If you’re an independent landlord, or you represent one, June’s rent payment numbers might catch your attention.
According to Chandan Economics’ latest monthly tracker, only 84.3% of independently managed rental units were paid on time last month. That’s down 85 basis points from May and marks a 23-month streak of year-over-year declines in on-time payment rates. The report, based on data from RentRedi covering 73,502 units, shows a clear downward trend that landlords can’t afford to ignore.
Chandan also revised May’s figures downward, now showing an 85.2% on-time rate instead of the originally reported 85.5%. Combined, this means on-time payments have dropped more than 150 basis points over just three months.
The broader picture looks even more concerning. The forecast full-payment rate, a more complete measure including expected late payments, dropped to 94.0%, a new low not seen since the pandemic-era economy in early 2021.
Property type matters here. Rentals in 2-4 unit properties did slightly better, with an 84.6% on-time rate, just ahead of single-family rentals at 84.3%. Larger multifamily properties fared worse at 83.6%.
Geography also played a big role. Landlords in the Western U.S. continued to outperform, with Montana, Utah, Hawaii, Alaska, and Idaho leading the pack. Montana, in particular, posted a standout 93.5% on-time rate. But not everyone saw gains, Vermont, Nevada, and Kansas were hit hardest year-over-year, each losing over 500 basis points.
Chandan attributes this worsening payment trend to broader economic pressures, including resumed student loan repayments and a 15% spike in credit card delinquencies over the past year. The takeaway? More tenants are stretched thin, and mom-and-pop landlords are feeling it.