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Rentec Direct Publishes New Report Exploring Rental Payment Trends During COVID-19 Pandemic
Data from property management software company, Rentec Direct, shows renters continue to struggle to pay rent
AUGUST 18, 2020
GRANTS PASS, ORE. –Rentec Direct, the highest-rated property management software solution, recently published a rental trends report revealing the impact of the COVID-19 pandemic on rental payment behavior during the month of August. Aggregated anonymous data collected over the past several months shows that the number of rent payments received by landlords nationwide continues to decrease, and tenants with online rental payment options have been more likely to pay rent. The August rental trends report follows similar data released by Rentec Direct in April, May, June, and July.
“Our data shows a consistent downward trend in the number of rent payments received by property managers and landlords, dropping more than 12 percent in the last five months alone,” said Nathan Miller, President of Rentec Direct. “Many tenants are relying on various temporary regulations that protect them as widespread unemployment and income loss impact the nation, and this means fewer renters are paying their rent.”
The report showed three main trends in rent payment behavior for the month of August:
- The number of rent payments received nationwide continues to decrease: The number of rent payments received by landlords and property managers nationwide decreased by 29 percent in August when compared to the same time period in March, prior to the onset of the pandemic. This number has been on a downward trend over the past five months, decreasing another three percent when compared to data from July.
- Online rent payments see a significant decrease for the first time: Of tenants who paid rent electronically, nationwide rent payments in August saw a sharp drop of nearly 11 percent when compared to online payments for the same period in March. This follows a decline of only 1.6 percent in July. Despite the sudden decrease, when compared to the 29 percent decrease in total rent payments received, it is clear that online payment options increase the likelihood of tenants paying rent on time.
- Interest in online rent collection options from landlords and property managers is stabilizing: On average, 124 property managers per month submit applications to activate online payment options. Despite the increased likelihood of on-time payments, the number of applications for online rent payment collection decreased by more than nine percent when compared to the monthly average prior to the pandemic.
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 August was compared to the same period in March, April, May, June and July. 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: www.rentecdirect.com/blog/wp-content/uploads/2020/08/August-2020-Rent-Payment-Trends-Rentec-Direct.pdf.
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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. www.rentecdirect.com
