• Percent of total rent collected in mid-June dipped 2% month-over-month.
• Rent collected in June is 8% lower than the 3-month pre-COVID average.
• Search interest in “apartments for rent” spiked, passing up pre-COVID levels.
• Total rent collected in both Georgia and California dropped 3% since May.
• Class C rent payments have stabilized but are 20% below the average.

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Now that we’re halfway through the month, let’s take a mid-month look at rent payment behavior through June 15 to evaluate any shifts since our Rent Payment Report.

Looking at the total percent of rent collected during the first half of June, we see the same percentage of rent payments collected in April — and a very slight 2% dip from May.

Rent payments still have yet to recover to pre-COVID levels — rent collected in June remains 8% lower than the percent of rent collected during the average month.

June Rent Payments Rebounded After a Challenging Start

Rent payments on the first of June were lower than in May, although still higher than the average. May especially saw a strong spike in first-day rent payments, as federal relief checks and bolstered unemployment benefits came in.

June renters didn’t show quite as much confidence as they did in May to make a first-day payment, especially after a long weekend of nationwide protests. However on June 3 (Wednesday) and June 5 (Friday) rent payments rebounded. The slow reopening of businesses nationwide, along with the small uptick in the employment rate, may have also helped establish economic confidence as the month wore on.

Leasing is Kicking Back Into High Gear

As we explored in our recent analysis of the new peak leasing season, apartment searches and leasing behavior are starting to recover. Looking again half-way through the month, we see even greater upward growth in searches for “apartments for rent” over the last couple weeks.

Although delayed, the 2020 leasing season appears to be in full swing as more businesses reopen and renters emerge from their homes. Now more than ever, it’s critical for apartment operators to provide an affordable, one-click lease experience, and to meet the needs of today’s renter even better than the competition.

California and Georgia Struggle on a State and County Level

While the nation as a whole appears to be recovering, some regions continue to feel the economic strain.

The state of Georgia experienced a significant drop in rent collected immediately after COVID set in — over 20% in April — and has continued on a downward trajectory. While California’s initial drop in rent collected was not as stark, the Golden State showed a 3% drop in rent collected since May, and an 11% drop from the average.

Georgia was famously the first state to re-open its businesses on April 30. The state saw an initial drop-off in new unemployment claims in May but the number of unemployed Georgians remains high. Evidence also suggests that COVID cases are increasing in Georgia, which could cause consumer uncertainty about shopping, dining out, and engaging in economy-boosting behaviors.

Meanwhile California — and major CA metros such as Los Angeles — was an early leader in shelter-in-place orders. We recently explored how Los Angeles renters are struggling to make their rent payments, and that difficulty appears to be continuing.

Atlanta residents are also having a hard time making rent payments. The percent of Atlanta residents who made a rent payment in the first half of June has dropped by a whopping 32% since January, after a slow and steady decline throughout the year.

Class C Rent Payments Remain Low, But Stable

May saw a major drop in rent payments among asset class C, due in part to the wave of service industry lay-offs in April.

However, as businesses began to reopen in May, sectors such as travel and retail saw a major lift in employment according to the Wall Street Journal, which largely affected Class C residents. While Class C rent payments remain low in the first half of June, the major drops seen in previous months have slowed to only a 1% dip.

What Does This Mean for Multifamily This Summer?

In spite of fears about an impending drop in rent payments, it appears that business reopenings and signs of unemployment recovery have stabilized rent payments for now. Although comprehensive rent assistance for residents in need remains a key priority for the industry, operators are also setting their sights on what’s next.

The recent spike in apartment searches suggests that we are entering peak leasing season for 2020. This leasing season is different than ever before, and will require a fresh approach to capture new leases over the competition.

Keep an eye out for in-depth guides on how to attract your share of the market as the summer leasing season ramps up.

Methodology

Rent payment data is actual transactional data sourced from integrations with property management systems in the multifamily industry.

Analysis includes a 119,275 unit sample from 1,029,428 live units under management by LeaseLock clients. Data is nationwide, representing over half of the NMHC Top 10 property managers in the country and all asset classes (A, B and C). Asset class composition: class A (37%), class B (48%) class C (15%).

All data has been anonymized to remove personally identifiable information for renters and property managers.

While the pandemic wears on, we continue to monitor the effects of COVID-19 on rent payments across the U.S. Nearly three months since we first began closely analyzing rent payment behavior trends, we report on rent payments during the June grace period to help apartment operators understand what to expect. Below is a summary of key insights.

June Rent Payments Hold Steady from May But Renters Still Seek Rent Relief

The total percent of rent collected during the June grace period held neck-and-neck with May, but it was still 6 percentage points down from the pre-COVID average grace period.

Overall, full rent payments made on June 1 showed a slight dip compared to April and May, but rebounded over the remainder of the grace period. The shaky first day could be a result of unemployment benefits nearing expiration and federal relief checks no longer being distributed.

Last month, evidence of struggle began to appear among Class C properties. In June, however, businesses opened back up and unemployment slowed, especially in service sectors such as retail and travel. As a result, Class C rent payments showed only a 1% dip month-over-month compared to a 4% drop in May.

Across the board, our data suggests that renters are struggling to make full rent payments. A look at the percent of total rent paid each month shows that the amount of rent that partial payers are able to pay has declined steadily since the onset of COVID-19. Partial rent payers paid only 48% of owed rent during the June grace period compared to 59% of rent pre-COVID.

