Last month, I addressed an article that nearly a THIRD of Tenants were unable to pay April Rent…here is what happened with those tenants, enjoy! Add me on Instagram: GPStephan
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A little over month ago, almost down to the day, articles were flooding the internets with the big, giant bold claim that: Nearly a Third of U.S. Apartment Renters Didn’t Pay April Rent
https://www.wsj.com/articles/nearly-a-third-of-u-s-renters-didnt-pay-april-rent-11586340000
First, almost every single article mentioned that the Vice President of the National Multi-Family Housing Council, who were the ones that conducted the survey in the first place…said that “The New Data For April With Historical Data is not a true representation of how rent payments are progressing.” The issue was that the cutoff for paid rent ends on the 5th of the month…and, since April 4th was a Saturday and April 5th was a Sunday, payments made during those days would not be counted until Monday, April 6th…AFTER the data was already analyzed.
Second, this only counted tenants who paid ON TIME…and IGNORES all the payments that just happen to be a little late. During times like this, I think it’s UNDERSTANDABLE if tenants wind up needing a few extra days to pay their rent.
However - here’s what happened. Even though nearly 1/3rd of tenants didn’t pay their rent by April 5th…once we count April 6th, just like I predicted…the number of tenants who paid their rent SPIKED UP all the way to 78%. Within a week after that, 85% of tenants paid their rent…and by the VERY END OF THE MONTH…94.6% of tenants paid their rent.
https://www.nmhc.org/rentpaymenttracker
Now, of course…when we compare that to LAST YEAR, APRIL 2019…it was found that 97.7% of tenants paid their rent…so, based on one month of data, we’ve only seen an increase of 3.1% not paying their rent…which, lets be real, is FAR from the figure previously reported on.
As for THIS MONTH NOW, IN MAY….it was shown that 80.2% of tenants paid rent on time, as calculated by the 6th of the month…compared with 81.7% which had paid their rent during the same time in 2019.
Now, as far as whether or not this trend continues is up in the air…although, to me, it’s not too surprising that so many people continued paying their rent, for two reasons:
One is how rent payments are structured
As it stands, missed rental payments are NOT forgiven -meaning, if you don’t pay, you’re still going to owe the rent at some point in the future - and, even though many counties have enacted a RENT FREEZE which would temporarily prevent the landlord from filing an eviction, it doesn’t STOP the landlord from collecting payment at a later date.
Two, I have NO DOUBT that the Stimulus and Unemployment benefits have helped, to a certain degree.
If people are able to collect an ADDITIONAL $600 per week from the Illness, on top of their normal unemployment benefits…I think it’s no wonder that the amount of tenants who were unable to pay is as LOW as it is, to be honest.
The BIGGEST elephant in the room here is that the $600 per week unemployment benefit is set to expire on July 31, and…after that…we have NO CLUE if things are going to continue. IF businesses open back up by July…I THINK missed rent payments will be held to a minimum by the time the increased unemployment benefits expire. HOWEVER…IF there’s no new stimulus, AND our economy isn’t opened back up, AND people are still out of work - then I would absolutely expect these rental numbers to look a LOT different, with many more tenants unable o pay.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.
Get 2 FREE STOCKS ON WEBULL when you deposit $100 (Valued up to $1400): https://act.webull.com/k/Vowbik9Tm5he/main
JOIN THE WEEKLY MENTORSHIP - https://the-real-estate-agent-academy.teachable.com/p/graham-stephan-mentorship-program/
The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://bit.ly/2STxofv $100 OFF WITH CODE 100OFF
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
A little over month ago, almost down to the day, articles were flooding the internets with the big, giant bold claim that: Nearly a Third of U.S. Apartment Renters Didn’t Pay April Rent
https://www.wsj.com/articles/nearly-a-third-of-u-s-renters-didnt-pay-april-rent-11586340000
First, almost every single article mentioned that the Vice President of the National Multi-Family Housing Council, who were the ones that conducted the survey in the first place…said that “The New Data For April With Historical Data is not a true representation of how rent payments are progressing.” The issue was that the cutoff for paid rent ends on the 5th of the month…and, since April 4th was a Saturday and April 5th was a Sunday, payments made during those days would not be counted until Monday, April 6th…AFTER the data was already analyzed.
Second, this only counted tenants who paid ON TIME…and IGNORES all the payments that just happen to be a little late. During times like this, I think it’s UNDERSTANDABLE if tenants wind up needing a few extra days to pay their rent.
However - here’s what happened. Even though nearly 1/3rd of tenants didn’t pay their rent by April 5th…once we count April 6th, just like I predicted…the number of tenants who paid their rent SPIKED UP all the way to 78%. Within a week after that, 85% of tenants paid their rent…and by the VERY END OF THE MONTH…94.6% of tenants paid their rent.
https://www.nmhc.org/rentpaymenttracker
Now, of course…when we compare that to LAST YEAR, APRIL 2019…it was found that 97.7% of tenants paid their rent…so, based on one month of data, we’ve only seen an increase of 3.1% not paying their rent…which, lets be real, is FAR from the figure previously reported on.
