This report looks at the operational risk associated with this industry. Three types of risk are recognized in our analysis. These are: risk arising from within the industry itself (structural risk), risks arising from the expected future performance of the industry (growth risk) and risk arising from forces external to the industry (external sensitivity risk).
Operators within this industry act as lessors of buildings that are used as residences or dwellings. Industry participants include: (1) owner-lessors of residential buildings; and (2) establishments renting real estate and then acting as lessors in subleasing it to others. In addition to apartment rentals, the industry is also comprises single-family homes and town houses.
The primary activities of firms in this industry are:
- Renting or leasing residential buildings
- Renting or leasing residential dwellings
- Subleasing residential buildings or dwellings