Our full COVID-19 Rent Payment Report elaborates on:

• Comparisons to May rent payment data
• The stabilization of June rent payments
• Trends across major metros
• Behavior and impact by asset class
• Growing need for rent assistance

UPDATED October 2020 — As the COVID-19 pandemic continues testing the economic strength of the multifamily industry, state and city legislators across the nation are rallying support for emergency rent assistance programs in the form of rent relief funds and other financial resources. The relief comes on top of a national push to establish emergency rental assistance including a new Senate bill that proposes $100 billion in rent relief, as well as the CARES Act which offers renter protections for federally funded rental housing.

Local and state governments have been proactive in implementing eviction moratoriums and passing security deposit replacement legislation, and apartment operators have devised rent relief programs for their communities. However, there is still a critical need for emergency rent assistance funding to directly aid the rental housing industry. Several cities and states have already launched emergency rent relief funds and are providing financial resources for America’s renters, but a handful do not yet offer dedicated rent assistance programs. 

Are Renters Paying Rent During COVID-19?

This begs the question—are renters paying rent? April rent payment data showed a slight downward trend but was otherwise not far off the mark from normal rates pre-COVID. Heading into May, initial data suggested the renters were prioritizing paying rent despite gloomy industry forecasts, and a full analysis of payment behavior during the May grace period revealed renters who could pay were doing so, while operators continued to offer payment plans. Ultimately, rent payments are holding steady compared to the average, but the months ahead are less clear.

The multifamily outlook from here on out is rooted in economic uncertainty, both when it comes to renters’ ability to pay rent and operators’ ability to remain flexible with renters. Even though the government is supplying affected renters with stimulus payments and supplemental employment benefits, there’s no telling whether they will continue to put that money toward rent or other essentials, not to mention that funding will eventually run dry.

As Doug Bibby, president of the National Multifamily Housing Council (NMHC), explains,

“For that reason, lawmakers need to act now to enact a direct renter assistance program.”

More than ever, it’s imperative that cities and states prioritize emergency rent assistance programs.

Are Governments Providing Emergency Rent Relief Funds & Financial Assistance Resources?

As the economic effects of COVID-19 rumble through the multifamily housing industry, local and state governments — as well as various organizations and communities — are taking measures to establish emergency rent assistance programs and direct other financial resources to operators and renters. 

We cannot leave behind the millions of Americans who could be facing eviction without #RentReliefNow.

I’m introducing a bill that provides $100 billion in emergency rental assistance to help people pay their rent during and after this pandemic.

— Sherrod Brown (@SenSherrodBrown) May 4, 2020

This ever-changing patchwork of local emergency rent relief solutions has created some confusion among apartment operators and renters alike, further underscoring the need for federal funding programs to directly support the rental housing industry and its residents. While not every city and state has created COVID-19 emergency funds for rental assistance specifically, we’ve aggregated a list of state and city emergency funds so that operators are more informed when it comes to the rental relief available to them and their communities. 

Cities & States Offering Emergency Rent Assistance Programs & Rent Relief Funds

*NOTE* The emergency rent assistance funds on our list may no longer be available, depending on how quickly the funds were distributed. Visit the sources we provide below to find more information on whether government rental assistance funding is still accessible or if other funding programs exist. To ensure the rental housing industry receives more direct funding, consider contacting your senators and representatives to urge them to support the “Emergency Rental Assistance and Rental Market Stabilization Act.” 

Alabama: Rental Assistance Program and Non-Profit & Short-Term Housing Assistance

The JCCEO CSBG Rental Assistance Program was established to meet the emergency needs if households facing a financial crisis due to pandemic-related events. This program provides one-time financial assistance to those who qualify and covers expenses such as rent, water, or prescription medication. Applications are processed within 30 days.

A statewide nonprofit called Alabama Arise directs people to the statewide helpline if they need help paying rental deposits and first month’s rent. Individuals seeking rental assistance should ask for a referral to an agency that receives Homeless Prevention and Rapid Rehousing funds. In addition, the Alabama Department of Human Resources (DHR) Alabama is offering short-term assistance to individuals with low income and who need help paying rent. The Community Action Agency of Northeast Alabama also has a benefit program that offers rent assistance.

Alaska: COVID-19 Housing Relief Fund

For Alaskans struggling to make rent payments, a $10 million rent relief fund was administered by the Alaska Housing Finance Corp with an application deadline of June 26.

Headed by the Rasmuson Foundation and Wells Fargo Foundation, a relief fund was established in partnership with the Alaska Community Foundation and the United Way of Anchorage. The fund will help families pay rent in light of unexpected housing emergencies surrounding the coronavirus.

Anchorage passed an emergency ordinance that will put $1 million toward a housing costs relief fund for residents affected by COVID-19. Juneau has an emergency appropriation in place that sets aside $200,000 for residents who have been laid off or are unable to work due to the pandemic.

Arizona: $5 Million Rental Assistance Funds

The Arizona governor Doug Ducey announced $5 million in rental funding as part of a Rental Eviction Prevention Assistance Program launched by the Arizona Department of Housing. The rental assistance is made available to households on following conditions: 1) primary residence is a rental located in Arizona and 2) have seen a reduction in income due to COVID-19, that when annualized, does not exceed 100 percent of the area median income adjusted for family size for the county in which they reside. As of May 8, the rent relief funds had only been made available to fewer than 400 applicants out of nearly 11,000 renter applications. As of late August, the program is still accepting applications.

Arkansas: Community Rent Assistance Fund

There is currently no statewide emergency rental assistance. However, a community relief fund was set up at First Security Bank to collect donations and an allocation committee will distribute the funds over a 60-day period. The program has since closed.

