Institutional Landlords More Likely To Turn Out Renters Than Mom-And-Pop Owners, Study Shows

Suburbia

Institutional landlords are quicker to file for eviction and turn out a renter than a mom-and-pop owner would be, a recent study shows.

Following the financial crisis in 2008, many large hedge funds and private equity firms helped bail out the housing market by grabbing properties from Atlanta to Las Vegas, becoming America’s newest landlords. But an Atlanta Federal Reserve study revealed these Wall Street landlords are more heavy-handed in their dealings with renters than smaller owners — not a surprising shift considering large owners don’t hold conversations about rent collections on the front stoop, and are more likely to outsource those conversations to call centers or courtrooms should the occasion call for it, Bloomberg reports.

The report showed companies like American Homes 4 Rent, one of the country’s largest operators, and HavenBrook Homes, controlled by PIMCO, filed eviction notices on 25% of their properties  — compared to the average 15% filed by all single-family owners. However, National Rental Home Council executive director Diane Tomb said far fewer evictions actually go through to completion. The council represents institutional landlords, and Tomb said evictions are a last resort, following attempts to assist renters who fall behind. “We’re in the business to house families — and no one wants to see people displaced,” she said. [Bloomberg]

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

TPG, ACORE Raise Billions For Opportunistic CRE Funds

Newmark Cuts Earnings Outlook Despite Record Third Quarter

Battered Mortgage REIT Suspends Dividend To Preserve Cash

From Pandemic Darling To Cautionary Tale: Pickleball Clubs Face A Reckoning After Betting Big On Retail Space

Weil Gotshal Wind-Down Leaves 830K SF Hole In America's Office Market

Blackstone Mortgage Trust Reports Unexpected Q3 Net Loss

Tyko Capital Sets New Record For Florida's Largest Construction Loan

Office Recovery Moving Faster Than Expected, CoStar Finds

How Microsoft, Coca-Cola And Amazon Are Adapting Their Offices For AI Age

CoStar To Acquire Aerial Imagery Company For $730M

BXP Execs See Better Returns In Building Offices Than Buying Them

JLL's Q3 Revenue Surges Amid Strong Leasing, Capital Markets Activity