Independent Landlord Rental Performance Report: May 2025

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

Key Takeaways

• In May 2025, the on-time payment rate in independently operated rental units fell by 15 basis points (bps), sliding to 85.5%.

• On-time payment rates have fallen year-over-year for 22 consecutive months.

• The forecast full-payment rate held steady at 94.6%, which is down 298 bps from the post-pandemic peak

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

• 2-4-family rental properties rentals held the highest on-time payment rates in May, coming in at 86.2%.

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National Overview

On-time rental payments in units operated by independent landlords declined in May 2025 — offering a potential warning sign about the financial health of renter households. As of this month’s first estimate, 85.5% of units paid their full rental bill on time — a drop of 15 basis points (bps) from the prior month.

Additionally, April’s on-time payment rate, initially reported at 86.3%, was revised down to 85.7%. In total, the on-time payment rate has fallen by 28 bps over the past two months.

Year-over-Year Decline

Compared to a year earlier, on-time payments are down by a sizable 108 bps — the largest annual decline since August 2024. With April’s revision, the year-over-year on-time payment rate has now declined for 22 consecutive months.

Note: As of May 2024, monthly data estimates are reported as a three-month moving average.

Full-Payment Forecast

May 2025’s forecast full-payment rate — which includes on-time payments, late payments, and anticipated late payments based on historical patterns — held steady from April at 94.6%. As it stands, the 94.6% seen this month and last are the lowest full payment rates on record since March 2024.

All-Property Type Trends Analysis

Barring another “black swan”event, rent collection trends are unlikely to return to the depths seen during the pandemic. Still, they are tracking at the lower bound of normal since the rental market stabilized in 2021. Compared to post-pandemic highs, the on-time payment rate is down a cumulative 275 bps, and the full payment rate is down 298 bps. Against a backdrop of economic uncertainty and rising consumer credit distress, these data flash a yellow warning light for the months ahead.

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 May 2025, with the subsector holding an on-time payment rate of 86.2%. Single-family rentals (SFR) followed next with an on-time payment rate of 85.8%. Holding up the rear are multifamily properties with an average on-time collection rate of 85.1%.

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 May 2025 in Utah (94.0%) — followed by Colorado (91.6%), Washington (91.3%), Idaho (91.2%) and Montana (90.9%). It is not until the No. 11 spot on the list that a non-Western state (Virginia, 88.0%) appears.

Compared to one year earlier, Mississippi (+178 bps), North Dakota (+126 bps), and Minnesota (+105 bps) saw the most improvement. Meanwhile, collection rates have deteriorated most in West Virginia (-834 bps), Nevada (-769 bps), and Rhode Island (-745 bps). Out of the 45 states (and districts) that met reporting standards, only five (5) 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 108,089 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 April 2025. The sample includes 108,485 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.