walkitout (walkitout) wrote,
walkitout
walkitout

Who Manages Rental Housing?

A classic tactic of the middle class is to _not_ sell their starter house to move up, but instead to rent it for enough to cover the mortgage and then rent it out. Particularly ambitious families may discover they are actually good at this (usually involves one partner being very detailed/organized and the other being able to keep up on some of the maintenance and both of them are capable of tolerating good-enough strategies. A perfectionist in the mix is guaranteed failure); they may add more properties if they are available at the right price, there are enough renters to feel confident in keeping them filled, and there is appropriate financing (very few people have a stack of cash and the inclination to manage a motley portfolio of rental properties, but they do exist -- and if you're in the right spot, some rental property portfolios will spin off enough cash to buy more for cash).

We know that distressed sales are attracting cash buyers who are buying investment property so we can assume this is already happening in places like California and Nevada.

But not everyone is good at managing, and some people have a stack of cash and no inclination to self-exploit their labor as a manager; businesses exist to provide management services for rental housing (single family or multi-family) that they don't own. I know this, because I grew up on the same small street as a family that went from managing a string of their own properties to running a property management business.

What I _don't_ know is what the management pie chart looks like for rental housing: owner vs. non-owner, small owner vs. Residential REIT, etc. It's probably out there somewhere, if I can figure out how to ask the right question.

ETA: Hmmm. Not a pie chart, but wow.

http://www.nmhc.org/Content/ServeContent.cfm?ContentItemID=5599&NavID=95
Tags: our future economy today, real estate
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