NestEgg’s property management platform targets small landlords

VC-backed firm’s new service takes over day-to-day ownership responsibilities

New York /
May.May 28, 2021 08:00 AM
NestEgg offers mobile or web based services. (Getty, NestEgg)

NestEgg CEO Eachan Fletcher, whose company is rolling out an expanded property management service. (Getty, NestEgg)

A startup that lets mom-and-pop landlords get paid in full even if tenants fall behind on rent is expanding its property management services amid pandemic-fueled demand.

Venture capital-backed NestEgg, whose app is available in Chicago and Dallas, launched a low-cost offering that takes over a landlord’s day-to-day responsibilities. Its six-person team in each city will run the service, called “Freedom,” fielding tenant questions, making sure units are up to code and serving as a help desk for landlords.

“We identified this semi-managed space where [landlords] would like to have a lot more visibility and control than what a property manager would give them, but they also don’t have the time to be involved in every little issue,” NestEgg CEO Eachan Fletcher said. The company estimates the service, which costs $29 per unit per month, could save small landlords 8 to 10 percent a month on property management costs.

NestEgg isn’t the only player in the rent payment and property management space. Startups Flex and Till have similar business models and software like RentRedi and Cozy allow landlords to manage their own properties.

In the next six months, NestEgg said it plans to launch in five more cities: Austin and Houston, Los Angeles and San Francisco, and Atlanta. New York’s regulatory maze has proved a more difficult entry for NestEgg, Fletcher said.

In November, the four-year-old firm secured $7 million in initial VC funding, having seen strong demand for its flexible rent payment offering.

National rent collection dropped to around 75 percent in the winter, though Fletcher said NestEgg has been able to collect all of its rent by allowing tenants to pay what they can when they have it.

The company’s “Rent Advance” program, which allows landlords to collect full rent on the first of the month, costs $5 per unit per month. A pricier “Rent Assure” program lets landlords purchase insurance against tenant default for $49 per unit per month. In exchange, NestEgg covers up to four months of lost rent.

“We saw our biggest period of growth ever throughout Covid,” Fletcher said. The company has declined to disclose financials.

In July, NestEgg intends to add a financing tool for landlords. “Wallet” will provide small loans for down payments on new property purchases, interest free. Landlords can purchase up to three housing units a year through the service, he said.

Fletcher said he wants NestEgg to help small landlords acquire more properties, eventually allowing them to earn a living solely on their real estate investments. He estimates a portfolio of 20 to 30 units will let a property owner achieve that goal.

“It’s going to make the difference between getting to financial independence 15 years from now or five years from now,” he said. “Our vision is to create a million millionaires in five years time.”





    Related Articles

    arrow_forward_ios
    Nestio's Caren Maio (Credit: Emily Assiran)
    “Like TurboTax”: Nestio launches online leasing
    “Like TurboTax”: Nestio launches online leasing
    (Credit: iStock)
    What you need to know about landlords’ challenge to New York’s rent law
    What you need to know about landlords’ challenge to New York’s rent law
    Among Brooklyn's priciest spots is DUMBO; pictured is the neighborhood's Main Street Park (Credit: iStock)
    Why fewer Brooklyn and Queens tenants are moving
    Why fewer Brooklyn and Queens tenants are moving
    Sara Gore (right) and Ryan Serhant (Getty)
    “Open House” host Sara Gore joins Ryan Serhant’s brokerage
    “Open House” host Sara Gore joins Ryan Serhant’s brokerage
    From left: Mathew Chapman, Michele Kowal, Maryanne Elsaesser and Rhonda Battifarano (NJ Home Navigators)
    Christie’s NJ affiliate claims “big win” in agent-poaching dispute with Compass
    Christie’s NJ affiliate claims “big win” in agent-poaching dispute with Compass
     Adam Neumann (Getty, Bal Harbour Florida)
    Ex-WeWork CEO Adam Neumann inks $44M deal for Bal Harbour properties
    Ex-WeWork CEO Adam Neumann inks $44M deal for Bal Harbour properties
    (Getty)
    Housing rush: In-person school adds fire to rapidly heating market
    Housing rush: In-person school adds fire to rapidly heating market
    Ahmass Fakahany and the Police Building at 240 Centre Street (Douglas Elliman, Altamarea Group)
    Domed Police Building penthouse finally sells after massive price cut
    Domed Police Building penthouse finally sells after massive price cut
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...