Financialization and vertical integration enhance renter-perceived property owner effectiveness

PurposeThis work examines the impact of financialization and vertical integration on renter-perceived property owner effectiveness.Design/methodology/approachBased on a sample of 1,186 renters in the US, the UK and Canada, the research addresses gaps in the literature regarding the implications of financialization and vertical integration on renters.FindingsIn contrast to previous work that shows the negative implications of financialization, the results indicate that financialization is positively correlated with renter-perceived property owner effectiveness, challenging the prevailing narrative that it strictly benefits shareholders and the financial elite. Vertical integration’s effect on renter-perceived property owner effectiveness was also shown to be positive and significant, enhancing the existing vertical integration literature that has not focused on real estate. A post-hoc interaction analysis revealed the benefits of vertical integration on renter sentiment are greater among highly financialized firms.Practical implicationsThe study offers managerial considerations for property owners seeking to enhance renter sentiment and satisfaction as well as contributes to real estate strategy and management literature.Originality/valueThese results are novel, as previous research has not empirically shown financialization to elicit benefits for broader stakeholder groups.