Most tenants failed to pay July’s rent

Most tenants failed to pay July’s rent
Published on July 10, 2020, 12:57 pm by Julia Falcon for HousingWire.com

Only 59.3% of New Yorkers paid rent by July 6

Multifamily housing saw fewer tenants making their rent payments for July as the COVID-19 pandemic worsened.

According to RealPage and the National Multifamily Housing Council‘s research, 77.4% of renters living in professionally-managed apartments in the U.S. made their rent payment as of July 6. This has ticked down slightly from a year ago when it was 79.7%.

Monthly payments received by July 6 came from 83.5% of residents in Class A properties, the most luxurious apartments, while 81.5% from those living in Class B properties and 68.9% from those living in Class C properties paid July’s rent.

“It is clear that state and federal unemployment assistance benefits have served as a lifeline for renters, making it possible for them to pay their rent,” Doug Bibby, NMHC President said in a statement.

The most significant drop was seen in metro New York, RealPage said. July rent payments came from 59.3% of households as of July 6.

The decline came after New York Gov. Andrew Cuomo extended eviction moratoriums through August, New York protests called for him to extend that period, and Ithaca, New York, announced it was cancelling rent.

COVID-19 hotspots Texas, Florida and Arizona had collection rates of 86%, 85% and 85%, respectively. This is down about three percentage points year over year in these locations.

LendingTree said that 31% of renters said they don’t think they will be able to make next month’s rent payment on time, either. The enhanced unemployment benefits that are part of the CARES Act expire at the end of the month.

“Unfortunately, there is a looming July 31 deadline when that aid ends,” Bibby said. “Without an extension or a direct renter assistance program that NMHC has been calling for since the start of the pandemic, the U.S. could be headed toward historic dislocations of renters and business failures among apartment firms, exacerbating both unemployment and homelessness.”

In June, the share of total rent collected on the first day was 10%. In April and May it was 12%, and in the January through March period it was 16%, according to LeaseLock. The total amount of rent collected by June 6 was 80.8%, NMHC said.