California: $25 Billion Rental Relief Fund & COVID-19 Emergency Rental Assistance Programs

As of August, California lawmakers still hadn’t come up with an emergency rent relief plan. In May, California State Senator Lena A Gonzalez introduced a Senate Bill in May to protect both renters and rental property owners from financial hardships brought on by COVID-19. The COVID-19 Emergency Rental Assistance Program would provide direct rental payment relief to renters who are unable to pay rent due to the pandemic, as well as property managers who agree to specified terms (i.e., forgoing rent increases and late charges). California lawmakers are also working on two proposals—one is a $25 billion economic relief fund for rent payment assistance and the other is a renter assistance program in which property managers would be asked to forgive rent payments in exchange for tax credits.

A few counties have also allocated or proposed funding for rental assistance. Los Angeles approved a $1+ million program to provide rent subsidies of up to $1,000 per month for up to three months for families who have recently lost jobs, which they hope to be provided as part of the next round of the CARES Act. As of May 13, over $3.7 million was available to residents in designated unincorporated areas. Applications must be received by May 31, 2020.

In addition, the income-based L.A. County COVID-19 Rent Relief program will remain open until Aug. 31. Up to $10,000 will be given to households that meet the program’s income guidelines. Financed through $100 million in federal CARES Act money, its goal is to assist about 9,000 households with half of the available money being directed to residents who live in high-risk eviction ZIP Codes

In Northern California, the city of San Jose, the county, and nonprofits and companies have contributed $11 million to the Santa Clara County Fund to help low-income households pay rent and other crucial bills.

Colorado: $23M Emergency Housing Assistance Program & Property Owner Preservation Program

In Gov. Jared Polis’s executive order, $3 million in state funds was allocated for short-term rental and mortgage assistance. The Colorado Department of Local Affairs’ Division of Housing launched the Property Owner Preservation program to allocate up to $20 million in federal CARES Act funds for rental assistance to landlords on behalf of their tenants. Both programs are accepting applications as of late August.

Earlier this year, Colorado property managers raised $74,000 for a rent relief fund to help renters who lost income or suffered illness due to the pandemic. The Colorado Apartment Association is asking for others to contribute to the national Resident Relief Foundation’s $10 million fund, which will ensure donations from Coloradans will help Colorado residents. In addition, the Colorado Association of REALTORS Foundation announced $125,000 in grants to three Colorado nonprofits to assist residents with housing-related emergencies.

Out of $20 million in CARES Act funds being deployed in Denver, $4 million will support rent and utility assistance 

Connecticut: Rental Assistance Program (RAP)

The Connecticut State Department of Housing created the Rental Assistance Program which assists low-income families to afford safe and sanitary housing in the private market, and is designed for families to choose which private rental housing so long as it meets the program requirements. The waitlist is currently closed, but people can register to be notified when it reopens.

District of Columbia: $1.5 Million Federal Home Funds & The Emergency Rental Assistance Program (ERAP)

D.C. Mayor Muriel Bowser announced a new rental assistance effort in which the Department of Housing and Community Development will put $1.5 million in federal home funds toward providing rental assistance funding to low-income renters living in properties financially impacted by COVID-19. There’s also the Emergency Rental Assistance Program provided by the Department of Human Services which helps pay overdue rent, security deposits for new residences, and first month’s rent. Most recently, the D.C. Council passed an emergency coronavirus relief bill on May 19 that requires property managers with five or fewer units to offer alternative rent payment plans.

Delaware: $2 Million Housing Assistance Program

Governor John Carney and Delaware State Housing Authority (DSHA) Director Anas Ben Addi announced a new program to provide $2 million in emergency rental assistance to those affected by the COVID-19 crisis. The Delaware Housing Assistance Program (DE HAP) was structured to provide eligible households up to $1,500 for rent or utility payments made directly to their property owner or utility company. 

Florida: $1.8 Million One-Time Rental Assistance & Renters Relief Program

Up to 1,500 families in Orange County, Florida had access to $1.8 million in funding for one-time rental assistance, although the program has since ended after processing applications and paying out benefits. The cities of Hialeah and Miami currently offer a temporary emergency program for renters who lost their jobs due to the pandemic. In Hialeah, a forgivable loan of $1,000 will be given over a 3-month period to 1,000 qualified households.

The city of Miramar is offering an emergency rent and utility assistance program for low income residents dealing with unemployment or pay cuts. Relief payments are to cover a maximum of three past-due rent and utility costs (up to $7,000 per household) and are not required to be repaid by residents.

Georgia: Rent Assistance

Organizations in Atlanta, Decatur, and DeKalb County offer assistance with rent, rental deposits, and food. These organizations include St. Vincent de Paul Georgia, Decatur Emergency Assistance Ministry, and Decatur Cooperative Ministry.

Hawaii: $1.25 Million COVID-19 Rent & Utility Assistance Program

The Aloha United Way organization launched a rent and utility assistance program which has $1.25 million in initial funding. At that amount, it’s estimated to help about 900 families.

Idaho: $825K COVID-19 Response and Recovery Fund

The COVID-19 Response and Recovery Fund for Idaho approved nearly $825,000 in grants for organizations throughout Idaho helping low income individuals and those experiencing housing instability. The grants will go to multiple organizations that will disperse the funds to help with rent assistance among other needs.

