Rentec Direct Publishes New Report Revealing the Impact of COVID-19 on Rent Payments
Property management software company releases October 2020 data, the latest in a monthly study analyzing rental payment trends
OCTOBER 14, 2020
GRANTS PASS, ORE. –Rentec Direct, the highest-rated property management software solution, has published a new rental trends report exploring the impact of the COVID-19 pandemic on rental payment behavior during the month of October. Aggregated anonymous data collected over the past eight months was used to analyze trends in the number of rent payments received nationwide and online rental payment behavior. The October rental trends report contains the latest wave of data in a study Rentec Direct has conducted each month since April.
“Rentec Direct is committed to collecting and sharing information that will benefit the real estate industry as a whole as we continue to feel the impact of the COVID-19 pandemic,” said Nathan Miller, President of Rentec Direct. “For the first time since the onset of the pandemic, our data shows a slight increase in the number of rent payments received nationwide by landlords and property managers. We will continue to track rental payment data throughout the rest of the year to help landlords and renters make informed decisions.”
The report showed three key trends in rental payment behavior during the month of October:
- First increase in rent payments received since the onset of the pandemic: After seeing the biggest drop in rent payments received since the onset of the pandemic in September, October saw a 7% increase in the number of rent payments received nationwide by landlords and property managers. However, the numbers for October are still 28% lower than the same period in March, prior to the onset of the pandemic, which means renters are still struggling to pay rent.
- Online rent payments have seen the biggest increase since the onset of the pandemic: Of tenants who pay rent electronically, nationwide rent payments received in October 2020 are more than 4% higher than online payments received for the same period in March. This is the biggest jump online rent payments have seen since the onset of the pandemic. When compared to the 28% decrease in total rent payments received for October, it is clear that online rent payment options dramatically increase the likelihood of paying rent on time and in full.
- Interest in online rent payment options from landlords and property managers continues: On average, approximately 124 property managers submit applications to turn on online rent payments each month. In September, the number of applications increased by 7%, compared to a 26% increase during the month of August.
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 October was compared to the same period for the past seven months. 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/2020/10/Rent-Payment-Trends-Report-October-2020-Rentec-Direct.pdf.
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