For those of you that have received all of your rent the last 2 months count yourself lucky.
The National Multifamily Housing Council (NMHC) reported last week a 12% decrease in multifamily households who paid rent through April 5. "The Tracker found 69 percent of households had paid their rent by April 5; this compares to 81 percent that had paid by March 5, 2020, and 82 percent that had paid by the same time last year."
Patrick Clark of Bloomberg provides commentary on the NMHC data, showing an interesting chart of the estimated economic impact of one month of missed rent on each real estate sector:
Source: Bloomberg
Coverage to-date has focused primarily on larger multifamily operators, leaving smaller landlords—who hold about 50% of real estate investment assets—as a big question mark. So, with thousands of investors on Stessa’s platform, we decided to reach out to them to better understand the current crisis.
We analyzed the results from surveyed 800 real estate investor survey respondents (70% of which manage or own 5 properties or less) to better understand the effect the COVID-19 pandemic was having on their businesses. The following data was collected on April 4, 2020.
- TL;DR: Small landlords remain optimistic about the value of their real estate assets despite emerging challenges related to COVID-19. Here’s how rental property owners are taking action now and how they feel about their investment plans going forward.
- Rent: As of April 9, rent was down 25% across a sampling of Stessa’s users compared to the monthly averages of the four preceding months. As of the first week of April 2020, 22% of landlords had already offered at least one tenant a payment plan to defer rent, and only 12% had offered a rent discount.
