80% of Tenants Paid Rent in April
May 12, 2020
Despite the pandemic, the majority of tenants are still keeping up with their rent payments. The majority of renter households—80.2%—made a full or partial rental payment for the month of April by May 6, according to the National Multifamily Housing Council. The analysis, which tracked 11.4 million units professionally managed nationwide, reports that the figure is up slightly from 78% of renters who made a payment by April 6.
“Despite the fact that over 20 million people lost their jobs in April, for the second month in a row, we are seeing evidence that apartment renters who pay rent are stepping up and doing so,” says Doug Bibby, NMHC president. “We expect May to largely mirror April, when the payment rate increased throughout the month as financial assistance worked its way to people’s bank accounts.”
Meanwhile, the industry is starting to see the potential for greater opportunity in rental housing, including single-family rental homes. JPMorgan Chase & Co.’s asset management arm more than doubled its size of a joint venture with American Homes 4 Rent, a landlord giant in the single-family rental space. JPMorgan’s Strategic Property Fund partnered with American Homes 4 Rent earlier this year. They increased their joint venture from $250 million to now $625 million. They believe the demand for rental houses will increase due to the pandemic, and they’re providing additional funds for the construction and operation of properties.
American Homes 4 Rent reported that through May 5 it had collected 95% of rent payments from its tenants for April and 82% of its payments for May.
National Multifamily Housing Council and “JPMorgan Fund Doubles Down on Rental Houses With Economy Shut,” Bloomberg (May 8, 2020) [Log-in required.]
Updated: August 11, 2020