NBOA Renter Survey
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- Category: Latest News
The results are in! And the answer is?
The pain of the on-going eviction moratorium is still being widely felt across the real estate industry and likely to get worse before it gets better.
Let’s start this discussion with an acknowledgement that the COVID-19 pandemic is real and that its impact on millions of people, particularly renters, has been devastating.
But the attempts of many in the political class to paint this issue as purely a tenant problem for property owners to solve is both false and unfair. The pain of the pandemic is being shared by property owners too. Small owners especially are as dependent on monthly rental income to pay their mortgages, operating expenses and property maintenance costs as tenants are dependent on their monthly paychecks to make rent.
The Neighborhood Building Owners Alliance (NBOA) which represents many small property owners in the greater Chicago area recently surveyed its members to assess the impact of the eviction moratorium and the general effects of the pandemic. The results were not surprising to those who own or manage rental properties.
Rent collections have fallen, and a small but not trivial segment of tenants has figured out that they can take advantage of the Governor’s moratorium to stop paying rent with no consequences for the foreseeable future.
The Survey finds that, as of the end of September, 29% of all tenants in North Side and north suburban areas, and 44% of all tenants in South Side and south suburban areas had paid no rent or partial rent.
Forty percent of property owners report that civil unrest has made it more difficult to retain tenants – a problem that is likely accentuated for property owners in the Central Area.
Approximately one-third of property owners are not able to cover basic operating, capital and mortgage costs each month due to rent loss caused by the pandemic or the eviction moratorium.
There’s lots more to view and review in the full report which can be accesses by clicking this link. It’s well worth a look.
