#realtor #subdivisions #rentals
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Thoughts:
1. Well written article about the struggle for balance between single family subdivisions and “corporate rentals”
2. These covenants and HOA’s didn’t anticipate corporations coming in and leasing homes
3. The act of renting large portions of a single family home area isn’t new. The size of the corporations is though. For example, there are parts of St. Louis that are almost exclusively rentals. Is that a good thing for the homeowners there? I don’t think so. Why? The comparable sales get skewed downward. As an example, someone buys a house for 100k and intends to rent it. If rents only cover $800 month in that area, it works. But when you have a house that sells for 150k….that doesn’t work with the numbers. All of a sudden you get in a situation where there aren’t good comps for sale of private sale single family homes, and that benefits companies looking for a deal.
4. What is a good rental to private ownership ratio for a subdivision? How is this different than AirBnb?
5. I’m torn by this issue. On one hand, we have private property rights. On the other, when did we set up a system where a private citizen has to compete with multibillion dollar corporations over the sale of a single family home? How is that going to shake out long term?
6. When I used to be involved with property management in single family homes years ago, I would say the vast majority, more than 95% of the people that leased homes were definitely great neighbors…so the question is do the 5% that aren’t….would they be terrible home owners as well? I tend to think so.
7. If HOA’s and subdivisions and municipalities wanted to stop this, they would. In the article it even says that people may be against the practice, but worry that they might have to rent at some point down the road so they tend to go along with it.
8. There are problems in the housing market. The corporatization of single family home purchases is not a welcome development for me. I am opposed to it. As far as how one would regulate it, I’m not sure there is a good way. I’m opposed to municipalities charging a “license fee”. This is just a way to gain revenue for municipalities….it does nothing to dissuade institutional home purchasers…if anything, it harms the small, local businesses or the single homeowner.
a. One of the ways in which people build wealth can be through the equity in their home.
b. Not that any playing field is level, but when corporations can bid whatever to buy a home, they will always be able to outbid a private citizen.
c. Something different in the equation is the rise of the ibuyers….like Zillow, offerpad, etc. They will fix and re-sell homes on a massive scale just like the corporations renting(in terms of available cash).
d. Maybe you like to go to Walmart to shop….but do you really want to rent from them? And that’s the level of corporatism we are talking about.
Source: https://www.ibj.com/articles/subdivis…
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