MHN’s May 2020 Must-Reads
- Jun 02, 2020
The coronavirus crisis continued in May and deepened its effects on the U.S. economy, in general, and the multifamily market, in particular. By month’s end, more than 40 million people lost their jobs since March, surpassing the number of jobs lost during the Great Depression. As a result, rent collection was on everyone’s mind. A poll released in early May showed that multifamily professionals expected fewer residents to make their rent payments on time compared to the previous month. However, according to NMHC figures from a few days later, rent payments in May reached 80 percent in the U.S. The percentage of those who paid their rent on time continued to increase throughout the month, reaching 88 percent by mid-May and 91 percent the following week, far above early predictions. In addition, a new Rentec Direct report highlighted that, while rent payments fell in April and May, rents were more likely to be paid by those with online rent payment options. And to get a broader picture of how property managers address rent collection, we spoke with RKW Residential’s Marcie Williams about strategies going forward.
But the expectation is that, as the number of jobless individuals continues to rise, rent payment will remain an issue over the coming months. To help renters and landlords, two relief bills have been proposed in the House and Senate. What’s more, less than 40 percent of households have received government housing relief, with tens of millions of renters at risk of eviction or foreclosure in the event of a prolonged downturn.
With the highest number of confirmed cases in the country, New York remained the center of attention last month. The state extended its eviction moratorium, prohibiting landlords from evicting residents for COVID-19-related reasons until August 20. The news came a few weeks before the Community Housing Improvement Program revealed the result of a survey that found owners of rent-stabilized buildings are experiencing significant shortfalls in rent due to the current crisis.
Among property types, senior housing is by far the hardest hit, with almost a third of all coronavirus deaths in the country as of mid-May being either residents or workers in such facilities. As a result, senior housing operators discussed how they’re responding to challenges during these unprecedented times.
Here are MHN’s must-reads for last month: