Becoming a landlord seems like easy money until something breaks, a tenant leaves or something unexpected pops up.
Denver-based Nomad wants to put mom-and-pop landlords at ease with something that sounds too good to be true — guaranteed rent while the company handles the work of renting out the property, vetting the tenants and taking care of any maintenance issues.
Nomad, which launched in the Mile High City and expanded last year to Phoenix, announced Thursday that it raised $20 million to expand into another 10 cities in the next two years. Nomad plans to start with Raleigh, North Carolina, this spring.
“Raleigh is a logical next step for Nomad with its tech-savvy rental owners, a history of adopting innovative new real estate models and fundamentally-strong rental market,” Nomad co-founder Matt Thelen said in a statement.
Nomad plans to hire more than 50 people this year and is actively hiring for seven open positions.
The company said its revenue grew eight-fold last year, as it manages homes that are collectively valued at $250 million.
Nomad offers flexible leases to tenants and helps them transition to homeownership by covering the closing costs of their first home. Nomad also offers brokerage services that allow customers to buy, sell, rent and manage a property with Nomad’s support.
The Series A investment was led by Silicon Valley Bank Capital, with participation from existing investors Kickstart Fund, Peterson Ventures and Range Ventures.
