Alternatives to Full-service Property Management

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Alternatives to Full-service Property Management

Mark Soreco
Member since 2025 · 31 posts · 21 votes

Wondering if "digital property management" such as Nomad (https://nomadlease.com/) is a viable option for out of state investors with 2-10 unit multifamily properties.  Nomad starts at 4% with optional extra fees for inquiries/showings.  Maybe there are similar competitors.  Seems attractive compared to 10%, plus $500 per tenant placed that one recommended full-service PM company gets.  I don't mind putting some time into management myself to save cash flow, but don't want to risk tenant or maintenance issues impacting the property either.

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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
11mo

Where's your analysis on how much you'll actually save versus the number of hours you'll have to spend for those savings?

That'll answer your question...

[email protected]248-209-6824
Logical Property Management4.9469 Reviews
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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    11mo

    Where's your analysis on how much you'll actually save versus the number of hours you'll have to spend for those savings?

    That'll answer your question...

    [email protected]248-209-6824
    Logical Property Management4.9469 Reviews
    WebsiteView Page
    2Reply
    • Mark Soreco
      OP
      Member since 2025 · 31 posts · 21 votes
      11mo
      Quote from @Drew Sygit:

      Where's your analysis on how much you'll actually save versus the number of hours you'll have to spend for those savings?

      That'll answer your question...

      Hey Drew thanks for your reply. That is pretty much the point of my post; since I only have experience with full-service PM, data from other investors’ experiences with other alternatives would be extremely helpful in doing such an analysis.
      0Reply
    • Drew SygitBusiness Member
      Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
      8mo
      Quote from @Mark Soreco:
      Quote from @Drew Sygit:

      Where's your analysis on how much you'll actually save versus the number of hours you'll have to spend for those savings?

      That'll answer your question...

      Hey Drew thanks for your reply. That is pretty much the point of my post; since I only have experience with full-service PM, data from other investors’ experiences with other alternatives would be extremely helpful in doing such an analysis.

       In my opinion, the biggest impact on whether or not this will or not depends on the quality of the tenant.

      The easiest metric to rank tenant quality is credit score. 

      Better tenants are easier to manage and require very basic resources.

      Tenants with under 600 credit scores statistically require higher more resources to properly manage.

      One of the managers of Nomad responded on another thread that they are a tech-focused service and NOT personal service oriented.
      - I take that to mean they can handle Class A and most Class B tenants, but not Class B-, C or D tenants.

      They probably are also NOT a good match for owners expecting personal calls and hand-holding.

      [email protected]248-209-6824
      Logical Property Management4.9469 Reviews
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  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    11mo

    I do not have any experience with this company but in most instances, owners run into lots of limitations with the software/program and wind up hiring a PMC. In other cases, they get themselves into trouble because they do not fully understand tenant landlord laws and post their horror stories on BP. I would highly recommend researching what PMCs really do for the other 6% and $500.

    [email protected]239-339-3969
    Bartomeo Property Management4.7143 Reviews
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  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    11mo

    I don't have any data on this company, but I will give you some insight on a story I heard from a guy who built a PM company across the nation to 5,000 units then sold it to a tech company that thought they were going to do a ton of great stuff on adding in tech and everything else. He stayed on for year after they acquired the company to help the merge, and the company went from 5,000 units to 2,500 within one year for how they ran it. 

    I am not saying Nomad is the same situation, but being digital might be a negative verse a positive if you are looking at it as trying to actually keep your property/asset in a position to win verse just going with an easy solution. 

    The McKernan Group4.958 Reviews
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  • Diego AlvaradoBusiness Member
    Real Estate Agent · Flower Mound, TX · Member since 2016 · 298 posts · 140 votes
    11mo

    Hi @Mark Soreco
    In recent year it has been an overflowing of digital property management companies, many of which are not making any many and constantly investing in customer acquisition, that is the main reason that you see so low coat on their offering.

    If you go to stablish digital property management like belong home you will see that prices are similar than a local property management and they make you save many offering you additional services at no cost.

    You have to evaluate what would it be the additional work that you will have to do to get at the same level than the local PM.

    You have to analyze this as a business owner like any other services that you will buy from a service provider.

    I have analyzed many times the property management business and you have the following business model (this is for in both digital and not)

    1. High fee 8% / 10%, they are the most reliable companies in most cases, sometimes the leasing model is to hire local agents that gives a better marketing on your property to reduce vacancy rate, and when offering betted vendors they have the best prices.

    2. Low fee 4% / 8%, the lower they go they offer lower services and look other revenue ways, which are releasing, betted vendors with commission base to the PM, and other services.

    They are still good companies in both options but you have to understand where you stand so you understand what to expect.

    [email protected]214-833-8911
    Alvarado Realty Group522 Reviews
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  • Abhishek Koundal
    Member since 2025 · 14 posts · 2 votes
    11mo

    I am new to this forum , but own small portfolio in CA. I have created my own property management platform and looking for small/big portfolio owners to pilot. Let me know we can connect. Cheers!!

    1Reply
  • Srinivasa Subramanian
    Property Manager · Waterville ME · Member since 2020 · 43 posts · 39 votes
    11mo

    @Mark Soreco the other option I would suggest, is to hire a virtual assistant and have him/her handle all your tenant communication, leasing, scheduling and vendor management. 


    I started out myself as a virtual assistant in the past and now I manage 400+ properties in Maine. 

    1Reply
  • Bradley BuxtonBusiness Member
    Real Estate Agent · NV · Member since 2023 · 1k+ posts · 720 votes
    11mo

    @Mark Soreco

    Turbo Tenant is a good option that many self-managers use. There is always small stuff to take care of so building a trusted team of tradesmen will also help save time and energy.

    1Reply
  • Lucas Kurtz
    Property Manager · MA · Member since 2025 · 19 posts · 16 votes
    8mo

    Digital platforms like Nomad can work for some 2–10 unit investors especially if you’re comfortable staying hands-on. The lower fees look great on paper, but in practice it usually comes down to systems and communication.

     We work with a lot of investors in this exact unit range, and what we consistently see is:

    • Strong systems matter (leasing, maintenance flow, rent collection, compliance)

    • Communication with both owners and tenants is the real differentiator

    • Out-of-state owners benefit from true local boots on the ground

    For most investors, it’s less about headline management fees and more about protecting the asset, keeping good tenants, and avoiding small issues turning into expensive ones.

    Lucas- Howzer Property Management 

    0Reply
  • Jim Johnson
    Real Estate Agent · Memphis · Member since 2026 · 603 posts · 352 votes
    8mo

    @Mark Soreco 

    Yeah, there’s definitely a middle ground between full-service PM and full DIY, and digital models can work — with the right expectations.

    Lower-cost platforms typically handle marketing, screening, leasing, and rent collection through a portal. That gives you structure and documentation at a lower fee.

    What they usually don’t cover well is boots-on-the-ground work — maintenance coordination, vendor oversight, property checks, and emergencies. That part still lands on you or a local contact.

    For a 2–10 unit out-of-state owner, it can make sense if:

    • The properties are in decent shape
    • You have reliable local vendors
    • You’re comfortable managing maintenance remotely

    The real tradeoff isn’t just cost — it’s who’s responsible when something breaks at 9pm. If you’re okay owning that piece, digital management can be a solid hybrid option.

    1Reply
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