The Nomad Blog

How Nomad Maximizes What You (the Property Owner) Earn

Dec 8, 2020 8:15:00 AM / by The Nomad Team

Nomad Maximizes Income

We say it time and time again across our website, in-person, and wherever you find us:

Nomad is your partner. We maximize your rental income and eliminate your vacancy risk.

But what does that really mean? How does Nomad maximize your rental income?

Good questions!

It's not just hyperbole—we can help you earn more revenue, reduce expenses, and take home more profit. Below, we'll outline exactly how we make it happen.

Calculate Your Rental Income and Costs

To discover how much Nomad can help you earn and save, you need to get a ballpark estimate of how much you'd make and spend if you self-manage your property.

Try our Rental Income Calculator. It'll use your monthly rent, estimated time to place a tenant, and renewal rate to calculate your expected 2-year earnings.

Let's use the calculator to walk through a scenario using the following data:

  • Monthly Rent: $2,400
  • Time to Rent: 5 weeks (it takes the average DIY landlord 4-6 weeks, so 5 is a safe estimate)
  • Renewal Rate: 50% (on average, tenants renew their 1-year lease ~50% of the time in the Denver area)

Now, let's see the results.

Expected 2-Year Earnings

Nomad would help you make an estimated $53,588, while going the DIY path would earn you $51,893. This is nearly $2,000 more in your pocket over 2 years, or ~$70/month. Plus, you work significantly less (meaning you could spend your time doing other things, like making more money) when you lease with Nomad.

But why the ~$2,000 difference in income? Let's break it down step-by-step.

Rental Revenue

We estimate we'd collect about the same rental revenue as you would self-managing. Usually, we can rent a property for more given our professional pricing and marketing strategy, the tools we have available, and our aligned incentives.

Nomad Marketing

Nomad’s marketing strategy includes: professional photography, 20+ listing partners, an expert pricing team, and more to ensure we rent your property quickly for its maximum value—and this Nomad Marketing Boost comes at no extra cost to you.

Time to Rent

Nomad helps you lose less money by renting your property faster than the average DIY landlord. We're so confident that we can rent your property quickly that we guarantee your first payment 30-60 days from your property being rent ready.

Leasing

Creating, signing, and re-signing leases takes time and money. With Nomad, we'll take care of it all for you, but if you go it alone, expect to spend an average of 30 hours on this stage of the process.

Rent Collection

Rent collection is usually simple and straightforward, but it'll still cost you an average of 10 hours over 2 years if you do it yourself. However, when the situation isn't all sunshine and rainbows (we're looking at you, COVID-19), this can take significantly more time.

Vacancy

If you need to place a new tenant over the next 2 years, you're going to have to eat the cost of your property sitting vacant while you find a new occupant and do all the work over again. With Nomad, you don't feel the costly pain of vacancy—you get paid on the 10th of every month, whether we rent your property or not.

Delinquency

Delinquency isn't super common, but it's something you should plan for. Sometimes tenants don't make their payments on time—other times, not at all. In more severe scenarios, you may have to pay for legal action to process an eviction. 

Damages

Your tenant's security deposit will usually recover any costs for damages, but sometimes damages can exceed that deposit, and it's costly to chase down the extra cash. Nomad's Property Protection Plan covers damages, so you don't have to rely solely on the security deposit.

Placement Fee

Nomad charges an initial tenant placement fee to find a tenant who will love your home. However, if the tenant we place moves out after a year, we'll place the next tenant free of charge.

Guarantee Fee

Nomad charges a guarantee fee that factors in the risk we take on by providing you guaranteed rent for the next 2 years.

Tax Deduction

All Nomad fees are tax-deductible, so you can save even more money (on top of what you're already saving with Nomad) come tax season. As with anything tax-related, speak to your tax advisor as we are not qualified to provide tax advice.

Maximize Your Rental Income

Now you can see precisely how we maximize your rental income and lower your vacancy risk. Plus, you can save yourself from the countless nitty-gritty headaches that come with self-managing your property. While Ibuprofen's cost is minimal, the certainty and peace of mind you get with Nomad is priceless.

Don't just take my word for it—see for yourself. Fill out our quick-and-easy application and receive your free guaranteed rent estimate in less than 24 hours. There's no obligation. We just tell you how much rent we'll guarantee.

Get started now.

Tags: Rental Property

The Nomad Team

Written by The Nomad Team

Nomad exists to make renting better for our property owners and residents. Nomad began serving customers in 2019, and we are backed by top investors. Our team of (mostly) Colorado Natives has decades of experience from leading real estate and technology companies and is comprised of current landlords and tenants.