A report from property management software firm Rentec Direct revealed that rent payments in August 2020 had fallen 29% year-over-year and 12% in the past five months.
This indicates that the federal aid offering an additional $600 in unemployment that expired August 1 is having negative repercussions, particularly as office vacancies remain low due to employees working from home.
“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.”
Additionally, the research also revealed that there has also been an 11% dip in online payments compared to March of this year.
The report consisted of data from the company’s internal data of 620,000 rental properties across the country and reflected numbers from the first week of the past five months, when rent is typically due.