Corp rentals vs mom/pop
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Corp rentals vs mom/pop (by CJ [FL]) May 18, 2024 10:14 PM
       Corp rentals vs mom/pop (by NE [PA]) May 18, 2024 10:52 PM
       Corp rentals vs mom/pop (by zero [IN]) May 19, 2024 7:55 AM
       Corp rentals vs mom/pop (by Richard [MI]) May 19, 2024 7:58 AM
       Corp rentals vs mom/pop (by NE [PA]) May 19, 2024 8:01 AM
       Corp rentals vs mom/pop (by Bonanza [NC]) May 19, 2024 8:02 AM
       Corp rentals vs mom/pop (by Bonanza [NC]) May 19, 2024 8:08 AM
       Corp rentals vs mom/pop (by plenty [MO]) May 19, 2024 8:09 AM
       Corp rentals vs mom/pop (by Sisco [MO]) May 19, 2024 8:15 AM
       Corp rentals vs mom/pop (by Robert,OntarioCanada [ON]) May 19, 2024 11:30 AM
       Corp rentals vs mom/pop (by 6x6 [TN]) May 19, 2024 7:31 PM
       Corp rentals vs mom/pop (by NE [PA]) May 19, 2024 7:56 PM
       Corp rentals vs mom/pop (by 6x6 [TN]) May 19, 2024 8:15 PM
       Corp rentals vs mom/pop (by Ray-N-Pa [PA]) May 19, 2024 8:37 PM
       Corp rentals vs mom/pop (by MikeA [TX]) May 19, 2024 11:07 PM
       Corp rentals vs mom/pop (by Deanna [TX]) May 20, 2024 8:35 AM
       Corp rentals vs mom/pop (by S i d [MO]) May 20, 2024 8:52 AM
       Corp rentals vs mom/pop (by Robert,OntarioCanada [ON]) May 20, 2024 11:41 AM
       Corp rentals vs mom/pop (by MAT [PA]) May 21, 2024 7:37 AM
       Corp rentals vs mom/pop (by Robert,OntarioCanada [ON]) May 22, 2024 6:35 AM
       Corp rentals vs mom/pop (by Busy [WI]) May 22, 2024 3:23 PM

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Corp rentals vs mom/pop (by CJ [FL]) Posted on: May 18, 2024 10:14 PM
Message:

What is your take on corporations owning lots of rentals? It is happening a lot , it seems. The thing I see is that if mom and pop owners sell out their properties to corporate types ( no harm in that ), and the mom and pops go by the wayside as a small business way of life, it makes me think that in that case, probably 20% of the population will never be able to rent again because corporate landlords have very tight criteria. I had a fellow with good savings going into a high paying profession after his required schooling. He couldn't find an apartment community that would rent to him because he was in between jobs. He was a solid fellow and I was glad he saw my for rent sign!

--174.225.xx.x




Corp rentals vs mom/pop (by NE [PA]) Posted on: May 18, 2024 10:52 PM
Message:

Let us know when he doesn’t pay his rent. --24.152.xxx.xx




Corp rentals vs mom/pop (by zero [IN]) Posted on: May 19, 2024 7:55 AM
Message:

From what I have seen around my area is that the corp owned communities are less stringent. They charge more but allow more shady people in as well.

When I wasn't as tight with my criteria I was losing money hand over fist. That makes it even harder for a mom and pop operation to exist. --107.147.xx.xx




Corp rentals vs mom/pop (by Richard [MI]) Posted on: May 19, 2024 7:58 AM
Message:

I think the big hedge funds are/were buying up houses because they had a huge pool of easy money available from the govt at close to 0 to 2 percent for years. By buying places, especially new construction from the big builders they not only get a discount from the builders but they put this easy low interest money into new real estate that is appreciating well over that 2 percent. Maybe 10-30 percent in many areas the last few years. Not to mention any deals they cut with the builders and other tricks they use to keep the numbers where they want them. Plus they get the depreciation and other write offs. Plus, if they do rent them out, they get the rent too.

As to competing with the mom and pops, sure they do that, BUT they want new or newer places from what I have read. Mom and pops probably don't buy new large places for $350,000 or more to use as rentals. They tend to buy older places and probably do some fix up to increase their percentages of returns.

Another thing I see and also predict is that if the middle class is getting hammered by current inflation and job layoffs and we are either in or near a depression in this country is WHERE ARE THE PEOPLE WHO WILL BE ABLE TO PAY THE RENT ON THESE EXPENSIVE PLACES? If the rent on these places is $2500+, what percentage of the population can afford this?

I think that these hedge funds are going to start selling off their properties soon as too many will sit empty, especially if the price of this type housing starts to fall. --172.58.xxx.xxx




Corp rentals vs mom/pop (by NE [PA]) Posted on: May 19, 2024 8:01 AM
Message:

Richard, that sounds like planned losses to me. --24.152.xxx.xx




Corp rentals vs mom/pop (by Bonanza [NC]) Posted on: May 19, 2024 8:02 AM
Message:

In my area, large apartment complexes start out with expensive rents and raise them yearly. Their contracts have lots of fees and they rarely return your deposit.

