Quote:
Originally Posted by SamInTheLoop
So, I'm always thinking in terms of end user market conditions.....the question is in what universe are these unit layouts acceptable to renters at such a price point, particularly in an institutional rental market as supply-unconstrained as Chicago? Would you say renters in the shadow market are of lower quality in aggregate (lower credit scores, employment/criminal history, proof of income, what have you) than in the formal institutional rental market? That's one possible explanation I can think of - 'lower quality' renters can land a new construction unit from individual owners with much more lax standards. The business model here could essentially be a play on unsophisticated (present virtual company most presumably excluded) mom and pop investors - with a huge assist from low interest rates!
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I can't speak to other investors, but I will say that my condo has always rented out to credit worthy professionals with good incomes, or at least credit worthy students whose parents cosigned their leases.
Right now I have a guy from China who just took a job for a trading firm in the Loop who wants to lease my condo without having seen it. His parents back in China will be helping support him financially.
Whether you call that "lower quality" renter remains to be seen, but as long as money is deposited in your account that is all that matters.