In recent years, a disturbing trend has emerged in the American housing market: the rise of corporate landlords and a concurrent epidemic of mold infestations in rental properties. This crisis, largely overlooked by mainstream media, is having profound impacts on the health and well-being of tenants across the country. As large corporations increasingly dominate the rental market, many tenants are finding themselves trapped in unhealthy living conditions with little recourse.
The landscape of rental housing in the United States has undergone a significant transformation in recent decades. Following the 2008 financial crisis, large corporations and private equity firms began acquiring vast portfolios of single-family homes and apartment complexes. Today, corporate entities control an estimated 45% of rental housing units in the country1.
These corporate landlords, such as Invitation Homes, Amherst, and Main Street Renewal, own thousands of properties across multiple states. Their business model often prioritizes profit maximization over tenant welfare, leading to a host of issues for renters.
Corporate landlords employ several strategies that can negatively impact tenants:
- Neglecting maintenance and repairs
- Imposing frequent rent increases and additional fees
- Aggressive eviction practices
- Using complex corporate structures to evade accountability
These tactics often result in deteriorating living conditions, including the proliferation of mold in rental units.
Mold growth has become a pervasive problem in rental properties across the United States. According to recent statistics, approximately 50% of all homes in the country have some form of mold growth10. This issue is particularly acute in properties owned by corporate landlords, where maintenance is often neglected or delayed.
Health Impacts of Mold Exposure
Mold exposure can have serious health consequences for tenants. Some of the health issues associated with mold include:
- Respiratory problems, including asthma exacerbation
- Allergic reactions
- Chronic sinusitis
- Headaches and migraines
- Skin irritation
Dr. John Carlson, a New Orleans-based pediatrician specializing in allergies and immunology, explains: “We are currently breathing mold right now. It’s in every breath we take down here. What you’re worried about are these more intensive exposures.”2
These intensive exposures, such as living in an apartment with persistent mold, can lead to chronic respiratory issues that may persist even after tenants move out of the affected property.
Case Studies: Tenants’ Struggles with Mold
Across the country, tenants are grappling with mold infestations in properties owned by corporate landlords. Their stories highlight the human cost of this growing crisis.
Gabriela Cruz: South Los Angeles
Gabriela Cruz and her family have been living in a two-bedroom apartment in South Los Angeles for five years. Within a year of moving in, they began noticing black mold in the bathroom and cockroach infestations throughout the apartment3.
Cruz’s 10-year-old son suffers from asthma, which is exacerbated by the mold and cockroaches. Despite repeated calls to the property manager, the issues have gone largely unaddressed. Cruz describes the toll on her mental health: “I suffer from depression because I feel like I can do nothing about it.”
Tevhan Jones: Clearwater, Florida
Tevhan Jones and his roommates moved into a rental home managed by Invitation Homes, one of the largest corporate landlords in the country. On the day they moved in, they discovered water leaking from the walls and mold growth in the home9.
Nearly a year later, the home remains in a state of disrepair. The bathrooms have been gutted, leaving the tenants with only one working toilet and no showers. Jones describes the situation as “unlivable,” stating, “We can’t come home and feel comfortable. This created a lot of stress, a lot of tensions.”
Sophie DeMartine: Tampa Bay Area
Sophie DeMartine and her husband rent a three-bedroom home managed by Main Street Renewal, a subsidiary of Amherst. Despite the property’s appealing location and price, DeMartine has faced numerous maintenance issues, including a leaking skylight, a growing crack in the living room wall, and water damage in the master bathroom9.
DeMartine expresses frustration with the company’s unresponsiveness: “I didn’t think it was gonna be this bad – this unresponsive. I didn’t actually think an organization like this would treat people this poorly.”
Corporate landlords often defend their practices, citing large portfolios and complex management structures as reasons for delayed responses to maintenance requests. However, critics argue that these explanations mask a fundamental prioritization of profits over tenant welfare.
Invitation Homes, for example, claims to invest in providing prompt, professional service to residents, including timely turnaround of all maintenance requests9. However, tenants like Tevhan Jones report experiences that contradict these claims.
Main Street Renewal states that it employs over 700 professionals “dedicated to resident experience and a quality home,” and that the company “endeavors to respond to tenant maintenance requests in a timely manner.”9 Yet, tenants like Sophie DeMartine continue to struggle with unresolved maintenance issues.