While I agree you should run your rentals like a business, I don't agree with the way they are running their business. Their philosophy seems to be maximize profits at all costs.

They do seem to have less stringent onboarding policies. --65.188.xxx.xxx




Corp rentals vs mom/pop (by Bonanza [NC]) Posted on: May 19, 2024 8:08 AM
Message:

I am sure when wall street sells their properties they will either

1. sell to another sucker and make money hand over fist.

or

2. sell and break even or at a loss where the principles have gotten rich using other people's money (management fees, admin fees, ownership at discounted rates) and the limited partners will sadly have a loss on their K-1 to give to their accountant.

--65.188.xxx.xxx




Corp rentals vs mom/pop (by plenty [MO]) Posted on: May 19, 2024 8:09 AM
Message:

It takes the "it's a people business" out of it. Perhaps the next generation values that? Perhaps it's making the world a colder place, perhaps it's making the law makers implement crazy laws. Lots of thoughts. --172.59.xxx.xxx




Corp rentals vs mom/pop (by Sisco [MO]) Posted on: May 19, 2024 8:15 AM
Message:

That large publicly traded companies are buying SFRs indicates that analysts believe that they can increase income going forward. If also indicates that these analysts believe they can sell these assets at a profit.

Are they correct? Time will tell. --149.76.xxx.x




Corp rentals vs mom/pop (by Robert,OntarioCanada [ON]) Posted on: May 19, 2024 11:30 AM
Message:

In the province of Ontario it can take 8 months to a year to evict a non paying tenant along with a rent control system where the operating costs go up more then allowed rent increases where will have apply above guideline increases for a few years then if operating costs go above the threshold then those operating costs are passed on to the tenants. Now most the houses townhouses and condominiums are sold to become owner occupied where the lower end of the rental market is long gone. Small owners do most the work in house where larger corporations hire out so those costs must be passed onto tenants in higher rents. Rentals no matter who owns are business not a charity. where only governments can operate at a loss. The stupidity of rent control is you live in free market system or rent control where tenants pay well above market rent. In the province of Alberta it is like Texas of Canada with oil and less taxes as no provincial tax. Lower costs along with balanced landlord and tenant act rents are lower as free market along with incentives to convert existing structures to rentals. You do not go the grocery store then expect the grocery store to give out free food. There are food banks in Canada where people can get food where some of them throw out as not will like some products. The smoke cigarettes then drink. A revolution never changed human nature where in end those problems are still there. --207.236.xxx.xxx




Corp rentals vs mom/pop (by 6x6 [TN]) Posted on: May 19, 2024 7:31 PM
Message:

Why are people willing to pay a high rent price in an apartment complex? --76.129.xxx.xx




Corp rentals vs mom/pop (by NE [PA]) Posted on: May 19, 2024 7:56 PM
Message:

6x6, status. Like a Rolex. --24.152.xxx.xx




Corp rentals vs mom/pop (by 6x6 [TN]) Posted on: May 19, 2024 8:15 PM
Message:

Thank you, NE. --76.129.xxx.xx




Corp rentals vs mom/pop (by Ray-N-Pa [PA]) Posted on: May 19, 2024 8:37 PM
Message:

CJ- it really isn't a landlords job to house unqualified applicants. It is our job to house the qualified ones based on the criteria that we set on each unit.

It is the job of social workers to find housing for those who have become un-housable. --24.101.xxx.xxx




Corp rentals vs mom/pop (by MikeA [TX]) Posted on: May 19, 2024 11:07 PM
Message:

What would happen to the market if suddenly 20% of tenants were no longer able to rent as you stated? If you know your macro economics on laws of supply and demand then you know that as demand decreases then supply increases. Then rents decrease (or criteria softens) to generate more demand and demand goes back up. Bottom line, it fixes itself as long as the government stays out of it.

In spite of what you read in the liberal rags, corporate ownership will resolve itself through the supply/demand cycles. That is assuming that it's not one corporation buying up everything in one market and making it a monopoly, that would have a different outcome. What could screw it up is when some clueless government official who thinks they are helping enacts some stupid legislation that takes power away from the free market to correct itself. --209.205.xxx.xx




Corp rentals vs mom/pop (by Deanna [TX]) Posted on: May 20, 2024 8:35 AM
Message:

If you guys remember, real estate has always been a strategy to hold wealth. You take your dollars, which can decline drastically in purchasing power, and you convert them into the form of real estate, which tends to become more valuable over time. If $1 in 1990 has the purchasing power of $2.50 today, and I bought a house for $50,000 that now sells for $500,000, I'm ahead, right? Vs if I had $50,000 in the bank, and with interest now it's $75,000, but it has the purchasing power of $31,000.

