Look out, the local landlord may become the next mid-size mogul. Innovation in technology unleashes new potential for small-scale investors to scale up to larger portfolios and even manage remote properties. This gives them the opportunity to move fast on emerging markets dominated by younger buyers looking for trendy neighborhoods where they can eat, drink, and play all within walking distance.
Single-family rentals (SFRs) have long been an asset class that’s dominated by mom and pop investors.
Even with the rise of institutional investors that began investing heavily in SFR during the post-recession years, small-scale investors still remained king. Today, less than 2% of all SFR homes are owned by institutional investors. Meanwhile, 87% are owned by investors with fewer than 10 units.
Thanks to the rise in tech and tools that are making SFR investing and management easier than ever, we’re seeing the rise of a new class of investor: the midsize investor.