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While rent growth continued to slow in March 2023, landlords and renters now face different challenges. Avail, by Realtor.com®, surveyed independent landlords and renters across the US to understand what obstacles they’re facing and how they’re being addressed.
From the data collected, here are four key trends of the independent rental market.
1. Fewer Landlords Plan to Increase Rent
Despite growing concerns about increasing rent prices, we discovered fewer independent landlords are planning to raise their rent prices within the next 12 months. 65.1% of surveyed landlords say they plan to raise the rent of at least one of their properties, which is down from a reported 70.4% in October 2022.
What’s causing landlords to pause rent increases? 48.2% of those surveyed who aren’t raising rent for renewals want to avoid turnover, likely recognizing that finding a new renter may be difficult given current market conditions. Additionally, survey findings suggest that the relationship with their renter is a significant factor. 40.3% of landlords who aren’t raising rent for renewals cite a strong landlord-tenant relationship as a key influence in their decision.
Additionally, 32.4% of surveyed landlords believe that rent for their units is currently at or above fair market value, and 15.1% of landlords expect to see local market rents decrease in the coming 12 months.
2. Landlords Are Focusing on Evictions, Payment History, and Income When Screening Renters
When asked about the most important criteria during the renter screening process, 55.4% of landlords cited previous evictions. 46.5% of said level of income is of major importance, and 41.8% take close note of a history of late rent payments.
However, this doesn’t mean landlords are quick to reject renters based on these factors — especially considering how many renters were impacted by the pandemic. 58.3% of landlords are willing to let a renter explain negative information on their application and only 35.1% reject applicants 50% or more of the time.
3. Fewer Renters Are Negotiating Smaller Rent Increases, But Success Rates Are Improving
Rent growth may be slowing, but prices are still higher than they were several years ago, making affordability a main concern for renters. However, even though more than half (54.9%) of surveyed renters feel they can’t afford a rent increase, fewer renters attempt to negotiate a more minor price hike. Of those who recently renewed their lease, only 28% tried to negotiate with their landlord. This is down from 34.7% in October 2022, and 38.7% in July 2022.
Despite the dip in renters attempting to negotiate, the success rate is on the rise. In fact, 25.4% of renters were successful in their negotiation attempts, up from 17.3% in October 2022.
One of the major contributing factors to this increase in successful negotiations appears to be how long the renter has lived at the property. More than half (51.8%) of surveyed landlords say they’re more likely to negotiate with renters who have lived in the unit for multiple years. This is despite the fact that 30.5% of landlords say they’d be extremely unlikely to negotiate when renewing a lease, and 27.6% claimed to be somewhat unlikely.
4. Renters Continue to Struggle With Home-Buying Goals
Successful negotiations may be a small win for renters, but other financial challenges still persist. For example, 66.3% of renters still feel they’re saving less each month than 12 months ago. Even though this is down from the 70.6% reported in October 2022, it’s likely a result of factors like inflation and recent rent increases.
Furthermore, less than one-third (30%) of renters are considering purchasing a home in the next 12 months, continuing a downward trend from 34.6% in July 2022 and 32.3% in October 2022. While they’re still considering a home purchase, 81.9% of these renters agree that rising interest rates and inflation have impacted their plans to buy a home, and 65.9% are delaying their purchasing plans.
Of renters who aren’t considering purchasing a home within the next 12 months, more than half (59.7%) don’t feel they have enough saved for a down payment. Furthermore, 41.1% of renters don’t believe they’d qualify for a mortgage — a drastic increase from the 19.6% reported in October 2022.
To help navigate these obstacles, renters are making compromises in their renting preferences. Nearly half of surveyed renters are considering a location-based change to help save on rent. 21.1% have thought about moving to a cheaper or less-desirable neighborhood, 19% are considering moving to a more affordable area in the state, and 15.6% see moving to an affordable area out of state as a viable option.
Landlord Data: Portfolio Size, Unit Types, and Median Household Income
- Nearly three in ten (28.7%) landlords own one rental property, while 38.1% own two to four properties. 15.9% of landlords own between five and nine rental properties.
- Of rental properties owned, more than half (55.5%) of landlords rent out a single-family home. 31.2% of landlords have two- to four-unit properties, and 9.6% possess rentals with five to 24 units.
- The median household income for surveyed landlords is $125,000.
Renter Data: Unit Type, Average Rent, Median Household Income
- 47% of renters currently rent a single-family home. 27.6% live in a two- to four-unit property, and 11.9% of renters live in a five- to 24-unit property.
- The median rent price for surveyed renters is $1,388.
- The median household income among renters surveyed is $50,000.
Research Methodology
The Avail Q1 2023 Landlord and Renter survey collected responses from a nationally representative sample of more than 2,500 independent landlords and renters. The survey was conducted between March 28th, 2023, and April 7th, 2023. The margin of error for landlords is ± 2.5%, and ± 3.2% for renters.
Avail regularly conducts rental market research to understand the needs of independent landlords and their renters. Stay up to date on rental market trends, news, and our latest research by joining our special reports mailing list.
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Early signs of a cooling rental market began to appear in the summer of 2022, but financial challenges remain for landlords and renters. To better understand how they’re faring as we approach the new year, Avail (part of Realtor.com®) surveyed independent landlords and renters across the country. These results and more rental market insights are available in the Realtor.com® October 2022 Rental Report.
Our Avail, by Realtor.com®, 2022 Fall Landlord and Renter survey identified four additional trends set to impact the rental market in the new year. Here’s what independent landlords and renters should know:
1. Negotiating Rent May Be Challenging for Renters
With inflation impacting households across the country, affordability is a primary challenge facing many renters. While some renter households are attempting to save on expenses by moving to a more affordable rental, others are trying to negotiate lower rent prices as their landlords increase rent costs. However, only one-third (34.7%) of surveyed renters reported trying to negotiate with their landlord the last time their rent was raised. Of those who attempted to negotiate, only 17.3% (and just 6% of all surveyed renters) reported successfully negotiating a smaller rent increase.
What’s contributing to this low success rate? Most landlords are not open to negotiating, our survey found. Only 14.4% of landlords report being somewhat likely to negotiate with a prospective new renter, while just 2.6% say they’d be extremely likely to negotiate with a new renter. The willingness to negotiate with renewing renters isn’t much greater, with 17.5% being somewhat likely, and 4.4% being extremely likely, respectively.
Though not all renters may be able to negotiate a lower rent amount with their landlord, renters who have lived at a rental property for multiple years have a better chance of success. Around half of surveyed landlords (50.6%) report being more open to negotiating if the renewing tenant has lived in the unit for multiple years.
Negotiating rent can feel uncomfortable, and may dissuade renters from trying. However, learning how to negotiate rent with your landlord can help you prepare for the conversation. Even though a successful negotiation isn’t guaranteed, understanding the process may help improve the rate of success in the coming year.
