Using transactional data sourced from three top property management systems, multifamily lease insurance company LeaseLock has discovered a downward trend in on-time rent payments over the course of the five-day “rent payment grace period” in April, as compared with January, February, and March. This nationwide trend suggests the broad impact of the COVID-19 pandemic, rising unemployment, and shelter-in-place orders on the ability of renters to make their rent payments.
On April 1, LeaseLock actually recorded a slight uptick in rent payments from both full-payment renters and partial-payment renters as compared with the first days of January, February, and March. However, by April 2, the percentage of renters who had paid full rent fell by 1.17% from the same two-day period over the last three months.
By the third day, the percentage of renters who made full payments between April 1 and April 3 had fallen by 5%, down to just under 31% from just under 36% in January, February, and March. The share of renters who made partial payments during this period fell even lower—7.5%—compared with the previous three months.
A number of major U.S. cities are seeing similar downward trends at the local level—particularly Los Angeles, which has seen a significantly steep drop in April rent payments. The percentage of renters in L.A. who paid full rent in the first three days of April fell by 8% as compared with the prior month, while the share of renters paying partial rent fell by 10%.
LeaseLock notes that L.A. was among the first U.S. cities to implement a shelter-in-place order, which started March 19, as well as an eviction moratorium March 23.
LeaseLock intends to release a full Rent Payment Report on April 7, after the grace period ends.