Residential Rental Monitor - 2020 Q1

The Impact of Lockdown

By: Michelle Dickens

Good standing tenants have two important qualities, both a willingness and the ability (affordability) to pay their monthly rent. A good standing tenant settles their rent in full either on time (paid on time) or by the end of the month (paid late).

Residential tenants in good standing remained fairly flat at 81.52% for the first quarter of 2020, slightly lower than the 81.88% the previous quarter. The reality is that there has been a slow and steady deterioration of tenants in good standing from the peak of 85.95% in the 2013/4 period.

This slow and steady deterioration of 5.43% over the last 6 years, hardly noticeable in comparison to the overnight drop of 5.19% in good standing in a single month between March and April thanks to the effect of Lockdown. Preliminary data shows an April good standing of 76.33%, May of 71.44% and June currently only 62.43%. An important footnote is that there is still a week left of June collections, and as tenants receive their June salaries, many will make late payments pushing the June good standing up.

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