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Key Takeaways
In January 2025, the on-time payment rate in independently operated rental units slipped by 70 basis points (bps), falling to 85.0%.
The forecast full-payment rate also dropped off by a sizable 79 bps during the month, declining to 93.8% in December.
Western states continue to hold the highest on-time payment rates in the country, led by Idaho, Utah, Nevada, North Dakota, and Colorado.Â
2-4-family rental properties and single-family rentals held the highest on-time payment rates in January, coming in at 85.2%.
National Overview
On-time rental payments in units operated by independent landlords dropped off to start the new year. In January 2025, 85.0% of units successfully paid their full rental bill on time, falling by 70 basis points (bps) from the prior month. Measured from a year earlier, the dip is an even more substantial 112 bps. On-time collections had stabilized for the latter half of 2024, holding between 85.4% and 85.8% from July through December. The January 2025 estimate marks a departure from the recent positive trend line. As it currently stands, this month’s on-time collection rate is the lowest on record since April 2021. However, first estimates are subject to revisions as additional data for the month are received. Resultingly, the January 2025 deterioration should be taken with a cautious grain of salt.  Â
Note: As of May 2024, monthly data estimates are reported as a three-month moving average.
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Beyond the on-time payment rate, other January data points present a similar picture of the rental sector slipping during the month. January’s forecast full-payment rate, which includes on-time payments, late payments, and expected late payments based on historical trends, fell to 93.8% — a 79 bps drop off from December’s 94.6%. The forecast full payment rate sat as high as 96.2% as recently as this past October, with the January 2025 forecast coming in 241 bps lower than its recent peak.
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Trends within key rental subsectors reveal a slight performance gradient — but the trend of declining performance this month is consistent across the board. Of the three tracked property sub-types, properties with 2-4 rental units led the way in January 2025, with the subsector holding an on-time payment rate of 85.2%. Single-family rentals (SFR) followed next with an on-time payment rate of 85.0%. Holding up the rear are multifamily properties, which had an average on-time collection rate of 85.0%. Notably, while on-time payment rates were lowest in the multifamily subsector, the property type saw the mildest month-over-month decline (-47 bps). SFR and 2-4 family rentals saw more significant monthly dips in January, totaling 74 bps and 81 bps, respectively.
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Measured at the State level, as has become a consistent trend, western-located properties continue to outperform the rest of the country. On-time payment rates stand highest in January 2025 in Idaho (93.6%) — followed by Utah (93.2%), Nevada (92.9%), North Dakota (90.8%) and Colorado (90.8%). It is not until eighth on the list that a non-Western state (New Hampshire, 89.0%) appears.
Data Findings: By Property Type
Data Findings: By State
About This Report
The Independent Landlord Rental Performance report is a real-time look at how well non-institutional operators are collecting owed monthly rental payments. Utilizing data provided by property management software RentRedi, these findings have a reduced sample size of 106,232 units, which are analyzed and reported by Chandan Economics. Where sample size quality meets sufficient reporting standards, data are offered from March 2020 forward, and new trends and analyses are reported monthly. Performance trends are discussed nationally, as well as along the lines of residential property type and geography.
Data contained within this report offer investors, brokers, academic researchers, and policymakers a benchmark to track the performance and health of independent landlords.
About: Chandan Economics
Chandan Economics is an economic advisory and data science firm serving the commercial real estate industry. The firm's primary businesses include real estate data science (REDS), economic & market research, and litigation consulting.
About: RentRedi
RentRedi offers an award-winning, comprehensive property management platform that simplifies the renting process for landlords and renters by automating and streamlining processes. For landlords, RentRedi provides all-in-one web and mobile apps to collect rent, list and market vacancies, find and screen tenants, sign leases, and manage maintenance and accounting. For tenants, RentRedi’s easy-to-use mobile app allows them to pay rent, set up auto-pay, build credit by reporting rent payments to major credit agencies, prequalify and sign leases, and submit maintenance requests.Founded in 2016, RentRedi is VC-backed and a proven leader in the PropTech market. The company ranks No. 180 on the 2024 Inc. 5000 list, No. 12 on the Inc. 5000 Regionals list, and was named an Inc. Power Partner, a GetApp Category Leader, a Capterra Established Player, and a G2 High Performer and Momentum Leader based on the software’s user ratings and popularity. To date, RentRedi has more than $35 billion in assets under management with nearly 200,000 landlords and tenants using the platform. The company partners with technology leaders such as Zillow, TransUnion, Experian, Equifax, Realtor.com, Plaid, and Stripe to create the best customer experience possible. For more information visit RentRedi.com.
Methodology
Data are reported on a forward basis from March 2020 through January 2025 (current reporting period). As of the latest month of data availability, the reduced unit sample size totals 106,232. Rent charges are measured on a 15th-to-15th-of-the-month basis. Rent charges that are issued after the 15th of the current month are treated as a rent charge for the following rent-tracking period. (E.g., a rent charge sent on December 16th would be treated as a charge corresponding to January's owed rental payment.) Monthly estimates are represented as a three-month moving average.
Only charges designated as "rental income" are included for analysis. Rent charges below $500 and above $10,000 are excluded from this analysis.
Units that have not paid any form of rental income (full or partial) in the previous 60 days at the time a new rental charge is issued are removed from the sample tracking sample. Unpaid units refer to all units that have yet to fully satisfy their owed rents for a collection period. These unpaid units include units that have only partially paid their rent. As a means of reporting standardization, units with more than one monthly rent charge (E.g., rent paid weekly) are removed from the rent tracking sample.
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