According to the National Multifamily Housing Council’s rent payment tracker, 77.4 percent of apartment households paid rent as of July 6th in its survey of 11.4 million units of professionally managed apartment units.
This is a 2.3 percentage point decrease from those who completed their rent payment through July 6th, 2019, and compares to 80.8 percent paid by June 6th, 2020.
Historically, July is the worst month for collections, and this is typically due to the holiday weekend impacting payment submissions. Rent collections are lagging in California, Southern Florida, and the Northeast.
Unfortunately, the looming July 31st deadline when the additional $600/week unemployment aid ends, and eviction moratoriums expire. As a result, we see more renters opting for month-to-month leases instead of a new lease agreement. This is causing concern as it proves difficult to manage risk.
Matthews™ is committed to keeping the commercial real estate community informed and continuing to offer our services during these market changes. With updates and challenges released daily, please contact a Matthews™ specialized agent for guidance during this uncertain time, and for more insights on COVID-19 and CRE, visit our dedicated coronavirus website.
The Centers for Disease Control and Prevention is offering information and updates on the novel coronavirus (COVID-19) outbreak, the World Health Organization is tracking the number and location of confirmed cases of the virus and Building Owners and Managers Association International has provided the following emergency preparedness guidelines for commercial and residential property managers and landlords.