Single-family rental business model in question

|By:, SA News Editor

"Arguably when you get scale, you can hire your own plumbers and electricians, and maybe help costs go a little lower that way," says Richard Green, director of the USC Lusk Center for Real Estate. "But it's still a mystery to me how they can manage the properties efficiently enough and get the right yields."

Or as Auction.com's Rick Sharga puts it: "It's hard enough to manage a 30-unit building, but it's incrementally more difficult to manage properties that are scattered all over the place."

Given the management challenges, another way to earn a decent return would be to boost rents, but home prices are rising faster than rents at the moment, making that avenue questionable.

Noted players: ARPI, SWAY, AMH, SBY, RESI.