That was what the corporate investors did with apartments. They didn't care about having a vehicle that generated rent this month, next month, or the month after. They wanted to put $100k into an apartment complex, and sell it five years later for $400k. Then they wanted to buy a new apartment complex for $450k, and sell that one five years later for $1M. And then take a complex for $1M, and five years later, sell it for $1.75M. Or whatever. If I had $150k in 2000, it now has the buying power of about $300k in today's dollars. But if I take $150k from 2000 and ladder it with real estate, it now becomes almost $2M.

That's how it was during my lifetime. Generally, corporate investors avoided the sfh market, because it wasn't as efficient/centralized to manage as a good mfh complex. Things changed in 2008-2009. And when all the financial stressors started happening, investors scrambled to transfer their investment dollars into housing. Not because they wanted housing, but because they wanted to protect their investors' dollars' value. If I buy a $250k house, and fail to make a critical roof repair, maybe I suddenly have a $225k house. But I've only lost $25k of value, vs stock dollars suddenly being worth 20%-$50% less than their previous value.

And that was what the complaint was for so many people who found themselves living in these tens of thousands of corporate SFHs. (ie, look up articles about Atlanta.)

But the interesting thing was, after the financial crisis eased, the investors didn't divest themselves out of the real estate. That they stayed in the mfh market was understandable, since that was traditional and relatively efficient. But we're 15 years into the future, and they've only increased their presence in the sfh market. Even if it's clunky, there hasn't been a better/safer/more profitable place for them to transfer their money to protect it. This not only crowds the mom-and-pop investors, but it also crowds the owner-occupants, because most volume investors are more interested in turnkey/prime location, much like owner-occupants. Mom-and-pops are more opportunistic--- the neighbor's house, a word-of-mouth, taking on significant repairs in exchange for a lower buy-in price, etc. Mom-and-pops never had the resources for their volume of investments to affect owner-occupants, but banks/investors/retirement account firms are dealing with much bigger, more noticeable numbers.

Banks are all about stability and a good risk, and that's what we screen for ideally. Since keeping a house occupied and bringing in rent is only a minor consideration, they're able to be particular. Whereas a mom-and-pop has a lot of financial pressures they rely on that rent money for, which forces them to be more flexible than they'd like to be under ideal circumstances. Sometimes the gamble pays off, and sometimes it really, really doesn't. --137.118.xx.xxx




Corp rentals vs mom/pop (by S i d [MO]) Posted on: May 20, 2024 8:52 AM
Message:

I really don't think about it much at all. If corporations want to buy houses, let them. Especially if they will pay a higher price than your standard investor, who am I to tell a seller they CANNOT sell their house for top dollar? That seems like a gross injustice.

I don't see what business it is of mine or anyone elses when two parties make a mutually beneficial transaction. Corporate landlords are not the boogie man. Their purchasing are pushing up the value of real estate in general, meaning every landlord on this board probably benefits in some way financially. Also every American homeowner also benefits (about 66% of Americans own their own home).

So, if anything, if they do well I'm happy about it. And if they screw it up and have to unload a bunch for less than they paid, I'm happy about it because I can buy more.

The secret to generating wealth is no secret: you make money in up or down markets by buying when stuff is cheap and selling when it's not. We can take advantage of both the ups and the downs. Ride the ride in between and enjoy your life!

--184.4.xx.xx




Corp rentals vs mom/pop (by Robert,OntarioCanada [ON]) Posted on: May 20, 2024 11:41 AM
Message:

What I am seeing in town here is that houses are not selling where they bought a house then renovated where every month drive by still for sale. A lot has to do with increase in interest rates. Some houses sold where they are in lower price range where those above the market are not selling. --207.236.xxx.xxx




Corp rentals vs mom/pop (by MAT [PA]) Posted on: May 21, 2024 7:37 AM
Message:

If government stays out of the way, the market will eventually fill the housing need, no matter whether it’s corporations or mom and pops. --208.190.xx.xx




Corp rentals vs mom/pop (by Robert,OntarioCanada [ON]) Posted on: May 22, 2024 6:35 AM
Message:

Cost of new construction is very high where a single unit in rental complex can cost up to $500,000 or more per rental unit where the rent must cover the costs where in hostile environment Condos cuts less as building codes are less stringent. With a large population increase there is not enough housing being built. --207.236.xxx.xxx




Corp rentals vs mom/pop (by Busy [WI]) Posted on: May 22, 2024 3:23 PM
Message:

Just watched a you tube video where a learned gentleman from some D.C. area institute said we were experiencing a shrinking population. Birth rates plus immigration were below replacement rates. So, wait a few years, they’ll be plenty of houses. Or, at least a heckofalot of McMansions. --172.58.xxx.xxx



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