With unemployment rates still higher than average, and many parts of the country still locked down, many experts were worried that renters would default on their rent, hence the eviction ban. However, following trends that things are on an upswing, nine out of ten renters will pay their rent in full by the end of this month according to Apartment List. This is a vast improvement from just the beginning of this month, where 32% of renters were late on their rent payment.
So what does this mean for you, a future or current homeowner or investor? Well, because the vast majority of tenants are paying their rent, those landlords are able to pay the mortgages on those properties. Otherwise, these landlords would have pay the mortgage out of pocket until 2021, once they’re able to evict the tenant. Now that most rents are being paid, these landlords do not have to risk foreclosing on these properties if they cannot afford to pay the mortgage out-of-pocket. As a result, property values are very unlikely to take a nosedive in the near future.