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Renters Are Paying On-Time Amid COVID-19- Encouraging Moment For NMHC
COVID-19 is flattening the curve of economic growth in the U.S. The number of job losses is increasing day by day and retail businesses are going down. Amid this Coronavirus outbreak, merchants are facing huge losses in their business but, on the other side, the good news is probably lying in the lap of landlords as the renters are still paying on time.
It is a fact that the confidence of consumers is going down day by day. But, the positive aspect is that almost 92% of renters have managed to pay their rents either in parts or in full. CNBC has made this report on the basis of the data collected from the National Multifamily Housing Council.
From the perspective of digital transactions, it can also be said that the number of online payments is also enhanced.
Doug Bibby, President of National Multifamily Housing Council said. “It is encouraging that apartment residents to continue to meet their rent obligations. Whether that’s with the support of the federal relief funds, credit cards alternative, flexible options provided by the industry’s owners and operators”.
He further added. “But, their financial security is unclear. As many may not qualify for federal relief. While others are drawing down savings and facing greater financial challenges, including higher healthcare costs”.
Well, there is also some good news for the renters. Owners of single as well as multi-family properties are offering a temporary decrease in repayment and rent plans.
Willy Walker who is the CEO of commercial lender Walker & Dunlop said that his people are maintaining strong communication with the apartment owners as well as the owners each day. He also mentioned that only 1% of owners made a request for assistance on their commercial loans.
Willy Walker said. “One of the big things that many of our borrowers are doing is going out, talking to their tenants, and anyone who does have a need for rental forbearance… they are putting in repayment plans”. He also added. “Quite honestly, it is a waiting game to see what May and June and July rent look like. As it relates to how many loans come to us for forbearance and then what defaults look like come September, October, November”.
In addition to this, a report released on 30th April from the U.S. Labour Department on Thursday showed that almost 3.8 million Americans filed jobless claims last week.