Neighbors, HOA’s, and local and state leaders are all looking for answers to address the surge of corporate owned rentals—single-family homes purchased by large institutional investors for the purposes of renting them out to generate rental income. The Charlotte-Mecklenburg region consistently ranks at the top of these “corporate” home purchases: many neighborhoods have seen swaths of homes purchased by such investors.
In the summer of 2021, corporations owned more than 13,000 single-family homes, concentrated within six companies.
What should neighborhoods do?
The topic quickly rose to the top of homeowner association meeting agendas, as HOAs considered limiting rentals as a means of discouraging corporate investors. But what do neighbors do when they don’t have an HOA? That’s the case for many residents in the Monroe Road corridor.
McClintock Woods neighbor, Steve Martin, spoke with the Charlotte Observer for this story last year. Steve was paying attention to the new construction at the end of Coatbridge Lane, the street he’s lived on since the 80’s.
On a chunk of land at the end of Coatbridge Lane, builder Kinger Homes is putting up houses on 14 sites, according to Mecklenburg County property records. Seven homes already have been sold. But instead of Kinger selling those homes to individuals who could become long-term residents, the houses went to a company called SFR XII Charlotte Owner 2 LP.
The Observer investigation found that the company is a subsidiary of Starwood Property Trust, an institutional investor that owns around 700 rental homes in North Carolina. On April 30, two of its houses on Coatbridge Lane were listed for rent for $2,795 per month. (Full article here.)
Steve Martin told the Observer:
“I don’t have an issue with the folks moving in,” Martin said, adding he wants neighbors committed to the community. “We’re welcoming folks. What we like is people who want to live here and are going to be here for a while.”
NOTE: The County defines corporate landlords as large, institutional investors owning 100+ single-family homes, not “mom-and-pop” LLCs that own and rent out a handful of properties. These large investors include: Progress Residential, American Homes 4 Rent, Initiation Homes, Tricon, Amherst Residential, and FirstKey.
Your input is needed
As part of the FY23 budget process, the Board of County Commissioners approved funding to continue the County’s research and to develop strategies to address the impacts of corporate owned rentals and corporate landlords. Here are two ways to make sure your voice is heard:
1). Come to the Open House
Join the community listening session to share your experience and/or thoughts on corporate owned rentals.
WHEN: Tuesday, April 25 from 6:30-7:30pm
WHERE: Independence Regional Library – 6000 Conference Drive, Charlotte, NC 28212
An important part of this process is ensuring all voices have an opportunity to be heard. County staff from Strategic Planning & Evaluation and the Public Information Department are collaborating with The Lee Institute on this research. For more info: https://www.mecklenburghousing.com
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Monroe Road Advocates (MoRA) is grassroots group of volunteers from Monroe Road neighborhoods, businesses, nonprofits, and schools. We’re connecting community in the corridor from Lupie’s/7th Street to NC-51.