In the real estate market, there are certain actors who have great power and control over the housing supply. These are known as Large Homeowners (Grandes Tenedores de Vivienda), in this article we explain who they are and what their role in the real estate market is.
What are the large homeowners?
Large homeowners are natural or legal persons who own a large number of real estate properties intended for rent or sale. These are individuals, family offices, companies, developers, construction companies or investment funds that acquire a large number of homes with the aim of obtaining benefits through their professional exploitation and certain tactics to manage assets successfully such as using a property manager.
What is its the role in the real estate market?
Large homeowners have an important role in the real estate market.
- They have high purchasing power and investment, and therefore can develop ventures that individuals cannot,
- they seek the professionalization of the market in all its facets, from promotion to rental,
- their presence impacts house prices,
- by owning a large number of real estate, they take advantage of the economy of scale that this volume provides them,
- their objective is usually to keep homes in optimal conditions.
Along with other potential advantages, large holders get the possibility of having an external apartment manager or even creating their own.
How does their presence affect tenants and the market in general?
The presence of large homeowners can have a significant impact on renters and the housing market as a whole. On the one hand, they are usually in a constant search for assets for renovation, which can influence downward sales prices by continuously rehabilitating and building. On the other hand, the search for profitability can make access to housing for some segments of the population.
Although, some large homeowners may have ethically questionable practices, such as harassing tenants or neglecting property maintenance, in reality, most of them follow an operating model focused on profitability.
This drives them to take care of their assets and exploit them for tourist or seasonal rentals.
What measures are being taken to regulate the activity of large housing holders?
In many countries, measures are being implemented to regulate the participation of large homeowners and safeguard the rights of tenants that can be materialized in restrictions on rental prices or in the requirement to keep properties in optimal conditions.
Do you want to learn how to be a great homeowner?
In this publication you will be able to introduce yourself to the legislation applicable to large homeowners, or know how to successfully manage their assets. On the other hand you will need a professional property manager specialized in housing rental accustomed to working for investors.