"We set out to uncover just how many renters had changed their habits during the global pandemic by comparing the first week of April to the same period in March,” said Nathan Miller, President of Rentec Direct."
GRANTS PASS, Ore. (PRWEB) April 14, 2020
Rentec Direct, the highest-rated property management software solution, recently published a rental trends report revealing the impact of COVID-19 on rent payments and rent payment methods. Aggregated anonymous data collected from March and April 2020 shows that rent payments received by landlords nationwide decreased in April, and that tenants with online rent payment options were more likely to pay rent.
“It stands to reason that landlords are experiencing a trickle-down effect in the face of nationwide layoffs and economic upset,” said Nathan Miller, President of Rentec Direct. “To add another layer of complication, shelter-in-place orders and social distancing mandates make paying rent in person or by mail even more difficult. We set out to uncover just how many renters had changed their habits during the global pandemic by comparing the first week of April to the same period in March.”
The report showed three main trends in rent payment behavior for the month of April:
- Property managers and landlords received fewer rent payments in April 2020: Rent payments received nationwide by property managers and landlords as of April 8th was 17 percent lower than the number of rent payments received during the same period in March.
- Renters were more likely to pay rent online than by cash or check: Nationwide electronic rent payments in April 2020 were only 1.5 percent lower than payments received for the same period in March 2020. When compared to the 17 percent in total rent received in April, it is clear online rent payment options increase the likelihood of payment.
- Tenant and landlord interest in setting up online payment options is increasing: On average, Rentec Direct receives 124 applications each month from property managers wanting to activate online rent payment options. In March, this number increased by 24 percent.
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 in the first week of the month, data from the first week of April was compared to the same period in March. Additionally, 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.
To view the rental trends report in its entirety, visit: https://www.rentecdirect.com/blog/wp-content/uploads/2020/04/Rentec-Direct-Report-2020-Rent-Payment-Behavior-from-COVID-19.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 three years in a row (as of 2019), and was also included on the 2017, 2018 and 2019 Entreprenuer360 list for Best Entrepreneurial Companies in America. http://www.rentecdirect.com