2. Inflation and Rising Interest Rates Are Impacting Savings, but Most Renter Credit Scores Remain Stable
Many renters are putting homebuying plans on hold as they face rising costs. Less than one-third of surveyed renters (32.3%) are considering buying a home within the next 12 months — down from 34.6% in July 2022. Of those considering buying, 83.9% say rising interest rates and inflation have impacted their decision to buy, with 68.3% of these renters considering delaying their home purchase.
Those who aren’t considering buying a home are taking their savings into consideration, with 44.7% of survey respondents believing they don’t have enough currently saved for a down payment. The typical renter household surveyed can only save $100 per month, and 78.5% report saving less than they did 12 months ago.
Despite cost challenges impacting renters’ ability to save, most have not seen a decline in their credit health. Among surveyed renters, nearly two-thirds have seen their credit score increase (34.8%) or stay the same (30.1%). Almost half of renters (45%) attributed this to missing few or no payments, while 42.9% reported paying off a loan, credit card, or another line of credit. Additionally, renters who reported on-time rent payments to credit bureaus — such as through Avail CreditBoost — were more likely to report a credit score increase over the past 12 months.
If you’re a renter looking to build your credit score, you can explore platforms like Avail that allow you to report on-time rent payments with CreditBoost for $3.95/per reported month. Reporting these payments can help build your FICO 9, FICO XD, and VantageScore to get you one step closer to homeownership.
3. More Landlords Are Looking to Buy Than Sell, Despite Rising Ownership Costs
Landlords aren’t immune to economic challenges — 80% of landlords reported an increase in their cost of ownership over the past 12 months, with 40.6% reporting an increase of more than 10%.
In response to rising costs, landlords are increasing their properties’ rents. Of surveyed landlords, 47.6% report plans to increase rent by between 5% and 10%. However, more than one-third (38%) of landlords plan to increase rent by less than 5%.
Property costs may be rising, but 28% of those surveyed report plans to buy one or more residential properties in the next 12 months — up from 23.4% in July. With rental properties being more stable and less volatile than the stock market, landlords remain optimistic about investing in the rental market. In fact, only 8.3% of surveyed landlords plan to sell any of their rental property within the next 12 months, down from 11.2% reported in April 2022.
As costs for property owners rise, landlords should get a sense of how much they spend on operating expenses and make sure they have funds to cover those expenses in 2023. The Avail Rental Property Accounting tool can help track rental income and expenses for one or more rental properties. The easy-to-read income and expense tracker enables you to break down each transaction into specific details, including rent payments and logged maintenance costs, as well as store receipts.
4. Estimate Tools Are Making Setting the Right Rent Price Easier for Landlords
Charging too much for rent can contribute to prolonged vacancies, which is why it’s important to know how much to charge in rent. To help inform their decision-making, over half of landlords (58.8%) use an online rent estimate or comparison tool to help determine the amount they should charge.
A majority of landlords across all portfolio sizes use online rent estimate tools, but younger landlords and those with less experience are more likely to use these tools. Two-thirds of landlords under 40 years old (66.3%) report using an online rent estimate or comparison tool, compared to 54.5% of those over 60 years old. More than 3-in-5 landlords (61.5%) with less than three years of experience use such tools, compared to 56.6% of landlords who have more than 10 years of experience. A possible explanation is that younger landlords may be more familiar with finding and leveraging this type of technology, while older landlords are less likely to divert from their established ways.
To help landlords better plan for rent price increases, Avail offers Rent Price Analysis reports that provide comprehensive information on local rental comps based on similar units. In addition to metrics like a rent estimate, confidence score, and estimated vacancy rate, the report also contains county rent trends by bedroom and unit type.
Setting a price that’s both fair and profitable in the face of economic challenges is no easy task. But by leveraging an Avail Rent Analysis report, landlords can feel confident about their rent price without spending hours manually researching rentals in the area.
Stay Informed on the Rental Market
It’s essential for landlords and renters to understand key trends in the rental market to prepare for the future. Avail offers a detailed look at the latest housing research findings and a free resource library of educational content to make renting easier.
We also conduct ongoing rental market research to help better understand the needs of independent landlords and their renters. To stay updated with rental market news, trends, and research, subscribe to our special reports mailing list.
Create an account or log in today to make renting easier for both landlords and renters.
Research Methodology
The Avail Quarterly Landlord and Renter survey was conducted nationwide between November 1, 2022, and November 9, 2022. 1,032 independent landlords and 1,672 renters were surveyed. The margin of error for landlords is ±3.1% and ±2.4% for renters.
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Signs of a cooling rental market began to surface in July 2022, but renters are still waiting to feel the positive effects. Avail, by Realtor.com®, surveyed independent landlords and renters across the country to understand how they’re adapting to a shifting rental landscape. These results and more have been compiled as part of the Realtor.com® October 2022 Rental Report.
The Avail, by Realtor.com®, 2022 Fall Landlord and Renter Survey found that a majority of landlords still aim to raise the rent of at least one of their rental properties within the next year. The size of these expected rent increases has decreased, with more landlords planning to keep their price increases below 5%. When asked what influenced their decision, a majority of landlords cited changes in local rental market prices and increasing ownership costs as major factors.
Renters are facing financial challenges caused by major rent hikes over the past several years. Whether renewing a lease or moving to a new unit, the majority of surveyed renters reported sizable increases in their rent. Renters hoping to negotiate their rent price with landlords have also seen little success, especially when moving to a new unit. Increased rent and inflation have made it challenging for renter households to save, with more choosing to delay their home-buying plans.
For more insights uncovered in our 2022 Fall Landlord and Renter Survey, visit the Realtor.com® Economic Research blog, which includes a comprehensive update of rental market trends. For additional rental market research, visit the Avail Housing Research page to join the special reports mailing list that provides news, trends, and insights into the independent rental market directly to your inbox.
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Economic inflation continues to drive higher costs, and the rental market is no exception. Avail (part of Realtor.com®) surveyed independent landlords and renters across the country to find out how they’re adapting to these ongoing financial challenges. Findings from the Avail Quarterly Landlord and Renter survey identified financial stressors, how landlords and renters are adjusting, and possible signs of a cooling rental market.
Data collected from our survey highlighted four key trends in the current shape of the independent rental market.
1. Increased Property Ownership Costs Are Prompting Higher Rent Prices
Inflation is continuing to drive up the cost of rental property ownership. Among surveyed landlords planning to raise rent, 80.7% indicated that increased ownership costs have influenced their decision.
These challenges have manifested in several ways, with 79.1% of surveyed landlords who have seen their ownership costs increase citing increased property tax payments as a major factor. A further three-quarters identified maintenance and upkeep cost increases over the past 12 months, while nearly half (45.9%) also found increasing utility costs to be a challenge. In addition to these mounting costs, 26.6% of surveyed landlords have reported lost income due to missed rent over the past 12 months.
As a result of increasing costs and missed income, 72.1% of surveyed landlords plan to raise the rent of at least one of their rental properties within the next 12 months.
2. Moving to a New Residence Is Costing Renters More Than Renewing
While landlords combat property ownership costs, many renters continue to face affordability challenges. More than half (52.4%) of surveyed renters who have been in their current rental for 12 to 24 months have seen rent increase by an average of 13%. Meanwhile, those seeking to move to a new rental are faced with more drastic hikes. A rent price increase of nearly 27% was reported by surveyed renters who moved from a prior rental within the past year — almost double what those who renewed their lease are facing.
Homebuying plans have also been affected by inflation. More than eight in ten renters (80.8%) who are considering purchasing a home reported that inflation and rising interest rates have impacted their plans to buy. Of these renters, almost three-quarters (72.7%) are considering delaying moving forward with their home purchase.
3. Landlords Are Maintaining Their Portfolios
Landlords aren’t looking to offload their rental properties in response to higher ownership costs. Less than one in ten surveyed landlords (7.9%) plan to sell one or more of their rentals within the next 12 months — a significant drop from 16.2% of landlords who reported planning to sell in the January 2022 Avail Quarterly Landlord survey. Fewer landlords plan to purchase property, with 23.4% of surveyed respondents planning to increase their portfolio size, a significant decrease from 37.5% in January 2022.
The decline in landlords planning to sell is likely due to unique conditions in the current rental market. As more renters opt to save money by renewing their leases, rental vacancy rates are at their lowest point in nearly four decades. These unique conditions mean landlords are also able to increase rent for existing tenants without much pushback. Overall, less than 10% of renters report successfully negotiating a smaller rent increase when renewing their lease. This suggests that landlords are confident that they can find renters willing to pay.
4. Shifting Trends May Suggest an End to Drastic Rent Increases
Despite challenges in the current rental market, signs of cooling are starting to appear. While more than seven in ten landlords still plan to raise rent within the next 12 months, the share of landlords planning to raise rent plateaued in July, after increasing from January to April. The amount by which landlords are planning to increase rent also appears to be on the decline. Among landlords planning to raise rent, only one in five landlords (20.8%) plan to raise rent by more than 10%, down from 25.4% who planned to raise rent by more than 10% in April.
For renters, the high cost of moving to a new rental may lead to lower demand as renters see lease renewal as their most affordable option. However, two-thirds of renters (66.2%) say that rent increases have forced them to consider moving to a more affordable residence. Given recent rent increases, renters looking for more affordability will have to make sacrifices. More than half of renters (53.2%) looking for more affordability indicated they are willing to sacrifice location, 47.3% would forgo community amenities like parking, a pool, or a fitness center, and 46.5% would choose a smaller-sized residence if it meant a lower rent cost. With renters on the hunt for more affordability, or staying put to avoid rent hikes, an end to drastic rent increases may be on the horizon.
Renter Data: Renter Experience, Building Sizes, and Average Monthly Rent
- More than four in ten renters (44.1%) have lived in their current residence for less than a year. Three-quarters (73%) of surveyed renters have lived in their current residence for less than three years.
- More than four in ten renters (42.5%) live in one-unit properties, while an additional 29.4% live in two- to four-unit properties.
- The median monthly rent among renters surveyed is $1,400, up $100 from April 2022.
Landlord Data: Landlord Experience, Property Sizes, and Mortgages
- Nearly half of landlords (48%) indicate they’ve been a landlord for more than 10 years — nearly two-thirds (64%) have been landlords for more than five years.
- Two-thirds of landlords (66.8%) own one-unit properties, while nearly four in ten landlords (38.4%) own two- to four-unit properties.
- Seven in ten landlords (72.1%) own at least one rental property that has a mortgage.
Research Methodology
The July 2022 Avail Rental Market survey collected responses from a nationally representative sample of more than 2,600 independent landlords and renters. The survey was conducted between July 21st, 2022, and August 1st, 2022. The margin of error for landlords is ± 2.7%, and ± 2.6% for renters.
Avail regularly conducts rental market research to understand the needs of independent landlords and their renters. Stay up to date on rental market trends, news, and our latest research by joining our special reports mailing list.
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Avail (part of Realtor.com®) surveyed independent landlords and renters nationwide to better understand how growing rent prices are impacting the rental market. The findings from the Avail Quarterly Landlord and Renter survey confirmed the direction rent prices are trending, how rent increases are impacting renters, the reasoning for increased rents, and how renters are planning to adjust.
Here are four trends based on the data from the survey that will be used to inform our Quarterly Rental Market report.
1. Rents Are Rising to New Highs
According to the Realtor.com April Rental Report, rental listing prices are up by nearly 17% nationwide for studio to two-bedroom properties compared to last year — especially in warm-weather metropolitan areas. Listed rent prices in Sun Belt cities like Orlando, San Diego, and Tampa increased by more than 25% year-over-year, while listed rents in Miami increased by a staggering 52%.
However, those aren’t the only places seeing increases in rent prices. Our survey discovered that more than half of renters (52.1%) across the country saw their rent increase by a median of $200 since moving into their current residence. Of those that moved into their current residence since the beginning of the pandemic, nearly one-third of renters (31.9%) saw their rent increase by a median of $180.
2. Raising Rents Are Causing Financial Strain for Renters
Growing costs due to inflation are resulting in renters dealing with more financial strain than they’ve faced in recent memory. According to our survey, renters are left with an average of $300 per month after covering necessary expenses — such as rent, utilities, debt payments, groceries, and transportation — while renters earning less than $50,000 annually are left with an average of $200 each month.
Two-thirds of renters (66.1%) stated increasing rents and other housing expenses as the biggest financial strain for their household, in addition to other expenses like food and groceries (57.3%), and auto and transportation (50.8%).
Because of increasing costs, more than three-quarters of renter households (76.1%) say they are able to save less money each month compared to 12 months ago. The typical renter household surveyed reported being able to only save $50 each month, while renters earning less than $50,000 annually reported saving $14 per month.
3. Rental Affordability Issues Are Likely Here To Stay
Due to growing inflation, rent prices are anticipated to continue increasing as landlords look to cover the rising cost of rental property ownership. More than 7 in 10 (72.1%) landlords said they plan to raise the rent of at least one of their rental properties within the next 12 months, which is up from 65.1% in January 2022.
Among landlords planning to raise rent, nearly half (45.8%) expect to raise rent anywhere from 5% to 10% and one-quarter of landlords (25.4%) plan to raise rent by more than 10% — up considerably from January 2022 when only 16.4% of landlords planned to raise rent by more than 10%.
More than 4 in 10 landlords (41.4%) planning to increase rent are attributing the change to the increasing costs of ownership. Of landlords stating increasing costs of ownership as the primary driver in increasing rent, more than 8 in 10 reported higher property taxes in the past 12 months. An additional 7 in 10 landlords experienced increases in maintenance costs over the past 12 months — more specifically, a median amount of $6,000 to repair their rental units.
Increasing market costs are also playing a role in landlords’ decisions to raise rent. According to our survey, 4 in 10 (39.5%) say they’re raising rent to keep up with increasing rental market prices. Among those landlords, nearly half of them (47.1%) reported market rents in their area going up by between 10% and 20%.
Our previous Quarterly Landlord and Renter survey showed that four out of five renters (82.4%) said they have not missed any rent payments over the past 12 months, which showed promising improvements for landlords. However, new data indicates that 1 in 20 (5%) landlords are raising rent to offset missed rental income during the pandemic. Of those raising rent to cover missed rental income due to the pandemic, they reported a median amount in missed income of $15,000.
4. Increasing Rents Are Driving Renters to Explore More Affordable Options
While it may not be possible to escape increasing rent prices, renters are planning on exploring their options to reduce financial strains. Among renters that saw their rent increase since moving into their current residence, nearly three-quarters (72.9%) are considering moving to a more affordable residence.
Due to rents continuing to rise, most renters that decide to move may still pay more in rent. In fact, our survey found that renters that moved within the past year are paying $350 more in rent compared to their previous residence, meaning renters looking for more affordability will likely be giving up size, location, and amenities in their next rental.
Given rising rents, the best option for many renters feeling financial strain may be to stay put and cut costs elsewhere. Renters report cutting costs on entertainment (67.1%), and food and groceries (62.3%) to alleviate the financial strain caused by inflation.
Renter Data: Renter Experience, Building Sizes, and Average Monthly Rent
- 4 in 10 renters surveyed (40.9%) live in one unit properties, while 27.5% live in two- to four-unit properties.
- Nearly three-quarters of renters (73.9%) finance their monthly rental payments through regular employment, up 4.3% from January. More than 1 in 10 renters (13.4%) receive government aid or assistance.
- The median rent paid by renters surveyed is $1,300.
Landlord Data: Landlord Experience, Property Sizes, and Mortgages
- Nearly half of landlords (45.7%) indicate they’ve been a landlord for more than 10 years — nearly two-thirds (63.4%) have been landlords for more than 5 years.
- Nearly 7 in 10 landlords (68%) own 1 unit properties, while nearly 4 in 10 landlords (37.5%) own 2 to 4 unit properties.
- 7 in 10 landlords (70.5%) own at least one rental property that has a mortgage.
Research Methodology
The April 2022 Avail Rental Market survey collected responses from a nationally representative sample of more than 2,400 independent landlords and renters. The survey was conducted between April 21st, 2022 and May 2nd, 2022. The margin of error for landlords is ± 2.9%, and ± 2.7% for renters.
Avail regularly conducts rental market research to understand the needs of independent landlords and their renters. Stay up to date on rental market trends, news, and our latest research by joining our special reports mailing list.
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Entering the third year of rental market disruptions caused by the pandemic, Avail (part of Realtor.com®) surveyed independent landlords and renters across the country to find out how they’re faring. Our data revealed moving trends, insight into rent payments and evictions, and how landlords plan to financially recoup and adapt their renting policies for a post-pandemic era.
Based on our data, these six trends will shape the independent rental market in the beginning of 2022.
1. Nearly Half of Renters Plan to Move This Year, But Most Will Continue to Rent
Our survey showed that while renters are moving, most of them will continue to rent their homes — even in a competitive rental market that’s expected to continue into 2022, driven by a demand for rental housing and a decrease in homebuyer sentiment due to high mortgage rates and home prices.
Almost half of renters surveyed (45.9%) reported that they plan to move residences within the next 12 months, with another quarter (24.6%) unsure about their moving plans. Of those that said they will be moving, more than half (51.8%) plan to rent their next residence, while nearly one-quarter (23.8%) plan to buy their next residence.
Over half (52.9%) of renters who plan to move to a new rental indicated they do not have enough savings for a down payment on a home, while 40.0% said they don’t believe they would qualify for a mortgage.
2. Renter Confidence Has Grown Dramatically
Our last survey in September 2021 showed that 42.7% of renters had missed at least one rent payment since the start of the pandemic — up from the 30.8% who had missed a payment in May 2021.
New data, however, indicates more positive rent payment trends. Four out of five renters (82.4%) said they have not missed any rent payments over the past 12 months. Of renters who have missed a rent payment over the past 12 months, around one-third (32.6%) indicate that they had missed just one payment.
Looking forward, more than three-quarters of renters surveyed (76.6%) do not believe that they will miss a rent payment in the next three months. The share of renters who do not believe they will miss a rent payment in the next three months has grown dramatically over the past year. In our February 2021 survey, just 15.2% of renters did not believe they would miss a rent payment over the next three months.
3. More Landlords Plan on Raising the Rent Than Selling Their Properties
As landlords attempt to offset missed rent payments caused by the pandemic, many predicted that they would either raise rent or sell to recoup pandemic losses. According to our data, more landlords plan to raise the rent in at least one of their rental properties (65.1%) than sell at least one of their rentals (16.2%) in the next 12 months.
The majority of landlords surveyed estimate that they will raise rent by between 5% and 10%, increases that reflect a hot rental market and rent surges seen in 2021.
Of the landlords planning to sell at least one rental property, more than half (55.1%) indicate that the desire to cash in on the increased value of their property is a factor in deciding to sell. Around a quarter of these landlords indicated no longer wanting to be a landlord (25.7%) or difficulty collecting rent from tenants (23%) as factors in their decision to sell.
4. The Majority of Landlords Have Not Sought an Eviction
As eviction moratoriums were lifted in 2021 and renters were still struggling to make payments, it was unclear how many renters may be evicted from their residences. However, our data shows that the majority of landlords (82.3%) have not initiated eviction proceedings against any of their tenants in the past 12 months, and more than three-quarters of landlords (77.5%) are not considering encouraging a tenant to vacate a property within the next three months.
Renters have echoed this sentiment, with 94.7% reporting that they had not had eviction proceedings brought against them by a landlord in the past 12 months. Other methods of encouraging a renter to vacate a unit were also rarely reported: Just 5.1% of renters mutually agreed to terminate their lease, and another 5.1% had a landlord refuse to renew their lease.
Looking forward, more than a third of landlords (36.1%) indicate that just one month of missed rent would trigger them to push for eviction. An additional 51.4% indicate they would push for eviction after two or three months of missed rent.
On the other hand, more than 70% of renters believe that just one or two months of missed rent payments would trigger their landlord to push for eviction, and the vast majority of renters (96.7%) believe that six or fewer months of missed rent payments would trigger their landlord to push for eviction.
5. Awareness of Emergency Rental Assistance Has Stagnated
Previous Avail surveys have exposed a lack of awareness and understanding of eligibility around emergency rental assistance (ERA) programs. In our September 2021 survey, more than half of renters (62.8%) and landlords (56.9%) were unsure of whether or not they were eligible for ERA programs, with just 56% of renters and 78.1% of landlords aware that rent assistance programs even existed.
New data indicates that awareness around these programs has not increased. Only 51.3% of renters and 70.5% of landlords said they are aware of emergency rental assistance programs created to help renters and landlords during COVID-19 — a small drop in awareness among both groups.
Among the renters who are aware of emergency rental assistance programs, just 1 in 5 renters (21.2%) believe they are eligible to receive emergency rental assistance to cover missed rent payments.
Nearly half of landlords (46.1%) are unsure if they are eligible for emergency rental assistance to cover their tenant’s missed rent payments, while 3 in 10 (30.2%) do not believe they are eligible for emergency rental assistance.
6. Many Landlords Are Tightening Their Tenant Screening Practices
After disruptions and financial losses caused by missed rent payments due to the pandemic, 40% of landlords indicated that their applicant screening method had become more stringent over the past 12 months. Nearly 6 in 10 landlords (58%) said their screening practices had remained the same.
When landlords screen tenants, the most commonly-reported methods were using income and job history (89.3%), interviews with applicants (84.3%), and rental history and evictions (82.4%) to screen rental applicants. Of this information, landlords indicated that previous eviction (54.6%) and level of income (52.9%) are the two most important factors when screening applicants.
More than 4 in 10 landlords (44.2%) indicate that they allow applicants to explain any negative information in their tenant screening report. When it comes to rejecting tenant applications, most landlords (53.1%) reported that they reject less than half of applicants based on tenant screening information.
Renter Data: Renter Experience, Building Sizes, and Average Monthly Rent
- More than a quarter of renters surveyed (27.7%) reported that they have been a renter for less than a year, while nearly half of renters have been renting for less than three years (48.8%) and almost a quarter have been renting for more than 10 years (23.3%).
- Three-quarters of renters live in properties with four units or less (66.4%), and nearly 1 in 10 renters live in properties with more than 100 units.
- The average rent paid by renters surveyed was $1,388 per month. Median rent was $1,253 per month.
- Nearly 7 in 10 renters (69.6%) finance their monthly rental payments through regular employment; More than 1 in 10 renters (13%) receive government aid or assistance, are finding new employment or sources of income (12.7%), or are using savings (11%) to finance their rental payments.
Landlord Data: Landlord Experience, Property Sizes, and Mortgages
- More than half of landlords (51.3%) surveyed indicate they’ve been a landlord for more than 10 years, while two-thirds (67.6%) have been landlords for more than five years.
- More than 7 in 10 landlords own either one (32.1%) or two-to-four properties (38.8%).
- More than 6 in 10 landlords own one-unit properties, while 4 in 10 landlords (40.6%) own two-to-four unit properties.
- 7 in 10 landlords (70.6%) own at least one rental property that has a mortgage.
Research Methodology
The Avail quarterly landlord and renter survey was conducted nationwide between January 13th, 2022 and January 25th, 2022. Approximately 1,156 landlords and 2,163 renters were surveyed. The margin of error for landlords is estimated at ±2.9% and ±2.1% for renters.
Avail regularly conducts rental market research to understand the needs of independent landlords and their renters. To stay up to date with rental market trends, news, and current research, join our special reports mailing list.
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Since the initial outbreak of COVID-19, both eviction moratoriums and rental assistance programs have been established to help protect independent landlords and renters from the negative effects of the pandemic. But despite these efforts, the nation is still experiencing issues with landlords being able to collect rent on time and renters being able to afford housing during the pandemic.
Avail (a part of Realtor.com®) has partnered with Urban Institute to survey 604 landlords and 1,172 renters to better understand the way both are approaching Emergency Rental Assistance (ERA) programs and if the number of evictions will soon rise. The results from our latest survey illustrate the current state of the rental industry from the viewpoint of both independent landlords and their renters.
Renters Face an Increased Chance of Getting Evicted Due to Missed Payments
Various state and federal eviction moratoriums have helped renters avoid eviction after missing rent payments due to the pandemic. However, after the Supreme Court ended the Biden administration’s eviction moratorium in August, renters no longer have the same protections from getting evicted by their landlord.
When landlords were asked about their current viewpoint towards evictions, 33.7% expressed previously considering eviction during the pandemic, with 23% considering evicting their renter in the next month.
As renters continue to struggle making rent payments due to the aftermath of the pandemic, eviction cases may soon increase if rental assistance programs are not fully distributed to renters that need it most. This is especially true considering missing even one or two months of rent would trigger more than half of landlords (56.7%) to push for eviction, according to our findings.
Understanding Eligibility Remains the Biggest Barrier for Emergency Rental Assistance Programs
ERA programs launched in 2020 to provide eligible landlords and renters with up to a year’s worth of funds to be used towards rent payments. Many were hopeful these programs would help overcome the negative effect of the pandemic, but the initial rollout of ERA programs failed to clearly communicate who is eligible to receive rental assistance funds.
More than half of landlords (56.9%) and renters (62.8%) are still unsure of whether or not they’re eligible for ERA programs — including those that need assistance the most. More than half of renters that have missed payments (56.6%) and landlords that have missed income (52.9%) are unsure if they’re eligible for ERA. Renters reported confusion around eligibility guidelines, while landlords remain unsure as to whether their renters qualify for available programs.
Overall, landlords currently have a higher level of awareness about rental assistance programs than renters. When asked about their awareness of ERA programs, 78.1% of landlords reported having a general understanding of these programs while only 56% of renters reported the same.
Distribution of Emergency Rental Assistance Funds Among Applicants Has Improved
While understanding of ERA eligibility remains low, distribution of funds has improved. When landlords were asked about ERA funds, more than half (59.3%) that applied received ERA funds, signaling an improvement in overall distribution since February (44.8%).
ERA funds have also been distributed to more renters, with almost half (43.2%) of applicants receiving funds compared to only 27.8% in February.
The overall percentage of applicants benefiting from ERA programs is still below 50% as confusion around ERA eligibility continues to be the biggest barrier. Still, rental assistance programs are proving to be helpful to both landlords and renters once they better understand if they qualify, how they can apply, and how to receive the funds.
There Is Still a Need for Rental Assistance Programs
Even with the pandemic slightly subsiding, the need for rental assistance programs still exists among landlords and their renters. As of September 2021, 42.7% of renters had missed at least one rent payment since the start of the pandemic, up from 30.8% who had missed a payment as of May.
While the future of the pandemic is still unclear, our data shows that the nation’s understanding of eligibility guidelines for ERA programs needs to increase to limit the amount of evictions in the coming months.
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Research Methodology
This survey of landlords and renters was conducted online by Avail (a part of Realtor.com®) with support from Urban Institute with 1,776 total respondents ages 18 and over within the United States between September 16, 2021 to September 27, 2021.
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As vaccination distribution efforts continue across the U.S. and states start to open up their individual economies, renters and independent landlords are starting to bounce back financially. But the year-plus of income loss and a high unemployment rate is still affecting the country’s DIY landlords and their renters.
Avail (a part of Realtor.com®) partnered with Urban Institute to survey more than 1,011 landlords and 1,329 renters to better track the financial strains brought on by the pandemic and identify areas where renters might be struggling. Their responses revealed the current state of independent landlords and their renters after 15 months of surviving a global pandemic.
Landlords Are Finding Financial Stability Again
DIY landlords across the nation are reporting fewer financial losses due to missed rent payments compared to earlier this year in February.
“I have encouraged eligible tenants to apply for government aid for rent and utilities. I have forwarded them information when I have become aware of programs for which they might be eligible.” — Landlord, California
In the past three months, more than half of landlords (58.5%) stated that they were not suffering any financial loss due to partial or missed payments made by renters — signaling an overall improvement in the rental industry for all parties involved.
This compares to 38.8% of landlords who said that they did not experience a financial loss from the beginning of the pandemic (March 2020) to February 2021.
This trend will likely continue, with over half (51.3%) of landlords said that they think they will not experience a financial loss due to missed rent in the next three months, with only 21.3% still uncertain about possible losses in the same timeframe.
“All back rent owed has been satisfied due to stimulus help.” — Landlord, Maryland
However, 41.5% of landlords still suffered a financial loss over the past three months due to their tenants being unable to pay their rent in full if at all.
Of the 41.5% of landlords who experienced a loss in the past three months, the largest portion (17.2%) stated that they have experienced at least 13 months of partial or no rent payments due to the pandemic.
Maintenance Needs Are Being Pushed Back
With independent landlords struggling to make ends meet during the pandemic, maintenance needs fell by the waist side.
“The missed rent has become a hardship for the property maintenance. It needs windows and deck repair but, without full rent, we can’t do it.” — Landlord, Illinois
More than a quarter of landlords and renters reported deferred maintenance requests during the pandemic from March 2020 to May 2021. Due to a tighter budget and inconsistent rent payments, 62.1% put off tenant-requested maintenance repairs. Twenty-seven percent of landlords also cited “difficulty accessing the rental unit” and “difficulty hiring help or maintenance” as a main reason for deferring maintenance requests.
Of those landlords who deferred maintenance and repairs due to financial reasons, 55.5% of landlords said that they deferred these maintenance requests for six months or more, and while most of these repairs were considered minor (53.0%), some were considered to be more serious structural repairs (27.2%).
More Awareness and Communication Around COVID-19 Rent Assistance Is Needed
Our findings showed that both renters and landlords are in need of more communication and awareness on new and existing COVID-19 rent assistance programs.
Due to renters being unaware of current rent assistance programs, they’re unable to take advantage of resources specifically designed to help them. Over half of renters (56.4%) did not know of any government-funded emergency rental assistance programs that could help them pay their monthly rent during the pandemic. This compares to 39.8% of DIY landlords who are unaware of these programs, meaning that the majority of landlords (60.2%) are aware that such aid exists.
Renters continue to be unaware of eligibility criteria and requirements in order to apply for the assistance, while landlords reported a lack of communication with tenants as to whether or not they applied.
“Many of the people who need rental assistance the most don’t have access to ways of learning about the gov’t programs. If you’re constantly in the cycle of eviction, you likely don’t have stable wifi (if you have wifi at all)…You also likely don’t have the luxury of time to read about [emergency rental assistance programs].” — Renter, Illinois
Our findings show that almost all landlords (94.4%) are willing to accept rent payments provided or supplemented by a COVID-19 rental assistance program. That being said, a majority (64.9%) were unaware of eligibility requirements for landlords looking to apply for aid on behalf of their tenants.
“I’d like to know as much about these assistance programs as possible in the event they become necessary in the coming months. I’d like to be able to offer my tenants guidance with this should it become necessary.” — Landlord, California
Of the 14% of people who indicated that they knew they were eligible for government-funded emergency rental assistance programs, a majority (68.2%) confirmed that they applied, proving the programs appeal so long as renters are aware of the assistance in the first place.
Despite the Pandemic, Renters Are Still Looking To Become Homebuyers
Despite the financial challenges caused by the pandemic, over half of renters (61.8%) are still thinking of buying a home in the near future.
Still, a significant portion of renters (38.2%) are not thinking about buying a house, with some respondents commenting on the fact that their fears of evictions due to the pandemic are more relevant.
“Buying a house because of the uncertainty of having a place to live due to the pandemic is an additional stress that may not even happen because of my legal status. I’m more likely to be homeless than able to purchase a house.” — Renter, California
Overall, the financial losses of local landlords are starting to subside as government programs and an increase in economic activity gives tenants the resources to pay their monthly rent.
But there are still issues to be addressed, such as mounting maintenance requests that have been pushed back due in part to the pandemic. And while government-funded rental assistance programs are helping some, there is an outstanding number of renters and landlords who are still unaware of this aid altogether.
Research Methodology
This survey of landlords and renters was conducted online by Avail (a part of Realtor.com®) and Urban Institute with 2,340 total respondents ages 18 and over within the United States between May 18, 2021 to May 31, 2021.
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COVID-19 is still causing serious and lasting harm to many independent landlords and their renters. Over the past year, the pandemic’s effect on the rental industry came in the form of billions of dollars of missed rent, sold rental properties, long-term vacancies, and a lack of information on how to get life-saving rental assistance.
More than 1,200 landlords and 2,500 renters participated in the latest surveys by Avail (a part of Realtor.com), and in partnership with Urban Institute. Their responses revealed the current state of independent landlords and their renters during a global pandemic, as well as their experiences with government-funded rental assistance programs and the extension of the CDC Eviction Moratorium.
Landlords Are Expecting More Rental Payment Losses in the Beginning of 2021
As of February 2021, half of independent landlords (50.0%) expect to miss more rental payments in the next three months, with another 27.8% being unsure as to whether or not they will be collecting rent payments. This is an increase from the end of last year, when 37.0% of landlords expected to miss more rental payments between October and December 2020.
“My tenant was able to access rental assistance and the rent is now up to date, but [I’m] not sure about 2021 job security. The other issue was having to wait over two months to find out if he was approved or not. Lots of uncertainty with [these] programs because they depend on government funding.” — Landlord, Illinois
Less rental income in the next three months will mean independent landlords will face even greater financial strains than they are now. As of February 2021, 20.7% of landlords reported having lost $20,000 or more in rental income. Another 15.5% lost anywhere from $10,000 to $14,999, and 24.6% lost between $5,000 and $9,999. These losses will only increase if tenants continue to miss monthly rent payments.
“I lost $6,000 in rent in early 2020 before the rental assistance was available and the tenant moved out. Can I recover any of that money?” — Landlord, Illinois
Independent Landlords Aren’t Getting Information for Rental Assistance, Even Fewer Are Getting the Money
Our surveys also shed light on a large percentage of landlords (48.1% of 1,268 respondents) that are not aware of the existence of government-funded rental assistance, which they can apply for on behalf of their eligible tenants.
Of the landlords that have experienced financial losses due to missed rent, 48.6% are not aware of any rental assistance that they can apply for, despite being the ones in need of such aid.
Overall, 62.7% of all landlord respondents who are aware of existing government-funded rental assistance stated that they are not eligible to apply for it. And of those landlords who are both eligible and already applied for rental assistance before answering the survey, 54.7% of them have not started receiving any rental assistance money. This data shows that existing rent relief programs, though well-intentioned, are unfortunately unable to disperse aid and information to the landlords and renters in need of such resources.
“Government aid is very irregular, I never know if my tenants will pay rent and their bills… [the rent bill] accumulates month after month and the management company I use can’t do anything but wait.” — Landlord, Pennsylvania
When asked what barriers they faced during the application process for rental assistance, landlords noted that the top three challenges were: having to wave evictions during the period of assistance (51.6%), communicating with tenants (47.3%), and uncertainty about receiving the rental assistance payment (44.1%).
With a quarter of independent landlords missing upwards of $5,000 in rental income and more awaiting government aid, it’s clear that these landlords will likely experience more financial hardships as the pandemic continues into 2021.
How the CDC Eviction Moratorium Is Impacting Independent Landlords
Independent landlords, especially those of color, are the ones most impacted by the CDC Eviction Moratorium, as they do not have the financial resources to maintain their properties without a consistent and sufficient rental income.
Of landlords that experienced financial losses due to a disruption in rental income during the pandemic, 70% said that the impact of the moratorium came in the form of lost rent from their units, 49.9% said they are struggling to afford maintenance for rental properties, 25.3% are unable to rent out vacant units, and 15.9% have resorted to selling at least one of their rental properties altogether. Only 10.6% of these landlords stated that they did not experience any effects of the eviction moratorium.
“The CDC Moratorium [gave] an out to those tenants who didn’t want to pay rent. It is the worst possible scenario for Mom & Pop landlords like me.” — Landlord, Texas
More Tenants, Particularly Women, Are Struggling to Pay Rent
Compared to previous Avail surveys, the percentage of renters struggling to make rent is growing. In this latest survey, 72% of the 2,533 renters who responded to this question are having a difficult time paying their rent due to financial strains caused by the pandemic. This is compared to 65.8% of renters who faced challenges when paying rent in May 2020, 66.0% in June 2020, and 61.9% in July 2020.
This survey also discovered that female-identifying renters (75.7%) were experiencing more challenges when working to pay their rent in full each month when compared to male-identifying renters, of whom 62.7% experienced challenges when paying their rent.
More female renters (56.1%) owe their landlords past-due rent because of COVID-19 financial challenges. This is compared to 41.8% of male renters who owe their landlords past-due rent.
Missing Rent Payments Will Continue for the Next Three Months
As the majority of renters struggle to make their monthly rent payments, half of renters (51.4%) state that they already owe their landlords previous rent (also known as back rent), with 49.3% owing their landlords anywhere from $1,000 to $4,999 in missed rental payments.
“We have been lucky. Without regular employment, rental assistance would be imperative.” — Tenant, Arizona
Renters also expect to miss more rental payments in the start of 2021. Forty-six percent of renters said they will have to miss more rent payments in the next three months, with 38.8% stating that they are unsure as to whether or not they can pay rent during that same timeframe. This may, in turn, increase financial pressures on DIY landlords, who are not receiving as much in rental income as normal, as well as demand for more government-funded assistance.
Rental Assistance Information Isn’t Making It to Tenants in Need
In this survey, Avail found that the majority of renters (68.8% of 2,537) are not aware of government-funded rental assistance that was made available for those who are struggling to pay rent due to COVID financial pressures. Of the renters that experienced a financial loss due to the pandemic, only 31.2% were aware of the existence of any government-funded rental assistance programs.
Overall, 53.6% of renters said they would need a minimum of $1,000 to $4,999 in rental aid in order to pay back their landlords for all missed rent payments during the pandemic. However, those renters (and more) are without the information needed to access that aid.
“I was completely unaware that any type of rental assistance was available and that would have been very useful information.” — Tenant, Missouri
Of the renters that know of available COVID-19 rental assistance, are eligible for such aid, and applied for it, 72.7% haven’t received any money yet. The top three barriers when applying for rental assistance mentioned by renters were uncertainty about receiving the rental assistance payment (34.5%), finding available rental assistance (28.4%), and complicated eligibility criteria (11.5%).
Despite delays and a lack of awareness, the majority of renters (74.4% of 2,460) believe that government-funded rental assistance will be enough to help pay rent during the pandemic in 2021.
The Avail Research Team frequently conducts surveys of landlords and renters across the U.S., most recently collaborating with the Urban Institute to further research on the non-institutional sector of the rental market. The purpose of these surveys are to spread information about the measures that independent landlords and their renters are taking during the pandemic while informing government agencies and policymakers of the support these groups need.
For more rental market information during the COVID-19 pandemic, join our Special Reports email list to stay up to date with any new developments that could affect landlords, renters, and building owners.
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In the eighth month of the COVID-19 pandemic, more renters are struggling to pay rent each month as government aid dries up. Landlords, challenged by a national eviction moratorium and a decrease in their rental income, are working under a growing financial burden. According to a nationwide survey conducted conducted by Avail in October 2020, these are the main challenges renters and landlords face.
A total of 2,452 renters responded to the Avail survey. Of those, the largest group of respondents (31.1%) are between the ages of 30 and 39, with 46.9% identifying as Non-Hispanic White, 34% identifying as Non-Hispanic Black or African American, 11.1% identifying as Hispanic, 2.3% identifying as Asian, 1.4% identifying as American Indian or Alaskan Native, 1.0% identifying as Native Hawaiian or other Pacific Islander, and 3.3% identifying as “Other,” including those who identify as mixed race or a more specific ethnic group than provided on the survey. The most common response from renters (36.7%) was a total household income ranging from $24,000 to $49,999 before taxes last year.
