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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]
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