The private rental sector in Australia: Living with uncertainty

Housing practitioners and policy experts are advocating for an expansion in rental housing supply in contemporary cities around the world. The objective is to convince institutional investors to include rental housing investment in their investment portfolio to contribute to boosting housing supply. Unfortunately, the rental sector is characterized by numerous uncertainties and challenges, making it unattractive to institutional investors. With the growing attention to institutional investors in various housing market contexts, an understanding of the market risks (also known as barriers), is useful to inform future research and policymaking. Using a systematic literature review methodology, this paper synthesizes the extant literature on the market risks inhibiting institutional investment in rental housing. Findings reveal the following barriers: low profitability, non-progressive rent control policies, unclear target group for rented projects, poor landlord-tenant relations, inadequate property management and unreliable property market information. Among all the barriers identified, low profitability and inadequate property management had great influence on their investment decision. Firstly, institutional investors perceive rental housing investment as less profitable and unattractive in terms of project performance. Secondly, the lack of supporting structures for the property management sector contributes to derailing rental yields. The review also finds that the target group for rental projects are often vague especially for projects under government assistance. The rental sectors in many countries are confronted with numerous problems, some of which greatly inhibit institutional investors from investing in the rental asset. This paper concludes that, although the idea of expanding rental housing supply seems laudable, ignoring these problems may be detrimental to housing markets in the long run. Rental markets in many countries are volatile, and thus not ready to receive institutional investors fully into the sector. An expanded rental sector could be advanced if policy makers take the appropriate steps to resolve the identified challenges. Adequate structural preparations must also be made for large scale rental housing supply.

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Renting Cars and Trucks

Socio-Economic Effects and Recovery Efforts for the Rental Industry - Advances in Hospitality, Tourism, and the Services Industry ◽

10.4018/978-1-7998-7287-0.ch005 ◽

2021 ◽

pp. 93-110

Author(s):

Bayram Akay

Keyword(s):

Support Services ◽

Current Situation ◽

Tourism Industry ◽

Rental Sector ◽

Tourism Sector ◽

Travel Agencies ◽

Car Rental ◽

Global Tourism ◽

Number Of Customers ◽

Day By Day

Tourism is a fragmented and information-oriented sector covering tour operators, travel agencies, hotel sales representatives, associations, meeting offices, transportation, car rental, airlines, cruise, souvenirs, restaurants, hotels/motels, and entertainment. The car rental sector, which is an important part of the tourism sector, is growing day by day, and the number of customers is increasing rapidly. The success of the car rental sector, which produces support services within the growing tourism sector, is considered very important for the development of tourism. The COVID-19 pandemic has engulfed the globe and has already had an enormous impact on life as we once knew it. With airplanes grounded, millions of people in quarantine, and hundreds of travel bans in place, COVID-19 has brought the global tourism industry to a grinding halt along with the rental industry. The study determines the current situation of the car rental sector and presents some suggestions.

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Universalistic, Particularistic and Middle Way Approaches to Comparing the Private Rental Sector

International Journal of Housing Policy ◽

10.1080/14616718.2010.526400 ◽

2010 ◽

Vol 10 (4) ◽

pp. 357-377 ◽

Cited By ~ 8

Author(s):

Marietta Haffner ◽

Joris Hoekstra ◽

Michael Oxley ◽

Harry Van Der Heijden

Keyword(s):

Rental Sector ◽

Middle Way

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Tenant selection in the private rental sector of Paris and Geneva

Housing Studies ◽

10.1080/02673037.2020.1769565 ◽

2020 ◽

pp. 1-19

Author(s):

Francois Bonnet ◽

Julie Pollard

Keyword(s):

Rental Sector

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Does Airbnb Disrupt the Private Rental Market? An Empirical Analysis for French Cities

International Regional Science Review ◽

10.1177/0160017618821428 ◽

2019 ◽

Vol 43 (1-2) ◽

pp. 76-104 ◽

Cited By ~ 11

Author(s):

Kassoum Ayouba ◽

Marie-Laure Breuillé ◽

Camille Grivault ◽

Julie Le Gallo

Keyword(s):

Empirical Analysis ◽

Individual Data ◽

Rental Sector ◽

Spatial Error ◽

Rental Market ◽

Second Homes ◽

Professional Business ◽

Contextual Characteristics ◽

The Impact

This article evaluates whether Airbnb rentals affect the rents in the private rental sector in eight cities in France. We estimate a hedonic equation for each city on individual data for apartments, allowing for heteroscedasticity and spatial error autocorrelation of unknown forms and using a large variety of structural and contextual characteristics of the apartments. We show that the density of Airbnb rentals puts upward pressure on rents in Lyon, Montpellier, and Paris, whereas it has no significant effect in other cities. If we restrict the analysis to the professional business of Airbnb rentals, which we define as the lodgings owned by an investor who rents either several “entire home” dwellings (regardless of the number of days) or an “entire home” dwelling for more than 120 days a year, we find a greater effect, which concerns only the two largest cities of France, that is, Marseille and Paris. When we focus on new tenancy agreements, the impact is even higher and concerns Paris, Marseille, and Montpellier. The impact of the Airbnb activity on rents is shown to increase with the proportion of owner-occupiers and decrease with hotel density, both in Montpellier and Paris. However, the share of second homes leads to contrasting effects.

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Informal rental housing in the South: dynamic but neglected

Environment and Urbanization ◽

10.1177/0956247819895958 ◽

2020 ◽

Vol 32 (1) ◽

pp. 109-132 ◽

Cited By ~ 2

Author(s):

Andreas Scheba ◽

Ivan Turok

Keyword(s):

South Africa ◽

Social Dynamics ◽

Rental Housing ◽

Rental Sector ◽

Socioeconomic Conditions ◽

Negative Externalities ◽

Developmental Approach ◽

The Public ◽

Public Benefits ◽

The Government

Informal rental housing is growing rapidly in cities of the global South. Changing needs and circumstances of diverse urban populations produce new forms of rental accommodation and landlord–tenant relations. Focusing on the case of backyard renting in South Africa, this paper illustrates how informal rental is undergoing a dynamic process of expansion and upgrading that both reflects and contributes to improved socioeconomic conditions. Commercialization is transforming the material quality and social dynamics of informal rental housing. While there are signs of formalization and professionalization, the government’s neglect of this sector has contributed to the strong persistence of informality, with its associated risks. This paper argues that the informal rental sector deserves more government attention to augment the public benefits and mitigate the costs. The paper ends with suggestions of how a developmental approach by the government could help to convert the negative externalities into a positive dynamic with more equitable and sustainable outcomes.

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