Sen. Elizabeth Warren (D-MA) is calling out 14 corporations with ownership stakes in the single-family, multifamily, and manufactured housing sectors, accusing them of predatory rental housing practices.
The senator sent each company a letter demanding data on their business practices, including landlord-tenant concerns, and rental housing portfolios. She set an April 8 deadline for a response.
“Allowing private equity firms and other large institutional investors to snatch up thousands of homes can make it impossible for individuals and families to buy their own home – which is why the Senate-passed 21st Century ROAD to Housing Act includes restrictions on large institutional investors’ ownership of single-family housing units,” stated Warren. “This is extremely popular with the American people: 64% of Americans support reining in corporate landlords and institutional investors to lower housing costs and 73% support banning corporate investors from single-family homes.
Warren added, “Institutional investors often shirk on tenant protections and maintenance costs to boost their profits across the single-family, multifamily, and manufactured housing sectors. Major investors like Tricon Residential (now owned by Blackstone), Amherst, and Progress Residential have all been subject to major litigation for alleged fair housing violations, habitability deficiencies, and violations of basic property management standards.”
The companies targeted by Warren are American Homes 4 Rent, Blackstone, FirstKey Homes, Greystar, Homes of America, Horizon, Impact Communities, Invitation Homes, MAA, Progress Residential, RHP Properties, Starwood Capital, Tricon, and Yes! Communities.
Photo by Gage Skidmore / Flickr Creative Commons
So, what would that mean for people who put their rental homes into a company they create for estate planning purposes? Now you can’t use a corporation as a form of ownership for real estate? I guess the devil will be in the details on this one.
They are talking about out institutional investors that own hundreds of rental properties. The proposed law would not affect a small private investor.
Thousands – I used to work for American Homes 4 Rent
Pocahontas is a hack!
Hmmm, name calling instead of a lucid response. I wonder where that’s coming from.
I was solidly against Biden allowing those large corporations to buy up whole
subdivisions of single family homes, thereby creating a shortage of inventory for regular folks to buy.
This is how this whole mess of higher priced properties came about. There was always a bidding war, which raised the price of a starter home sometimes as much as 30% more than the original list price.
The question is…….what will happen if they glut the market with these rentals?
It’s just a mess courtesy of a guy who was missing a few bricks.
Hey you Mom & Pop Investors out there, this is a fresh opportunity for you to grow your business as the newly passed by Senate 21st Century ROAD to Housing Act will force divestitures of the small precentage of overall housing stock that the Big Guys own today. Not all these sellers will retail their housing portfolios and those who choose to exit on a timely basis will likely want to pare inventory without spending a bunch on fixup costs. That can open opportunities for you Mom & Pop’ s to grow your portfolio even if its from one house today to 2 or 3 in the next couple years.And you first or second time home buyers have an equal opportunity to gain from this forced government divestiture.Make the most of it you all!