Progress Residential in Vegas

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Progress Residential appears to be is a hedge fund buying SFR's in Vegas. We are seeing more and more rentals being listed by them. They apparently have 300 homes sitting vacant just waiting to be turned into rentals...they just can't turn them over fast enough as there aren't enough contractors/skilled trade. I mentioned this company in a post a few months back. Back in March Progress Residential purchased a few houses in North Las Vegas on a street I manage so I started following them. I was awe struck at the rent rates they were asking and getting...about $400-$500 over market.

I bring this up because any small investor might be competing with them during the offer phase. They typically offer cash and roughly 5% over list. I'm unsure if they play hard ball during due diligence but I would assume they do to lower their overall purchase price. If you check their facebook page renters aren't too thrilled with their services. I've heard stories of bait and switch where they list a home for rent w/ washer and dryer (and physically have both in the home during viewing) and then in the fine print of the lease they increase the monthly payment by $150.

It's like they are creating a private or public residential REIT using SFRs in Vegas. Is anyone seeing Progress Residential in other markets like Phoenix? I believe their involvement in our local real estate market is one factor rents have significantly increased the last few months.

Houses that were renting for $1,495 a year ago are now going for $1,895- $1,995 a month or more. Houses that were renting for $1,895/mo a year ago are renting for $2,500. It's simply bonkers.

It's a feeding frenzy for any detached SFR rental under $2k.