Rent Payments Continue to Fall During COVID-19 Pandemic


rent payments fall during COVID-19

The global COVID-19 pandemic has touched everyone’s lives, causing nearly every industry to adapt to a new normal. The rental industry is no exception and the industry is creating new ways to implement safety measures and meet the needs of renters

As a response to the nation’s climbing unemployment rate, several states implemented an eviction moratorium at the onset of the pandemic to protect renters unable to pay their monthly rent. Despite the moratorium on evictions, however, rent is still due. And the majority of renters are still making full or parietal rent payments

Rentec Direct has been tracking rent payment data on over 620,000 rental units since March 2020 to further understand the impact of COVID-19 on rent payments and rent payment methods. By comparing the first week of each month to the same period in March 2002, when most state shut down orders occurred we can determine the impact of the pandemic on rent payments. 

See the Rental Trends Report: Impact of COVID-19 on Rent Payments and Rent Payment Methods | July 2020

Rent Payments Decreased in July 2020

Data from July 2020 indicates that renters are slightly more financially burdened than previous months, as rent payments received decreased by 2% from June 2020 to July 2020

rent payment data july 2020

Online Rent Payments See Little Change Since March 2020

Of tenants who pay rent electronically, nationwide rent payments in July are 1.6% lower than online rent payments received for the same period in March. When compared to the 26% decrease in total rent received for July 2020, it is clear, online rent payment options increase the likelihood of paying rent. 

See the Rental Trends Report: Impact of COVID-19 on Rent Payments and Rent Payment Methods | July 2020

The Future of the Rental Industry

While some people are optimistic that the economy and job growth will improve, the recent increase in national COVID-19 cases could threaten American’s economic future

And despite unemployment rates falling to 11.1% in June, this is still the highest unemployment rate the nation has seen since the Great Depression. And experts note that these numbers don’t accurately capture statewide re-closures, seen in California, Arizona, Texas, and other states, and continued layoffs that continue to impact the nation’s unemployment.

Additionally, we are about to see the $600 weekly Pandemic Unemployment Assistance expire at the end of the month. The change in income could further impact rent-burdened households. 

The coming months will reveal how renters will handle their monthly rent payments and other expenses. And what the response will be from landlords, property managers, and real estate investors, as they continue to navigate these uncertain times.

Related Reading For You:

Source link