Colony American Homes, Invitation Homes, American Homes 4 Rent and Starwood Waypoint Residential Trust -- major players in the single-family rental-home industry -- have formed a trade group called the National Rental Home Council. The group will seek to educate policymakers and others and advocate for the professionally managed single-family rental-home market.
External management can make sense for REITs that are new or growing and do not have the cash flow to hire full-time internal staff, proponents say. However, the model is under fire from those who say external managers cost more and have a greater incentive to expand a REIT's portfolio instead of focusing on the bottom line.
One hospitality REIT, Ashford Hospitality Trust, has created a new structure for external management that addresses investor concerns.
Essex Property Trust, an apartment REIT, will join the S&P 500. The change is effective April 1. Essex is currently a member of the S&P midcap 400. As of Wednesday, shares of the REIT were up 15.8% year to date.