Report: Cerberus Capital Management’s three-headed attack on homeowners, tenants
April 20, 2020
The private equity giant’s forays into the single-family home rental and mortgage business have harmed renters, prospective homebuyers, and homeowners.
Our new report, “Cerberus Capital Management’s three-headed attack on homeowners, tenants,” looks at private equity and debt firm Cerberus Capital Management’s investments in housing, and their impacts on renters, prospective homebuyers, and homeowners.
Key points
- Private equity and debt firm Cerberus Capital Management has multiple portfolio companies active in the housing sector.
- Through its single-family home rental company, FirstKey Homes, Cerberus owns over 20,000 homes across the US.
- FirstKey has filed to evict residents at high rates in cities such as Memphis, Atlanta, and Phoenix.
- Despite the COVID-19 pandemic, Cerberus has advanced eviction cases against some residents of its single-family rental homes.
- In Memphis, TN, FirstKey has been cited dozens of times for code violations at homes it owns.
- Cerberus’ FirstKey competes with individual homebuyers, making it more difficult for first time homebuyers to purchase homes.
- In the United Kingdom, Cerberus owns mortgage management company Landmark Mortgages, which has been criticized for keeping homeowners in “mortgage prisons”.
