It’s been more than eight years now since the economic crash of 2008. Now, the big mortgage lenders – the same entities that played a huge role in that crisis, the same companies that received sizable bailouts under the Emergency Economic Stabilization Act – are getting into the rental industry. It may surprise no one to learn these companies are awful landlords. In fact, as a new report by Bloomberg News shows, the companies are driving up the cost of that rent with the goal of evicting people from those homes.
The Bloomberg report looks closely at a company called HavenBrook Homes, which is controlled by one of the largest money managers on the planet, Pacific Investment Management Co. Bloomberg noted that a study by the Atlanta Federal Reserve showed that in a single county in Georgia, this and other large institutional investors were twice as likely to file for eviction against renters as owners of smaller operations.
Essentially, these big investment, private equity and hedge funds that snapped up a huge portion of the properties left vacant across the country after the 2008 foreclosure crisis have been turning these sites into occupied rentals. They have altered the landscape of an industry that was historically dominated by mom-and-pop owners. With the sole goal of maximizing profits, the conversations about collections that used to take place on the front stoop between landlord and owner are now being funneled into international call centers. Good luck catching a break there. Continue reading