It was only a matter of time before banks wised up to a solution for all of the houses they were reclaiming due to foreclosure. Really, it’s quite obvious once you think about it. Lenders have started creating their own property management companies in order to rent out homes they have foreclosed on until the market improves.
An article in the Copenhagen Post Online mentions four or five banks in Denmark that have already started management companies or intend to in the near future. Their reasoning? They don’t want to lose more money selling the properties they’ve regained in a failing market, nor do they want to put run down houses up for sale.
Is this the direction that American banks should be going as well? Hanging on to foreclosed properties and utilizing them as rentals instead of flooding the market with properties offered at bargain prices?
If this trend did pick up in the U.S., it could potentially mean a huge boost for the property management industry. Property management agents across the country would have the opportunity to capitalize if banks decide to create property management divisions in their companies.
Even better, if you are a property manager, why not be proactive and present a management package to local banks in your area? At the very least, you’ll get them started thinking about the opportunities holding on to properties can provide, as well as marketing yourself as the best manager for the job.
