Residential tenants are facing rent payment issues due to the pandemic, but many delayed payment requests are being accommodated by property owners, according to a National Association of Realtors® survey.
Forty six percent of property managers reported that they have been able to accommodate tenants who have not been able to pay rent, and 27 percent of individual landlords said the same. Only 21 percent of both property managers and landlords cited difficulty with accommodating delayed tenant rental payments.
Additionally, one-third of property managers said they had no issues with tenants paying rent, while over half of individual landlords had no issues.
Less than 10 percent of property managers and individual landlords reported that tenants were terminating their leases. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provides provisions on eviction prevention that, in effect, encourage property owners and tenants to work to find solutions to the short-term challenges caused by the pandemic. Many individual localities also have similar provisions in place.
While the market has experienced challenges, most Realtors® expect a post-pandemic real estate rebound once buyers and sellers return to the market as “delayed transactions”.
NAR Chief Economist Lawrence Yun said the activity looks to reappear later in the year. Additionally, "Home prices will remain stable because of a pandemic-induced reduction in inventory coupled with less immediate concerns over foreclosures."
As an essential service, real estate transactions are still proceeding, with accommodations such as e-signatures, social media, messaging apps, and virtual tours taking the place of some in-person interactions. Thirty-four percent of Realtors® said they have had no delays in closings.
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