Since the beginning of the pandemic, the rental market has seen a drastic change in both renters and homeowners. This change has affected many property owners giving them a fear of how they will be able to make their mortgage payments and keep their investment properties secure during the pandemic.
This change has come up with a fearsome question: what would happen if large numbers of tenants lost their jobs and couldn’t pay their rent? This was a concern for both tenants as well as landlords.
So let's take a deep look at how Covid-19 has affected the rental market - Renters and Landlords?
Undoubtedly, the covid-19 pandemic has affected the renters very deeply. Especially the individuals who lose their jobs due to the pandemic. This makes it hard for them to pay the rent and other expenses.
Unemployment in most states of the US has been increasing vastly since April 2020. Thus the number of people claiming unemployment insurance is also getting high. Losing a job leads an individual to face high economic hardship.
Due to this hardship, millions of renters face difficulty while paying rents. As per a report approximately, 16 percent of 11.4 million adults living in rental houses were not caught up on rent.
In the initial national analysis report released by the Federal Reserve Bank of Philadelphia, the California renters owe $1.7 Billion in unpaid rent. This report includes the analysis of household renter debt during Covid-19.
Based on this report they tracked the household's income change and analyzed how much households have insufficient funds to pay monthly rent and other non-housing costs.
According to the latest data of the weekly US Census, as federal, state, and local protections and resources terminate and in the nonexistence of robust and swift intervention, an estimated 30–40 million people in America could be at risk of eviction in the next several months.
Several researchers, advocates, and academics have put a great effort into analyzing the effect of the public health crisis and economic recession on the rental market during the pandemic. The analysis has stated that Covid-19 has affected economic hardship on renters. This economic hardship has been seen in almost every aspect of a renter. From household to paying EMIs and many other expenses are hard to afford by them during this crisis.
This analysis has come up with a prediction that if this economic hardship goes on in the same way, 29-43% of renter households could be at risk of eviction by the end of the year.
Approximately, 63 million adults that are 27 percent of all adults in the country have reported that it becomes very difficult for their household to cover usual expenses.
However, this difficult situation has been stabilized in early 2021 with the end-of-year relief package — including renewed jobless benefits and another round of stimulus payments — reached households.
The era of this Covid-19 pandemic has left a great impact and lesson for both real estate, & rental markets. Thus, homeowner and property managers and tenants are suggested to work with a property management company.
This will help the individual to be ready to overcome the challenges associated with property management. As we know property management is a very resilient industry and one that will live on through natural disasters, pandemics, economic collapses, and most any other catastrophic event.
This will enable them to avoid bad or delinquent tenants by getting an appropriate tenant background report. Also, this is the time to go for an online tool that will eliminate the risk involved with physical dealing.
To support the Rental Market, TenantDen has come across to help landlords and tenants by providing them a platform that enables them for Easy Property Listing, Virtual Property Showings, Online Payments, Online Maintenance Requests, Tenant Screen and Virtual Meetings, and much more.
Considering the economic hardship for Tenants and landlords, we allow them to access the Listing page for free. Nothing will be charged if someone is exploring and posting their property at TenantDen.
For help related to managing your property and protecting your real estate assets, get in touch with TenantDen today!