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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 24 April 2025 C O V E R S T O R Y ership slip further and further out of reach. "Many current owners are hold- ing off selling their property because they most likely could not increase their living conditions for the same reason," he continues. "There is significant demand growing in anticipation of lower rates. This, of course, has led to higher rental costs due to demand and an increased focus on turning properties quickly to reduce opportunity cost loss." Elsey further notes that the institu- tional acquisition of new SFR properties over the previous few years has slowed accordingly, which marked a significant shift from general SFR trends since the global financial crisis (GFC). Elsey explains, "Institutional investors truly drove the creation of the SFR industry post-GFC. Prior to that, most rental homes were owned by small operators with one to five properties. By the end of 2022, institutional owners amassed approximately 574K homes." While a significant number, Elsey points out that 574,000 represents less than 4% of all single-family rental homes in America. "It is clear that institutional ownership will continue to increase, and specifically when interest rates begin to meaningfully decrease," he adds. With institutional investors and mom- and-pops both trying to wait out interest rates, Elsey explains that the industry has in the meantime pivoted to focus more on operational costs such as tenant turn and general maintenance. "Many companies focusing on the initial rehab of newly acquired properties have significantly reduced staff, and several have merged to take advantage of technology and capi- tal," says Elsey. He adds that many smaller investors may be currently relying on cash purchases to work around the interest rate challenges, but that this "may cause a property to cash flow negatively." Staking a Claim in SFR F ounded by industry icon the late Robert Klein in 1990, Safeguard has, over the ensuing 30 years, grown into one of the largest and most recognizable mortgage field services companies in the nation. Their service offerings run the gamut from property inspections and data collection to FHA conveyance and REO services. "Safeguard recognized the similarities between property preservation and the SFR industry several years ago," Elsey tells MortgagePoint. "With some of the consolidation happening within the industry, and specifically in the man- agement of the physical asset, it became apparent that Safeguard had a lot to offer. Initial planning began in early 2024 and launched in earnest in Q4 of last year." Safeguard's SFR segment leverag- es overlap between the needs of SFR investors and traditional property preservation clients, filling a need by offering services Safeguard is already well-equipped to manage. "The services provided on the ground are similar if not identical," says Elsey, "and the ability to capitalize on the volume of both industries allows Safeguard to provide the least costly solution for both." For its SFR clients, Safeguard offers full-service tenant turn capabilities, including scoping vacant properties and completing approved line items in a timely and cost-efficient manner, and that vendor network is critical to Safeguard's ability to respond swiftly and nimbly across many U.S. regions. Safeguard's SFR offerings include initial rehab, dispo- sition, and disaster recovery services, in addition to basic recurring services such as lawn mowing or snow removal. One huge advantage Safeguard brings to the table is its nationwide ven- dor network, built up over the compa- ny's more than three decades serving the property preservation space. By taking advantage of this network of thousands of vendors across the country, Elsey says that Safeguard can often respond as soon as the same business day to their client's requests. Safeguard's SFR offerings are spe- cifically designed to allow the company to act as a Business Partner Organiza- tion with its clients. Elsey explains that "having roots in property management, we are acutely aware of the cost control With some of the consolidation happening within the industry, and specifically in the management of the physical asset, it became apparent that Safeguard had a lot to offer. Initial planning began in early 2024 and launched in earnest in Q4 of last year." —John Elsey, VP of Single-Family Rental, Safeguard