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Key Takeaways
In March 2025, the on-time payment rate in independently operated rental units jumped by 53 basis points (bps), rising to 85.7%.
The forecast full-payment rate improved for the second straight month, rising to 94.7%.
Western states continue to hold the highest on-time payment rates in the country, led by Idaho, New Mexico, Alaska, California, and Utah.
2-4-family rental properties and single-family rentals held the highest on-time payment rates in February, coming in at 85.7%.
National Overview
On-time rental payments in units operated by independent landlords improved markedly in March. As of this month’s first estimate, 85.7% of units have successfully paid their full rental bill on time, jumping by 53 basis points (bps) from the prior month — the most substantial single-period improvement in the past two years. Notably, seasonal factors do appear at play. On-time payment rates have improved every March in the RentRedi-Chandan sample.
Compared to a year earlier, on-time payments are down slightly by a quarter of a percentage point (-25 bps). On-time collection rates have now fallen annually for the past twenty (20) consecutive months. However, the pace of annual increase has meaningfully lessened in recent months. If the month-over-month turnaround seen in March is sustained, it won’t take long for the annual growth comparison to rejoin the positive side of the ledger.
Note: As of May 2024, monthly data estimates are reported as a three-month moving average.
Additional data points reinforce the story of a Spring bounce back. March’s forecast full-payment rate, which includes on-time payments, late payments, and expected late payments based on historical trends, improved to 95.7% — an 87 bp improvement from February and the highest point since October. Moreover, forecast full collection rates have now improved in consecutive months for the first time since October as well.
Trends within key rental subsectors reveal a slight performance gradient. Of the three tracked property sub-types, properties with 2-4 rental units led the way in March 2025, with the subsector holding an on-time payment rate of 86.3%. Single-family rentals (SFR) followed next with an on-time payment rate of 86.0%. Holding up the rear are multifamily properties with an average on-time collection rate of 85.6%.
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 March 2025 in Idaho (94.2%) — followed by New Mexico (92.3%), Alaska (92.2%), California (92.0%) and Utah (92.0%). It is not until ninth on the list that a non-Western state (Virginia, 90.2%) 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 106,697 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 March 2025 (current reporting period). As of the latest month of data availability, the reduced unit sample size totals 106,697. 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 February 16th would be treated as a charge corresponding to March'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.