Single-family rentals, or SFR, is becoming a must-have offering for institutional real estate managers, but doing so means coming to terms with its impacts, both real and perceived.
PERE senior reporter Kyle Campbell discussed the sensitives that have cropped up around SFR strategies and how they fit within in socially-conscious investing strategies with Toby Mitchenall, editor of affiliate publication New Private Markets.
Corporate owners of SFR have been blamed for running up home prices, elbowing out first-time buyers and employing draconian tactics to secure payments from renters at a time of immense hardship for many.
“Private equity ends up being the bogeyman: the face for a large systemic issue,” says Campbell, who recently authored a deep dive on the topic.
In his report, Campbell quotes the chief investment officer of a US public pension, who asked to remain anonymous: “We looked at it and just in general we couldn’t get comfortable with it as a good investment space for a number of reasons. Part of it was, if you have to foreclose and kick people out of a house, what kind of press does that generate? It’s probably not good for us.”
This article first appeared in affiliate publication New Private Markets