REITs Reap Benefits from Single-Family Rentals, So Far

David Lari was quoted in a June 13, 2013 Daily Journal article about REITs and how they are currently reaping big financial rewards from the rentals of single-family homes. Even so, the article points out, some real estate analysts and lawyers are skeptical about the long-term viability of that model.

According to the article, since December six REITs have notified the Securities and Exchange Commission about their intention to conduct IPOs. Lari told the Daily Journal that he considers the investment model a novelty, given that there is a huge logistical challenge associated with keeping up thousands of single-family homes spread all over the country.

“Single-family homes on a macro standpoint have historically not been viewed as sources of rental income,” he said.

But, Lari said, despite their newness, the recent string of IPOs does show that REIT investments in single-family homes should not be discounted.

“To me, the fact that there have been so many IPOs clearly indicates there is a demand out there from institutional and private investors to put money in these vehicles,” he said.