Rental Performance Report for February 2025

Wondering how on-time rent payments are faring across the nation? Take a look at Chandan Economics & RentRedi’s Independent Landlord Rental Performance Report for February 2025.

Key Takeaways on Rental Performance for February 2025

As noted in Chandan’s report, here are the key takeaways on the rental performance for February 2025:

1. In February 2025, the on-time payment rate in independently operated rental units slipped by 16 basis points (bps), falling to 85.2%.
2. The forecast full-payment rate improved for the first time since October, rising to 94.9%.
3. Western states continue to hold the highest on-time payment rates in the country, led by Idaho, Utah, Colorado, New Mexico, and Alaska. 
4. 2-4-family rental properties and single-family rentals held the highest on-time payment rates in February, coming in at 85.7%.

On-time rental payments in units operated by independent landlords slid again in February. As of this month’s first estimate, 85.2% of units have successfully paid their full rental bill on time, falling by 16 basis points (bps) from the prior month. Moreover, compared to a year earlier, on-time payments are down by nearly half a percentage point (-48 bps). On-time collections have now slid in three consecutive months, with the current mark sitting at its lowest point since April 2021, when the sector was still bouncing back from the COVID-19 pandemic.

Still, this month’s update is not entirely devoid of optimism. The updated January 2025 estimate was revised higher by 37 bps, significantly lessening the severity of last month’s deterioration. Had last month’s initial estimate (85.0%) held firm, February’s first estimate would instead represent a modest improvement.