Illinois: Emergency Housing Bill & $2 Million Housing Assistance Grant Program

Illinois proposed an emergency housing bill that would cancel rent payments for those experiencing coronavirus-related hardships while also establishing a fund for property managers to recoup lost rental income—the funding would come from the CARES Act. In Chicago, Mayor Lori E. Lightfoot and the Department of Housing created a COVID-19 Housing Assistance Grant program to assist residents who lost their jobs or have otherwise been financially impacted by the COVID-19 pandemic. DOH will deploy $2 million from the Affordable Housing Opportunity Fund to disburse one-time grants in the amount of $1,000 to help with rent and mortgage payments. The fund will award 2,000 individual grants, half of which will be awarded through a lottery system, while the other half will be distributed by non-profit community organizations.

Indiana: Proposed Rental Assistance Program

While there is currently no known statewide programs, a group of Indiana organizations are calling for a rent assistance program to be created from the state’s CARES Act funds in order to help residents with long-term needs.

Iowa: No Known Statewide Programs At This Time

Kansas: $3.2 Million COVID-19 Response & Recovery Fund

The Kansas City Regional COVID-19 Response & Recovery Fund announced that $3.2 million in funding would be released to 72 local nonprofits. Each nonprofit is responsible for handling assistance with housing, including rent, utilities, and other critical human services.

Kentucky: $500K COVID-19 Relief Fund

Mayor Greg Fischer and the Louisville Metro Council allocated $500,000 toward the One Louisville: COVID-19 Relief Fund for rental assistance. Qualified renters could get up to $1,000 per household for rent or utility payments.

Louisiana: $14.7 Million Rental Assistance HUD Grants

From the nearly $15 million in funding awarded by the U.S. Department of Housing and Urban Development (HUD), the Louisiana Housing Authority is providing housing assistance payments for rent, mortgage, and utilities for up to 24 months. The city of New Orleans will receive $10 million in community development block grant funds to help provide rental and utility assistance to low-income residents.

Maine: $5 Million Rent Relief Program

Gov. Janet Mills created a $5 million rent relief program, offering a one-time payment up to $500 in rental assistance for those struggling to pay rent during the pandemic. Funding would be available to households that meet certain income and eligibility requirements and the aid would be paid directly to property managers. 

Maryland: Coronavirus Relief Funding

The city of Baltimore will use $13 million in federal relief funding to create a rental assistance program that helps renters pay past-due rent. Howard County will also receive rental relief, with $800,000 in county funding going towards rental assistance and eviction relief.

Massachusetts: $3 Million Rental Relief Fund

While applications may be closed, Boston has dedicated $3 million in City funds to help residents at risk of losing their rental housing due to COVID-19. The funds will help those who do not have access to expanded employment benefits, or experience a significant reduction in their actual income despite receiving unemployment benefits. 

Michigan: $1 Million Emergency Rent Assistance Fund

Michigan League for Public Policy has laid out housing policy recommendations, one of which is to “establish a rental assistance fund and manageable provisions for the repayment of rent arrearages to avoid a wave of evictions once the moratorium expires.” Further, the League calls for the state to provide at least $1 million in state funding for emergency housing needs. 

Minnesota: $100 Million Emergency State Housing Assistance Grants

The Minnesota House committee approved a $100 million COVID-19 aid program which aims to help low-income renters as well as property managers pay their bills. Minneapolis implemented a $5 million Gap funding plan which allocated $3 million for its emergency rental program to assist low-income residents impacted by the pandemic. The program stopped accepting applications at the end of April.

Mississippi: $1.25 Billion Federal Rental Assistance & Relief Distribution

Mississippi legislators are considering how to distribute $1.25 billion in federal funding to provide rental assistance. A week in May, rental assistance payments were still not operational. Alternatively, renters can seek assistance from the United Way of Southeast Mississippi COVID-19 Relief Program, which awards aid to households to pay rent and utility bills that are past due at the time of application. 

Missouri: $9 Million Rent Assistance

Governor Mike Parson announced that Missouri would receive federal funding to support renters impacted by COVID-19. The Missouri Housing Development Corporation is working out details on providing an additional $9 million dollars in rent assistance to those who have experienced an economic setback from COVID-19.

Montana: $430K Emergency Housing Assistance Program

Montana launched a state Emergency Housing Assistance Program to allow families apply for rental and security deposit assistance. Families must have at least one child under the age of 18 and a substantial loss of income due to COVID-19 in order to be eligible. Monthly rental payments or security deposits are to be mailed or deposited directly to the applicant’s property manager. A federal assistance fund will use about $430,000 to launch the relief program.

Nebraska: COVID-19 Relief Fund

The Nebraska Impact COVID-19 Relief Fund was formed to provide direct aid to communities and organizations, including assistance for rent. In the counties of McCook and Red Willow, renters who need help making payments due to losing their job or having their work hours reduced are eligible for assistance from Community Action Partnership.

Nevada: $2 Million Emergency Rental Assistance

Nevada has access to $2 million in settlement funding for emergency rental assistance which will go directly to Nevada families in need of emergency assistance. The funding will go to United Way of Southern Nevada and United Way of Northern Nevada and the Sierra to be distributed to families in need.

New Hampshire: Welfare Program

The New Hampshire Legal Assistance organization advises renters who are unable to pay rent to apply for help at their city’s welfare office. While no statewide programs offer rental assistance, there are proposals for rent assistance payments being considered by the Governor’s Office for Emergency Relief and Recovery.

New Jersey: $100 Million Rental Assistance Program & Rent Suspension

The State Senate passed the 2020 New Jersey Emergency Rental Assistance Program which sets aside $100 million to aid residents affected by coronavirus in satisfying their rental obligations. New Jersey also introduced a bill ensuring residents who ask their property manager for rent relief won’t be denied—renters who request payment suspension need to come to “reasonable repayment structure with their landlord.” The mayor of Newark announced on May 18 the launch of its COVID-19 Tenant Based Rental Assistance Program which is accepting applications for emergency rent grants of up to $1,000.

New Mexico: $1.6 Million Rental Assistance HUD Grants

The U.S. Department of Housing and Urban Development (HUD) awarded $1.6 million to public housing authorities in 14 counties in New Mexico for rental assistance. Additionally, in support of community initiatives, New Mexico Bank & Trust committed $10,000 to the Santa Fe Community Foundation for its response fund, which provides help for emergency rent and utilities assistance.

New York: COVID-19 Emergency Rent Assistance Program

New York State legislators proposed a three-bill package that would waive or suspend rent for individual renters impacted by this crisis, and allocate funds to support small property managers. One bill would suspend rent payments for renters who lost income and also establish a coronavirus rental assistance fund. New York City proposed an $8 million “Renter’s Relief” plan that would require property managers  to offer renters the option to put security deposits toward April rent. Participants would have 30 days to start paying back their security deposits.

North Carolina: $117 Million Rental & Utility Assistance Program, $9+ Billion Federal Housing Assistance

In mid-October, the N.C. Housing Opportunities and Prevention of Evictions (HOPE) Program made $117 million in rental and utility assistance available to help North Carolinians. The application is open to renters facing financial hardship as a result of COVID-19. More information on the program as well as the application can be found here. In addition, the North Carolina Housing Coalition has outlined housing priorities and advises that a significant amount of the $9 billion housing funding be put towards emergency rental assistance. Housing advocates are also calling for part of the $5 billion in Community Development Block Grants be allocated to provide rental payments.

In Charlotte, city council members approved plans to set aside $1.05 million from the $5.7 million of federal stimulus funding from the CARES Act for rent relief. The program includes funds for three months of rent for 350 households earning up to 80% of AMI. In partnership with The Housing Partnership, the city of Charlotte also set up an Emergency Rent Assistance Program for those experiencing a delay in paying rent due to COVID-19. If eligible, the funds will be sent directly to the property management company.

North Dakota: COVID Emergency Temporary Rent Assistance

The North Dakota COVID Emergency Rent Bridge program gives temporary assistance to renters suffering financially due the pandemic. The program will pay up to 70% of the lease for up to three months and aims to be available through the summer

Ohio: No Known Statewide Programs At This Time

Oklahoma: No Known Statewide Programs At This Time

Oregon: $8.5 Million Rental Assistance

The Oregon Legislature’s emergency board released $12 million in housing assistance, $8.5 million of which goes to people who lost income and need help paying rent — the funding will go directly to property managers. The remaining money will pay for hotel or motel rooms for specific individuals, such as farmers or those without stable housing. In Portland, $500,000 in emergency federal grants are available to help those who can’t pay rent or utilities due to loss of income.

Pennsylvania: ~$400 Million CARES Act Funds

While nothing is currently in place, Pennsylvania housing advocates have called on the Legislature and Gov. Tom Wolf to prioritize housing assistance in deployment of the $4.9 billion in federal CARES Act funding and allocate at least $400 million for similar housing needs. Alternatively, renters can get help through various emergency funds including the Pennsylvania Apartment Association’s Coronavirus Emergency Assistance Fund, or the PHL COVID-19 Fund.

Philadelphia launched an emergency rental assistance program with the hope of keeping 3,000 families in their homes amid the pandemic. The application window is between May 12 and May 16, and renters must rent an apartment in Philadelphia, have a valid lease signed by the property manager, and have lost income due to COVID-19.

Rhode Island: No Known Statewide Programs At This Time

South Carolina: $5 Million COVID-19 Rental Assistance & $150K Emergency Housing Assistance Fund

South Carolina Housing is providing $5 million in emergency rental assistance to residents facing financial hardship as a result of the pandemic. Eligible households can receive up to $1,500 in relief payments that will be sent directly to property managers. Additionally, United Way of Greenville County launched an Emergency Housing Assistance Fund to help families struggling with unemployment and housing needs. The fund gained an initial investment of $150,000 from the COVID-19 Community Relief Fund. 

South Dakota: No Known Statewide Programs At This Time

Tennessee: No Known Statewide Programs At This Time

Texas: $11.3 Million Coronavirus Relief Fund 

The $11.3 million in rent assistance has been made easier for residents to access after Gov. Greg Abbot asked HUD to waive some requirements. Rent assistance providers, including nonprofits, local governments, and housing authorities, will be able to apply for the funds to then distribute to renters in need. 

Austin’s $1.2 million Relief of Emergency Needs for Tenants (RENT) Program provides one-time emergency rental assistance to renters experiencing financial hardship due to COVID-19. Dallas City Council passed a $13.7 Million Rent Relief Fund to provide rental, mortgage, and utilities assistance. The Houston Mayor proposed $15 million in emergency rental assistance for low-income-to-moderate income residents. San Antonio’s City Council approved a $25 million COVID-19 Emergency Housing Assistance Program to aid residents who need help with rent.

Utah: No Known Statewide Programs At This Time

Vermont: No Known Statewide Programs At This Time

Virginia: $52+ Million Rental Assistance HUD Grants

Over $52 million in federal funding will be spread across Virginia to go towards supporting residents with affordable housing during the pandemic. At the local level, Loudon County residents have access to a $200,000 rental assistance program. In Alexandria, short-term emergency rental assistance is available to renters experiencing housing insecurity due loss of income caused by COVID-19. The funds provide $600 a month for up to three months and go directly to property owners.

