Payments Decrease in June as Covid-19 Makes Its Impact Felt on Rental Market
For the third month in a row, rental payments have decreased as the industry has been affected by massive economic upset, according to Rentec Direct.
The coronavirus pandemic’s disruption on the rental market has continued into June, according to a new report by Rentec Direct.
In a study released earlier this month, the property management software company found that since March 2020, monthly rent payments received has decreased by 24% – the third monthly decline in a row, as the coronavirus pandemic has triggered an economic upset and massive layoffs.
In a review of 620,000 properties on the online platform, Rentec Direct found that payments were more likely to come through online compared to cash or check. Of tenants who paid electronically, there was a 1.4% decline in payments received.
“When compared to the 24% decrease in total rent received for June 2020, it is clear, online rent payment options increase likelihood of paying rent,” the study said. (Note: one of Rentec Direct’s services is online payments.)
Rentec Direct also found that the appetite for online rent payments is decreasing. In an average month, property managers on the site submit about 124 applications for online payments. But from March through the end of May, applications for online payments decreased 11%.
“The rental industry has remained active throughout the pandemic, but there have been major changes in the face of economic upset and massive layoffs,” said Nathan Miller, Rentec Direct’s president, in a statement. “The country is slowly beginning to reopen, but best practices and behaviors for both landlords and renters have shifted.”