Scott Schaeffer on corporate management
From CEO of Multifamily REIT Independence Realty Says Shift to Renting Has Staying Power · · Nareit1
“We always wanted to be internally managed. In the beginning, we were just too small to really support a public company infrastructure, but we got to the right size where we felt it made sense, so we went through the process of bringing management in-house.”
On , Scott Schaeffer, Chief Executive Officer & Chairman at INDEPENDENCE REALTY TRUST, spoke about corporate management during CEO of Multifamily REIT Independence Realty Says Shift to Renting Has Staying Power on Nareit1.
About Scott Schaeffer
In a September 2018 interview, Scott Schaeffer, chairman and CEO of Independence Realty Trust, stated that he believes the shift toward renting has long-term staying power. He attributed this to tenants seeking flexibility and affordability, citing a Freddie Mac survey in which 70% of respondents said renting was more affordable than owning. Schaeffer also noted that changes to tax law, including potential limits on mortgage interest and real estate tax deductions, could affect the rent-versus-buy decision. Schaeffer described the company's strategy as owning B-class assets in non-gateway markets with supply-demand imbalances driven by population and job growth. He said a recent acquisition fit this strategy, adding that the portfolio was "under-managed" and offered opportunities for improved operational performance. Schaeffer also discussed the company's internalization of management earlier that year, saying it was done once the company reached sufficient size. He said the move saved approximately $2.5 million in general and administrative expenses and aligned management with shareholders, and noted that the stock had risen about 30% since the announcement.