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Many independent landlords and their tenants continue to suffer substantial and long-term consequences as a result of COVID-19. The pandemic's impact on the rental business has been measured in billions of dollars in missed rent, sold rental properties, long-term vacancies, and a lack of knowledge on how to receive life-saving rental help over the last year.
Half of independent landlords (50.0 percent) expect to miss additional rental payments in the next three months as of February 2021, with another 27.8 percent unsure if they will collect rent payments. This is up from 37.0 percent of landlords at the end of last year, who predicted that they would miss more rental payments between October and December 2020.
Independent landlords would experience even greater financial constraints in the coming three months due to lower rental income. In February 2021, 20.7 percent of landlords said they had lost at least $20,000 in rental income. Another 15.5 percent lost between $10,000 and $14,999 dollars, while 24.6 percent lost between $5,000 and $9,999 dollars. If tenants continue to fail to pay their rent on a monthly basis, these losses will only grow.
Despite the fact that they are the ones in need of assistance, 48.6% of landlords who have faced financial losses due to late rent are unaware of any rental assistance that they can apply for.
Overall, 62.7 percent of all landlords who are aware of government-funded rental assistance say they are not qualified to apply. And, of those landlords who are both qualified and have applied for rental assistance before taking the survey, 54.7 percent have yet to receive any help funds. Existing rent assistance initiatives, despite their shortcomings, are nonetheless effective, according to this research.
When asked what challenges they faced during the application process for rental assistance, landlords said the top three were having to postpone evictions during the assistance period (51.6%), communicating with tenants (47.3%), and not knowing if they would receive the rental assistance payment (47.3%). (44.1 percent ).
The CDC Eviction Moratorium has the greatest impact on independent landlords, particularly those of color, because they lack the financial capacity to maintain their properties without a steady and substantial rental income.
70 percent of landlords who suffered financial losses due to a loss of rental income during the pandemic said the impact of the moratorium was lost rent from their units, 49.9% said they are struggling to afford rental property maintenance, 25.3 percent are unable to rent out vacant units, and 15.9% have resorted to selling at least one of their units.
The percentage of renters struggling to make ends meet is rising in comparison to prior Avail polls. According to the current study, 72 percent of the 2,533 tenants who replied to this question are having trouble paying their rent because of the pandemic's financial demands. This compares to 65.8% of tenants having difficulty paying their rent in May 2020, 66.0 percent in June 2020, and 61.9 percent in July 2020.
This poll also revealed that female-identifying renters (75.7 percent) had more difficulty working to pay their rent in full each month, compared to male-identifying renters (62.7 percent).
Because of COVID-19 financial issues, more female renters (56.1%) owe their landlords past-due rent. In comparison, 41.8 percent of male tenants owe past-due rent to their landlords.
Half of renters (51.4%) say they owe their landlords prior rent (commonly known as back rent), with 49.3% owing their landlords between $1,000 and $4,999 in missing rental payments.
In the beginning of 2021, renters expect to miss even more rental payments. Forty-six percent of renters expect to miss additional rent payments in the next three months, while 38.8% are unsure if they will be able to pay rent in that time frame. This may put additional financial strain on DIY landlords, who aren't receiving as much rental income as they should be.
With uncertainty in the near future, it's important to cut costs where you can. In particular, filling vacancies is crucial as empty units don't generate revenue and finding the right tenant fast is more important than ever. Marble's self-access touring system can fill units in 2-3 weeks. Reach out to learn more about our services.
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