Large, corporate single-family landlords no longer have access to the cheap stock of foreclosed properties that got them started after the housing crisis. This could spell bad news for renters.
According to Moody’s, these rental operations, such as Invitation Homes and American Homes 4 Rent, only spent between $20 million and $30 million on home purchases per month in 2016. This is down significantly from 2013, when it was around $100 million per month.
Under increasing pressure to make their securities profitable on Wall Street and their shareholders (if they are public) happy, some companies seem to be cutting corners with tenants to increase profits when buying more stock is not an option, Curbed reports. This can come in the form of rent hikes, delayed maintenance, and hidden fees.
According to a recent study by the Alliance for Californians for Community Empowerment Action (ACCE), which spoke to more than 100 residents of single-family rental homes, tenants of these companies “are negatively impacted, with large annual rent increases, fee gouging, a high rate of evictions, and rampant habitability issues.”
