If you own one or more rental homes or units, you may find yourself going up against corporate rental agencies for tenants. But are these companies really your competition?
In a word, no…at least not when it comes to personal service, as well as the manner in which many tenants are treated.
A study published by the Federal Reserve Bank of Atlanta found that “corporate landlords, especially large institutional investors, were far likelier than other owners to evict their tenants.”
Other research found that corporate landlords are more likely to use:
- Threats of eviction
- Serial court filings that deepen tenants’ financial woes
- Artificially inflated rent prices
Many of these corporate rental services have also been cutting back on services and amenities, like parking, as well as using extremely restrictive leases – some that may even charge excessive fees if renters don’t comply.
In addition, even though large corporate real estate rental companies tend to have more capital available to them, they are less likely to make repairs such as leaky roofs, plumbing, and mold issues.
Individual property investors can also oftentimes get the short end of the stick when it comes to obtaining more rental properties, because the well-capitalized private-equity investors can easily outbid them. (This can also make it more difficult for would-be homeowners to buy single family homes and take part in the “American dream” of home ownership).
As a rental property owner, marketing and maintaining your investments can take a considerable amount of time and effort – but the time that is spent doesn’t have to be yours. If your own rentals in Orlando and/or the surrounding Central Florida area and you would like to free up more of your time to focus on other things, give us a call and we’ll provide you with additional details on how we can help. We look forward to hearing from you.
Sources:
The Real Problem With Corporate Landlords. By Alexander Ferrer. The Atlantic. June 21, 2021. https://www.theatlantic.com/ideas/archive/2021/06/real-problem-corporate-landlords/619244/