Lehi-based property management technology provider Entrata has released the results of a study of the effects of the coronavirus pandemic on residential renters. The study found that 59 percent of renters used the full or partial amount of their stimulus check to help pay rent during the lockdown. The survey gives insight into the rental market, relations between renters and leasing offices and how the pandemic is shaping renters’ short-term plans.
“COVID-19 has affected people all over the world, and U.S. renters are no exception,” said Chase Harrington, president and chief operating officer of Entrata. “Our study shows that renters struggled to pay their full rent during the lockdown period, but in many cases, residents and management were able to come together to find a compromise and help ensure people were able to keep a roof over their heads. This pandemic will have lasting effects on the rental market as renters look for flexibility and new ways to pay rent and interact with landlords and managers.”
The study also found that over 78 percent of renters made significant cuts to their regular spending during COVID-19. On average, 22 percent of renters requested a postponement or cancellation of rent due to COVID-19 in the past six months, with 17 percent unable to pay rent. The study also found that renters weren’t very prepared when the pandemic hit, with nearly 20 percent of renters saying they did not have any savings and 39 percent of renters saying they had less than $1,000 in savings. Not surprisingly, any savings were soon gone for those whose employment was reduced or lost.
Some apartment communities were willing to be flexible, with 37 percent of renters saying management waived late fees during COVID-19.
The survey found that COVID-19 had a significant impact on nearly half (42 percent) of renters’ short-term housing plans.
Many were forced to make changes they weren’t expecting because of the pandemic, including renewing a current lease instead of buying a home (16 percent), moving to a cheaper apartment (13 percent) and moving in with relatives or friends (7 percent).
