Independent Landlord Rental Performance Report: June 2025

Monthly Tracker of On-Time Payments in Non-Institutional ("Mom-and-Pop") Rental Properties

Key Takeaways

• In June 2025, the on-time payment rate in independently operated rental units fell by 85 basis points (bps), dropping to 84.3%.

• On-time payment rates have fallen year-over-year for 23 consecutive months.

• The forecast full-payment rate fell to 94.0%, marking a new post-2021 low.

• Western states continue to hold the highest on-time payment rates in the country, led by Montana, Utah, Hawaii, Alaska, and Idaho. 

• 2-4-family rental properties rentals held the highest on-time payment rates in June, coming in at 84.6%.

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National Overview

On-time rental payments in independently operated units dropped meaningfully in June 2025 — offering a stark warning about the financial health of renter households in a high-uncertainty economic environment. According to this month’s first estimate, 84.3% of units paid their full rent on time — a decline of 85 basis points (bps) from May.

Additionally, May’s on-time payment rate, initially reported at 85.5%, has been revised down to 85.2%. In total, the on-time rate has declined by 154 bps over the past three months.

Year-over-Year Decline

Compared to a year earlier, the rate is down a sizable 171 bps — the steepest annual drop since April 2024. Most notably, year-over-year on-time payment rates have now declined for 23 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 June 2025 — which accounts for on-time, late, and historically anticipated late payments — also fell, landing at 94.0%, down 39 bps from the prior month. This marks the lowest reading since January 2021, when the rental economy was still emerging from the depths of the pandemic.

All-Property Type Trends Analysis

Altogether, the national rent collection trend is adding another brushstroke to an increasingly worrisome picture. With student loan collections resuming and credit card delinquencies up 15% over the past year, economic stress is mounting — particularly for younger and lower-income households. While the rent data do not suggest an imminent collapse, they clearly signal that more US renters are struggling to keep up with monthly financial obligations.

Performance by Property Type

Trends within key rental subsectors reveal a slight performance gradient. Of the three tracked property sub-types, properties with 2-4 rental units led the way in June 2025, with the subsector holding an on-time payment rate of 84.6%. Single-family rentals (SFR) followed next with an on-time payment rate of 84.3%.Holding up the rear are multifamily properties with an average on-time collection rate of 83.6%.

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 June 2025 in Montana (93.5%) — followed by Utah (92.3%), Hawaii (91.6%), Alaska (91.2%) and Idaho (91.1%). It is not until the No. 10 spot on the list that a non-Western state (Minnesota, 90.2%) appears.

Compared to one year earlier, Montana (+295 bps), Arizona (+238 bps), and Louisiana (+209 bps) saw the most improvement. Meanwhile, collection rates have deteriorated most in Vermont (-699 bps), Nevada (-599 bps), and Kansas (-573 bps). Out of the 50 states, plus the District of Columbia, only 16 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 73,502 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 Junel 2025. The sample includes 73,502 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.

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