As for THIS MONTH NOW, IN MAY….it was shown that 80.2% of tenants paid rent on time, as calculated by the 6th of the month…compared with 81.7% which had paid their rent during the same time in 2019.
Now, as far as whether or not this trend continues is up in the air…although, to me, it’s not too surprising that so many people continued paying their rent, for two reasons:
One is how rent payments are structured
As it stands, missed rental payments are NOT forgiven -meaning, if you don’t pay, you’re still going to owe the rent at some point in the future - and, even though many counties have enacted a RENT FREEZE which would temporarily prevent the landlord from filing an eviction, it doesn’t STOP the landlord from collecting payment at a later date.
Two, I have NO DOUBT that the Stimulus and Unemployment benefits have helped, to a certain degree.
If people are able to collect an ADDITIONAL $600 per week from the Illness, on top of their normal unemployment benefits…I think it’s no wonder that the amount of tenants who were unable to pay is as LOW as it is, to be honest.
The BIGGEST elephant in the room here is that the $600 per week unemployment benefit is set to expire on July 31, and…after that…we have NO CLUE if things are going to continue. IF businesses open back up by July…I THINK missed rent payments will be held to a minimum by the time the increased unemployment benefits expire. HOWEVER…IF there’s no new stimulus, AND our economy isn’t opened back up, AND people are still out of work - then I would absolutely expect these rental numbers to look a LOT different, with many more tenants unable o pay.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.
I think being a landlord is just like having a roommate you have to be able to know that you can afford it all on your own because no matter how hard you try to plan things will come up
Why do you always look OVERLY dramatic in the pictures??? Almost ALL your videos have the same dramatic look with slightly different titles
13 minute video with 6 minutes of ads….
Graham purchased rental properties in 2012 , but graham has had tenant that he has not raised rent on since 2011.
Have your tentents on welfare. They allway pay.
I would have liked this video if I didn't get 2 ads in the video 😒
This coronavirus is giving this economy a Chance to adjust the have plentiful and the have not in the street for equalization maybe
Do a quick google search for ECOM BAZZOID someone posted your courses Graham
Do a quick google search for ECOM BAZZOID someone posted your courses Graham
uhhhhh ,, you're just wakingup to the issue of overinflated housing costs coupled with decreased purchasing power for the american people? that's been going on for decades
this shows you might be an out of touch property owner, i dont know you personally, but the affordable housing crisis, lack of purchasing power for americans, the lack of consumer power etc have been ongoing issues
i wish every landlord was so understandable like u 🙁
Love you Graham 🙏🏼
3.1 percentage points- not 3.1 percent
Do you own bitcoin yet?
Squatting can't possibly be morally wrong. Wdym you shouldn't be squatting? Squatting is great
THE RENT IS STILL TOO DAMN HIGH
stay woke Graham
Unfortunately there are many of us who not able to pay our rent due to this pandemic
It really sucks for years here in California once all this is lifted you can’t raise peoples rent or evict anyone for 12 months Doesn’t the stimulus package that was created for landlords cover your tenants unpaid rent? And I’m curious to know if you guys have to pay that back or do landlords get to double dip?
You may have answered this question for the rancher video but unfortunately I get annoyed watching videos that with Commercials. I don’t mind one commercial but when there are more than one it quickly becomes annoying
I dare you to watch my new video😯I’ll give you a cookie
Graham; I suggest you make a video about the Care's Act and how it affects rents. Please let all know that tenants who are working or collecting unemployment from their state plus $600 from the Federal government are not paying and will not get evicted due to our politicians.
Wanna be friends? Click the acorn
Scary thought!! But This seems to have been a short lived recession!! As long as the next waves are short enough the economy will fly up high like my airline stocks now lol!!
The like button meme is getting more elaborate… more advanced
I think you should rename this vedio. Maybe something like "covid 19 rent inpact".
Great vedios overall, long time loyal watcher of your vedios.
Fools, they shouldt pay!
2 weeks later…. we are nowhere closer to a stim check… thye are playing with us.
Americans are hopelessly broke. One government check away from homelessness.
I just like to thank our government for "NOT", enforcing the hazard pay law to all jobs that were opened throughout the enforced lock down. Due to this, people who made less money than those on unemployment, felt like they had to jump ship from their rental property or homes. Not everyone, still to this day can pay their rent in full. They forgot how a lot of jobs cut the overtime pay as well as hours. They cut just enough hours for their workers to not be able to collect unemployment, but still had to go to work. So, if the government really need to step it up, for those people.
LEG REVEAL!
Good research Graham.
Why can’t Graham write the headlines for these yellow journalism papers?