OT: Meet your new landlord
Papi_Chulo
Miami, FL (or the nearest big-booty club)
SPRING HILL, Tenn.—When real-estate agent Don Nugent listed a three-bedroom, two-bath house here on Jo Ann Drive, offers came immediately, including a $208,000 one from a couple with a young child looking for their first home.
A competing bid was too attractive to pass up. American Homes 4 Rent, AMH 2.00% a public company that had been scooping up homes in the neighborhood, offered the same amount—but all cash, no inspection required.
Twelve hours after the house went on the market in April, the Agoura Hills, Calif.-based real-estate investment trust signed a contract. About a month later, it put the house back on the market, this time for rent, for $1,575 a month.
A new breed of homeowners has arrived in this middle-class suburb of Nashville and in many other communities around the country: big investment firms in the business of offering single-family homes for rent. Their appearance has shaken up sales and rental markets and, in some neighborhoods, sparked rent increases.
On Jo Ann Drive alone, American Homes 4 Rent owns seven homes, property records indicate. In all of Spring Hill, four firms—American Homes, Colony Starwood Homes, Progress Residential and Streetlane Homes—own nearly 700 houses, according to tax rolls. That amounts to about 5% of all the houses in town, a 2016 census indicates, and roughly three-quarters of those available for rent, according to Lisa Wurth, president of the local Realtors’ association.
Those four companies and others like them have become big landlords in other Nashville suburbs, and in neighborhoods outside Atlanta, Phoenix and a couple dozen other metropolitan areas. All told, big investors have spent some $40 billion buying about 200,000 houses, renovating them and building rental-management businesses, estimates real-estate research firm Green Street Advisors LLC. Still, they own less than 2% of all U.S. rental homes, according to Green Street.
The buying spree amounts to a huge bet that the homeownership rate, which currently is hovering around a five-decade low, will stay low and that rents will continue to rise. The investors also are wagering that many people no longer see owning a home as an essential part of the American dream.
https://www.wsj.com/articles/meet-your-n…
A competing bid was too attractive to pass up. American Homes 4 Rent, AMH 2.00% a public company that had been scooping up homes in the neighborhood, offered the same amount—but all cash, no inspection required.
Twelve hours after the house went on the market in April, the Agoura Hills, Calif.-based real-estate investment trust signed a contract. About a month later, it put the house back on the market, this time for rent, for $1,575 a month.
A new breed of homeowners has arrived in this middle-class suburb of Nashville and in many other communities around the country: big investment firms in the business of offering single-family homes for rent. Their appearance has shaken up sales and rental markets and, in some neighborhoods, sparked rent increases.
On Jo Ann Drive alone, American Homes 4 Rent owns seven homes, property records indicate. In all of Spring Hill, four firms—American Homes, Colony Starwood Homes, Progress Residential and Streetlane Homes—own nearly 700 houses, according to tax rolls. That amounts to about 5% of all the houses in town, a 2016 census indicates, and roughly three-quarters of those available for rent, according to Lisa Wurth, president of the local Realtors’ association.
Those four companies and others like them have become big landlords in other Nashville suburbs, and in neighborhoods outside Atlanta, Phoenix and a couple dozen other metropolitan areas. All told, big investors have spent some $40 billion buying about 200,000 houses, renovating them and building rental-management businesses, estimates real-estate research firm Green Street Advisors LLC. Still, they own less than 2% of all U.S. rental homes, according to Green Street.
The buying spree amounts to a huge bet that the homeownership rate, which currently is hovering around a five-decade low, will stay low and that rents will continue to rise. The investors also are wagering that many people no longer see owning a home as an essential part of the American dream.
https://www.wsj.com/articles/meet-your-n…
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27 comments
That are not new;
America’s concept of “landlord” from medieval times to the present...
A single still, timeless, image is worth a thousand words...
https://tuscl.net/photo.php?id=7950
Sadly, Americans are horrible at saving money and building a nest egg. I love having the ability to invest for the long term. But, most of the country likes to spend and piss away their income. Home ownership is one way from LDK’s can develop a nest egg - as the principal portion of each mortgage payment is forced savings.
One thing that might be attractive about these renter communities is they make relocation much easier. A person can move jobs and locations without needing to sell a home.
In my view - anything that decreases the American public’s ability to build equity and savings - is not good.
one way from LDK’s = one way folks
it really depends on how the no rentals clause is written in the HOA documents I live in a HOA as well and our agreement has been upheld a few times ivy a Florida court, location also has some bearing on these types of court challenges
Many folks are seeing neighborhood home prices jump upward - based on recent sales. This is nice for folks who have some equity in their homes. I’m thinking this will continue for awhile.
The apartment prices still seem crazy in Manhattan (NYC). But, even if the prices drop a lot - they will still seem crazy. Real estate in NYC kept moving higher and higher before the pandemic and social unrest hit. The folks who benefitted were the real estate agents - who dealt with the very wealthy clients. A few buddies are in Manhattan real estate - and they made insane money.
I kept wondering when it was going to come back to earth. Maybe it will correct over time?
I say let those large landlords deal with residential tenants I prefer to rent to businesses that are not unhappy about my ability to make a profit on my investments