The mold epidemic in corporate-owned rental properties has far-reaching consequences beyond individual tenant experiences.
The mold remediation industry has seen significant growth in recent years. The global mold remediation service market was valued at $1.23 billion in 2023 and is projected to grow at a compound annual growth rate of 3.1% from 2024 to 20304.
This growth reflects the increasing demand for mold remediation services, particularly in residential settings. The cost of professional mold removal can range from $500 to $6,000 per incident10, a significant expense that often falls on tenants or impacts property values.
The prevalence of mold in rental properties represents a significant public health concern. Approximately 25% of the population has mold-related allergies, and 15-30% of people with asthma find their condition triggered by mold exposure10.
Dr. Sukh Boparai, who led a study on the health impacts of corporate landlord practices, notes: “Generally, there’s a direct effect when landlords don’t address issues with the home. But the mental and the long-term physical health effects are substantial.”3
The dominance of corporate landlords in the rental market has broader implications for housing affordability and availability. These entities often have the capital to outbid individual homebuyers, driving up housing prices and reducing opportunities for homeownership.
Will Dominie of Human Impact Partners observes: “We know the tenant landlord relationship has always had a power imbalance, but corporate landlords take it to a whole other level.”3
The mold epidemic in corporate-owned rentals has drawn attention from regulators and lawmakers. However, the legal protections for tenants facing mold issues vary widely by jurisdiction.
In September 2024, the Federal Trade Commission (FTC) took action against Invitation Homes, the country’s largest landlord of single-family homes, for an array of unlawful actions including deceptive pricing, junk fees, and misleading eviction practices7.
FTC Chair Lina M. Khan stated: “No American should pay more for rent or be kicked out of their home because of illegal tactics by corporate landlords. The FTC will continue to use all our tools to protect renters from unlawful business practices.”
At the state and local levels, regulations addressing mold in rental properties are often inadequate. Monique Blossom, director of policy and communications at the Louisiana Fair Housing Center, notes: “At the state level, there’s virtually no protections for tenants in this situation. State law is heavily in favor of landlords over tenants, and so we have a lot of tenants across the state that have problems with habitability and have very little legal recourse or rights.”2
Some jurisdictions, like Lafayette Parish in Louisiana, lack specific rules related to mold in rental housing and do not have certified mold inspectors on staff to confirm the presence of mold during inspections2.
Challenges in Addressing the Crisis
Several factors contribute to the difficulty in addressing the mold epidemic in corporate-owned rentals:
- Lack of Transparency: Corporate landlords often use complex ownership structures that make it difficult for tenants to identify and communicate with decision-makers.
- Limited Legal Recourse: Many tenants lack the resources or knowledge to pursue legal action against large corporate entities.
- Inadequate Regulations: The patchwork of state and local regulations often fails to provide comprehensive protections for tenants facing mold issues.
- Economic Pressures: The high demand for rental housing in many markets allows corporate landlords to maintain high occupancy rates despite poor conditions.
- Insufficient Data: The lack of comprehensive data on mold prevalence in rental properties makes it difficult to quantify the full extent of the problem.
Potential Solutions
Addressing the mold epidemic in corporate-owned rentals will require a multi-faceted approach:
Advocates call for stronger regulations at both the federal and state levels to protect tenants from mold exposure and ensure prompt remediation of mold issues.
Enhanced enforcement mechanisms, including regular inspections and significant penalties for non-compliance, could incentivize corporate landlords to maintain their properties properly.
Programs to educate tenants about their rights and provide resources for addressing mold issues could help level the playing field between tenants and corporate landlords.
Increased transparency requirements for corporate landlords and mechanisms to hold them accountable for maintaining healthy living conditions could help address systemic issues.
Policies to promote the development and maintenance of affordable housing could reduce the market dominance of corporate landlords and provide alternatives for tenants.
The mold epidemic in corporate-owned rental properties represents a significant crisis in American housing. As corporate landlords continue to dominate the rental market, tenants across the country are facing health risks and deteriorating living conditions due to persistent mold issues.
Addressing this crisis will require concerted effort from policymakers, regulators, housing advocates, and responsible property owners. Without significant changes, the health and well-being of millions of American renters remain at risk.
As the housing market continues to evolve, it is crucial that the rights and health of tenants are protected. The mold epidemic in corporate-owned rentals serves as a stark reminder of the importance of safe, healthy housing for all Americans.
