Based on a survey of apartment renters conducted from May 22 to May 31, J Turner Research is predicting a rent collection rate of 84.28% nationwide by June 10. According to J Turner, this would be an increase of about 5% over the previous month at the same time.
Last month, J Turner predicted an 80.8% rent collection rate, which fell within 1 percentage point of the NMHC’s Rent Payment Tracker at 80.2%. “If our numbers are as on target as last month, rent receipts will be stronger than May, which bodes well for the industry,” says Joseph Batdorf, president of J Turner Research.
When asked about the status of their housing payments, just over 74% of respondents reported that they would be able to pay their June rent on time. In last month’s study, 70% indicated they would be able to make their rent payment on time. This month, 9.6% of respondents indicated they might not be able to make their payment, down from 14% last month.
Over 9% of respondents reported they had been furloughed or laid off, and 5% indicated they were self-employed, with business revenues “significantly” impacted. Fifty-one percent of residents who reported that they had been laid off or furloughed indicated they would be able to pay their June rent on time.
Over 81% of respondents stated that they were avoiding public gatherings due to COVID-19, down from 94% in May. Nearly 35% prefer a “better safe than sorry” approach to reopening the economy at this time, while 49% would like the economy to open in phases, and 16% want the economy to open completely. This presents an improvement in outlook over May, when nearly 54% of respondents preferred the most cautious approach.
Forty-seven percent of residents reported that they are concerned about rent payments, down from 53% in May, and 39.8% report they are “not concerned” about rent at this point.