Here are the latest numbers on delinquency rates and the eviction moratorium.
Yesterday, Chanel 3 here in Las Vegas reported that mom-and-pop landlords have a 56% delinquency rate since the eviction moratorium ended. Today I want to discuss this report and find out what’s happening.
When this report first appeared, it had a lot of property managers upset because it didn’t seem to reflect their reality. Today I was able to read a study commissioned by the Nevada Association of Realtors on delinquency rates that tracked the stat from March 2020 to February 2021. This time frame is important because most property managers haven’t seen any rental assistance money until the last few months.
The total number of self-managed landlords in this study was 22, while the total number of property managers was 118. The landlords represented 1,144 units while the property managers represented a little under 21,000. These two groups were then broken up into different groups by size. Out of the landlords that qualified as mom-and-pop’s, there were only six units.
This means that the 56% delinquency rate number we keep on hearing is coming from only six units. We can see that self-managed landlords with over 100 units only had a 9.7% delinquency rate. The numbers are even lower for property managers.
The takeaway is this: When you have professionals managing your units, you have better tenets, you’re more prepared for changing mandates, you’re more prepared to receive rental assistance, you’re better educated on your properties, and you can get everything organized sooner. These numbers prove it.
So yes, small mom-and-pop landlords have been greatly affected by the pandemic and eviction moratorium. However, the number of evictions since the moratorium was lifted has only been 3.3%. It looks like landlords and property managers have handled the situation well considering the circumstances.
Today’s topic was pretty complicated, so if you have any questions, please reach out to me. I would be happy to answer any of your concerns.