Barriers to Institutional Investment in Rental Housing: A Systematic Review of Market Risks

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.

Understanding discrimination effects in private rental housing

This research examines discrimination and existing policy, law and practice in Australia’s private rental sector including the impact of informal tenancies and the increasing role of digital technologies.

The emergence of a Build to Rent model: The role of narratives and discourses

This paper analyses ‘Build to Rent’ (BTR), a new form of tenure in London’s housing market. We examine the ways in which private and public sector actors have shaped the context of BTR’s emergence, and developed a model for delivery in London. We argue they relied on and constructed narratives of negativity about the private rental sector, which were juxtaposed with their product to position BTR as a solution to part of London’s housing crisis. Building on this, and leveraging an emerging but supportive institutional context, real estate professionals have adapted a US model to the UK. We argue that both the narrative-generating activities and the model development reveal tensions, which help theorise the ways new models of financing housing emerge.

Renting Cars and Trucks

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.