Real Estate News and Market Moves Week 14

Are SFR investors good for communities?

Notes from the streets of SFR…

Recently, I was trading emails with Auben’s new Charlotte Market Sales Manager, Gary O’Neal, about the impact of institutional investors in our local communities.

If there is someone who has been around the block of SFR, it is Gary. Having worked for Offerpad and SFR3 and completed over 10,000 BPOs (Broker Price Opinions) in Charlotte, Gary once joked that the only person who knew the the streets of Charlotte better was a real estate investor who spent time in newspaper delivery.

Gary is block to block specific and granular in his knowledge of his market and this industry.

When Gary talks, I listen. Our email exchange initially centered around the importance of schools for rentals. However it soon shifted to the impact of institutional investors on “mom and pop’ investors and the community at large.

On schools he said:

“I must admit that during my time at SFR3 and Offerpad, we paid no attention to schools. It was just not on the radar in the very hot markets we were in. Going forward, I know I will definitely take a stronger, longer look at schools. The 25-42 year olds are certainly going to be thinking about it!”

On improving quality of rentals:

“One of the things that I saw at SFR3 was a better reno than the ‘mom and pop’ investors. Granite countertops in the kitchen, SS appliances, almost always new or painted cabinets, attention to landscaping, etc.. I consistently saw rents at or above average during my time there on 1^st time rentals.”

The impact of institutions is a topic which has no shortage of opinions. And the institutions have become an easy scapegoat for much bigger issues of a national housing shortage, viable affordable housing and shifts in desire (and ability) to rent vs. own.

Next week I will share some insights from a recent study by Jay Pearsons and Real Pages on how rentals are actually improving diversity in our communities.

Some things you need to know to grow, below: