.png){kind=logo}
Presented By
Key Takeaways
In December 2024, the on-time payment rate in independently operated rental units jumped by 19 basis points (bps), rising to 85.7%.
On-time payment rates have now risen in four consecutive months, improving by a cumulative 53 bps sin that time.
The forecast full-payment rate recovered by a sizeable 60 bps, rising to 95.5% in December.
Western states continue to hold the highest on-time payment rates in the country, led by Utah, Idaho, Washington, Colorado, and Alaska.
2-4-family rental properties and single-family rentals held the highest on-time payment rates in December, coming in at 86.3%.
National Overview
On-time rental payments in units operated by independent landlords improved slightly in December 2024 to 85.7%, rising by 19 basis points (bps). Compared to the same time last year, on-time collections are down by 19 bps as well. Still, there are marked signs of stabilizing performance. While on-time collection rates have fallen year-over-year for 17 consecutive months, the December annual change tally is the best on record since September 2023. Moreover, collection rates have risen in four straight months, jumping by a cumulative 53 bps.
Note: As of May 2024, monthly data estimates are reported as a three-month moving average.
Beyond the on-time payment rate, other December data points present a similar picture of the rental sector regaining its footing. December’s forecast full-payment rate, which includes on-time payments, late payments, and expected late payments based on historical trends, rose to 95.5% — a meaningful 60 bps gain from November’s 94.9%. Nevertheless, full-payment rates still have significant room to grow to reclaim their high watermark of 97.2% set in early 2023.
Trends within key rental subsectors reveal a slight performance gradient — but there is a trend line of improvement across the board. Of the three tracked property sub-types, properties with 2-4 rental units led the way in December 2024, with the subsector holding an on-time payment rate of 86.3%. Single-family rentals (SFR) followed closely behind at 86.0%. Meanwhile, average on-time payment rates in multifamily properties sat slightly lower at 85.6%. Notably, all three property types had on-time collections ticked up in December, with 2-4 family (+30 bps) showing the most improvement, followed by multifamily (+26 bps) and SFR (+12 bps).
Measured at the State level, as has become a consistent trend, western-located properties continue to outperform the rest of the country. On-time payment rates stand highest in December 2024 in Utah (93.5%) — followed by Idaho (93.4%), Washington (92.8%), Colorado (92.4%) and Alaska (92.4%). It is not until eighth on the list that a non-Western state (New Hampshire, 91.3%) appears.
Data Findings: By Property Type
Data Findings: By State
About This Report
The Independent Landlord Rental Performance report is a real-time look at how well non-institutional operators are collecting owed monthly rental payments. Utilizing data provided by property management software RentRedi, these findings have a reduced sample size of 100,516 units, which are analyzed and reported by Chandan Economics. Where sample size quality meets sufficient reporting standards, data are offered from March 2020 forward, and new trends and analyses are reported monthly. Performance trends are discussed nationally, as well as along the lines of residential property type and geography.
Data contained within this report offer investors, brokers, academic researchers, and policymakers a benchmark to track the performance and health of independent landlords.
About: Chandan Economics
Chandan Economics is an economic advisory and data science firm serving the commercial real estate industry. The firm's primary businesses include real estate data science (REDS), economic & market research, and litigation consulting.
About: RentRedi
RentRedi offers an award-winning, comprehensive property management platform that simplifies the renting process for landlords and renters by automating and streamlining processes. For landlords, RentRedi provides all-in-one web and mobile apps to collect rent, list and market vacancies, find and screen tenants, sign leases, and manage maintenance and accounting. For tenants, RentRedi’s easy-to-use mobile app allows them to pay rent, set up auto-pay, build credit by reporting rent payments to major credit agencies, prequalify and sign leases, and submit maintenance requests.Founded in 2016, RentRedi is VC-backed and a proven leader in the PropTech market. The company ranks No. 180 on the 2024 Inc. 5000 list, No. 12 on the Inc. 5000 Regionals list, and was named an Inc. Power Partner, a GetApp Category Leader, a Capterra Established Player, and a G2 High Performer and Momentum Leader based on the software’s user ratings and popularity. To date, RentRedi has more than $35 billion in assets under management with nearly 200,000 landlords and tenants using the platform. The company partners with technology leaders such as Zillow, TransUnion, Experian, Equifax, Realtor.com, Plaid, and Stripe to create the best customer experience possible. For more information visit RentRedi.com.
Methodology
Data are reported on a forward basis from March 2020 through December 2024 (current reporting period). As of the latest month of data availability, the reduced unit sample size totals 100,516. Rent charges are measured on a 15th-to-15th-of-the-month basis. Rent charges that are issued after the 15th of the current month are treated as a rent charge for the following rent-tracking period. (E.g., a rent charge sent on November 16th would be treated as a charge corresponding to December's owed rental payment.) Monthly estimates are represented as a three-month moving average.
Only charges designated as "rental income" are included for analysis. Rent charges below $500 and above $10,000 are excluded from this analysis.
Units that have not paid any form of rental income (full or partial) in the previous 60 days at the time a new rental charge is issued are removed from the sample tracking sample. Unpaid units refer to all units that have yet to fully satisfy their owed rents for a collection period. These unpaid units include units that have only partially paid their rent. As a means of reporting standardization, units with more than one monthly rent charge (E.g., rent paid weekly) are removed from the rent tracking sample.
Comments