Why is unpaid rent so high?

[Nathan Gesner]

I've read news reports that say up to 20% of rent has gone unpaid in the last couple of months. I manage 350 units and all but one has paid (we extended grace far longer than normal but now we're in the process of eviction). I network with hundreds of property managers around the country and almost all of them are in the same boat as me.

My only thought is that the higher percentage of unpaid rent must be with private Landlords. Maybe they don't run a tight ship and Tenants are taking advantage of the situation?

What's your experience? What are you hearing in your market?

And do you expect it to get better now that COVID restrictions are being lifted, or will it continue to worsen?

[Keith A.]

I've received 100%. One person relied on Trump's check to come in the mail which helped him, and has since been called back to his job. 

I also have no friends that have been unable to make mortgage or rent payments.

It's as if sometimes the news we read is not accurate. 

[Wesley W.]

Originally posted by @Mary M.:

@Wesley W. those numbers are bad - i would  like to know details. 

The link I provided above is reporting 80% rent collection overall. 

I'm not sure what details you need other than what I shared, but feel free to ask.

Your link, I am assuming, is nationwide data.  Why that would mean anything to your particular situation?  The guy collecting 100% thinks everything is fine and the doom and gloom is hyperbole;  the guy collecting on just 60% of gross rents is flirting with negative cash flow and can't pay his own bills.  They'd both be represented equally in your "80%" nationwide data.  

Areas are being affected in vastly different ways for the reasons I've previously mentioned in this thread.  Again, real estate is local.

@Keith A.

I'm not really sure why that is so hard to understand for some folks. 

[Mary M.]

I understand averages. I am curious why the data you provide collects info early in the month. I am guessing that if they waited til end of the month numbers would be different. 

But for anyone who is not getting rent payments its sucks I am sure. I just "think" 40% of new yorkers are not just not paying rent - making payments late? Sure. But IMO if 40% of rent was not being paid widely there would be a lot more noise 

[Mary M.]

I also want to say I am just curious, as a landlord, what my fellow landlords are facing and so far the only real data I have seen that I can dig into is the link I provided. That data is for professionally managed units tho and does not cover folks like me ...  

Does anyone know if there is survey data for non professionally managed units for the US as a whole?

Fwiw, I also care because I believe that "we" cant problem solve unless we know what the issue is etc.  

[Marlen Weber]

Super interesting, the reports I have been seeing actually show that rent collections have been trending up since March. Check out this article for a more recent update on June. https://www.multihousingnews.c...

[Byron Hunter]

Thank you for all the contributions.  I am a privately owned landlord with 2 rentals in Dallas.  We were proactive in talking with both tenants to find out what their situation was.  With modifications, all our rents have been paid.  I know these modifications are very generous, but we feel we have been blessed and wanted to pass that on to our tenants and their families.

1) one tenant is a small business owner electrician who struggled with income.  Because I filed for forbearance, we set his rent equal the mortgage payment for 3 months.  I still make the escrow payment.  Only 1 month did has ask to split the rent payment on the first week and the third week of the month.

2) this tenant was laid off.  We filed for forbearance and decreased the rent equal to the escrow payment for 3 months.  Everything was paid early.