HOUSTON, TX – J Turner Research predicts a rent collection of 84.28% by June 10, an increase of about 5% over the previous month at the same time. Earlier in May, J Turner predicted a rent collection of 80.8%. This prediction was within a percentage point of actual rent receipt of 80.2% as of May 6, as reported by the National Multifamily Housing Council (NMHC)’s Rent Payment Tracker.
“If our numbers are as on target as last month, rent receipts will be stronger than May, which bodes well for the industry,” said Joseph Batdorf, President of J Turner Research.
The June rent estimate study was conducted from May 22 to May 31. The key findings of the study are listed below:
Housing Payments - Slightly more than seventy-four percent (74.68%) of respondents indicated that they would be able to pay their rent on time, as compared to last month. In J Turner’s May rent estimate study, 70% of respondents said that they would be able to pay rent on time. The percentage of residents optimistic about making their rent payment has increased from May. This month 9.6% indicated they might be unable to make the payment, whereas last month 14% said that they might not be able to make the payment.
Employment status - Over 9% of respondents have responded that they have been furloughed or laid off from their job with an additional 5% of respondents indicating they were self-employed. Self-employed residents said their business revenues are significantly impacted. Fifty-one percent of residents who reported being furloughed/laid off said they would be able to pay the rent for June on time.
The number of unemployed respondents is somewhat less than the latest national numbers with 16% of the workforce filing for unemployment. Interestingly, the number of respondents that said they had been furloughed or laid off (9%) tracked closely with the percentage of respondents indicating they might not be able to pay rent for June (9.58%).
Future personal expenses - Rental payments continue to be of most concern to respondents and a priority over car payment, utilities, and even groceries. In May, while 53% of respondents were concerned about rent payments, in June this percentage is down to 47%. The percentage of “I am not concerned at this point” has gone from 35% in May to 39.8% in June.
Opening-up the economy - Looking to the future, respondents in the June rent estimate study indicate a cautious outlook about opening the economy with nearly 35% choosing “better to be safe than sorry,” 49% prefer opening the economy in phases and 16% selecting “open it up completely.” There is an improvement in people’s outlook towards opening the economy since May – nearly 54% chose “better to be safe than sorry,” 39% opted for opening the economy in phases, and 6% selected “open it up completely.”
Public gatherings - An overwhelming percentage (over 81%) of respondents stated that they were avoiding public gatherings due to the coronavirus. People seem to be warming up to the idea of being in a crowd. In May 94% of respondents expressed avoiding public gatherings.
Vehicle payment - 70.86% of respondents expressed that they will be able to pay their vehicle payment on time, and 13.73% of respondents said that they might not be able to make the June payment on their vehicle.
About J Turner Research: J Turner Research is the leading full-circle online reputation management firm that empowers multifamily companies with data to drive revenue. With our unique 360-degree process, we enable companies to enhance resident satisfaction, increase closing ratios, and improve online reputation. Our Online Reputation Assessment™ (ORA™) score serves as the industry standard for measuring a property’s online reputation. www.jturnerresearch.com
For any information on participating in our rent estimate study , please contact jbatdorf@jturnerresearch.com