Of the 1,381 landlords who responded, the largest group of respondents are age 60 or over (40.2%), with 67.2% being Non-Hispanic White, 12.4% identifying as Non-Hispanic Black or African American, 8.1% identifying as Hispanic, 7.5% identifying as Asian, 1.0% identifying as American Indian or Alaskan Native, 0.5% identifying as Native Hawaiian or other Pacific Islander, and 3.2% identifying as “Other”. Total household income before taxes last year ranged among landlords, with the majority falling between $24,000 and $150,000.
The questions in this survey were developed in collaboration with researchers from the Urban Institute’s Housing Finance Policy Center.
Renters Concerned About Paying Rent in October
Of the 2,429 renters that responded to the question, “Do you anticipate that you will be able to pay rent in full for the month of October?”, 44.0% stated that they would not be able to pay rent in full in October. This is compared to responses to the same question for September, which revealed that 34.6% of renters were not able to pay their full rent that month.
“Renters like myself are able to make it five months on savings, but losing a job due to COVID, means that will run out eventually. Everyone needs to be patient and realize that not all government assistance helps every individual.” — Renter, Maryland
According to the survey, renters mentioned a loss of employment or reduced income as the main challenge when paying rent in both September (70.1%) and October (66.5%). Other challenges that made it difficult to pay rent in full included paying for basic necessities other than rent, such as food and medicine (44.3% in September, 46.7% in October), and paying for unexpected expenses other than rent (30.6% in September, 31.6% in October).
What Has Helped Renters Pay Their Rent So Far?
The majority of renters surveyed state that they are currently paying rent through earned wages from employment (60.5%). Thirty-one percent of renters said that money from unemployment, government assistance, or other relief programs is currently paying their rent, while another 23.7% of renters used money borrowed from family or friends.
With most of the respondents stating that they spend 30.0% to 39.0% of their income before taxes on rent, any financial challenge they face could impact their ability to pay rent. With these challenges at play, renters are finding other ways to pay some, if not all, of their rent each month.
“Know that everyone is struggling at this time more harder than we have before. Some of us have to stay home with kids and not be able to work but definitely trying.” — Renter, Tennessee
Of the 2,339 respondents to our survey, 35.8% said that they have been borrowing money from family or friends in order to make ends meet during the COVID-19 pandemic. Others cite government aid or assistance (28.5%), finding new employment or source of income (22.8%), and rent deferment or payment plans (18.6%) as actions or policies that have helped them financially.
This comes at a time when another COVID-19 stimulus package has not yet been released, and may not be released until February 2021. Along with providing extra relief for individual states, the stimulus package also provides extra unemployment money and direct payments to lower-income and middle-class Americans. Those renters who have been relying on government aid and extra assistance due to the pandemic could be further impacted by the lack of a stimulus package, thus making it harder for them to pay rent each month.
The Financial Strain Landlords Face
According to the survey, the financial strain on renters caused by the pandemic directly impacts their landlords. Out of 1,372 landlords that responded to the survey, 38.1% have not received rent in full for the month of October. This is a 2.9% increase since September, when 35.2% of landlords stated that they were not able to collect that month’s rent in full. As the end of October approaches and 44% of renters surveyed state that they will not be able to pay rent in full, landlords could be collecting even less rent than anticipated.
The majority (74.4%) of landlords said that the main reason why they were not able to collect October’s rent in full was because their renters did not or could not pay it. Another 29.1% said that they were not able to collect rent due to vacancies. These percentages differ slightly from those in September, when 77.7% of landlords cited the main reason they were not able to collect rent in full was due to their renter’s inability to pay it, while 28.5% of landlords cited vacancies as the main reason.
The financial strain on landlords was worsened with the creation of eviction moratoriums, first by individual states and then by the CDC on September 4, 2020. According to the survey, some landlords don’t believe this pressure will go away, with 37.0% saying they anticipate “an increased financial burden” due to the national eviction moratorium, which is currently set to expire on December 31, 2020.
“We can work things out with our tenants, but government restrictions make it harder to do so. Restrictions on all landlords without consideration of the reality of each situation is not a solution.” — Landlord, California
In response to whether or not landlords anticipate an increased financial burden due to the lack of unemployment assistance, 34.5% said that they expect to be affected by it while 65.5% said they do not.
The Long-Term Impact of COVID-19 on Renters and Landlords
As the pandemic drags into its eighth month, the long-term impact of COVID-19 on the rental industry is becoming clearer. According to the survey, 35.6% of landlords stated that they have become stricter when it comes to screening tenants than they were before the pandemic.
In an effort to find reliable renters that can pay rent in full, 50.1% of landlords stated that they were conducting more thorough background checks when screening renters while 48.4% are “requiring a higher income relative to the rental payment.”
Of 1,370 landlords that responded to the question, “Have you felt increased financial pressure to sell your properties during the pandemic compared to before the pandemic?”, 30.9% said that they were feeling an increased pressure to sell.
Of those that felt the pressure to sell their rental properties, the majority of landlords (62.7%) cited “my tenants aren’t paying” rent as the main reason, while 45.5% state that higher expenses are the reason. Another 30.5% of landlords also cited vacancies as the main issue pressuring them into selling their rental properties, which makes sense as 18.6% of 1,366 landlords saw an increase in vacancies since the beginning of the pandemic.
For those landlords with a mortgage on at least one rental property, which Avail found to be 78.1% out of 1,375 landlords, a decrease in rent payments, increasing expenses, and more vacancies could result in forbearances.
According to a previous survey conducted by Avail, 12.0% of landlords overall said that they went into forbearance on at least one of their mortgaged rental properties due to the COVID-19 pandemic. That percentage goes up to 15.0% among landlords who own two to four units, which is just over double the already increased forbearance rate (7.61%) reported by the Mortgage Bankers Association in August 2020.
“We are trying to have a heart, but we are getting in serious financial jeopardy in doing so. With people home more our utilities and repairs have been increasing. Increasing to the point of not being able to pay the mortgage on the properties — one now in foreclosure. Those people will be out on the street as a result.” — Landlord, New Jersey
The Avail Research Team frequently conducts surveys of landlords and renters across the U.S., most recently collaborating with the Urban Institute to further research on the non-institutional sector of the rental market. The purpose of these surveys are to spread information about the measures that independent landlords and their renters are taking during the pandemic while informing government agencies and policymakers of the support these groups need.
“There’s undoubtedly a lot of pain right now,” said Ryan Coon, the CEO of Avail. “We’re working hard with local and state officials and organizations to better understand the challenges unique to DIY landlords and their renters. We all need to work together right now.”
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