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Updated almost 3 years ago on . Most recent reply

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Michael Lyons
  • Rental Property Investor
  • Atlanta, GA
3
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Is the "employer-landlord model" making a comeback?

Michael Lyons
  • Rental Property Investor
  • Atlanta, GA
Posted

I recently saw an article on Bloomberg that talks about the re-emergence of the "employer-landlord" model. I'm just curious about the community's thoughts - some initial questions in my head: With rents increasing and housing becoming unaffordable to blue-collar workers in tourist and other major metropolitan areas, I'm wondering if this is an opportunity in the market? Is anyone involved in this from the investment, development, or brokerage standpoint (or any others)?  Does anyone see pros/cons for tenants, business owners, or investors/developers that are supporting the businesses going down this route? Is it a threat to real estate markets long-term (i.e. the eventual dying of company towns)? 

Most Popular Reply

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Karl B.
  • Rental Property Investor
  • Erie, PA
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Karl B.
  • Rental Property Investor
  • Erie, PA
Replied

I think it's a cool idea. Giving an employee below-market rent will increase the chances of them containing to work for you. 

It also gives the employer a way to hire talented non-local employees; if the employer gives them a place to live it's a sure-thing - unlike simply hoping the potential hire can find a place in a low inventory rental market. 

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