Investing in Single-Family Rental Homes During COVID-19

As we continue to see the wide-reaching impact of COVID-19 and the social distancing it necessitates, many real estate investors may wonder if now is a good time to invest in rental properties. While every person’s situation is unique, and opportunities vary based on location, the doubling in size of the joint venture between JPMorgan’s Strategic Property Fund and Homes 4 Rent in single-family rental homes provides evidence that the rental investment industry is as strong as ever. 

The Single-Family Rental Homes Venture 

Earlier this year, JPMorgan’s Strategic Property Fund, JPMorgan Chase & Co’s asset management division, entered into a joint venture with Homes 4 Rent, a landlord company of single-family rental properties founded by billionaire B. Wayne Hughes in 2012. The venture invested $250 million in single-family rental homes. In the first week of May, it was announced that this investment would increase to $640 million, more than doubling the size of the venture.

The Numbers Spurring this Increased Investment

American Homes for Rent reported Q1 numbers showing that COVID-19 and social distancing had not decreased the demand for single-family rental homes. The company has also reported steady rent collection. Of the over 50,000 properties the company operates, it reported a rent collection rate of 95% for April and, as of May 5th, an 82% collection rate. 

What Does This Mean for You and Your Investments?

While it’s unlikely you have $640 million to invest, these massive investments from giants in the industry signal that plenty of investment opportunities exist, despite COVID-19 and social distancing.

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