Institutional investors have been buying homes in the Charlotte region for years, including in units like this one in Crandon Drive and Pitchwood Drive. But there are several ways you can find out if you are renting from one of these large corporate companies.
jsiner@charlotteobserver.com
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Security for sale: converting homes in NC to rent
Institutional investors have purchased at least 40,000 individual homes across North Carolina over the past decade and are now renting them out. The industry – prepared for continued growth – says it has improved the rental experience by providing safe and affordable homes that were previously inaccessible to tenants. But home ownership has traditionally provided financial security for most American families. And our investigation shows that the business model of these companies is well-tuned to make a profit from homes, often to the detriment of tenants, neighbors or other potential buyers.
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Whether you’re new to North Carolina or just looking for another place to live in the state, the housing market can be hard to navigate.
If you are planning to rent a house instead of buying a home, there are a few important things to consider, such as the quality of local schools, access to transportation and overall quality of life. Also important is the condition of the property and who will be your landlord.
Institutional investors have been buying homes across the country for years and converting them into rents.
In North Carolina, about 20 corporate landlords now own tens of thousands of single-family homes. In Charlotte, it accounts for a quarter of all rental homes in Mecklenburg.
Here are three signs that you are dealing with one of these investors.
On the list
Let’s say you find a house to rent in a neighborhood you like. You notice the name of the company in the real estate list, but do not immediately recognize it. This can be one of the biggest players in the state when it comes to investor-owned homes.
Take a look at our table below to see if there is a title.
Alphabetical soup
Often these large companies acquire homes under various LLCs.
While it is likely that companies such as Invitation Homes and Tricon Residential will make their company name listed online, it is important to know about the names of the LLCs.
For example, American Homes 4 Rent owns some homes called AMH 2015-2 Borrower LLC. Tricon owns some real estate under SFR JV-1 2021-1 Borrower LLC. One LLC used by Invitation Homes is the IH6 Property North Carolina LP.
Another sign of a home owned by an investor? Postal address outside the state.
Virtual process
If you’ve ever rented, you probably remember how at some point you sat down with a property manager or landlord to review one of the most important documents: renting.
You can, for example, meet at the local real estate manager’s office to answer any questions and, as soon as the time comes, sign the document in person.
It is more likely that with landlords-investors you will go through the whole rental process and sign a lease agreement without meeting anyone in person.
Larger companies rely on technologies that allow potential tenants to view the property on their own and then sign a lease.
Invitation Homes, for example, has a process where people can apply for rent, pay a deposit, sign a lease and agree to move within two weeks from the date of application – all online.
This story was originally published May 1, 2022 06:00.
Three ways to find out if you are dealing with a corporate landlord
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