Milwaukee, Wisconsin 2021-07-24 08:00:33 –
By EMALYN MUZZY
Minneapolis (AP) — Between 2005 and 2020, home rents increased by more than 10% in parts of North Minneapolis, Southeastern Como and St. Paul, and some Southeastern Como rents changed. It turned out that. Landlords of aging homeowners and localized investors.
Researchers at the Urban Institute have published a report titled “Who owns the Twin Cities?” Here, we investigated who owns homes throughout the metropolitan area and how real estate ownership has changed over the last few decades. They found that the number of investor landlords, or landlords owning three or more properties, was increasing and that single-family rents were increasing. As a result, poor people and BIPOC residents were forced to evacuate.
According to Minnesota Daily, Southeastern Como investor landlords include GoGofar, Miles Group, and Elmwood Properties.
“One thing we know for sure is that investors like to focus,” said Yonah Freemark, senior research associate on the project. All three companies are condensing rents in the neighborhood around the University of Minnesota, including South East Como.
Increasing investor landlords
The report found that investor landlords are concentrated in North Minneapolis, Brooklyn Center, Central St. Paul, and Como.
“More and more of these rental homes are owned by large corporations and are usually incorporated outside the Twin Cities,” the report said.
Tony Damiano, a postdoctoral fellow at the University of Minnesota who supported the project, said the crisis of foreclosure in the late 2000s had a major impact on North Minneapolis. He said in their study, the project team focused primarily on North Minneapolis and St. Paul.
“The foreclosure crisis has disproportionately affected the color community through predatory lending practices, resulting in a large number of foreclosures on the north side,” said Damiano.
Banks and governments ended up in many seized homes where they didn’t know what to do.
“This often resulted in mass sales of multiple homes, often below the market value for large institutional investors,” Damiano said.
These investors then sold or rented them. Southeastern Como believes that this same pattern of investors is buying a home to rent a home, but in a different way.
In South East Como, investor landlords tend to buy homes from aging homeowners, said Dewain Townsend, co-chair of the South East Como Improvement Association Land Use Development Committee.
“The worry is that if there is an elderly person who has lived in a house for 60 years with bonds and now has to go to a nursing home, the family will be left in this house. They just want to get rid of it. “Townsend said. “They don’t have to update it or bring it into code or anything like that. They just want it out of their hands.”
Townsend saw this happen in the property next to him. The house changed after his older neighbor sold his house to the company. Townsend used to be a single-family home that could become a starter home, but after construction there were plenty of bedrooms for UMN student renters.
Another difference between investor landlords in southeastern Como and northern Minneapolis is where they live. According to Townsend, in a student-rich neighborhood, the majority of landlords live within 25 miles of the rental property. In other words, you are in the Twin Cities area.
In contrast, Twin Cities’ three largest investors are state-owned enterprises based elsewhere in the country. The fourth largest is based in Bloomington, but it works nationwide.
As the number of investor landlords increases, there is a possibility of tenant exploitation. “Who owns Twin Cities?” Includes a survey of investor-owned single-family rentals in Southern California, where many tenants have poor management, higher rents, and higher eviction rates. I found that I was experiencing it.
Miles Group, the landlord of a local investor, had problems maintaining real estate as it violated city regulations on multiple rental properties.
“To some extent (investor landlords) offer more opportunities for people living in neighborhoods that have historically demanded that they be owned,” Freeman said. “At the same time, there may be some negative attributes, such as reducing the number of homes available for purchase.”