GRANTS PASS, ORE. (MO.Properties) – Rentec Direct, the highest-rated property management software solution, recently published a rental trends report revealing the impact of COVID-19 on rent payment behavior during the month of July. Aggregated anonymous data collected over the past several months shows that the number of rent payments received by landlords nationwide have decreased during the pandemic, and tenants with online rent payment options were more likely to pay rent. The July rental trends report follows similar reports released by Rentec Direct in April, May and June.
“Rent is often the largest cost-of-living expense, with the majority of Americans spending more than thirty percent of their income on housing,” said Nathan Miller, President of Rentec Direct. “In the face of massive layoffs and an elevated unemployment rate, many renters are struggling to keep up with their bills. Our goal is to determine exactly how the COVID-19 pandemic has impacted rental payment behavior and share this information with the rest of the industry.”
The report showed three main trends in rent payment behavior for the month of July:
Renters are more financially burdened now than at the onset of the pandemic: The number of rent payments received by property managers and landlords nationwide has been steadily declining over the past four months. As of July 10, rent payments received were 26 percent lower than rent payments received for the same period in March, prior to the onset of the COVID-19 pandemic.
Renters are more likely to pay rent online than by cash or check: Of tenants who paid rent electronically, nationwide rent payments in July were down 1.6 percent compared to online payments for the same period in March. When compared to the 26 percent decrease in total rent payments received, it is clear online payment options increase the likelihood of tenants paying rent on time.
Interest in online rent collection options for landlords and property managers is stabilizing: Despite the increased likelihood of on-time rental payments, the number of applications for online rent payment collection decreased by 11% compared to the monthly average prior to the pandemic. On average, 124 property managers per month submit applications to turn on online payments.
To create the report, Rentec Direct pulled aggregated anonymous data from its property management software platform, representing 620,000 rental properties nationwide. Because most tenants pay rent during the first week of the month, data from the first week of July was compared to the same period in March, April, May and June. Because many stay-at-home orders were initiated in mid to late March, the impact of COVID-19 on certain renter behaviors could be determined during this time frame. Rentec Direct also looks at data from January and February of 2020 as a baseline for rental payment behavior prior to the COVID-19 pandemic.
To view the rental trends report in its entirety, visit: https://www.rentecdirect.com/blog/wp-content/uploads/2020/07/july-2020-covid-rent-payment-data.pdf.
About Rentec Direct
Rentec Direct offers industry-leading property management software and tenant screening solutions for real estate professionals. Features include online rent payments, tenant and owner portals, the industry’s largest vacancy listing syndication network, full property, tenant, and owner accounting, 1099-MISC reporting and more. Rentec Direct received the Real Estate Company of the Year Award in the 2019 American Business Awards, has been named to the Inc. 5000 List of Fastest-Growing Private Companies for four years in a row (as of 2020), and was also included on the 2017, 2018 and 2019 Entreprenuer360 list for Best Entrepreneurial Companies in America. https://www.rentecdirect.com/