Washington: $9 Million Rental Assistance Funds

The Washington State Department of Commerce is providing $9 million to help low-income households pay their rent and energy bills. Benefits give qualified renters up to $1,000 in rental assistance. The Rental Housing Association of Washington provides information on the Low-Income Home Energy Assistance Program (LIHEAP), which is a federally funded block grant meant to assist low-income households meet their home energy needs.

West Virginia: Pandemic Diversionary Cash Assistance (PDCA)

West Virginia is offering a one-time special assistance payment called the Pandemic Diversionary Cash Assistance which provides financial support to families who have temporarily lost or experienced reduced incomes. 

Wisconsin: $25 Million Wisconsin Rental Assistance Program & Emergency Rent Fee Suspension Rule

Wisconsin implemented an emergency rule that prohibits property managers from charging late fees for 90 days after the termination of the public health emergency. The city of Milwaukee offers help paying rent to those who lost their job or whose hours were cut through Community Advocates. On May 20, Gov. Tony Evers announced the launch of a $25 million Wisconsin Rental Assistance Program for those who have experienced income loss due to COVID-19. Fueled by the CARES Act dollars, the program will provide up to $3,000 in direct financial assistance for rent and security deposits to be paid directly to property managers.

Wyoming: $500 Million CARES Act Distribution

Gov. Mark Gordon called for a special session on May 15 to distribute federal funding where they are likely to deliberate distributing $500 million of the $1.25 billion the state received through the CARES Act. On the table for discussion is a program that would compensate property managers for unpaid rent.

The Need For Emergency Rent Assistance Nationwide—And Industry Support For Rent Relief Programs

It’s an encouraging sign that many cities and states have implemented or proposed emergency rent assistance programs to aid renters and apartment operators—but local and state funding only goes so far. In fact, NLIHC research estimates that between $76 billion and $100 billion in emergency rental assistance is needed to maintain stable housing among the lowest-income households for the next year during the COVID-19 pandemic. Simply put, more funding is needed on a national scale. 

There is currently no federal emergency rental assistance funding in place to address the rental housing industry’s unprecedented financial stresses. The NLIHC, NAA, and NMHC, as well as various other housing advocates, have been proactive in encouraging Congress to address the rent crisis by enacting rental assistance programs to preserve the housing industry. 

In their joint letter, NAA and NMHC have outlined provisions that go beyond the CARES Act in providing relief to millions of American renters, including:

• create an Emergency Rental Assistance Program for those who are impacted by the crisis and do not already receive federal housing subsidies;
• clarify that all multifamily firms with 500 or fewer employees may access the Small Business Administration’s (SBA) Paycheck Protection Program (PPP); While the CARES Act is clear in its intent that all small firms should be eligible for PPP loans, the SBA’s implementation guidance has created uncertainty for the real estate industry;
• revise the National Eviction Moratorium to be limited to those negatively impacted by COVID-19;
• expand mortgage forbearance protections to all multifamily properties, not just those with federally backed mortgages; and
• provide financial assistance and protection for all property-level financial obligations such as property taxes, insurance payments and utility services.

The NLIHC is calling on the rental housing industry to urge senators and representatives to cosponsor the “Emergency Rental Assistance and Rental Market Stabilization Act” so that the next stimulus package helps the lowest-income renters. 

Additionally, the Resident Relief Foundation, a nationwide nonprofit, has set a goal to raise $10 million in funding to provide rental aid to renters across the U.S. The program also provides financial education to help renters who receive assistance become better prepared for future emergencies. 

How To Ask Congress For Emergency Rental Assistance for Renters and Property Owners

The collective effort of organizations like NAA, NMHC, NLIHC, and RRF to name a few, are helping bolster emergency rent assistance programs on the whole, but it’s more important than ever for industry-wide support. Apartment operators, housing professionals, and rental housing organizations need to band together in calling on Congress to immediately pass additional federal relief and stimulus legislation. You can do so by visiting the advocacy calls for action from the NAA and NMHC.

In April the apartment industry moved quickly in response to COVID-19, as shelter-at-home laws, eviction moratoriums, and rising unemployment rates became a new reality. Although rent payments trended downward in April, rent payment behavior didn’t decline as much as expected. Today, all eyes have turned to May, to determine whether rent payments will be harder hit as the economic effects of the pandemic set in.

Data Indicates Renters Still Prioritizing Rental Housing Payments

Who paid May 1st rent? So far, May seems to be on a similar rent payment trajectory to April, including a slight bump in first-of-the-month payments — roughly 4% more total rent was collected on the first day of May compared to the trailing three month average. This suggests that as federal relief and unemployment checks roll in, Americans are prioritizing rent payments first.

In this analysis we will dive into May payment behavior starting with first day payments, as well as interesting patterns leading up to it. This includes a regional analysis of metros highly affected by the pandemic, as well as differences by asset class.

April Rent Payments Showed Slight Uptick Leading Into May

Although total April rent payments collected were down 7% compared to the trailing three month average, first day April payments actually showed a slight increase. As explored in our April Rent Payment Report, this slight uptick was likely due to a mix of reliable rent payers (many of whom are enrolled in auto-pay programs) and apartment operators incentivizing residents to make rent on time and offering renter relief programs such as payment plans.

At the end of the month of April, we saw another slight bump in rent payments, as renters moved to get rent paid before month’s end. This could be partially attributed to Americans starting to receive their federal relief checks, unemployment benefits, and state-funded rent assistance. But who paid May 1st rent?

