“As COVID-19 continues to impact markets across the globe, many are left wondering what the future will hold in the rental industry,” said Nathan Miller, President of Rentec Direct.
GRANTS PASS, Ore. (PRWEB) May 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 over the past three months shows that rent payments received by landlords nationwide decreased in April and May, and that tenants with online rent payment options were more likely to pay rent. The May rental trends report follows a similar report released by Rentec Direct in April 2020.
“As COVID-19 continues to impact markets across the globe, many are left wondering what the future will hold in the rental industry,” said Nathan Miller, President of Rentec Direct. “It’s safe to assume landlords are directly feeling the effects of this global shift. We are on a mission to determine how COVID-19 has impacted rental payment behavior by comparing the first week of each month to the same period in March, when most state shutdown orders occurred.”
The report showed three main trends in rent payment behavior for the month of May:
- Property managers and landlords received fewer rent payments: Rent payments received nationwide by property managers and landlords as of May 8th was 19 percent lower than the number of rent payments received during the same period in March, compared to a 17 percent decrease in April.
- Renters were more likely to pay rent online than by cash or check: Of tenants who paid rent electronically, nationwide rent payments in May were 1.5 percent higher than online payments received for the same period in April. When compared to the 19 percent decrease in total rent payments, it is clear online payment options increase the likelihood of paying rent on time.
- Tenants and landlords continue to explore online rent payment options: 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. In April 2020, the number of applications increased by 15 percent. So far in May 2020, interest in online rent payment options appears to be stabilizing.
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 May was compared to the same period in March and April. 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. 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/2020/05/May-2020-Rent-Payment-Trends-Rentec-Direct.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