay to have tenant insurance and a couple other benefits. They will cover rent if the tenant breaks lease or doesn't pay, however they won't pay the rent for in between tenants, so if they can't find someone for 2-3 months that's on you. They also refuse to overlap tenants, IE won't do showings in the tenant's last month so you're pretty much guaranteed to have at least 1 month gap. The communication piece is still VERY much hit or miss. I don't use their handyman service unless I absolutely have to as I feel like that's hit or miss as well. But that part is good to have as an emergency back up system. Especially if I'm out of town. Just like any other service it has it's pros and cons. Oh and they still do offer the more full service program at a higher percentage. My biggest complaint for the most part now is that they don't seem to work that hard at finding new tenants, and they make it more difficult than it has to be for tenants to renew. Not sure if that helps you at all.

Yuwen Wang · Answer

Nomad offers $500,000 of rental property protection.  Were you able to use that to help cover for damages to your rental home?

Britney Strout · Answer

We use them for a Denver property and the honeymoon phase is over for us. They brought in awful tenants that turned our property into a party house and caused thousands in damages. Then when we showed them the extensive damages the said let us know when it’s rent ready again and will not pay the “guaranteed” rent. We would have been better off discounting the rent 7% and finding tenants that would respect our property and rent year after year.

Anyone have experience with Nomad?

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