"Unfortunately, a decrease in rent payments received is likely to cause a snowball effect for landlords and the greater rental industry. We will continue to track and share this important data as the pandemic continues to affect life as we know it,” said Nathan Miller, President of Rentec Direct.
GRANTS PASS, Ore. (PRWEB) September 15, 2020
Rentec Direct, the highest-rated property management software solution, has published a new rental trends report exploring the impact of the COVID-19 pandemic on rental payment behavior during the month of September. Aggregated anonymous data collected over the past six months shows a consistent downward trend in the number of rent payments received nationwide by property managers and landlords, though tenants with online rental payment options have been more likely to pay rent. The September rental trends report follows similar data released by Rentec Direct in April, May, June, July and August.
“Many renters are struggling with cost-of-living expenses as income loss and unemployment continue to affect millions of Americans,” said Nathan Miller, President of Rentec Direct. “Rentec Direct’s data has shown a consistent downward trend in the number of rent payments received nationwide, and the month of September saw the biggest drop so far. Unfortunately, a decrease in rent payments received is likely to cause a snowball effect for landlords and the greater rental industry. We will continue to track and share this important data as the pandemic continues to affect life as we know it.”
The data showed three key trends in rental payment behavior during the month of September:
- The number of rent payments received nationwide saw the biggest drop since the start of the pandemic: The number of rent payments received nationwide by property managers and landlords is 6% lower than rent payments received for the same period in August, and 35% lower than rent payments received for the same period in March (prior to the onset of the COVID-19 pandemic in the U.S.) This number has been on a consistent downward trend since Rentec Direct began tracking data in March 2020.
- Renters with online payment options are more likely to pay rent: Of tenants who pay rent electronically, nationwide rent payments received in September are 1% higher than online payments received for the same period in March. When compared to the 35% decrease in total rent payments received in September, it is clear that online rent payment options dramatically increase the likelihood of paying rent.
- Interest in online rent collection options from landlords and property managers sees another big spike: On average, approximately 124 property managers submit applications to Rentec Direct to turn on online rent payment collection each month. In August, the number of applications increased by 26% after a decrease in interest during the month of July.
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 September was compared to the same period in March, April, May, June, July and August. 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/2020/09/Rent-Payment-Trends-Report-September-2020-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 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. http://www.rentecdirect.com