Nearly One-Third Of Renters Don’t Pay Rent On Time For April

(ConservativePeak.Com)- The coronavirus pandemic has had a cascading effect on the economy in the United States.
Businesses in many industries were hard hit right from the beginning, as the demand for travel, for example, disappeared … or businesses were forced to close due to states’ stay-at-home orders.
The second wave of businesses being dramatically affected by the coronavirus just started to feel the pinch, though. With the turn of the calendar to April, recurring bills were due across the country. And one bill that people had trouble paying this month was rent.
According to a National Multifamily Housing Council Report, almost one-third of all renters in America didn’t pay their rent in April. Only 69% of renters paid their rent between April 1-5, out of the nearly 13 million units across the country. In the same time period last year, 82% of renters paid their rent on time.
What’s even more alarming, though, is that 81% of renters paid their rent by March 5 of this year, according to the report. This highlights just how swift and dramatic the coronavirus pandemic has decimated many people’s lives.
Dramatic job cuts have resulted in steep increases in unemployment claims around the country. And while help will be coming to many of these people in the form of unemployment benefits and even a boost from the federal government, there is a delay on when those funds arrive.
As such, many renters have had to make the tough decision to not pay rent so that they can pay for other necessities such as food.
While some renters will benefit from the federal stimulus package, which put a 120-day moratorium on evictions and late fees for those who live in federally-subsidized affordable housing, many people rent from private landlords. This means it’s up to the landlord on how to deal with the situation. Governors in many states have pleaded with landlords to show leniency, but they aren’t required by law to do so.
That being said, landlords who have mortgages on properties they rent that are backed by the federal government could receive a forbearance on monthly payments as long as they don’t evict their tenants.
While many cities and states around the country halted evictions last month, there’s nothing stopping landlords from tacking on costly late fees or from eventually evicting tenants who don’t pay their rent for a few months in a row.
Many economists predicted that this situation would happen around the country once the calendar flipped to April. With jobless claims piling up, it’s hard to imagine many people have a huge stockpile of extra cash to pay for all their bills that come due.
It’s part of the reason the federal government wanted to hurry up and pass the stimulus bill, and get direct checks into the hands of Americans asap. And even though that money is coming soon, it probably won’t sustain most people for very long. That means that even if many of these people who missed rent in April end up paying this month, they could be in for the same situation when May 1 rolls around.