Those wishing to become investors in the housing market, particularly looking at single-family rentals, may find other new players in the industry as well.
Large investors are becoming involved in the industry and looking to buy properties in bulk uncharacteristic of past tendencies among rental housing investors, the New York Times reports. High availability of foreclosed homes, limited apartment construction, the federal REO-conversion program and other factors have encouraged the change.
A major factor is that potential investors see real estate as potentially more profitable than other investments and the low prices currently common to many homes. Demand for single-family living opportunities may be high with many unable to qualify for a mortgage.
While they are buying in relative bulk, these investors may be purchasing fairly dispersed properties, rather than cluster in the same areas. They are depending on technology to make the management of dispersed properties practical, helping to coordinate data on renovations, purchases and other aspects of the business.
On the other hand, some industry stakeholders told the news source that the inexperienced might well have difficulties and find it hard to successfully juggle their property management and other responsibilities, potentially causing some homes to deteriorate.