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A comment on A Growing Problem in Real Estate: Too Many Too Big Houses. Parent comment

Re:A Growing Problem in Real Estate: Too Many Too Big Houses by Animats on Thursday June 20, 2019 @01:38PM (#20235233)
Yes. That's a "private equity" thing.[1] Blackrock can borrow at lower rates than homeowners. So they can buy up houses and rent them out at a profit. Plus they can keep raising the rent. And they outsource maintenance.

[1] https://www.theatlantic.com/technology/archive/2019/02/singl...

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Re:A Growing Problem in Real Estate: Too Many Too Big Houses by nroets on Thursday June 20, 2019 @03:53PM (#20236682)
The agency cost of any landlord is much larger than the savings in capital cost. For example, for a tenant there is an incentive to complain over the smallest problem instead of fixing himself or just living with the problem. Management agents charge a fortune to deal with these issues.
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