Since the COVID-19 pandemic began, LeaseLock has been tracking its effects on rent payments.

Using actual transaction data sourced in real-time from multifamily property management systems, we have completed our analysis of rent payments through the June grace period (June 1-5). Below is a summary of our major findings:

June Rent Payments Hold Steady

The total percent of rent collected during the June grace period was 55%. That’s the same percent that was collected during the May grace period.

The June figure does represent an increase of two percentage points from the same time in April, but it’s also six percentage points below the total rent collected during the average pre-COVID grace period.

National Multifamily Housing Council President Doug Bibby said in a statement, “These are trying times for the country, and we are reminded on a regular basis how crucial safe and secure housing is during a period of uncertainty and upheaval, so we are glad to see that residents who live in professionally managed properties continue to pay their rent,”

Class C Payments Stabilize

This spring saw a major drop in rent payments among Class C residents, due in part to the wave of service industry lay-offs in April.

During the average pre-COVID grace period, 46% of Class C renters paid their full rent. The figure dropped all the way to 31% in April and 27% in May.

In June, 26% of Class C residents paid their full rent during the first five days of the month. While the number remains low, it has steadied significantly compared to previous months. The stabilization is likely due to the slightly improved employment picture as businesses – especially those in service sectors such as retail and travel – begin to open back up.

In the Class A segment, 42% of residents paid their rent in full during the June grace period. That’s not a dramatic drop from the average pre-COVID grace period, in which 45% of Class A renters made full rent payments.

In the Class B asset class, 41% of renters paid their full rent during the June grace period, which is actually one percentage point higher than in the average pre-COVID grace period.

More Residents Seeking Rent Assistance

Unemployment rates may be improving slowly, but they remain high — and data suggests many Americans are feeling the financial strain. Google searches for “rent assistance” nearly doubled in April. Searches for this term also spiked again in mid-May, suggesting renters were concerned about rent in the lead up to June.

Renters who are struggling to pay full rent are paying even less of total owed rent than before COVID. Partial rent payers paid only 48% of owed rent during the June grace period, compared to 59% of rent pre-COVID.

For renters unable to make full payments, payment plans and alternate payment arrangements continue to be important as the economy recovers. But with the $600 additional federal unemployment benefits ending in July and the Paycheck Protection Program funds quickly drying up, profound economic insecurity still threatens many American renters, and the possibility of the pandemic’s second wave looms large.

In short, today’s renters are not out of the woods by any stretch, and operators have to remain ready to work with them on payment plans when necessary.