Similar to April, May Saw An Uptick in First Day Rent Payments

As seen in April above, we also saw a slight increase in full May 1st rent payments compared to the pre-COVID three month trailing average (January, February and March).

This surge represents reliable first-of-the-month rent payers and is bolstered by efforts of apartment operators to encourage early rent payments. Operators have had a month now to solidify communication with residents, refine their rent relief programs, and incentivize renters to pay on time. Both residents and apartment operators are paying very close attention to rent payments in May – and it appears those who can pay, are doing so on the first of the month.

This slight bump in first-of-the-month payments holds true across select cities in May. However, hard-hit metro areas such as Seattle and Los Angeles also show an ever-increasing move towards partial payments, suggesting acceleration toward resident payment plans and other alternative payment arrangements.

Seattle and Los Angeles Show Accelerated Partial Rent Payment Trend

As the economic impact continues to be felt across the U.S., we’re observing more April partial payments. Overall, major metro areas are seeing a continued move toward partial payments, with the percentage of total rent paid on May 1 declining month-over-month in Seattle, Los Angeles, and Atlanta since March 1.

While 22% of Seattle renters paid rent in full on the first day of May, the total first day collected rents of all partial payments compared to rent owed for that cohort were lower compared to April. Seattle partial rent payers paid only 29% of total rent owed in May compared to 34% in April and 62% back in January.

The percentage of renters who made some form of payment (over $100) on the first day of May has seen an increase month-over-month. Seattle in particular has had a notable increase in renters making partial payments, with Los Angeles and Atlanta holding at similar rates compared to previous months.

This likely means that despite growing financial uncertainty, renters are prioritizing paying their rent through some form of payment, and that property managers are working hard to accommodate residents experiencing financial hardship. The increase in overall payments is a likely indicator that apartment operators are supporting renters whether by devising payment plans, accepting partial payments, or offering other rent relief solutions.

First Day May Rent Payments Remain Strong for Asset Class A and B Properties

As seen nationwide, Class A and B properties saw a slight spike in full rent payments on the first of the month in both April and May compared to previous months.

Meanwhile full rent payments at Class C properties on the first of the month experienced a slight 1% drop in May. This may be because Class C residents are more likely to be financially impacted by the pandemic with a higher proportion of residents employed in service economy jobs that were hardest hit, and therefore less able to make rent payments early in the month. This could also suggest that Class C properties will struggle more in collecting total rent payments owed in May – but this will become clearer as the month goes on.

What does this mean for May rent payments? As we saw in April, first day rent payments had a slight surge thanks to reliable rent payers and ongoing efforts by apartment operators to support residents in making their payments.

However, just as with April, May is likely to see a decline in total collected rent payments as the rent grace period wears on. April showed a 7% decrease in total rent collected overall compared to the trailing average, and May might see a similar decline.

That being said, the data also shows several promising signs:

• After the tally of first day payments, May is not showing an accelerated decline in rent payments compared to April, as some analysts feared.
• The stability of first day payment behavior in May shows residents are locating funding sources and prioritizing paying their housing financial obligations possibly over other bills.
• The increased move towards partial payments in metro areas such as Seattle, Los Angeles, and Atlanta suggest that operators and residents are developing payment plans together, and properties are supporting their residents in paying what they can, when they can.

Stay tuned for our next rent payment analysis coming out on May 6th, after the grace period ends (traditionally the first five days of the month).

Important statistical note: Despite the measured payment fluctuations based on the sample set, the variance is within normal statistical range. In other words, the changes are not necessarily significant enough to attribute specifically to COVID-19 versus normal fluctuations expected across the data set. Please reference full Methodology below.

Methodology

Rent payment data is actual transactional data sourced from integrations with property management systems in the multifamily industry.

Analysis includes a 96,268 unit sample from 1,029,428 live units under management by LeaseLock clients. Data is nationwide, representing over half of the NMHC Top 10 property managers in the country and all asset classes (A, B and C). Asset class composition: class A (36%), class B (55%) class C (9%).

All data has been anonymized to remove personally identifiable information for renters and property managers.

Important statistical note: Despite the measured payment decline based on the sample set, the variance is within normal statistical range. In other words, the decline is not significant enough to attribute specifically to COVID-19 versus normal fluctuations expected across the data set. Please reference full methodology in footnote.

Now that we’re halfway through the month, we’ve decided to take a mid-month look at rent payment behavior from April 1-15 to evaluate any shifts since publishing our Rent Payment Report. Nationwide, we see a 7% decrease in total rent collected in April compared to the average month, a trend which has continued as rent payments trickle in. Drilling down, we see a growing movement towards partial payments in major metros like Los Angeles, Seattle, and Atlanta.

Mid-April Rent Payments Continue Downward Trend

After a brief spike in payments on the first of the month, full rent payments have continued tracking roughly below average in April. Interestingly, on April 6-8th, the days immediately following the traditional grace period, the percent of renters who made full rent payments stayed mostly the same — if not marginally higher — than average. This minor boost could have been due to grace period extensions, or because April 5 fell on a Sunday and leasing offices were unable to process checks until April 6.

As the month trailed on, however, rent payments fell again. Despite federal stimulus checks being sent to qualified Americans over the past several days, April full rent payments are holding below average, and this trend appears to be continuing on a slight downward trajectory moving into May.

