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Independent Landlord Rental Performance Report: July 2025
- The Chandan Economics Research Team
- 3 days ago
- 4 min read
Monthly Tracker of On-Time Payments in Non-Institutional ("Mom-and-Pop") Rental Properties
Key Takeaways
In July 2025, the on-time payment rate in independently operated rental units fell by 20 basis points (bps), dropping to 83.6%.
On-time payment rates have fallen year-over-year for 24 consecutive months.
The forecast full-payment rate fell to 93.4%, marking a post-pandemic low.
Western states continue to hold the highest on-time payment rates in the country, led by Idaho, Alaska, Utah and Montana.Â
2-4-family rental properties rentals held the highest on-time payment rates in July, coming in at 84.0%.
National Overview
On-time rental payments in independently operated units fell again in July 2025 — another warning sign that the financial health of renter households is under stress. According to this month’s first estimate, 83.6% of units paid their full rent on time — a decline of 20 basis points (bps) from June.
Additionally, June’s on-time payment rate, initially reported at 84.3%, has been revised down to 83.8%. In total, the on-time rate has declined by 229 bps over the past four months, illustrating a sharp performance drop-off.
The only glimmer of optimism in the July data is that the pace of deterioration has slowed. After the on-time payment rate cratered by 68 bps and 128 bps in May and June, respectively, July’s slide was modest.
Year-over-Year Decline
Compared to a year earlier, the rate is down a sizable 209 bps. While that is the second-largest annual decline in the post-pandemic era, it’s an improvement over the prior month’s movement (-226 bps). Nonetheless, July’s year-over-year decline marks two straight years of performance deterioration, as on-time payment rates have now fallen for 24 consecutive months.
Note: As of May 2024, monthly data estimates are reported as a three-month moving average.
Full-Payment Forecast
The forecast full-payment rate for July 2025 — which accounts for on-time, late, and historically anticipated late payments — also fell, landing at 93.4%, down 11 bps from the prior month. This marks the lowest reading since December 2020, when the rental economy was still in the throes of the pandemic.
All-Property Type Trends Analysis
The national rent collection trend points to a worsening financial picture for households living month-to-month. The NY Fed’s Q1 Survey on Household Debt and Credit underscores this, with auto loan and credit card delinquencies rising to fresh cyclical peaks. Further, student loan delinquency rates have surged back to a five-year high as collections resumed earlier this year. Altogether, economic stress is mounting — particularly for younger and lower-income households.
Performance by Property Type
Trends within key rental subsectors reveal a growing performance gradient. Of the three tracked property sub-types, properties with 2-4 rental units led the way in July 2025, with the subsector holding an on-time payment rate of 84.0%. Single-family rentals (SFR) followed next with an on-time payment rate of 83.6%. Holding up the rear are multifamily properties with an average on-time collection rate of 82.4%. Notably, the spread between the best performing (2-4-family) and the worst performing (multifamily) property types have widened to 162 bps, which is the largest spread since May 2024. Â
Regional Differences
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 July 2025 in Idaho (93.5%) — followed by Hawaii (92.3%), Alaska (91.6%), Utah (91.2%) and Montana (91.1%). It is not until the No. 9 spot on the list that a non-Western state (New Hampshire, 90.3%) appears.
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Compared to one year earlier, Missouri (+617 bps), Alabama (+321 bps), and the District of Columbia (+256 bps) saw the most improvement. Meanwhile, collection rates have deteriorated most in West Virginia (-1002 bps), Vermont (-718 bps), and Massachusetts (-675 bps). Out of the 50 states, plus the District of Columbia, only 11 saw improving on-time payment rates from a year earlier.
Data Findings: By Property Type
Data Findings: By State
Importance of the Report
The Independent Landlord Rental Performance report provides valuable insights into how well non-institutional landlords are managing rental payments. It uses data from property management software RentRedi, showcasing results from 68,051 units. Information is collected and reported monthly by Chandan Economics. The trends highlighted here can serve as a benchmark for investors, brokers, and policymakers to understand the health of independent landlords in the rental market.
About: Chandan Economics
Chandan Economics is a leading economic advisory firm that caters to the commercial real estate industry. Their services include economic research, data science, and litigation consulting.
About: RentRedi
RentRedi provides a comprehensive property management platform that enhances the renting experience for both landlords and tenants. This all-in-one application allows landlords to collect rent, manage vacancies, screen tenants, and handle accounting all from one place. Tenants can pay rent, enable auto-pay, and submit maintenance requests via their user-friendly mobile app.
Methodology
Data are reported on a forward basis from March 2020 through July 2025. The sample includes 68,051 units and measures rent charges on a 15-to-15 month basis. Various exclusions are applied to ensure the accuracy of the sample, including charges below $500 and above $10,000.
This comprehensive report not only tracks on-time payments but also offers insights into broader trends impacting the rental market, making it invaluable for all stakeholders involved.