Mid-April Rent Payments Continue Downturn In Most Metro Areas

When we look at locational trends, we see that the drop in full rent payments in Los Angeles remains significant, as found in our earlier analysis. Atlanta and Detroit still show dips in April full rent payments as well, while Seattle actually saw a slight increase—but as we’ll dive into below, the amount paid by partial rent payers has dropped significantly in the Seattle area.

The number of renters who made some form of rent payment dropped in both Los Angeles, Atlanta, and Detroit. Denver held steady, while Seattle showed a slight increase in the percent of renters making April rent payments, as noted above.

Cities like Seattle and Los Angeles Show Movement Toward Payment Plans

However, as we found in our early April reporting, the total percentage of owed rent paid by partial payers declined dramatically in Seattle. So, although Seattle renters made more overall rent payments in April, the portion of total rent paid by partial rent payers dwindled substantially. This could be due in part to operators working in advance to offer payment plans in Seattle, which was hit early on by the crisis. This rent payment gap effect also increased in Atlanta over the last several days.

It’s likely that the growing movement towards partial payments is due to operators proactively adopting payment plans, especially in metro areas like Atlanta, Los Angeles, and Seattle.

Our April Rent Payment Report aims to inform apartment operators and the wider multifamily industry about important rent behavior trends during the COVID-19 crisis. Read below for a brief summary of key findings.

April Rent Payment Report Shows Fewer Full Payments, More Partial Payments

While full rent payments made on April 1 returned better-than-expected results, we observed a 5% decline in full rent payments over the trailing five day grace period. Partial rent payments showed 6% growth across all markets, while major metro areas like Seattle and Los Angeles saw measurable decreases in total rent paid at -10% and -9%, respectively.

The COVID-19 public health emergency appears to be the driving force behind a nationwide movement towards partial rent payments, as operators deploy deferred rent payment plans to residents and waive resident fees.

Our full COVID-19 Rent Payment Report provides insights on:

• Changes in rent payment behavior for the month of April
• Notable shifts towards partial payment behavior 
• Adoption of COVID-19 deferred payment plans
• Comparisons and trends across major metro areas
• Behavior and impact by asset class

Important statistical note: Despite the measured payment decline based on the sample set, the variance is within normal statistical range. In other words, the decline is not significant enough to attribute specifically to COVID-19 versus normal fluctuations expected across the data set. Please reference full methodology in footnote.

While the effects of shelter-at-home laws, eviction moratoriums, and rising unemployment rates remain to be fully seen, many operators moved quickly to communicate and support residents in the lead up to April. In this analysis we break down actual data on April 1st rent payments exclusively, and zero in on interesting behaviors that played out in Seattle – which may foreshadow where other major metro areas are headed.

Across the multifamily industry, we see that about 14% of renters make a payment on the first of the month. Many of these are reliable rent payers who regularly pay on the first each month, in some cases through scheduled auto-pay. More recently, however, we also see fluctuations in first-of-the-month payments, especially in relation to partial payments.

Nationwide April 1st Rent Payments Held Steady

Comparing the percentage of people who paid full rent on April 1st, 2020 to the average who paid full rent on January, February and March 1st combined, we see that April 1st rent payments have not taken a dip — and in fact, have slightly increased on a national level.

This holds true when looking at select cities across the nation, including Los Angeles, Detroit, and Seattle.

Seattle Sees an Increase in Partial Rent Payments

Seattle, the initial epicenter of the US COVID-19 outbreak — and the first metro area to go on lockdown — demonstrated some unique variations in payment behavior on April 1st. This could foreshadow the economic effects that will hit renters across the nation in the upcoming weeks and months.

20% of Seattle renters paid rent in full on April 1st (as noted in the chart above) – these likely represent those reliable first-of-the-month rent payers. However, for renters who made a partial payment on the 1st, the percentage of total owed rent they paid on the 1st dropped significantly in March and April. Seattle renters who made a partial payment on April 1st only paid an average of 33% of total rent owed, compared to 61% of rent owed in the beginning of the year.

That being said, the percentage of people who made some form of payment (over $100, to exclude other fees) on the 1st of the month actually rose in Seattle, across many metro areas and nationwide. This suggests that renters are trying to make some form of payment, and also possibly that property managers have been successfully proactive about creating payment plans with affected residents.

What can we take away from this? So far, first-of-the-month rent payment behavior has only shifted minimally on a nationwide scale, but zooming into geographical hotspots forecasts potentially significant shifts in partial rent payment behavior in May.

The good news — with hard-hit regions seeing an increase in payments overall, it suggests the willingness of both apartment operators and renters to find solutions together. We look forward to sharing more rent payment data as it rolls in over the weekend, after the default period ends on April 6th, and again on May 1st.

Update: Preliminary Findings for April 2nd Rent Payments

On the morning of April 3rd, we repulled rent payment data for April 2nd. The percent of renters who paid full rent on April 1-2nd combined, compared to the same period during the 3 previous months, dipped slightly by 1.17%. This fluctuation rate is within the range of normal — as a point of comparison, the percentage of renters who paid full rent during the 1st – 2nd of the month dropped by over 2% between February and March. This demonstrates fairly consistent rent payment behavior thus far, but we expect that numbers will change as we move towards the end of the grace period, so stay tuned.

Methodology

Rent payment data is actual transactional data sourced from direct integrations with property management systems in the multifamily industry.

Analysis includes a 96,268 unit sample from 1,029,428 live units under management by LeaseLock clients. Data is nationwide, representing over half of the NMHC Top 10 property managers in the country and all asset classes (A, B and C). Asset class composition: class A (36%), class B (55%) class C (9%).

All data has been anonymized to remove personally identifiable information for renters and property managers.